https://engineeredportfolio.com/2025/12/28/achieve-financial-freedom-the-importance-of-the-number/https://engineeredportfolio.com/wp-content/uploads/2025/11/image-5.pngimagehttps://engineeredportfolio.com/wp-content/uploads/2025/11/image-4.pngimagehttps://engineeredportfolio.com/wp-content/uploads/2025/11/image-3.pngimagehttps://engineeredportfolio.com/wp-content/uploads/2025/11/image-2.pngimagehttps://engineeredportfolio.com/wp-content/uploads/2025/11/image-1.pngimagehttps://engineeredportfolio.com/wp-content/uploads/2025/11/image.pngimage2025-12-28T13:51:37+00:00monthlyhttps://engineeredportfolio.com/2025/10/23/envision-your-financial-future-and-plan-how-to-get-there-with-a-portfolio-of-portfolios/https://engineeredportfolio.com/wp-content/uploads/2025/10/custodial-ira.pngcustodial-irahttps://engineeredportfolio.com/wp-content/uploads/2025/10/image68.pngEnvision-Financial-Future-Portfolio-of-Portfolioshttps://engineeredportfolio.com/wp-content/uploads/2025/10/image67.pngimage(67)https://engineeredportfolio.com/wp-content/uploads/2025/10/image66.pngEnvision-Financial-Future-Portfolio-of-Portfolioshttps://engineeredportfolio.com/wp-content/uploads/2025/10/screenshot-2025-10-22-at-7.08.20-pm.pngScreenshot 2025-10-22 at 7.08.20 PMhttps://engineeredportfolio.com/wp-content/uploads/2025/10/screenshot-2025-10-22-at-6.48.09-pm.pngScreenshot 2025-10-22 at 6.48.09 PMhttps://engineeredportfolio.com/wp-content/uploads/2025/09/deploy-cash-performance2.pngDeploy-Cash-Performance(2)https://engineeredportfolio.com/wp-content/uploads/2025/09/deploy-cash-performance1.pngDeploy-Cash-Performance(1)https://engineeredportfolio.com/wp-content/uploads/2025/09/deploy1.pngDeploy(1)https://engineeredportfolio.com/wp-content/uploads/2025/09/cash-equivalents1.pngCash-Equivalents(1)2025-11-08T18:45:47+00:00monthlyhttps://engineeredportfolio.com/about/https://engineeredportfolio.com/wp-content/uploads/2016/08/apple-tree-branch-apple-fruit-52517.jpegapple-tree-branch-apple-fruit-52517https://engineeredportfolio.com/wp-content/uploads/2016/08/goran-grid-page.jpgPlaceholder Image2025-01-04T02:46:23+00:00weekly0.6https://engineeredportfolio.com/2022/02/04/this-is-not-your-parents-diversification-investment-strategy-diversification/https://engineeredportfolio.com/wp-content/uploads/2022/02/photo-1520302630591-fd1c66edc19d.jpgphoto-1520302630591-fd1c66edc19d2025-11-14T12:50:50+00:00monthlyhttps://engineeredportfolio.com/2019/03/10/get-to-know-your-small-business-401k-fiduciary-and-save-millions/https://engineeredportfolio.com/wp-content/uploads/2018/03/total-plan-cost-in-401k-plans-chart.jpgTotal-Plan-Cost-in-401k-Plans-Chart2019-03-13T11:05:53+00:00monthlyhttps://engineeredportfolio.com/2018/05/02/accelerating-dual-momentum-investing/https://engineeredportfolio.com/wp-content/uploads/2018/04/trailing-30-year-annualized-real-return.pngtrailing-30-year-annualized-real-returnThe trailinghttps://engineeredportfolio.com/wp-content/uploads/2018/04/long-term-accelerating-dual-momentum.pnglong-term-accelerating-dual-momentumComparing thttps://engineeredportfolio.com/wp-content/uploads/2018/04/accelerating-dual-momentum.pngaccelerating-dual-momentum20 year performancehttps://engineeredportfolio.com/wp-content/uploads/2018/04/screen-shot-2018-04-23-at-11-13-39-pm.pngAccelerating Dual Momentum Performancecaption edit policehttps://engineeredportfolio.com/wp-content/uploads/2018/04/screen-shot-2018-04-23-at-11-04-35-pm.pngHistorical Real Bond Returns and YieldComparing the total real return of a dollar invested in a 10-year bond fund to the yield on that 10-year treasury paints a pretty bleak picture for what we can expect.https://engineeredportfolio.com/wp-content/uploads/2018/04/market-timing.jpgMarket-TimingMarket timing is https://engineeredportfolio.com/wp-content/uploads/2018/04/screen-shot-2018-04-04-at-10-33-06-pm.pngOSMAX compared to VINEX to VFINXComparing the performance of OSMAX, VINEX, and VFINX (S&P 500) in Morningstar shows that the twohttps://engineeredportfolio.com/wp-content/uploads/2018/04/screen-shot-2018-04-04-at-10-28-11-pm.pngCompare OSMAX to VINEXComparing OSMAX to VINEX in Morningstar shows that the two track each other fairly well in the https://engineeredportfolio.com/wp-content/uploads/2018/04/10-year-treasury-bond-rate-yield-chart-2018-04-01-macrotrends.png10-year-treasury-bond-rate-yield-chart-2018-04-01-macrotrendsTreasuryhttps://engineeredportfolio.com/wp-content/uploads/2018/03/relative-performance.pngrelative-performanceThe strategy's performance relative to the S&P 5002024-09-21T19:44:53+00:00monthlyhttps://engineeredportfolio.com/2018/02/25/the-basics-of-behavioral-finance-tips-and-tricks-to-combat-your-cave-man-brain/https://engineeredportfolio.com/wp-content/uploads/2017/10/nature-walking-animal-strong.jpgnature-walking-animal-strong2018-03-03T11:24:18+00:00monthlyhttps://engineeredportfolio.com/2017/07/30/which-country-has-the-best-stock-market/https://engineeredportfolio.com/wp-content/uploads/2017/07/performance-risk-metrics-us-vs-sweden-south-africa-australia.jpgperformance-risk-metrics-us-vs-sweden-south-africa-australiaDifferent performance and risk metrics are computed and plotted to compare the four different country stock marketshttps://engineeredportfolio.com/wp-content/uploads/2017/07/us-sweden-south-africa-australia-annual-returns-equities.jpgus-sweden-south-africa-australia-annual-returns-equitiesNominal (before inflation) returns of four different country stock markets: United States, Australia, Sweden, and South Africa are compared. Also computed are the trailing 3 and 10 year annualized returns with coloring to indicate relative performance.https://engineeredportfolio.com/wp-content/uploads/2017/07/country-breakdown-msci-emerging-markets.jpgcountry-breakdown-msci-emerging-marketsBreakdown of the MSCI EAFE and MSCI emerging markets indexes by country size is provided by iShares.https://engineeredportfolio.com/wp-content/uploads/2017/07/country-market-cap-breakdown-world-stocks.jpgcountry-market-cap-breakdown-world-stocksSize of different country stock markets as a percentage of the entire world stock market is presented from Credit Suisse.https://engineeredportfolio.com/wp-content/uploads/2017/07/country-equity-returns.jpgcountry-equity-returnsThe annualized real returns for different countries are presented for 3 different time periods.https://engineeredportfolio.com/wp-content/uploads/2017/07/country-equity-returns-risk-adjusted-1900-2016.jpgcountry-equity-returns-risk-adjusted-1900-2016The geometric mean (annualized return), arithmetic (simple average), standard deviation of annual returns are presented as calculated by Credit Suisse. A fourth column calculates a simple risk adjusted return by dividing the average by the standard deviation. Conditional formatting is applied to help visualize the best performing countries.2018-12-09T10:29:31+00:00monthlyhttps://engineeredportfolio.com/2017/05/13/emerging-market-and-small-cap-outperformance-historical-comparison-of-international-equities/https://engineeredportfolio.com/wp-content/uploads/2017/05/morningstar-international-stock-performance-2017.jpgmorningstar-international-stock-performance-2017Year-to-date performance of emerging markets and international small caps have beaten US stocks and larger international.https://engineeredportfolio.com/wp-content/uploads/2017/05/cummulative-historical-annual-returns-international-equity1.jpgcummulative-historical-annual-returns-international-equityCumulative returns of international stocks are plotted from 1972 through the end of 2016. The S&P 500 and US midcap value are included for comparison.https://engineeredportfolio.com/wp-content/uploads/2017/05/historical-annual-returns-international-equity.jpghistorical-annual-returns-international-equityAnnual returns of international equities and the trailing 10 year annualized returns are shown. The best international 10 year asset class is highlighted dark green, second is highlighted light green, second worst is highlighted pink, and worst is highlighted dark red.https://engineeredportfolio.com/wp-content/uploads/2017/05/international-stock-historical-performance-summary.jpginternational-stock-historical-performance-summaryPerformance summary metrics are shown calculated off of nominal returns data from 1972 through the end of 2016.https://engineeredportfolio.com/wp-content/uploads/2017/05/international-stock-historical-correlation.jpginternational-stock-historical-correlationCorrelation of annual returns between stock asset classes shows the diversification benefits offered by small cap international and emerging markets.https://engineeredportfolio.com/wp-content/uploads/2017/05/historical-performance-international-stock-volatility-average-return.jpghistorical-performance-international-stock-volatility-average-returnThe average nominal return is plotted against the volatility (standard deviation) of annual returns for international stocks.https://engineeredportfolio.com/wp-content/uploads/2017/05/historical-performance-international-stock-downside-risk-annualized-return.jpghistorical-performance-international-stock-downside-risk-annualized-returnAnnualized returns of international stocks are plotted against the downside risk which are better returns/risk metrics.2017-07-30T19:22:45+00:00monthlyhttps://engineeredportfolio.com/investment-historical-returns-data/https://engineeredportfolio.com/wp-content/uploads/2017/05/investment-historical-returns.gifinvestment-historical-returns2017-07-16T02:22:38+00:00weekly0.6https://engineeredportfolio.com/2017/06/26/solving-the-great-diversification-debate-gold-commodities-treasuries-or-reits/https://engineeredportfolio.com/wp-content/uploads/2017/06/gold-treasuries-stocks-bonds-historical-daily-returns-metrics.pnggold-treasuries-stocks-bonds-historical-daily-returns-metricsUS stocks, bonds, gold and treasuries are compared on 8 metrics along with different portfolio combinations for nominal returns from mid-2006 through mid-2017.https://engineeredportfolio.com/wp-content/uploads/2017/06/gold-stocks-bonds-historical-daily-returns-metrics.pnggold-stocks-bonds-historical-daily-returns-metricsUS stocks, bonds, and commoditieshttps://engineeredportfolio.com/wp-content/uploads/2017/06/commodities-stocks-bonds-historical-daily-returns-metrics.pngcommodities-stocks-bonds-historical-daily-returns-metricsUS stocks, bonds, and commodities are compared on 8 metrics along with different portfolio combinations for nominal returns from mid-2006 through mid-2017.https://engineeredportfolio.com/wp-content/uploads/2017/06/reits-stocks-bonds-historical-daily-returns-metrics.pngreits-stocks-bonds-historical-daily-returns-metricsUS stocks, bonds, and REITs are compared on 8 metrics along with different portfolio combinations for nominal returns from mid-2006 through mid-2017.https://engineeredportfolio.com/wp-content/uploads/2017/06/treasuries-stocks-bonds-historical-daily-returns-metrics.pngtreasuries-stocks-bonds-historical-daily-returns-metricsAdding https://engineeredportfolio.com/wp-content/uploads/2017/06/stocks-bonds-reits-gold-commodities-treasuries-daily-correlation.jpgstocks-bonds-reits-gold-commodities-treasuries-daily-correlationCorrelation of daily returns of stocks, bonds, commodities, REITs, treasuries, and gold from mid-2006 to mid-2017.https://engineeredportfolio.com/wp-content/uploads/2017/06/gold-treasuries-commodities-reits-stocks-bonds-historical-daily-returns.pnggold-treasuries-commodities-reits-stocks-bonds-historical-daily-returnsTotal returns of US stocks, bonds, real estate, long term treasuries, commodities, and gold (not including dividends).https://engineeredportfolio.com/wp-content/uploads/2017/06/gold-treasuries-commodities-reits-stocks-bonds-historical-returns-metrics.pnggold-treasuries-commodities-reits-stocks-bonds-historical-returns-metricsfdsfsfhttps://engineeredportfolio.com/wp-content/uploads/2017/06/gold-stocks-bonds-historical-returns-metrics.pnggold-stocks-bonds-historical-returns-metricssdfdsfhttps://engineeredportfolio.com/wp-content/uploads/2017/06/commodities-stocks-bonds-historical-returns-metrics.pngcommodities-stocks-bonds-historical-returns-metricsUS stocks, bonds, and commodities are compared on 8 metrics along with different portfolio combinations for real annual returns from 1972 through 2016.2024-02-20T23:35:46+00:00monthlyhttps://engineeredportfolio.com/2017/06/25/historical-analysis-of-bond-investment-returns-performance/https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-investment-returns-correlation.jpgbonds-historical-investment-returns-correlationCorrelation matrix of nominal returns from 1976 through 2016 of bond asset classes compared to each other, stocks, and inflation.https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-investment-returns-metrics.jpgbonds-historical-investment-returns-metricsPerformance summary metrics for bonds on historical data from 1976 through the end of 2016. These metrics are real returns (after inflation).https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-worst-15-year-return-vs-max-drawdown.jpgbonds-historical-worst-15-year-return-vs-max-drawdownThe worst trailing 15 year return is plotted against the largest drawdown to illustrate how bad it has been with these assets historically.https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-average-10year-return-vs-volatility-10year-return.jpgbonds-historical-average-10year-return-vs-volatility-10year-returnCalculating the average 10 year return and volatility of those returns starts to illustrate how consistent different asset classes are.https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-annualized-return-vs-downside-risk.jpgbonds-historical-annualized-return-vs-downside-riskThe annualized real return is plotted against the downside risk (RMS of losses) to better illustrate what an investor felt during his/her investment in these assets.https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-average-return-vs-volatility.jpgbonds-historical-average-return-vs-volatilityAverage annual return plotted against the standard deviation of annual returns appears to paint a picture of a fairly efficient bond market.https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-trailing-20-year-returns.jpgbonds-historical-trailing-20-year-returnsAnnual nominal returns of bond asset classes are shown on the left, with the annualized trailing 20 year real return on the right. Conditional formatting is used to highlight the best (dark green), second best (light green), second worst (pink), and worst (dark red).https://engineeredportfolio.com/wp-content/uploads/2017/06/bonds-historical-trailing-3-year-returns.jpgbonds-historical-trailing-3-year-returnsAnnual nominal returns of bond asset classes are shown on the left, with the annualized trailing 3 year return on the right. Conditional formatting is used to highlight the best (dark green), second best (light green), second worst (pink), and worst (dark red).2018-09-03T07:28:23+00:00monthlyhttps://engineeredportfolio.com/2016/08/07/modern-portfolio-theory-and-the-efficient-frontier/https://engineeredportfolio.com/wp-content/uploads/2016/08/72_15_eps_2asset.png72_15_EPs_2assethttps://engineeredportfolio.com/wp-content/uploads/2016/08/72_15_eps.png72_15_EPs2017-05-12T12:33:36+00:00monthlyhttps://engineeredportfolio.com/2016/08/01/asset-allocation-and-the-efficient_frontier/https://engineeredportfolio.com/wp-content/uploads/2016/08/asset_allocaiton_image_2.pngAsset_Allocaiton_Image_2https://engineeredportfolio.com/wp-content/uploads/2016/08/asset_allocaiton_image_1.pngAsset_Allocaiton_Image_1https://engineeredportfolio.com/wp-content/uploads/2016/08/road-street-desert-industry.jpgroad-street-desert-industryhttps://engineeredportfolio.com/wp-content/uploads/2016/08/goran-alternate-sidebar-page.jpgPlaceholder Image2017-05-12T12:33:12+00:00monthlyhttps://engineeredportfolio.com/2016/08/05/historical-risk-return-of-stocks-bonds/https://engineeredportfolio.com/wp-content/uploads/2016/08/stocks-bonds-t-bills-risk-return-1871-20151.jpgstocks-bonds-t-bills-risk-return-1871-2015https://engineeredportfolio.com/wp-content/uploads/2016/08/stocks-bonds-risk-return-1871-20151.jpgstocks-bonds-risk-return-1871-2015https://engineeredportfolio.com/wp-content/uploads/2016/08/stocks-1972-2015.jpgstocks-1972-2015https://engineeredportfolio.com/wp-content/uploads/2016/08/bonds-1972-2015.jpgbonds-1972-20152019-04-08T15:06:41+00:00monthlyhttps://engineeredportfolio.com/2016/12/12/mid-cap-value-outperformance-consistently-beating-the-sp-500/https://engineeredportfolio.com/wp-content/uploads/2016/12/us-equity-style-box-volatility-1927-2015.jpgus-equity-style-box-volatility-1927-2015Returns per year for each US equity style box are shown going back until 1927. A trailing 20 year annualized return is shown on the right for comparison. Conditional formatting highlights the winner in dark green, second place in light green, second-to-last returning style box in pink, and worst in dark red.https://engineeredportfolio.com/wp-content/uploads/2016/12/style-box-metrics-1976-2015.jpgstyle-box-metrics-1976-2015Various metrics are shown to summarize the performance characteristics of the different US equity style boxes for the period 1976 through 2015. Conditional formatting is used to highlight the best and worst asset classes on a risk adjusted return basis.https://engineeredportfolio.com/wp-content/uploads/2016/12/correlation-matrix-us-equity-style-box-1976-2015.jpgcorrelation-matrix-us-equity-style-box-1976-2015Correlation of annual returns for the US equity style boxes are shown for the time period 1976 through the end of 2015. Treasury bills and inflation are shown for reference.https://engineeredportfolio.com/wp-content/uploads/2016/12/annual-returns-us-equity-style-box-1976-20151.jpgannual-returns-us-equity-style-box-1976-2015Annual returns from 1976 through the end of 2015 are shown for US equities; inflation and the returns of treasury bills are shown for reference. All returns include dividends. On the right the trailing 3 year annualized return is shown.https://engineeredportfolio.com/wp-content/uploads/2016/12/style-box-volatility-1976-2015.jpgstyle-box-volatility-1976-2015Volatility (standard deviation of annual returns) are shown from 1976 through the end of 2015. Conditional formatting highlights the best performers (least risk) in green and the worst performers (most risk) in red.https://engineeredportfolio.com/wp-content/uploads/2016/12/style-box-risk-return-1976-2015.jpgstyle-box-risk-return-1976-2015https://engineeredportfolio.com/wp-content/uploads/2016/12/mid-cap-value-small-cap-value-s-p-500-comparison.jpgmid-cap-value-small-cap-value-s-p-500-comparisonhttps://engineeredportfolio.com/wp-content/uploads/2016/12/style-box-downside-risk-1976-2015.jpgstyle-box-downside-risk-1976-2015Downside risk (RMS of annual losses to treasury bills) are shown from 1976 through the end of 2015. Conditional formatting highlights the best performers (least risk) in green and the worst performers (most risk) in red.https://engineeredportfolio.com/wp-content/uploads/2016/12/style-box-annualized-real-return-1976-2015.jpgstyle-box-annualized-real-return-1976-2015Annualized real returns (after inflation) are shown from 1976 through the end of 2015. Conditional formatting highlights the best performers in green and the worst performers in red.https://engineeredportfolio.com/wp-content/uploads/2016/12/equity-historical-performance-1976-2015-standard-deviation.jpgequity-historical-performance-1976-2015-standard-deviation2023-09-09T22:20:05+00:00monthlyhttps://engineeredportfolio.com/2016/12/17/historical-performance-of-us-equity-sectors/https://engineeredportfolio.com/wp-content/uploads/2016/12/health-care-valuation-q4-2016.jpghealth-care-valuation-q4-2016Health care is currently undervalued relative to their historical average. This has presented a buying opportunity for long term investors.https://engineeredportfolio.com/wp-content/uploads/2016/12/s-and-p-400-sectors-historical-performance.jpgs-and-p-400-sectors-historical-performancePerformance of S&P 400 (mid-cap) sectors are plotted for the last 10 years. This data is available on the S&P website, up to 5 indexes can be compared at once: http://us.spindices.com/indices/equity/sp-400https://engineeredportfolio.com/wp-content/uploads/2016/12/us-equity-sector-historical-correlation-matrix-1976-20151.jpgus-equity-sector-historical-correlation-matrix-1976-2015The correlation matrix of US sectors for the time period of 1976 through 2015 is shown. The closer the correlation is to 1, the more likely it is that these asset classes move in the same direction with each other. A negative correlation means that as one asset moves up, the negatively correlated asset will move down.https://engineeredportfolio.com/wp-content/uploads/2016/12/us-sector-historical-annual-returns-20-year-annualized-1976-2015.jpgus-sector-historical-annual-returns-20-year-annualized-1976-2015Annual returns for each sector are shown compared to the S&P 500, inflation, and treasury bills from 1976 through 2015. The returns are nominal (before inflation). On the right hand side of the table, the trailing 20 year annualized return is computed to clean up the comparison. The winner for that previous 20 year period is highlighted green, loser highlighted red. Second place is highlighted light green, second worst is highlighted pink.https://engineeredportfolio.com/wp-content/uploads/2016/12/us-equity-sector-annualized-return-downside-risk-1976-2015.jpgus-equity-sector-annualized-return-downside-risk-1976-2015Annualized real returns of US stock sectors are plotted against downside risk (RMS of losses to US treasuries) from 1976 through 2015. This starts to paint a glaring picture for the benefits of investing in consumer staples.https://engineeredportfolio.com/wp-content/uploads/2016/12/us-equity-sector-annualized-return-volatility-1976-2015.jpgus-equity-sector-annualized-return-volatility-1976-2015Annualized real returns of different US sectors are plotted against volatility (standard deviation of annual returns) for the time period 1976 through 2015.https://engineeredportfolio.com/wp-content/uploads/2016/12/us-equity-sector-historical-performance-metrics-1976-2015.jpgus-equity-sector-historical-performance-metrics-1976-2015Performance metrics of the US equity sectors are shown. All returns are shown after inflation (real returns). Conditional formatting is used to highlight the highest returning sectors, and sectors that offer the highest risk adjusted return using the Sharpe and Sortino ratio.https://engineeredportfolio.com/wp-content/uploads/2016/12/us-sector-historical-annual-returns-1976-2015.jpgus-sector-historical-annual-returns-1976-2015Annual returns for each sector are shown compared to the S&P 500, inflation, and treasury bills from 1976 through 2015. The returns are nominal (before inflation). On the right hand side of the table, the trailing 3 year annualized return is computed to clean up the comparison. The winner for that previous 3 year period is highlighted green, loser highlighted red.https://engineeredportfolio.com/wp-content/uploads/2016/12/consumer-staples-healthcare-s-and-p-500-comparison.jpgconsumer-staples-healthcare-s-and-p-500-comparisonFidelity's Select Consumer Staples (FDFAX) and Health Care (FSPHX) performance from mid 1985 to now is shown compared to the S&P 500.2023-09-09T22:12:10+00:00monthlyhttps://engineeredportfolio.com/2016/12/22/6-reasons-the-mid-cap-value-index-is-constructed-to-outperform/https://engineeredportfolio.com/wp-content/uploads/2016/12/middle-of-mid-small-cap-value.jpgmiddle-of-mid-small-cap-valueConstructing an index that tracks the mid-cap value and small-cap value stocks of the S&P 1500 effectively ties the S&P 400 (mid-cap) value index. But if we take the middle 60 stocks in this "engineered" index, we are able to squeeze out an additional 1% of risk-adjusted performance.https://engineeredportfolio.com/wp-content/uploads/2016/12/s-p-33-middle-of-largest-100.jpgs-p-33-middle-of-largest-100The middle 33 companies out of the S&P 100 (mega-caps) outperform the full index, offering an alpha of 1%. This outperformance is achieved by buying/selling the middle 33 every month and weighting based on market cap.https://engineeredportfolio.com/wp-content/uploads/2016/12/s-p-167-middle-of-500.jpgs-p-167-middle-of-500Using Quantopian an index is constructed that tracks the middle 167 companies of the S&P 500. The top plot shows the same functionality/code but buying all 500 companies to prove the validity of the test. In the below image, the middle 167 are bough/sold monthly and weighted based on market cap.https://engineeredportfolio.com/wp-content/uploads/2016/12/mid-cap-value-exit1.jpgmid-cap-value-exitStocks exit the mid-cap value universe by one of three directions. Two of which are caused by price and/or valuation increases relative to its peers. Only one exit will be "selling low."https://engineeredportfolio.com/wp-content/uploads/2016/12/mid-cap-value-entrance.jpgmid-cap-value-entranceStocks enter the mid-cap value universe by one of three directions. Two of which are caused by price and/or valuation reduction relative to its peers. Only one entry will be "buying at a peak" but this will be a company which is smaller and undervalued relative to its peers.2017-05-12T12:32:03+00:00monthlyhttps://engineeredportfolio.com/2016/12/29/engineering-an-index-fund/https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-indexes-downside-risk-annualized.jpgengineered-indexes-downside-risk-annualizedThe annualized return is plotted against the downside risk of monthly returns (RMS of monthly losses).https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-indexes-volatility.jpgengineered-indexes-volatilityThe average monthly return is plotted against the volatility of monthly returns to illustrate the risk-return relationship of these indexes compared to the S&P 500 and S&P 400 value.https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-indexes-alpha-beta2.jpgengineered-indexes-alpha-betaTrailing 12 month alpha and beta of our indexes are compared to the S&P 500. All three of these indexes have offered consistently positive alpha. https://engineeredportfolio.com/wp-content/uploads/2016/12/returns-engineered-index2.jpgreturns-engineered-indexCumulative returns of the three engineered indexes versus the S&P 500 and S&P 400 value indexes. These returns include dividends; but do not include taxes or transaction costs. Note that the plot is on a logarithmic scale, base 10.https://engineeredportfolio.com/wp-content/uploads/2016/12/number-of-securities-us-equities-risk.jpgnumber-of-securities-us-equities-riskThe number of holdings in a portfolio is proportional to the amount of risk/variance in the portfolio. But it isn't a linear relationship. This image is from a presentation available here: http://slideplayer.com/slide/6068085/ FIGURE 4-2 The effect of number of securities on risk of the portfolio in the United States[13]. Elton, Gruber, Brown, and Goetzman: Modern Portfolio Theory and Investment Analysis, Sixth Edition © John Wiley & Sons, Inc. https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-5-stock-index.jpgengineered-5-stock-indexAn index of only 5 stocks, monthly rebalanced and market cap weighted, in mid or small value, decent fundamentals, and either the health care / consumer staples / consumer cyclical / energy sectors has offered significant returns without requiring much more risk (in historical data).https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-10-stock-index-2.jpgengineered-10-stock-index-2A 10 stock engineered index in consumer staples, health care, consumer discretionary, and energy stocks have offered a 13% alpha over the S&P 500.https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-10-stock-sector-correlation.jpgengineered-10-stock-sector-correlationThe correlation of our 4 main engineered sector indexes highlights how independent they move to one another.https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-sector-correlation.jpgengineered-sector-correlationCorrelation of monthly returns of our engineered sector indexes is shown.https://engineeredportfolio.com/wp-content/uploads/2016/12/engineered-sector-index-downside-risk.jpgengineered-sector-index-downside-riskAnnualized returns of each engineered sector index compared to their downside risk of monthly returns is shown.2023-08-03T01:50:27+00:00monthlyhttps://engineeredportfolio.com/2017/03/11/the-corrosive-nature-of-investment-fees/https://engineeredportfolio.com/wp-content/uploads/2017/03/morngingstar1.jpgmorngingstarhttps://engineeredportfolio.com/wp-content/uploads/2017/03/morngingstar.jpgmorngingstarhttps://engineeredportfolio.com/wp-content/uploads/2017/03/pexels-photo-25637.jpgpexels-photo-25637https://engineeredportfolio.com/wp-content/uploads/2017/03/fee_cumulative.jpgFEE_CUMULATIVE2019-04-04T15:17:45+00:00monthlyhttps://engineeredportfolio.com/2017/01/16/engineering-a-balanced-index-fund/https://engineeredportfolio.com/wp-content/uploads/2017/01/screen-shot-2017-05-11-at-8-48-09-pm.pngDownload Engineered Portfolio Spreadsheethttps://engineeredportfolio.com/wp-content/uploads/2017/01/engineered-balanced-index-fund-alpha-beta.jpgengineered-balanced-index-fund-alpha-betaThe trailing 12 month alpha and beta of our asset allocation index funds compared to the broad S&P 500 since 2007. Very low risk with a beta of 0.5 has been consistently required of the investor; yet he/she would have earned a consistent outperformance that would match or beat the S&P 500.https://engineeredportfolio.com/wp-content/uploads/2017/01/engineered-balanced-index-fund-downside-risk-annualized.jpgengineered-balanced-index-fund-downside-risk-annualizedThe downside risk of monthly returns and the annualized return is plotted for the major asset classes along with our asset allocation models. The asset allocation funds/indexes have exhibited the same or more return compared to the S&P 500, yet they have exhibited remarkably lower risk.https://engineeredportfolio.com/wp-content/uploads/2017/01/engineered-balanced-index-fund-volatility-average-return.jpgengineered-balanced-index-fund-volatility-average-returnThe monthly volatility and average return is plotted for the major asset classes along with our asset allocation models. The asset allocation funds/indexes have exhibited the same or more return compared to the S&P 500, yet they have exhibited remarkably lower risk.https://engineeredportfolio.com/wp-content/uploads/2017/01/engineered-balanced-index-fund-cumulative-return.jpgengineered-balanced-index-fund-cumulative-returnCumulative returns of our engineered indexes when other uncorrelated asset classes are added compared to the broad S&P 500 index.https://engineeredportfolio.com/wp-content/uploads/2017/01/engineered-indexes-asset-classes-cumulative-return.jpgengineered-indexes-asset-classes-cumulative-returnCumulative returns of our engineered indexes compared to other major asset classes is shown from the beginning of 2007. Note that the y axis is on a logarithmic base 2 plot, each line represents an order of 2 gain/loss on the one above/below it.2019-03-24T23:04:03+00:00monthlyhttps://engineeredportfolio.com/blog/https://engineeredportfolio.com/wp-content/uploads/2016/08/alternate-sidebar1.jpgPlaceholder Image2016-08-27T11:48:21+00:00weekly0.6https://engineeredportfolio.com/contact/https://engineeredportfolio.com/wp-content/uploads/2016/08/airplane-jet-aviation-aircraft.jpgairplane-jet-aviation-aircrafthttps://engineeredportfolio.com/wp-content/uploads/2016/08/goran-full-width-page.jpgPlaceholder Image2016-08-02T01:35:32+00:00weekly0.6https://engineeredportfolio.comdaily1.02025-12-28T13:51:37+00:00