| Fund | TLT | TIP | SPY | GLD | GSG | VEA | IGOV | WIP | Cash | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| DS Beta US | 30.0% | 25.0% | 25.0% | 10.0% | 10.0% | — | — | — | — | 100.0% |
| DS Beta ROW | — | — | — | 10.0% | 10.0% | 25.4% | 37.9% | 16.7% | — | 100.0% |
| DS Protect ROW | — | — | — | 33.3% | — | 34.3% | — | 22.2% | 10.1% | 100.0% |
| DS Protect US | — | 33.3% | 33.3% | 33.3% | — | — | — | — | — | 100.0% |
| DS Global | 11.0% | 16.7% | 12.3% | 10.0% | 10.0% | 12.7% | 19.0% | 8.3% | — | 100.0% |
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Today 3/26/2022. I am releasing my official DS Beta ETF Portfolio. The weightings and ETF’s are
25%SPY
30% TLT
25% TIP
10% GLD
10% GSG
The DS Beta performance vs the 60/40 portfolio over the last 15 years including the GFC underperforms the 60/40 basket modestly. But!
Importantly it is much less risky with and 65% of the volatility of the 60/40 basket & only 74% of the worst peak to trough drawdown of the 60/40 portfolio.
The realized Sharpe Ratio for the 60/40 portfolio was 0.50 over the last 15 years with a max drawdown of 34% While the DS Beta portfolio experienced a 0.68 Sharpe Ratio and only a 25% max drawdown. For that reason, one can leverage the DSR Beta portfolio. If one were to leverage to experience the same historic volatility in the DS Beta portfolio as the 60/40 portfolio the the DS Beta Would have outperformed by 160bp per year however with slightly worse peak to trough drawdowns which occurred when oil and other commodities crashed two years ago.
This portfolio is better balanced to shifts in growth and inflation than the 60/40 portfolio and has better tail characteristics due to its holdings of gold and tips in a fiat currency devaluation. This will remain my basic DS Beta portfolio and it will serve as the Benchmark for the “Smart Beta” portfolio to judge the performance of the Smart Beta Shifts I make. The Smart Beta product will adjust the proportions of the existing benchmark and lever or raise cash More on smart beta in weeks to come and hopefully you have questions on DS Beta ETF portfolio introduced today 3/26/2022
