February Portfolio Update

Updated: Mar 7

Part of the new changes I like to make to this blog is to start including some of the portfolio updates on a monthly basis to see how it performs against standard benchmark index (eg. S&P 500), starting from January 2021.


In my Patreon page, I have highlighted to the patrons a diversified and uncorrelated portfolio which I have constructed with the purpose of outperforming the S&P 500 over time. This portfolio is passive, which means you do not have to actively manage the constituents of the portfolios by adding/removing them regularly. In fact, you do not even need to rebalance the portfolio too frequently. The idea is to buy and hold your positions, and only rebalance it on an annual basis.


I have update the results of this portfolio in January on my Patreon Page, Facebook Community and Facebook Page. In this you are not on any of it (which you should really be on them), here are the results in January.

(Source: Portfolio Visualizer)


My Portfolio: +5.44%

Vanguard 500 Index: -1.02%


It was a relatively good month as the Vanguard 500 Index is facing a small decline while my portfolio was up more than 5%.


Now, let's see what happens in February.

(Source: Portfolio Visualizer)


(Source: Portfolio Visualizer)


My Portfolio YTD: +7.55%

Vanguard 500 Index YTD: +1.71%


To be honest, I was expecting a bigger performance from my portfolio. At the mid point mark of February, my portfolio was up more than 15%. The bloodshed on the last week of February greatly diminished the returns. Still, it outperforms Vanguard 500 Index and I'm still happy with it.


Going deeper into the details, I'm also happy that this higher annual return is coupled with less standard deviation than that of Vanguard 500 Index. This means that my portfolio is getting a higher return with less risk, which explains the very high sharpe ratio of 6.4. Of course, this sharpe ratio is not going to be accurate since it has only been two months. It will be interesting to see how this sharpe ratio changes on a monthly basis.


If you are interested to know what make up this portfolio, you can sign up and be a patron! This information will only be available to the patrons.


Till the next time.


Last but not least.. please scroll down and subscribe for regular content if you like what you read!

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