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Curious how that VXX is treating your portfolio now. What’s your rebalancing approach given the vol spike?
It was the only part of the portfolio in profit during the vol spike but it was not enough to make a dent in the simultaneous losses from both the equity and bond portions.
All 3 portions are now in the red.
I don't run the portfolio with VXX. In the calculations/simulations, I assumed monthly rebalance at the end of the month. I wouldn't want to do anything much more frequently.
Maybe someone who's actually running this can weigh in...
I thought your article ran simulations for 47/47/6 equity/bond/VXX, 50/50 equity/bond, and 40/54/6 equity/bond/VXX?
Or do you mean you're running this portfolio yourself and you don't have a VXX portion?
Would contributing money from my paycheck every fortnight count as rebalancing too frequently?
@bob-jane I'm not running any of the Equity/Bond/VXX strategies myself.
Contributions are totally fine. And you can contribute to the most underrepresented asset and partially "rebalance" that way every 2 weeks. But anything that requires trading in and out I'd do less frequently! 🙂
A quick update during today's volatility. With the S&P 500 futures currently tanking approx. 2%, the leveraged portfolio has actually made some small gains thanks to TMF and VIXY.
Seeing TMF and VIXY slowly lose money over time as the stock market rallied really tested my resolve but it's days like this that I see how it provides psychological support to stay the course.
Overall though, the 3x leverage portfolio is still lagging a 100% S&P 500 portfolio.
@bob-jane Thanks for the update! The TMF and VIXY shine when the S&P tanks, so I'm not surprised that the leveraged portfolio is not that successful right now. Time will tell...