Adaptive Allocation Portfolios

What is the objective of these portfolio?
These portfolios aim to optimize risk-adjusted returns by dynamically adjusting asset allocations in response to changing market conditions. The goal is to provide a balanced approach to risk and return by utilizing tactical strategies that react to market momentum and volatility.

What qualifies as an Adaptive Allocation Portfolio?
Adaptive Allocation Portfolios are characterized by their use of tactical, dynamic asset allocation strategies. Unlike static portfolios, these portfolios regularly adjust the weighting of asset classes based on market signals such as momentum and volatility. This adaptive approach enables investors to capture upside potential while minimizing downside risks.

Why is this family of portfolios rebalanced and tracked each month?
The Adaptive Allocation Portfolios were created to offer investors a more responsive investment strategy that evolves with the market. By monitoring and adjusting allocations monthly, these portfolios aim to enhance performance and reduce risk. RecipeInvesting tracks this family to provide access to a sophisticated, data-driven methodology that can help investors stay agile in ever-changing markets.

What portfolio recipes are included in the Adaptive Allocation Portfolios family?
RecipeInvesting tracks the following Portfolio Recipes in the category of Adaptive Allocation Portfolios:

• Adaptive Allocation A Portfolio (t.aaaa): chooses the top 5 ETFs from a universe of 9 asset class ETFs based on total return, then allocates to each ETF to minimize the portfolio's volatility with a minimum variance algorithm using standard deviation.
• Adaptive Allocation B Portfolio (t.aaab): chooses the top 4 ETFs from a universe of 9 asset class ETFs based on total return, then allocates to each ETF to minimize the portfolio's volatility with a minimum variance algorithm using standard deviation.
• Adaptive Allocation C Portfolio (t.aaac): chooses the top 4 ETFs from a universe of 9 asset class ETFs based on total return, then allocates to each ETF to minimize the portfolio's volatility with a minimum variance algorithm using standard deviation.
• Adaptive Allocation D Portfolio (t.aaad): chooses the top 3 ETFs from a universe of 9 asset class ETFs based on total return, then allocates to each ETF to minimize the portfolio's volatility with a minimum variance algorithm using standard deviation.
• Adaptive Allocation E Portfolio (t.aaae): chooses the top 4 ETFs from a universe of 9 asset class ETFs based on total return, then allocates to each ETF to minimize the portfolio's volatility with a minimum variance algorithm using standard deviation.
• Adaptive Allocation F Portfolio (t.aaaf): chooses the top 5 ETFs from a universe of 9 asset class ETFs based on total return, then allocates to each ETF to minimize the portfolio's volatility with a minimum variance algorithm using standard deviation.

What do Adaptive Allocation Portfolios have in common?
All of the Portfolio Recipes in the Adaptive Allocation Portfolios Family share the following characteristics:

• Tactical / Dynamic approach
• Monthly rebalance frequency
• Type of funds used: U.S. Large Cap Equity, U.S. Small Cap Equity, NASDAQ 100 Equity, U.S. Real Estate, U.S. Long Term Treasury Bonds, Emerging Markets Equity, International Developed Markets Equity, Gold, and Commodities.

How do Adaptive Allocation Portfolios differ?
Despite their similarities, Portfolio Recipes in the Adaptive Allocation Portfolios Family can differ based on these attributes:

• Number of ETFs used
• The number of days in the lookback period

Comparison of Adaptive Allocation Portfolios