Mebane Faber Portfolios

What is the objective of these portfolio?
Mebane Faber Portfolios are based on strategies developed by Mebane Faber, a well-known investor and researcher. These portfolios utilize a systematic, rules-based approach that focuses on relative strength, momentum, and moving averages to select asset classes. The portfolios qualify as such due to their reliance on Faber's methodology for dynamically allocating across various asset classes based on recent performance trends.

What qualifies as a Mebane Faber Portfolio?
Mebane Faber Portfolios are based on strategies developed by Mebane Faber, a well-known investor and researcher. These portfolios utilize a systematic, rules-based approach that focuses on relative strength, momentum, and moving averages to select asset classes. The portfolios qualify as such due to their reliance on Faber's methodology for dynamically allocating across various asset classes based on recent performance trends.

Why is this family of portfolios rebalanced and tracked each month?
This family of portfolios was created to offer investors a tactical and disciplined approach to asset allocation. By tracking momentum and relative strength, these portfolios are designed to adapt to changing market conditions, providing a framework for those seeking a more active investment strategy that can adjust monthly. The portfolios are monitored and updated to ensure their allocation remains aligned with Faber's methodology.

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

• Faber Rel Strength: Top 1 Portfolio (t.frs1): ranks a set of 6 global asset class ETFs based on a weighted moving average of returns, then chooses the top asset class ETF. An additional test is applied based on each asset's 10-month simple moving average. This methodology is described in Mebane Faber's paper entitled "Relative Strength Strategic for Investing" (April 2010).
• Faber Rel Strength: Top 2 Portfolio (t.frs2): similar to t.frs1, except that the Top 2 asset classes are chosen each month.
• Faber Rel Strength: Top 3 Portfolio (t.frs3): similar to t.frs1, except that the Top 3 asset classes are chosen each month.
• Faber Rel Strength: Top 4 Portfolio (t.frs4): similar to t.frs1, except that the Top 4 asset classes are chosen each month.

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

• Tactical / Dynamic approach
• Rebalance frequency
• Number of funds used

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

• The top asset allocation they chose

Comparison of Mebane Faber Portfolios