Savings Flagship

Thesis: This portfolio provides a safe place to park your cash and earn historically high interest rates.

Portfolio construction: It invests in a treasury bill ETF. The returns of a treasury bill ETFs closely track the returns of a basket of the short term debt of the United States government. This debt is widely viewed as a safe investment because the debt is fully guaranteed by the U.S. government, and the debt held is only a few months from maturing.

Risks: While treasury ETFs are generally viewed as low-risk, they are not completely risk free. Changes in short-term interest rates may cause the portfolio to lose value. The portfolio may also lose value if the U.S. government defaults on its debt, or credibly threatens to do so.

Classic 60/40

Thesis: This portfolio offers a passive and diversified blend of approximately 58% equities and 42% bonds, reflecting a moderate investing profile combining the growth potential of equities with the relative stability and income-generation of bonds. The portfolio attempts to achieve an extremely high level of diversification at low cost through the use of low-cost ETFs. Portfolio rebalancing is rules-based; we do not attempt to gain alpha through timing.

Portfolio construction: We invest in several ETFs with target weights as follows:

1. SPY (18%), tracking the S&P 500 index of large U.S. stocks
2. SPMD (7%), tracking the S&P MidCap 400 index of medium-sized U.S. stocks
3. SPSM (5%), tracking the S&P SmallCap 600 index of small US stocks
4. BND (22%), tracking the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, which is composed of a broad range of U.S. investment-grade bonds
5. SPHY (10%), tracking the ICE BofA U.S. High Yield Index of U.S. high-yield corporate bonds
6. BNDX (10%), tracking the Bloomberg Global Aggregate ex-USD Float adjusted RIC Capped Index (USD Hedged) of investment-grade bonds from non-U.S. issuers.
7. VWO (8%), tracking the FTSE Emerging Markets All Cap China A Inclusion index, containing the stock of broad range of companies located in emerging markets
8. VEA (20%), tracking the FTSE Developed All Cap ex US Index, composed of stocks from developed markets other than the U.S.

Over time, the differing performances of these ETFs will cause the portfolio weights to drift away from their targets, leading to the need to occasionally rebalance the portfolio. We employ a “tolerance band” approach to rebalancing designed to minimize transaction costs while keeping weights close to their targets. A rebalance is triggered when any asset weight differs from its target by a factor of 0.2 or more. When a rebalance is triggered, we trade so that every weight is within a factor of 0.1 from its target. In our backtests, a rebalance is triggered less than once a year on average.

Risks: This portfolio contains a mix of U.S. and international stocks and bonds and as such is exposed to declines in any of these markets. Investors should note the special risks of international investing, including currency risk, political risk, and differences in regulatory and accounting standards. Emerging markets in particular come with higher volatility and risk. Owning a mix of these assets has historically provided diversification benefits, but we cannot know to what extent that will continue to be the case in the future.

BackTest:

• Backtest Period: July 15 2013 - May 18th, 2023
• Backtest Avg Returns: 5.7%

The following analysis contains simulated or hypothetical performance results that have certain inherent limitations. Unlike actual performance records, simulated results do not represent actual trading and may not reflect the impact of material economic and market factors on decision-making.

The backtested results are based on our access to the available dataset at the time of the analysis. The backtest period is determined by the historical data made accessible to us, and as such, the results are contingent on the completeness and accuracy of this dataset. Users should be aware that the backtested period may not encompass all market conditions, and the results may be sensitive to the specific time frame under consideration.

Additionally, it's important to note that past performance is not indicative of future results. The results are provided for informational purposes only and should not be considered as investment advice. Actual performance may vary significantly from the simulated results. Users are advised to exercise caution and conduct thorough research before making any investment decisions.

Growth Flagship

Thesis: This portfolio offers a passive and diversified blend of approximately 85% equities and 15% bonds, reflecting a aggressive investing profile combining the growth potential of equities with the relative stability and income-generation of bonds. The portfolio attempts to achieve an extremely high level of diversification at low cost through the use of low-cost ETFs. Portfolio rebalancing is rules-based; we do not attempt to gain alpha through timing.

Portfolio construction: We invest in several ETFs with target weights as follows:

1. SPY (27%), tracking the S&P 500 index of large U.S. stocks
2. SPMD (11%), tracking the S&P MidCap 400 index of medium-sized U.S. stocks
3. SPSM (7%), tracking the S&P SmallCap 600 index of small US stocks
4. BND (5%), tracking the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, which is composed of a broad range of U.S. investment-grade bonds
5. SPHY (5%), tracking the ICE BofA U.S. High Yield Index of U.S. high-yield corporate bonds
6. BNDX (5%), tracking the Bloomberg Global Aggregate ex-USD Float adjusted RIC Capped Index (USD Hedged) of investment-grade bonds from non-U.S. issuers.
7. VWO (15%), tracking the FTSE Emerging Markets All Cap China A Inclusion index, containing the stock of broad range of companies located in emerging markets
8. VEA (25%), tracking the FTSE Developed All Cap ex US Index, composed of stocks from developed markets other than the U.S.

Over time, the differing performances of these ETFs will cause the portfolio weights to drift away from their targets, leading to the need to occasionally rebalance the portfolio. We employ a “tolerance band” approach to rebalancing designed to minimize transaction costs while keeping weights close to their targets. A rebalance is triggered when any asset weight differs from its target by a factor of 0.2 or more. When a rebalance is triggered, we trade so that every weight is within a factor of 0.1 from its target. In our backtests, a rebalance is triggered less than once a year on average.

Risks: This portfolio contains a mix of U.S. and international stocks and bonds and as such is exposed to declines in any of these markets. Investors should note the special risks of international investing, including currency risk, political risk, and differences in regulatory and accounting standards. Emerging markets in particular come with higher volatility and risk. Owning a mix of these assets has historically provided diversification benefits, but we cannot know to what extent that will continue to be the case in the future.

BackTest:

• Backtest Period: July 15 2013 - May 15th, 2023
• Backtest Avg Returns: 7.0%

The following analysis contains simulated or hypothetical performance results that have certain inherent limitations. Unlike actual performance records, simulated results do not represent actual trading and may not reflect the impact of material economic and market factors on decision-making.

The backtested results are based on our access to the available dataset at the time of the analysis. The backtest period is determined by the historical data made accessible to us, and as such, the results are contingent on the completeness and accuracy of this dataset. Users should be aware that the backtested period may not encompass all market conditions, and the results may be sensitive to the specific time frame under consideration.

Additionally, it's important to note that past performance is not indicative of future results. The results are provided for informational purposes only and should not be considered as investment advice. Actual performance may vary significantly from the simulated results. Users are advised to exercise caution and conduct thorough research before making any investment decisions.