VA Portfolio Update

I have just updated the Value Averaging Model Portfolio's.

There are 5 Model Portfolios to follow:

VA Growth Strategy
VA Internet Strategy
VA Market Sectors Strategy
VA Market Index Strategy
VA Small Cap Strategy

The portfolio's are all performing very well exactly as I expected, and they are meeting their annual target rate of return. 

The Internet Strategy model has performed the best out of all the models and since December 2011 has produced a annualized compound rate of return of 25.4%Click here to see the performance in real time.

While most mutual funds managers or portfolio managers are paid to try to beat a benchmark index, we take a different approach in that we try to meet or exceed a set target rate of return consistently on an annual basis. The benchmark for the model is therefore not an index such as the S&P 500 but a fixed percentage return. This return is based on the historical long term return for that specific asset class plus inflation. For example, for Small Cap stocks it is 12% and for Technology Stocks it is 15%. If an index is beating the fund, we really don't care because eventually the index will regress to it's long term historical average.

I have added a recently published research study to the website called Performance Comparison between Dollar Cost Averaging and Value Averaging Investment Strategies and the Impacts of Investment Horizon and Target Terminal Wealth.  According to the findings, with increased length of investment horizon and/or lowered target terminal wealth, the Value Averaging (VA) investment strategy will have better performance than the Dollar Cost Averaging investment strategy.

If you have a specific stock/ETF that you would like to see how it would have performed using VA over a 5 year time frame, just send me an email request with the symbol and I will run the analysis and send you a report.