Thanks to Charles Lynn Bolin for his attention over the past year+ to screening and using defensive funds to better position portfolios for this high valuation/low interest rate environment. I’m curious if he and/or others who may have added defensive funds over the past year think of their performance, and what you may have learned. Here are funds I’ve selected a year ago for my defensive sleeve, with some thoughts/questions. Thanks in advance for sharing. I do swap funds occasionally, and slowly, but prefer a more Buy and Hold approach.
CTFAX: I bought it when it was positioned more aggressively, now it is almost a cash sub. Very pleased.
GAVAX: I bought it for its very compelling risk stats. It seems to be rate sensitive? performance so-so. Thoughts currently?
SWAN: It proved itself to me in the downturns. Recent performance has been better, concerned with rate sensitivity with all its Treasuries. I don’t think it should categorized with equities, although it does capture a portion of the S&P returns.
TRSMX: Steady alt, like its safety. Considering adding another alt fund, ARBIX?
I cap my % in any one fund to 10%, so there is some diversification in this sleeve as well. I also have GIBLX as a high quality ballast bond fund, which is rate sensitive. Not sure I might trade for another in the defensive sleeve and continue reducing my bond holdings.
I do hold 40% in equity sleeve, which I reduced from 60% to further position defensively. I am investing for growth, not income, but am considering DIVO, HNDL, JEPI others for their risk/reward profiles…just not sure how to consider these in terms of portfolio allocation, perhaps income bond sleeve (even though income would be reinvested)?
Thanks in advance for sharing,