Portfolio vs. 60/40 vs. S&P 500
All Data
10 Years
**S&P 500 backtest to 1972 and 60/40 backtest to 1970
Stoken's Active Combined Asset (ACA)
Details
The Active Combined Asset strategy was developed by Dick Stoken, the president of Strategic Capital Management.
Outlined in his book Survival of the Fittest for Investors, the strategy uses three channels and chooses between a risk and defensive asset class in each.
The portfolio, on average, allocates 28% to equities, 29% to bonds, and 43% to REITs and Gold.
Average Asset Allocation & Recommended ETFs
Performance Metrics
All Data
10 Years
Annual Return
10.9%
Sharpe Ratio
0.84
10 Year Annual Return
5.5%
Volatility (annualized)
9.5%
Max Drawdown
-24.7%
Positive Periods
64.6%
Dot Com Annual Return
10.1%
Great Financial Crisis Return
8.6%
Trade Frequency
Daily
Ulcer Performance Index
1.8
Strategy Rules
This strategy has the potential to trade on a daily basis.
The portfolio is broken into three equal slices.
Each slice has a risk and defensive asset with their own rules:
- Invest in the risk asset if the price at the end of the day is above the upper channel. For SPY, that would be if the price is the highest close in the last 6 months.
- Switch to the defensive asset if the price at the end of the day of the risk asset is below its lower channel. For SPY, that would be below the lowest price in the last 12 months.
- Rebalance the entire portfolio if there is a change or on the last trading day of the year.
How to Invest in the Active Combined Asset Portfolio
M1 Finance is the recommended platform to invest in this portfolio. Find out why.
