It’s March! And time for another update on my Grow Your Dough Throwdown portfolio. You may remember that at the beginning of the year I entered a challenge to grow $1,000 in the markets. I decided to take a combined approach using passive and active methods.
Even though it is not an even split, I decided to call my portfolio the Gemini Portfolio. It’s a little of this and a little of that. Sometimes balanced and sometimes not as we Gemini’s can be.
Where is the Benchmark?
Year to date, the S&P 500 is up +0.96% annualized. I am benchmarking against the Total Return index which includes reinvested dividends. I reinvest my dividends as well so this index is more appropriate to use than the net or price returns. This performance is directly from the Standard and Poor website.
What is Working?
So far the passive portfolio is beating out the active side. I am up in my Betterment portfolio +1.4% since Jan 1, beating the +0.96% return of the S&P 500.
What is Struggling?
Even though I am also positive by $0.49 cents in my active portfolio with Loyal3, this part of the portfolio is not keeping up with the market as well. (Ignore the extra 10 dollars. I deposited 10 dollars just to open the account.) This side of the portfolio is up +0.06% underperforming the +0.96% return of the S&P 500.
After looking at the February results from Wikinvest, I realized that there is something off here. Based on the cash in my Loyal3 and Betterment accounts, I am up by $8.72. But for some reason, Wikinvest says that I am down $34. I assume this is because I manually entered the portfolio details and they are not factoring in reinvestment of dividends from both Betterment and Loyal3. So instead of continuing to report with Wikinvest, I will use a simple calculation in Excel to determine how much this $1000 investment has changed each month.
Here are the February results.
What are the Takeaways?
As you can see, I creamed the markets in February, but because I lost so much in January, I am still behind overall. The key takeaway here is that big gains mean nothing if you can’t protect on the downside.
How did your portfolio do in February?
Use this link to open a Betterment account and get $25 dollars added to your account.
Use this link to open a Loyal3 account and buy shares of companies that you know and love for free.