My portfolio gained 1.82% in May 2008, bringing the year-to-date (YTD) return to 2.52%. This is one of the lowest May YTD return in recent years. The YTD return of the benchmark, a 50:50 split between the Vanguard LifeStrategy Moderate Growth fund and the Vanguard LifeStrategy Gowth fund, is still in the red at -2.15%.
Individual Asset Classes
The asset class with the highest return in May was PME (VGPMX, XME). VGPMX gained 9% while XME gained almost 15%. The second highest asset class return came from US SmallCaps, which gained about 4%. The rest of the equity asset classes returned less than 2%.
Sold down PME (VGPMX, XME) allocation of 6% to 5%. Originally I had wanted to allocate 6% to PME but finally decided to just stick to the 5% ‘rule-of-thumb’ for alternative asset classes. The 1% reduction was moved to US LargeCaps (0.5%) and International LargeCaps (0.5%).
Other movement: sold US SmallCaps from my 401(k).
The allocation, as of the end of May, is shown below: