Portfolio return for May 2008

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%.

Portfolio Movements

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:


  1. Jonathan

    My apologies, but I couldn’t find if you had a post outlining your criteria for when you rebalance? Is it based on % change?

  2. indexfundfan (Post author)

    Jonathan, I don’t have a post on my re-balancing criteria.

    I consider myself “very aggressive” on re-balancing. Usually new money every month is used to restore my asset allocation. If that still cannot restore the balance to within 5% for each asset class (e.g. my fixed income allocation of 30% would have a band from 28.5% to 31.5%), I would use my tax-deferred assets to restore the balance. For this to work, I have a portion of every asset class in tax-deferred space.

  3. Jonathan

    Thanks for sharing, I was just curious.

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  5. Kelli Garner

    Really nice posts. I will be checking back here regularly.


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