Alexander Green’s Gone Fishin’ Portfolio – ETFs, Returns, Performance Analysis
The Gone Fishin’ Portfolio by Alexander Green is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs and precious metals.
These 4 asset classes are divided into 10 categories: U.S. Stocks, U.S. Small Cap Stocks, European Stocks, Pacific Stocks, Emerging Markets Stocks, Short-Term Investment-Grade Bonds, High-Yield Corporate Bonds, TIPS (Treasury Inflation-Protected Securities), REITs and Precious Metals.
The Gone Fishin’ Portfolio strategy can be implemented by using 10 different index ETFs that are well diversified and have good historical performance. There is no need to pick individual stocks, bonds, REITs and other asset classes, or spending a lot of time and effort on selection and trading/investing.
In this article, we will describe in detail the structure of The Gone Fishin’ Portfolio and backtest it on historical price data. Looking ahead, we can say that according to our backtests over the past 16 years, The Gone Fishin’ Portfolio has the following performance stats:
- Compound annual return (CAR): 5.61%;
- Maximum drawdown (MDD): -43.98%;
- CAR/MDD ratio: 0.13;
- Standard deviation: 15.81%;
- Sharpe ratio (with a risk-free rate of 3%): 0.17.
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Who Is Alexander Green
Alexander Green is the Chief Investment Strategist of the Oxford Club, the world’s largest financial community with over 110,000 members. He worked as an investment advisor, research analyst and portfolio manager on Wall Street for 16 years.
Having gained extensive knowledge and achieved financial independence, Alexander Green retired at the age of 43. Since then, Alexander Green has been living “the second half of his life” by writing the Oxford Communiqué, which has been ranked among the best investment newsletters by Hulbert Digest for more than a decade.
Alexander Green also operates three rapidly growing trading services: The Momentum Alert, The Insider Alert and The True Value Alert.
Alexander Green prefers to work as a writer rather than a licensed investment advisor because he is free to give advice, write what he wants about the market, and be completely objective in his recommendations.
What Is The Gone Fishin’ Portfolio
The Gone Fishin’ Portfolio consists of the 10 following asset categories with their respective total weights:
| Asset category | Weight in the portfolio |
| U.S. Stocks | 15.00% |
| U.S. Small Cap Stocks | 15.00% |
| European Stocks | 10.00% |
| Pacific Stocks | 10.00% |
| Emerging Markets Stocks | 10.00% |
| Short-Term Investment-Grade Bonds | 10.00% |
| High-Yield Corporate Bonds | 10.00% |
| TIPS | 10.00% |
| REITs | 5.00% |
| Precious Metals | 5.00% |
Stocks In The Gone Fishin’ Portfolio
Stocks are equity securities that represent an ownership share in a corporation and give the right to receive dividends if they are paid. When you are a shareholder of a company, you own a part of the business and get a share of the potential earnings (but also losses – if any).