20 Different 3 Fund Expanded Canvas Portfolios With 4+ Strategies pictureperfectportfolios.com/20-different-3… Sometimes it’s a good idea to give yourself a creative challenge. One of my biggest weaknesses as an investor, that I’ve tried my best not to spill over profusely onto this site, is that I’m inclined towards complexity. In terms of constructive feedback, I’ve had investors tell me that my portfolio ideas (that tend to be somewhere between 5 to 10 funds on average) are often overly complicated. Hence, I’ve given myself a fun challenge. Can I come up with diversified model portfolios that are capital efficient using only three funds? Here is my specific mandate: Create a series of diversified portfolios that offer 4 or more strategies that are limited to just 3 funds. At first, I thought I’d maybe only come up with 4 to 6. However, I’ve got 20 to share with you today! Yes, you heard that correctly. 20. Furthermore, they all follow the guidelines and template of the Picture Perfect Portfolios 2.0 model portfolios: 1) Capital Efficiency 2) Maximum Diversification 3) Optimization An attempt by an amateur investor to come up with serious portfolios with absolutely ridiculous names. You’ll notice they range from 140% to 200% canvas size and from ultra defensive (tactical equity exposure of 0% in defensive mode) to 100% equities plus diversifiers. Moreover, each portfolio features a minimum of 4 strategies and a maximum of 9. This challenge helped me to think more creatively and to tighten the reigns. I was actually surprised that it’s a cinch to put together a diversified portfolio with just 3 funds. So without further ado, let’s explore them! Perfect Pizza Portfolio 40% $RSSY – Return Stacked U.S. Equity & Futures Yield ETF 40% $RSBT – Return Stacked Bonds & Managed Futures ETF 20% $GDMN – WisdomTree Efficient Gold Plus Gold Miners Strategy Fund Canvas: 198% Exposures: 40% Equities 40% Carry (Futures) 40% Managed Futures 40% Bonds 38% Gold Strategy (Gold exposure + Gold producing equities) Strategies: 6 Objective: A capital efficient alternative to an equal slice Harry Browne Portfolio with extra diversifiers (managed futures & carry) instead of cash Benchmark: Harry Browne Permanent Portfolio (25% VTI / 25% GLD / 25% TLT / 25% BIL) Bounty Hunter Portfolio 40% $RSST – Return Stacked US Stocks & Managed Futures ETF 40% $RSSB – Return Stacked Global Stocks & Bonds ETF 20% $RSSY – Return Stacked U.S. Equity & Futures Yield ETF Canvas: 200% Exposures: 100% Equities 40% Bonds 40% Managed Futures 20% Carry (Futures) Strategies: 4 Objective: To outperform an all equity portfolio utilizing a diverse capital efficient ensemble of 100% alternatives added to the mix Benchmark: 100% Equities (60% SPY + 40% VT) Tightrope Walker Portfolio 40% $UPAR – UPAR Ultra Risk Parity ETF 40% $BLNDX – Standpoint Multi-Asset Fund 20% $QDSIX – AQR Diversifying Strategies Fund Canvas: Variable Exposures: Global Equities Bonds (including TIPs) Managed Futures Gold Market Neutral Macro Style Premia Arbitrage Multi-Asset Strategies: 9 Objective: As balanced and diverse of a portfolio that one could possibly assemble where maximum diversity is priority numero uno Benchmark: None The Chameleon Portfolio 50% $BLNDX – Standpoint Multi-Asset Fund 25% $RDMIX – Rational/ReSolve Adaptive Asset Allocation Fund 25% $QDSIX – AQR Diversifying Strategies Fund Canvas: Variable Exposures: Global Equities Managed Futures (Trend) Global Systematic Macro Tail-Risk Market Neutral Macro Style Premia Arbitrage Multi-Asset Strategies: 9 Objective: An adaptive alternative to a global static risk parity portfolio where diversification reigns supreme Benchmark: Global Risk Parity (50% AGG / 30% VT / 10% GLD / 10% DBC) Coin It Portfolio 40% $GDE – WisdomTree Efficient Gold Plus Equity Strategy Fund ETF 36% $RSBT – Return Stacked Bonds & Managed Futures ETF 24% $BTRN – Bitcoin Trend Strategy ET Canvas: 168% Exposures: 36% Equities 36% Gold 36% Managed Futures 36% Bonds 24% Bitcoin (Trend-Following) Strategies: 5 Objective: A diversified and capital efficient balanced portfolio with a generous allocation budget and tilt towards Bitcoin Benchmark: None Value Vulture Portfolio 60% $AVGV – Avantis All Equity Markets Value ETF 20% $RSBT – Return Stacked Bonds & Managed Futures ETF 20% $GOLY – Strategy Shares Gold-Hedged Bond ETF Canvas: 140% Exposures: 60% Global Value Equities 40% Bonds 20% Managed Futures 20% Gold Strategies: 4 Objective: A balanced take on a global value tilted portfolio with three additional strategies added to the mix (bonds, managed futures, gold) Benchmark: Global 60/40 (60% VT / 40% AGG) Pack Mule Portfolio (60/40+) 40% $RSSB – Return Stacked Global Stocks & Bonds ETF 20% $RSST – Return Stacked US Stocks & Managed Futures ETF 40% $QDSIX – AQR Diversifying Strategies Fund Canvas: 160% Exposures: 60% Equities 40% Bonds 20% Managed Futures 40% Alt-Other: Market Neutral Macro Style Premia Arbitrage Multi-Asset Strategies: 8 Objective: To pack mule a diverse set of alternatives to the backbone of a 60/40 portfolio Benchmark: 60/40 Portfolio (VBIAX and AOR) Even-Steven Portfolio 50% $ACWV – iShares MSCI Global Min Vol Factor ETF 25% $RSBT – Return Stacked Bonds & Managed Futures ETF 25% $GOLY – Strategy Shares Gold-Hedged Bond ETF Canvas: 140% Exposures: 50% Global Min Vol Equities 50% Bonds 25% Managed Futures 25% Gold Strategies: 4 Objective: Equal Parts Equities (50%), Bonds (50%) and Alternatives (50%) for a balanced defensive approach. Benchmark: 50% VT / 50% AGG So Trendy Portfolio 50% $BLNDX – Standpoint Multi-Asset Fund 30% $GMOM – Cambria Global Momentum ETF 20% $COM – Direxion Auspice Broad Commodity Strategy ETF Canvas: Variable Exposures: Global Equities (MCW + factors) Managed Futures Bonds Commodities (long + long/flat) Strategies: 4 Objective: A pure trend portfolio (long, long-flat and long-short strategies) with exposure to a diverse range of global asset classes Benchmark: AOK and AOR Quantasaurus Portfolio 40% $SPQ – Simplify US Equity PLUS QIS ETF 40% $RSBT – Return Stacked Bonds & Managed Futures ETF 20% $GDE – WisdomTree Efficient Gold Plus Equity Strategy Fund ETF Canvas: 176% Exposures: 58% Equities 40% Bonds 40% Managed Futures 20% QIS Multi-Strategy 18% Gold Strategies: 5 Objective: An alternative tilted portfolio where 78% of the portfolio exposure is committed to strategies other than long-stocks and bonds Benchmark: None Living Large L/S Portfolio 40% RSST – Return Stacked US Stocks & Managed Futures ETF 40% QLEIX – AQR Long-Short Equity Fund 20% QDSIX – AQR Diversifying Strategies Fund Canvas: 140% Exposures: 40% Equities 40% Long-Short Equities 40% Managed Futures 20% Style Premia Strategies: 4 Objective: A portfolio where every fund has exposure to L/S strategies across a diverse range of asset classes. Benchmark: None The Sloth Portfolio 35% GDE – WisdomTree Efficient Gold Plus Equity Fund 35% RSBT – Return Stacked Bonds & Managed Futures ETF 30% CAOS – Alpha Architect Tail Risk ETF Canvas: 163% Exposures: 31.5% Equities 31.5% Gold 35% Bonds 35% Managed Futures (Trend) 30% Tail Risk: OTM Put Strategies: 5 Objective: A Dragon-inspired portfolio with a slow and steady approach to accumulation whilst defensively being prepared for all economic scenarios Benchmark: None Factorious Portfolio 60% GLOF – iShares Global Equity Factor ETF 20% RSBT – Return Stacked Bonds & Managed Futures ETF 20% RSBY – Return Stacked Bonds & Futures Yield ETF Canvas: 140% Exposures: 60% Global Multi-Factor Equities 40% Bonds 20% Managed Futures (Trend) 20% Carry (Futures) Strategies: 4 Objective: A factor first approach to asset allocation where a multi-strategy approach is favoured over MCW equities. Benchmark: 60% VT / 40% AGG Creative Canvas Portfolio 60% RSST – Return Stacked US Stocks & Managed Futures ETF 20% GOLY – Strategy Shares Gold-Hedged Bond ETF 20% RSBY – Return Stacked Bonds & Futures Yield ETF Canvas: 200% Exposures: 60% Equities 60% Managed Futures 40% Bonds 20% Gold 20% Carry Strategies: 5 Objective: To expand the canvas to 200% with a balanced 60/40 portfolio plus diversifiers Benchmark: 60/40 Portfolio ($VBIAX) The Coward Portfolio 20% $HCMT – Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF 40% $RSBT – Return Stacked Bonds & Managed Futures ETF 40% $GOLY – Strategy Shares Gold-Hedged Bond ETF Canvas: 200% or 180% Exposures: Offensive: 40% Equities 80% Bonds 40% Managed Futures 40% Gold Defensive: 0% Equities 80% Bonds 40% Managed Futures 40% Gold 20% Cash Strategies: 4 of 5 Objective: A portfolio that has the ability to retreat to 0% equity exposure (hence the nickname ‘coward’) during market downturn scenarios Benchmark: 20/80 Portfolio (20% VTI / 80% AGG) Double Double Eh Portfolio 60% $AOFT – Auspice One Fund Trust 30% $PFAA – Picton Mahoney Fortified Alpha Alternative Fund 10% $QBTL – AGF US Market Neutral Anti-Beta CAD-Hedged ETF Canvas: Variable Exposures: Global Equities Managed Futures (Trend) Bonds Gold M/N Equity Arbitrage Special Situation Credit Style Premia Strategies: 8 Objective: An alternative strategy for Canadians to consider who are seeking maximum diversification above all other considerations Benchmark: Global Balanced (VBAL ETF) Ultimate Defender Portfolio 40% $ACWV – iShares MSCI Global Min Vol Factor ETF 50% $RSBT – Return Stacked Bonds & Managed Futures ETF 10% $CAOS – Alpha Architect Tail Risk ETF Canvas: 150% Exposures: 40% Global Min Vol Equities 50% Bonds 50% Managed Futures 10% OTM PUT Strategies: 4 Objective: To overall limit exposure to equities (40%) and to choose the most defensive stocks strategy (min vol) to stabilize the portfolio Benchmark: 40/60 Portfolio (40% VT / 60% AGG) Tactical Tornado Portfolio 40% $RSSY – Return Stacked U.S. Equity & Futures Yield ETF 40% $RSBT – Return Stacked Bonds & Managed Futures ETF 20% $HCMT – Direxion HCM Tactical Enhanced U.S. Equity Strategy ETF Canvas: 200% or 180% Exposures: Offensive: 80% Equities 40% Managed Futures 40% Bonds 40% Carry (Futures) Defensive: 40% Equities 40% Managed Futures 40% Bonds 40% Cary (Futures) 20% Cash Strategies: 4 or 5 Objective: A portfolio that is balanced but has an offensive boost towards growth (80%) or tactically retreats to conservative (40%) equity exposure Benchmark: None Tortoise Portfolio 20% $USML – ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN 60% $RSBT – Return Stacked Bonds & Managed Futures ETF 20% $BTAL – AGF US Market Neutral Anti Beta Fund Canvas: 180% Exposures: 60% Bonds 60% Managed Futures 40% US Min Vol Equities 20% M/N Anti-Beta Strategies: 4 Objective: A portfolio that is designed for slow and steady accumulation with the potential to retreat into its shell during market turbulence Benchmark: 40/60 Portfolio (40% VTI / 60% AGG) Alt Arrow Portfolio 40% $RSSB – Return Stacked Global Stocks & Bonds ETF 20% $QLEIX – AQR Long-Short Equity Fund 40% $QDSIX – AQR Diversifying Strategies Fund Canvas: 140% Exposures: 40% Global Equities 40% Bonds 40% Alt Other 20% L/S Equities Market Neutral Macro Style Premia Arbitrage Multi-Asset Strategies: 9 Objective: A portfolio where alternative strategies take up 60% of the resources in terms of asset allocation with only 40% to stocks/bonds. Benchmark: None Nomadic Samuel Final Thoughts Whew, thanks for making it through all 20 portfolios! I hope I didn’t overwhelm you with options galore. Sometimes going to a behemoth supermarket can make me feel anxious as I’m overwhelmed by choices. However, I wanted to present as many different portfolio options as possible to explore all of the interesting combinations out there. In my opinion, there has never been a better time to be a capital efficient DIY investor. You have so many options these days as fascinating puzzles pieces continue to penetrate the marketplace. But at this point in the article I’m more interested in what you’ve got to say. What are some three fund portfolio ideas that you’ve come up with? Do you have a favourite portfolio amongst the ones that I’ve shared? Please let me know in the comments below.
@NomadicSamuel @nomadicsammy Fun read Sam, Quantasaurus is legitimately funny 😁
@randomroger @nomadicsammy Hahaha...thanks Roger! I have to admit I did have quite a bit of fun with this one...😉😆