Index Investing 2018 YTD Portfolio Results


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Happy 4th of July!  

I'm continuing my journey to financial freedom despite this depressing market. I thought I'd share a portfolio update as we go into the second half of the year. 








July 2018 YTD Portfolio Performance:
  • Dec 31, 2017 Balance: $234,975.18
  • July 4, 2018 Balance: $265,376.22
  • Total 2017 Contributions (including employer): $26,294.89
  • Allocation: 8-10% bonds depending on the month, delta stocks
  • 2018 July YTD Total Return: 1.75%
  • Old Target Date Fund Return including fees: 0.71%
  • FUSVX S&P 500 Index Fund YTD Return: 2.94%

Ugh 2018 Market Returns!  Technically, because of all the volatility this year-I've been able to pick up shares on the cheap...but they keep giving back gains a few months later.  Not that this year's returns matter because I am investing for the long term. At least I’m beating my crappy old target date fund-but I still underperformed the S&P 500. Basically my contributions have made up most of my portfolio gains so far this year.  These are the main areas in which I underperformed:

  1. I bought a significant number of shares just before the market correction in February after selling employer stock...sigh this is why dollar cost averaging is KEY!
  2. REITS:  I sold most of my REIT position and invested in emerging market and international funds just as they tanked-see my last post on locking in losses
  3. Foreign Stocks:  As mentioned my international and emerging market funds really took a beating.
  4. Bonds: This rising rate environment isn’t helping my Total Market Bond fund-down -1.6% YTD
  5. Bright Spots: Technology and Small Caps are killing it! YTD FTEC (Tech Sector Fund) is up 12.24%, ONEQ (NASDAQ fund) is up 9.94%, and the IWM (Russell 2000) is up 8.45%.  Glad I’m invested in a mix of equity index funds-large, mid, and small cap as well as international and tech sector funds.


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