Author Topic: SPA3 Investor - comparison of strategies and markets  (Read 1460 times)

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Offline Steven Ryan

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SPA3 Investor - comparison of strategies and markets
« on: 01/04/2019, 01:25:54 AM »

Where can i find recent (or latest) data comparing the back-tested results between the various SPA3 investor portfolio options - e.g. US or ASX, EW or RS, stocks vs ETFs vs both (aka Iains Investment plan).

Need some data to help me decide which configuration to use.


Offline Dave McCulloch

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Re: SPA3 Investor - comparison of strategies and markets
« Reply #1 on: 02/04/2019, 04:29:55 PM »
Hi Steve,
You can view the results of a number of back tests in the SPA3 Investor reference manual. This is located under the documents section on the home tab within Beyond charts.

The performance is measured over the longer term. There will be periods of underperformance and outperformance depending on market volatility at the time and strategy being used.

In choosing an appropriate strategy, its important to consider where you are in terms of the investor lifespan and the degree to which timing is implemented. Remember, the closer you are to retirement, the greater the sequence of returns risk.

As a generalization though ETFs are more commonly used within a Core portfolio where the emphasis is more on being semi-passive. Customers often choose one or two ETFs for their core. Because each ETF is within itself a diversified entity, it will typically be less volatile than a stock-based portfolio.

Stocks tend to be used more often within a Satellite portfolio where there is more of an emphasis on growth and activity. Because stocks are more volatile than ETFs, an Equal Weighted approach is often used to help reduce the impact of stock-specific risk.

I hope this helps, but please feel free to touch base if you need further assistance.