Portfolio Experiment - Month 1

31 Dec 2016 13:08

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Our first month into the experiment is completed. As a reminder this experiment was based on creating an imaginary MOTIF portfolio using $10,000.

We initiated our positions on December 2 right in the middle of the end of year stock rally. With markets elevated near all time highs my expectations were pretty low on performance growth. However, there was a surprise as the portfolio actually grew and here is a summary of the performance:

Dividend Income

Projected dividend income $8.23
Actual dividend income $8.29
Apparent Growth of $0.06
Actual Growth 0

Looking at the dividend growth, initially it looks like we already received a raise but looks are deceiving. The variation is due to the ETFs within the portfolio which do not payout on a consistent basis. If we remove the ETF variance then dividend growth is actually zero and came in as planned.

Portfolio Value

Starting Value $10,000
Ending Value $10,217
Growth 2.17%

The Overall portfolio value was a pleasant surprise. Initiating the portfolio during market highs I actually expected a breakeven or slight loss but somehow we garnered 2.17% in growth. The biggest contributors to this growth was Technology & Telecommunications with 7% gain and Real Estate with a 3.73% gain. Overall here is how each sector and allocation grew for the month of December

Portfolio Sector & % Allocation Gain/Loss
FINANCIALS - 10% 2.80%
HEALTHCARE - 10% -0.10%
INDUSTRIALS - 10% 1.20%
REAL ESTATE - 15% 3.73%
UTILITIES - 6% 1.0%
BONDS & INCOME - 8% 0.25%

Once we have next months actuals there will be enough data points to start graphing. Looks like we are off to a decent start hopefully it will continue into the new year. :)

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