Q: When looking at the results since inception for both Growth and Balanced Portfolios I find that ultimately the BPORT generates a lot more return than the Growth .
BPORT generated 263% since inception against the S&P 229% during the same period. The GROWTH is not even close to that of the S&P and the growth part of my portfolio suffer from that . Do you have a comprehensive explanation?
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BPORT generated 263% since inception against the S&P 229% during the same period. The GROWTH is not even close to that of the S&P and the growth part of my portfolio suffer from that . Do you have a comprehensive explanation?
I love the service but I can't wait to hear from you on this topic.
Yves
5i Research Answer:
The Growth portfolio has a much smaller average market capitalization, and small caps have massively underperformed over the past five+ years. Right now, small caps' valuation, relative to large caps, is about the lowest ever. The Growth portfolio has also taken several 'hits' on positions whereas the more-conservative balanced fund naturally has less inherent volatilty. Balanced has also benefited from some very solid long term performers that have been in the portfolio for years.