July-2012 Rebalancing Update
Posted on | July 2, 2012 | No Comments
Readers will recall from last month that we had our first month in which one of the funds reached its maximum allowable drift from the desired allocation. The International Index Fund was at 35% of the total portfolio (down 5% from the desired 40% allocation). The end of July marks the second month. If the International Index Fund is -5% or greater for 2 straight months, we will rebalance. Well, 29-June-2012 marked our automatic investment for the month, lets check the allocation real quick.
The allocation on 01-July-2012 is as follows:
| 1-Jul-12 | ||
|
Vanguard Total International Stock Index Portfolio
|
$2,153.59 | 35.90% |
|
Vanguard Total Bond Market Index Portfolio
|
$903.39 | 15.06% |
|
Vanguard High Yield Bond Portfolio
|
$969.33 | 16.16% |
|
Vanguard Small-Cap Index Portfolio
|
$992.18 | 16.54% |
|
Vanguard Total Stock Market Portfolio
|
$980.64 | 16.35% |
| Subtotal | $5,999.13 | 100.00% |
Since the International Index Fund has regained some ground (almost a full percentage point), we will leave as is and see what next month brings. Interesting note, you can see where money has come out of bonds and went into the equity funds. The Small-Cap Index is back to being the fund with the largest percentage gain (1.54% from its desired allocation).
Tags: 529 Performance • Asset allocation • rebalancing
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