The third quarter has come and gone, which means it’s time for another quarterly update. I can’t believe how quickly this year is going by. Pretty soon it will be time to do another annual report. But until then, here’s how we did for the months of July through September.
Our portfolio hasn’t changed over the past three months as most of our investments are on auto-pilot. I also haven’t made any drastic changes to our specific holdings.
As of the end of September, here is where we stand:
- Overall asset allocation: 77% stocks, 23% bonds
- International: 22% of stocks
- Small cap value: 5% of stocks, 3% of overall portfolio
- REIT: 6% of stocks, 5% of overall portfolio
Our asset allocation is starting to deviate a bit from our 75/25 target. Given the performance of stocks this year, both domestic and foreign, that’s not surprising at all. We’re not at a rebalancing point quite yet. Should equities continue to perform well, however, I may adjust our portfolio early next year.
2017 Third Quarter Performance
Another three months, another 3% gain. I’ll take it. I don’t like to compare my returns with those of the market, but I tend to do so in these posts for informational purposes. The S&P 500 saw returns of 3.96%, which was higher than the 2.57% returns seen in the second quarter.
International stocks continued to do well. The FTSE Global All Cap ex US index, for example, returned 6.02% in the third quarter and is up 20.93% year to date. Naturally, our international holdings performed well with a return of 5.32%.
Here are some other performance tidbits from the past quarter:
- Small Cap Value fared a little bit better this time around with returns of 4.48% compared with 0.39% last quarter.
- REITs had another lackluster three months, returning just 0.86%.
- Our Vanguard High Dividend Yield ETF did pretty well with a 4.5% return.
The Other Guys
I touched on these holdings in a previous post about our portfolio. Basically, they are old investments (circa 2010) from my wife’s brokerage account. As of today, we have a collection of individual stocks, a mid cap value fund, and a large cap value fund. We reinvest the dividends but don’t add any new money to our positions. Here’s how they performed during the last quarter:
Little Random Guy’s Third Quarter Performance
We have a 529 plan for our son through Vanguard that is currently 100% invested in Vanguard Aggressive Growth Portfolio. It is an all equity portfolio with a 60/40 split between domestic stocks and international. Given this, it’s not surprising that Little Random Guy outperformed us with a 4.8% return during the last quarter. Way to go, son!
The third quarter was another good one for investors. How long will this ride last? Nobody knows. I certainly don’t. What I do know is that I’ll keep saving and investing according to my plan, not based on what the market does in the short-term.
Enjoyed the article? Be sure to subscribe and receive email notifications about new posts and content. Thanks for reading!