The Problem With ETF Backtests

RELATED CONTENT

Get Real-Time Market Signals With a Simple ETF Model

A new study shows how a two-asset ETF model—based on mean-variance optimization and momentum—can monitor portfolio risk and throw off short-term tactical asset allocation signals. The model worked in 2008 and is easy to create in a simple Excel spreadsheet.

Forecasting the Retirement Portfolio’s Success

Theoretically, a successful portfolio needs to last 30 years in retirement. A new modeling tool uses actual historical data to help you gauge how factors such as withdrawal rates, COLAs, and asset allocation might affect the portfolio’s sustainability.

Smart Beta vs. Classic Beta Funds: Who Wins?

Some smart beta funds shine, but maintaining a performance edge in a diversified portfolio is tough.

How to Use Volatility to Earn Better Portfolio Returns

A conventional buy-and-hold strategy forces clients to endure short-term bouts of pain—sometimes more than they can stand. However, a recent Yale study found that adjusting equity exposure to volatility spikes can yield larger alphas and better portfolio performance. It may also prevent clients from bolting out of the market at the wrong time.