Aim Ways Ulcer Free Strategy To EUR Portfolio: ETF allocation and returns

Data Source: from January 1994 to June 2024 (~31 years)
Consolidated Returns as of 30 June 2024
Currency: EUR

The Aim Ways Ulcer Free Strategy To EUR Portfolio can be implemented with 5 ETFs. This portfolio has a low risk, suggesting it experiences minor value changes. It is ideal for conservative investors who prioritize capital preservation and prefer stable, predictable returns.

The asset allocation is the following: 11% on the Stock Market, 77% on Fixed Income, 12% on Commodities. In general, bonds are useful for mitigating overall portfolio risk, especially if they are issued by national entities or highly reliable companies. This portfolio has a 77% allocation to bonds, leading to its classification as low risk.

In the last 30 Years, the Aim Ways Ulcer Free Strategy To EUR Portfolio obtained a 6.95% compound annual return, with a 8.06% standard deviation. It suffered a maximum drawdown of -16.08% that required 96 months to be recovered.

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About the Author: Aim Ways

Aim Ways

Hello. I am "AIM WAYS". I was bord in 1969; I live in Italy and I'm Italian; my name is Carmine.

For almost 15 years -I was not yet 21 years old- I was a tied-agent on behalf of a leading Italian asset management company. Thereafter, I abandoned single-mandate model, and for 13 years I was involved in straightforward consulting.

With changing regulations in the industry sector, in 2018 I decided to permanently abandon the classic 'Output-Economy' approach (focused on the placement of instruments) to face a new concept: financial coaching.

Challenge consists in being able to generate income revenues (for me), with value and full reward for the investor/prospect.

It is the cornerstone of the 'Outcome-Economy': a new 'ecosystem' in which, RELATIONSHIP (Advisory), is the main pillar, through major tool: 'Goal based investing'; my policy does NOT allow "recommenda- tions on financial instruments."

Basically, I focus on the 'CORE' stages of <Consulting Process>; that is: once the 'anamnesis' is taken and the correct 'therapy' (including 'dosage') is identified, it will then be the interactor -now sufficiently learned- to choose both 'pharmacy' and specific 'medicine'.

After all these years professionally engaged in personal finance, I still manage to be passionate about the world of investments.

Portfolio Overview

“Ulcer-Free”, designed for several goals, containing “Ulcer-Index”. Index measures “emotional pain” from swings in listed assets. It's to work on unease and impulsiveness, for those with very low tolerance and capacity risk, by guarding their savings from relevant declines.

Strategy aims to balance several elements, including: stability, fixed income, inflation protection, and equity appreciation. It's worth noting that, investment choices, involve ‘risks’ find their correct ‘garrison’ in conforming allocations to: specific needs, time horizon, and investor's “risk appeal”.

Other targets include: Sharpe ratio properly rewarding investor, relative to their risk spent; a real return, at least, 2 or 3 points above long-term average inflation. And, as a result of “final gap of an output process”, a ‘perpetual’ withdrawal rate, that gives realistic statistical confidence of survival of decumulation, relative to the beneficiary.

Policy and structure of strategy
  • 11% US large cap growth: sector tracks performance of large-cap companies, considered with high growth potential.
  • 34% International all-term bonds: all listed in developed markets; a contribute to geographic credit diversification, with exposure to government debt, issued only by economically advanced countries.
  • 28% US intermediate bond 7-10 years: government intermediate securities provide stability and income to the portfolio. These are (generally) statistically less risky than short-term or high-yield bonds.
  • 15% Bloomberg US convert. securit. all-term bond: convertible offer a combination of fixed income and equity appreciation (exchange for shares of issuing companies) but with much lower volatility.
  • 12% Gold commodity: share in gold is oriented to reducing maximum drawdowns and protecting against inflation; in addition acting as a ‘safe-haven’ during times of economic turbulence.

Asset Allocation and ETFs

The Aim Ways Ulcer Free Strategy To EUR Portfolio has the following asset allocation:

11% Stocks
77% Fixed Income
12% Commodities

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The Aim Ways Ulcer Free Strategy To EUR Portfolio can be implemented with the following ETFs:

Weight
(%)
ETF
Ticker
ETF
Currency
ETF Name Investment Themes (Orig.Currency)
11.00
SXRV.DE
EUR iShares Nasdaq 100 Equity, U.S., Large Cap, Growth (USD)
34.00
EUNU.DE
EUR iShares Core Global Aggregate Bond Bond, Global, All-Term (Mix)
28.00
IUSM.DE
EUR iShares USD Treasury Bond 7-10yr Bond, U.S., Intermediate-Term (USD)
15.00
ZPRC.DE
EUR SPDR Refinitiv Global Convertible Bond Bond, Global, All-Term (USD)
12.00
PHAU
EUR WisdomTree Physical Gold Commodity, Gold (USD)

Most of Lazy Portfolios are made of common components (asset classes), very simple and well defined. For a more complete view, find out the most common ETFs you can use to build your portfolio.

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Portfolio and ETF Returns as of Jun 30, 2024

The Aim Ways Ulcer Free Strategy To EUR Portfolio guaranteed the following returns.

Returns are calculated in EUR, assuming:
AIM WAYS ULCER FREE STRATEGY TO EUR PORTFOLIO
Consolidated returns as of 30 June 2024
Swipe left to see all data
  Chg (%) Return (%) Return (%) as of Jun 30, 2024
  1 Day Time ET(*) Jul 2024 1M 6M 1Y 5Y 10Y 30Y MAX
(~31Y)
Aim Ways Ulcer Free Strategy To EUR Portfolio n.a. n.a. 3.01 5.70 9.54 4.95 6.15 6.95 6.38
Euro Inflation Adjusted return 3.01 3.80 7.07 1.22 3.74 4.79 4.21
Components
SXRV.DE
EUR iShares Nasdaq 100 n.a. - n.a. 10.09 21.70 34.03 22.97 21.39 14.32 13.40
EUNU.DE
EUR iShares Core Global Aggregate Bond n.a. - n.a. 1.50 0.04 2.59 -0.91 1.92 3.94 3.40
IUSM.DE
EUR iShares USD Treasury Bond 7-10yr n.a. - n.a. 2.94 2.07 2.47 0.01 3.50 5.35 4.72
ZPRC.DE
EUR SPDR Refinitiv Global Convertible Bond n.a. - n.a. 2.55 5.17 8.92 6.69 6.40 6.92 6.59
PHAU
EUR WisdomTree Physical Gold n.a. - n.a. 1.06 16.15 23.21 11.44 8.06 6.28 5.87
Returns over 1 year are annualized | Available data source: since Jan 1994
(*) Eastern Time (ET - America/New York)
Euro Inflation is updated to May 2024. Pending updates, the monthly inflation is set at 0% for the subsequent periods. Current inflation (annualized) is 1Y: 2.31% , 5Y: 3.69% , 10Y: 2.33% , 30Y: 2.06%
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Capital Growth as of Jun 30, 2024

An investment of 1€, since July 1994, now would be worth 7.51€, with a total return of 650.91% (6.95% annualized).

The Inflation Adjusted Capital now would be 4.07€, with a net total return of 307.15% (4.79% annualized).

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An investment of 1€, since January 1994, now would be worth 6.60€, with a total return of 559.50% (6.38% annualized).

The Inflation Adjusted Capital now would be 3.52€, with a net total return of 251.59% (4.21% annualized).

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Portfolio Metrics as of Jun 30, 2024

Metrics of Aim Ways Ulcer Free Strategy To EUR Portfolio, updated as of 30 June 2024, provide a comprehensive overview of the portfolio's performance and risk characteristics.

These metrics include detailed data on returns, volatility, drawdowns and other key performance indicators. By examining them, you can gain insights into how the portfolio has performed over various time periods and understand its risk profile.

Metrics are calculated based on monthly returns, assuming:
AIM WAYS ULCER FREE STRATEGY TO EUR PORTFOLIO
Advanced Metrics
Data Source: 1 January 1994 - 30 June 2024 (~31 years)
Swipe left to see all data
Metrics as of Jun 30, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~31Y)
Investment Return (%) 3.01 2.09 5.70 9.54 2.32 4.95 6.15 6.20 6.95 6.38
Infl. Adjusted Return (%)
3.01 1.28 3.80 7.07 -2.98 1.22 3.74 4.01 4.79 4.21
Euro Inflation (%) 0.00 0.80 1.83 2.31 5.46 3.69 2.33 2.10 2.06 2.08
Pending updates, the monthly inflation of Jun 2024 and beyond is set at 0%. Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -1.59 -11.52 -11.52 -11.52 -11.52 -16.08 -17.95
Start to Recovery (# months)
3 31 31 31 31 96 24
Start (yyyy mm) 2023 09 2021 12 2021 12 2021 12 2021 12 2000 11 1994 02
Start to Bottom (# months) 2 13 13 13 13 31 14
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2022 12 2003 05 1995 03
Bottom to End (# months) 1 18 18 18 18 65 10
End (yyyy mm) 2023 11 2024 06 2024 06 2024 06 2024 06 2008 10 1996 01
Longest Drawdown Depth (%) -1.00
same

same

same
-6.74
same
-16.08
Start to Recovery (# months)
3 32 96
Start (yyyy mm) 2024 04 2021 12 2021 12 2021 12 2006 03 2000 11 2000 11
Start to Bottom (# months) 1 13 13 13 28 31 31
Bottom (yyyy mm) 2024 04 2022 12 2022 12 2022 12 2008 06 2003 05 2003 05
Bottom to End (# months) 2 18 18 18 4 65 65
End (yyyy mm) 2024 06 2024 06 2024 06 2024 06 2008 10 2008 10 2008 10
Longest negative period (# months)
4 30 40 40 40 99 99
Period Start (yyyy mm) 2023 07 2021 12 2020 07 2020 07 2020 07 2000 04 2000 04
Period End (yyyy mm) 2023 10 2024 05 2023 10 2023 10 2023 10 2008 06 2008 06
Annualized Return (%) -3.28 -0.45 -0.05 -0.05 -0.05 -0.03 -0.03
Deepest Drawdown Depth (%) -2.22 -19.32 -19.32 -19.32 -19.32 -22.99 -22.99
Start to Recovery (# months)
4 31* 31* 31* 31* 112 112
Start (yyyy mm) 2023 08 2021 12 2021 12 2021 12 2021 12 2000 11 2000 11
Start to Bottom (# months) 3 13 13 13 13 92 92
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2022 12 2008 06 2008 06
Bottom to End (# months) 1 18 18 18 18 20 20
End (yyyy mm) 2023 11 - - - - 2010 02 2010 02
Longest Drawdown Depth (%)
same

same

same

same
-13.34
same

same
Start to Recovery (# months)
35
Start (yyyy mm) 2023 08 2021 12 2021 12 2021 12 2006 03 2000 11 2000 11
Start to Bottom (# months) 3 13 13 13 28 92 92
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2008 06 2008 06 2008 06
Bottom to End (# months) 1 18 18 18 7 20 20
End (yyyy mm) 2023 11 - - - 2009 01 2010 02 2010 02
Longest negative period (# months)
4 36* 58 80 80 116 116
Period Start (yyyy mm) 2023 07 2021 07 2019 08 2017 03 2017 03 2000 03 2000 03
Period End (yyyy mm) 2023 10 2024 06 2024 05 2023 10 2023 10 2009 10 2009 10
Annualized Return (%) -5.75 -2.98 -0.07 -0.21 -0.21 -0.21 -0.21
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 4.69 6.60 6.29 6.74 7.14 8.06 8.13
Sharpe Ratio 0.90 -0.10 0.47 0.71 0.67 0.58 0.29
Sortino Ratio 1.36 -0.15 0.72 1.10 1.03 0.87 0.44
Ulcer Index 0.62 5.51 4.30 3.86 3.67 5.60 6.26
Ratio: Return / Standard Deviation 2.03 0.35 0.79 0.91 0.87 0.86 0.78
Ratio: Return / Deepest Drawdown 6.02 0.20 0.43 0.53 0.54 0.43 0.36
Positive Months (%)
66.66 44.44 48.33 55.83 56.66 57.22 56.55
Positive Months 8 16 29 67 136 206 207
Negative Months 4 20 31 53 104 154 159
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 6.15 8.91 8.97 8.97
Worst 10 Years Return (%) - Annualized 4.99 2.84 2.84
Best 10 Years Return (%) - Annualized 3.74 7.08 7.08 7.08
Worst 10 Years Return (%) - Annualized 2.97 0.74 0.74
TIMEFRAMES
Inflation Adjusted:
Inflation Adjusted:
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
··· Over the latest 30Y
Best Rolling Return (%) - Annualized 38.33 22.41 20.51 8.97 8.91 6.95
Worst Rolling Return (%) - Annualized -11.54 -4.16 -1.56 2.84 4.95
Positive Periods (%) 75.0 90.4 97.0 100.0 100.0 100.0
Best Rolling Return (%) - Annualized 35.56 20.79 18.60 7.08 6.97 4.79
Worst Rolling Return (%) - Annualized -18.76 -6.21 -3.67 0.74 3.30
Positive Periods (%) 65.9 80.0 87.0 100.0 100.0 100.0
95% VaR - Value at Risk (%) - Cumulative
3.24 4.87 5.85 6.33 7.73 0.00 0.00 0.00
95% CVaR - Conditional Value at Risk (%) 4.21 6.54 8.22 8.74 10.64 2.92 0.00 0.00
99% VaR - Value at Risk (%) - Cumulative
4.83 7.61 9.73 11.18 11.99 6.99 0.00 0.00
99% CVaR - Conditional Value at Risk (%) 5.84 9.36 12.21 11.41 12.51 7.79 0.00 0.00
Short term VaRs: analytical | 1+ year VaRs: historical data
Safe Withdrawal Rate (%) 90.49 29.14 16.91 8.62 5.31 7.23
Perpetual Withdrawal Rate (%) --- --- --- 0.65 2.54 5.45
% based on initial capital, inflation-adj. monthly withdrawals afterwards | Credits: BestRetirementPortfolio.com
··· All available data (Jan 1994 - Jun 2024)
Best Rolling Return (%) - Annualized 38.33 22.41 20.51 8.97 8.91 6.95
Worst Rolling Return (%) - Annualized -15.45 -4.16 -1.56 2.84 4.95 6.29
Positive Periods (%) 73.8 90.6 97.0 100.0 100.0 100.0
Best Rolling Return (%) - Annualized 35.56 20.79 18.60 7.08 6.97 4.79
Worst Rolling Return (%) - Annualized -18.76 -6.21 -3.67 0.74 3.30 4.15
Positive Periods (%) 64.7 80.3 87.2 100.0 100.0 100.0
95% VaR - Value at Risk (%) - Cumulative
3.32 5.06 6.20 7.22 7.63 0.00 0.00 0.00
95% CVaR - Conditional Value at Risk (%) 4.29 6.75 8.58 10.18 10.45 2.92 0.00 0.00
99% VaR - Value at Risk (%) - Cumulative
4.92 7.83 10.11 11.54 11.99 6.99 0.00 0.00
99% CVaR - Conditional Value at Risk (%) 5.94 9.59 12.61 13.99 12.51 7.79 0.00 0.00
Short term VaRs: analytical | 1+ year VaRs: historical data
Safe Withdrawal Rate (%) 88.14 29.14 16.91 8.62 5.31 6.07
Perpetual Withdrawal Rate (%) --- --- --- 0.65 2.54 4.30
% based on initial capital, inflation-adj. monthly withdrawals afterwards | Credits: BestRetirementPortfolio.com
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
  • Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
  • Longest negative period: it's the maximum period for which an overall negative return has been observed.
  • Standard Deviation: it's a measure of the dispersion of returns around the mean.
  • Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
  • Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
  • Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
  • Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
  • Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
  • Value at Risk (VaR): it's an evaluation of a cumulative worst-case loss (in absolute value), associated with a probability (95%-99%) and a time horizon. For short term, it's calculated based on the expected return and standard deviation, assuming a normal distribution of monthly returns. For long term is retrieved by the historical rolling return data.
  • Conditional Value at Risk (CVaR): it represents the average expected loss if that worst-case threshold (95%-99%) is ever crossed.
  • Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
    For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
  • Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.
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Portfolio Components Correlation

Correlation measures to what degree the returns of two assets move in relation to each other. It is a statistical measure that describes the extent to which the returns of one asset are related to the returns of another asset.

COMPONENTS MONTHLY CORRELATIONS
Monthly correlations as of 30 June 2024
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Terms and Definitions
Correlation values range between -1 and +1
  • A correlation of +1 indicates that the returns of the two assets move in perfect synchrony; when one asset's returns go up, the other asset's returns also go up by the same percentage, and vice versa. This perfect positive correlation implies that the assets perform similarly in different market conditions.
  • A correlation of -1 indicates a perfect inverse relationship between the returns of the two assets. When one asset's returns go up, the other asset's returns go down by the same percentage. This perfect negative correlation suggests that the assets move in opposite directions, providing a diversification benefit by reducing overall portfolio risk.
  • A correlation of 0 means that there is no linear relationship between the returns of the two assets. The returns of one asset do not predict the returns of the other.
Learn about historical correlations here: see how the main asset classes relate to each other.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

AIM WAYS ULCER FREE STRATEGY TO EUR PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 July 1994 - 30 June 2024 (30 Years)
Data Source: 1 January 1994 - 30 June 2024 (~31 years)
Inflation Adjusted:

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Rolling Returns

( more details)

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

AIM WAYS ULCER FREE STRATEGY TO EUR PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 July 1994 - 30 June 2024 (30 Years)
Data Source: 1 January 1994 - 30 June 2024 (~31 years)
Inflation Adjusted:

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If you need a deeper detail about rolling returns, please refer to the Aim Ways Ulcer Free Strategy To EUR Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Aim Ways Ulcer Free Strategy To EUR Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past.

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For further information about the seasonality, check the Asset Class Seasonality page.

Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Aim Ways Ulcer Free Strategy To EUR Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

AIM WAYS ULCER FREE STRATEGY TO EUR PORTFOLIO
Monthly Returns Distribution
Data Source: 1 July 1994 - 30 June 2024 (30 Years)
Data Source: 1 January 1994 - 30 June 2024 (~31 years)
206 Positive Months (57%) - 154 Negative Months (43%)
207 Positive Months (57%) - 159 Negative Months (43%)

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Investment Returns, up to December 2017, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

In particular, the series derived from equivalent datasets are:
  • iShares Nasdaq 100 (SXRV.DE), up to June 2010
  • iShares Core Global Aggregate Bond (EUNU.DE), up to December 2017
  • iShares USD Treasury Bond 7-10yr (IUSM.DE), up to February 2009
  • SPDR Refinitiv Global Convertible Bond (ZPRC.DE), up to October 2014
  • WisdomTree Physical Gold (PHAU), up to January 2008

Portfolio efficiency

The following portfolios granted a higher return over 30 Years and a less severe drawdown at the same time.

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In the following table, you can compare the current portfolio with a list of famous portfolios. Metrics are calculated over the last 30 Years.

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The following portfolios share asset allocation strategy and/or similar asset weights.

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The first official book of
Build wealth
with Lazy Portfolios and Passive Investing