Market Map: Style Diversification With Dividend Growth Portfolio Part 2

In part 2 of this article, we will examine the performance results of a 2 style portfolio blend by excluding the third style Small Cap Value portfolio (as presented in part 1) from the allocation mix; this in consideration of those investors who may have concern about having portfolio exposure to the greater volatility as represented by the small cap universe. Diversification Using 2 Portfolios In charts 8, 9, and 10 of part 1 of the article, we can see that the volatility, as measured by peak to trough drawdowns, was highest with the Small Cap value portfolio. By excluding the Small Cap Value portfolio from the allocation mix (and consequently forgoing style diversification), performance was improved. These results are seen in charts 11, 12, 13, and 14 below: Chart 11 Chart 12 dollar growth of each separate portfolio allocation and the combined total return... Read more