Risk Return Profile
Historically, a small allocation to cryptocurrencies minimally impacts portfolio volatility while increasing its Sharpe ratio most notably at a 3% allocation.
1/1/2019 – 19/1/2022
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1 Year Return
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3 Year Return
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5 Year Return
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Since Inception Return (Annualized)
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Since Inception Return (Cumulative)
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Since Inception Std Dev
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Since Inception Max Drawdown
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Since Inception Sharpe Ratio
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S&P 500 Index
|
21.01
|
21.37
|
17.03
|
23.56
|
90.66
|
26.92
|
-33.79
|
0.87
|
|
Bloomberg Barclays US Aggregate Index
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-3.05
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4.03
|
3.11
|
3.96
|
12.57
|
4.75
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-6.30
|
0.82
|
|
60% Equities / 40% Bonds
|
10.96
|
14.54
|
11.59
|
15.76
|
56.27
|
15.59
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-21.54
|
1.01
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59.75% Equities / 39.75% Bonds / 0.5% Crypto Leaders
|
11.41
|
15.17
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—
|
16.37
|
58.79
|
13.01
|
-21.71
|
1.25
|
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59.5% Equities / 39.5% Bonds / 1% Crypto Leaders
|
11.85
|
15.79
|
—
|
16.98
|
61.35
|
13.05
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-21.88
|
1.30
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58.5% Equities / 38.5% Bonds / 3% Crypto Leaders
|
13.62
|
18.31
|
—
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19.44
|
71.90
|
13.37
|
-22.58
|
1.45
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Bitcoin
|
12.13
|
123.34
|
123.39
|
118.38
|
982.91
|
87.88
|
-62.87
|
1.35
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Crypto Leaders
|
88.87
|
144.18
|
—
|
138.39
|
1,314.91
|
82.55
|
-66.68
|
1.68
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Source: Morningstar. Data as of 19/1/2022. Portfolios are rebalanced monthly. Returns for periods less than one year are not annualized. Cumulative return is defined as the total return earned by the hypothetical portfolio over the entire investment time period. Annualized Return is defined as the compound rate of return, which, over a certain period of time, would produce a fund’s total return over that same period. Std Dev (standard deviation) is defined as the statistical measurement of dispersion about an average, which depicts how widely a portfolio’s returns varied over a certain period of time. Max Drawdown is defined as the peak to trough decline during a specific record period of an investment of fund. Usually quotes as the percentage between the peak to the trough. Sharpe Ratio is a risk-adjusted measure, calculated by using standard deviation and excess return to determine reward per unit of risk. The information presented is shown for illustrative, informational purposes only. The returns shown are model results only and do note represent the results of actual trading of investor assets. Thus, the performance shown or discussed does not reflect the impact that material economic and market factors had or might have had on decision making if actual investor money had been managed. Fees and charges would cause actual performance to be lower than the performance shown. Diversification does not assure a profit nor does it protect against loss of principal. Indices are not securities in which investments can be made. Past performance is no guarantee of future results.
