Most investor’s retirement or investment portfolios have a preset allocation between equities and bonds: 80% equities/20% bonds, 60% equities/40% bonds, etc. STIR suggests an alternative to traditional allocation that is more dynamic and could offer additional diversification benefits, the potential of higher returns with less risk.
The risk managed LVRD Index of ETFs with rising dividends is a bridge between equities and bonds. The Index has many of the advantages of equities (long term capital appreciation) and provides the potential of a steadily rising income flow (better than a fixed flow from bonds).
The following charts and tables are provided to inform and compare the performance of the LVRD Index versus equities or bonds.