How to Think Strategically About Your Portfolio
But I like all three strategies.
I think from a mystery perspective though, I always come back to this a lot in your shows, but I love factors.
Um, but you have to know how you're going to use factors.
It all really comes down to this context of what am I doing here?
Am I building a strategic portfolio?
And I like I want from a from a large cap growth perspective, I like having a quality overlay and I'm going to have it forever and it's going to be a a foundation of my portfolio to go with my large cap value. or are you investing tactically because you believe this particular type of strategy uh fits into that?
None of these three ETFs are tactical factors.
In my opinion, they are core strategic allocation strategies.
Um so you're choosing between owning large cap growth, owning the market, or owning large cap growth with the quality tilt through this free cash flow screen.
Um I like that.
I mean, I can see the the benefit of finding this.
And then maybe um if you remember um three years ago we were having conversations about free cash flow growth in the terms of value.
Um and there's a lot of those out there and I like those strategies too, but you know we're not talking about them right now because they're value and they've significantly underperformed.
Um so you kind of have to think about strategically pairing these strategies.
Are you just owning beta in large cap space?
I actually think that's not a bad thing and you can do that.
Um if you're going to do that, I think just own the market.
But if you do like to pair a growth and a value, I like this quality overlay um from a construct of having a dampener on draw downs and volatility.
Um but these are not tactical strategies in the terms of like a pure beta um or a deep value or a high momentum.
Um there are markets if you're trying to kind of rotate across factors or certain um factors the economic backdrop sets up well for them and you can get much more beta to those factors through some of the older um factor strategies out there that are really concentrated 50 stock 75 stock portfolios.
Um so just that context that's my mystery.
U my overall winner um it's tough.
Um I'm going to go with CO just because it's got a longer track record.
Um, but I think QZ um might be proved to be the winner over a full market cycle.
But I like them.
Um, I like them all as long as you're know why you're using it and how you're using it overall to your portfolio.
