Sharpe-Optimal Portfolio Report

The potential of the Sharpe ratio in enhancing fixed-income portfolio allocations is need-to-know

Modern Portfolio Theory leverages the Sharpe ratio to enhance portfolio construction by emphasizing asset class correlations – especially in fixed income. Using Morningstar index data, it creates Sharpe-optimized portfolios with varying equity exposure, constructed with up to seven ETFs.

These portfolios consistently outperform traditional stock/bond mixes with superior risk-adjusted performance. This approach encourages investors to reevaluate their bond sector allocations, especially towards leveraged loans and investment-grade corporates, and emphasizes the strength of a robust portfolio Sharpe ratio.

Download this report now for more on the Modern Portfolio Theory and how Sharpe-optimized, U.S.-focused portfolios can help strike the right balance between risk and reward.