Strategies/Vanguard Base (Sadek)

Vanguard Base (Sadek)

TacticalPro

Based on research by Bill Sadek · Contributed by Bill Sadek (2026-04). Inspired by Bill's earlier published articles on Vanguard-based TAA. Implementation is preliminary pending Bill's full rules.

This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.

About this Strategy

Monthly rotation across a 10-ETF Vanguard core universe (VOO, VTI, VUG, VTV, VB, VXUS, BND, VGLT, VGSH, VNQ) — the ETF equivalents of classic Vanguard index mutual funds. Ranks by 6-month momentum, holds top 4 with positive momentum, weights by momentum share with a 35% per-asset cap.

The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.

Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.

Strategy Rules

Pro subscribers only

  1. 1Universe: VOO, VTI, VUG, VTV, VB, VXUS, BND, VGLT, VGSH, VNQ
  2. 2Each month, compute 6-month total return for each asset
  3. 3Drop assets with non-positive momentum
  4. 4Select the top 4 remaining by momentum
  5. 5Weight selected assets by momentum share
  6. 6Cap any asset at 35%; redistribute excess proportionally
  7. 7Prune allocations below 3%, renormalise
  8. 8If no asset qualifies → 100% BND

Asset Universe

Pro subscribers only

10 instruments this strategy can hold

VOOVanguard S&P 500
VTITotal US Stock Market
VUGVUG
VTVVTV
VBVanguard Small Cap
VXUSTotal Intl Stock
BNDTotal US Bond
VGLTVGLT
VGSHShort-Term Treasury
VNQUS REITs

Key Differentiators

Monthly rebalancingTactical rotation2 variants

Research Source

BS

Based on research by Bill Sadek

Contributed by Bill Sadek (2026-04). Inspired by Bill's earlier published articles on Vanguard-based TAA. Implementation is preliminary pending Bill's full rules.

Strategy Info

Type
Tactical (TAA)
Frequency
monthly
Next Rebalance
May 109:30 ET (20d)
Variants
2
Type
Tactical Asset Allocation (TAA)
Trading Frequency
Monthly (last trading day)
Rebalancing
Full portfolio rebalance each month
Universe Size
10 Vanguard ETFs (equity + bonds + REIT)
Momentum Scoring
6-month total return
Selection
Top 4 by momentum
Weighting
Momentum-proportional (weight_i = mom_i / sum(mom))
Max Weight
35% cap per asset with redistribution
Cash Trigger
No positive momentum → 100% BND (Total Bond)
Data Source
Yahoo Finance (13 months minimum history)

Asset Classes

US Large Cap (Blend / Growth / Value)US Small CapInternational EquityUS Core BondsLong-Term TreasuriesShort-Term TreasuriesUS REITs

Vanguard Base (Sadek) Tactical Asset Allocation Strategy

Bill Sadek's Vanguard Base (VB) strategy is a monthly TAA rotation across a 10-ETF Vanguard core universe — the ETF equivalents of classic Vanguard index mutual funds (500 Index, Total Stock Market, Growth, Value, Small-Cap, Total International, Total Bond, Long-Term Treasury, Short-Term Treasury, and REIT).

Each month, assets are ranked by 6-month total return. The strategy holds the top 4 assets with positive momentum, weighting them by momentum share (higher-momentum assets get larger weights) with a 35% per-asset cap to prevent single-asset concentration. If no asset has positive momentum, the strategy moves to 100% BND (Total Bond Market).

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Variants
2
Author
Bill Sadek
Source
Contributed by Bill Sadek (2026-04). Inspired by Bill's earlier published articles on Vanguard-based TAA. Implementation is preliminary pending Bill's full rules.

Asset Classes

  • US Large Cap (Blend / Growth / Value)
  • US Small Cap
  • International Equity
  • US Core Bonds
  • Long-Term Treasuries
  • Short-Term Treasuries
  • US REITs

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