Trinity Portfolio at a glance

Trinity Portfolio is a tactical asset allocation (TAA) strategy by Mebane Faber across US Equity, International Equity, US Aggregate Bonds, Cash, rebalanced monthly. Backtested 1990-10-31 to 2026-04-24 (35.4 years): 7.4% CAGR, 1.00 Sharpe, -12.7% max drawdown, 7.4% volatility.

Type
Tactical (TAA)
Author
Mebane Faber
Rebalancing
Monthly
Risk
Moderate
Period
1990-10-31 to 2026-04-24
CAGR
7.4%
Sharpe
1.00
Max Drawdown
-12.7%
Volatility
7.4%

Trinity Portfolio Tactical Asset Allocation Strategy

The Trinity Portfolio allocates equally (33.3% each) across VTI, VEU, and AGG. Each asset is independently filtered using a 200-day SMA — below SMA → that sleeve goes to BIL.

Backtest Performance (1990-10-31 to 2026-04-24)

MetricTrinity Portfolio
Compound Annual Growth Rate (CAGR)7.4%
Maximum Drawdown-12.7%
Sharpe Ratio1.00
Sortino Ratio1.21
Annualized Volatility7.4%
Calmar Ratio0.58
Total Return1164.0%
Backtest Period35.4 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
monthly
Risk Level
moderate
Variants
1
Author
Mebane Faber
Source
Faber, M. A Quantitative Approach to Tactical Asset Allocation (2007)

Asset Classes

  • US Equity
  • International Equity
  • US Aggregate Bonds
  • Cash

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