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One of the cool things about folioinvesting.com is the ability to quickly see a backtest of how your current portfolio would have done in the past versus a benchmark. As shown in the chart above, our model portfolio with roughly 2/3 invested in low beta stocks and 1/3 invested in the short-S&P 500 ETF (ticker: SH) would have done pretty well over the past 4 years as compared to being 100% long the S&P 500.
Note: the time period selected (i.e. 4 years) was chosen solely because the short-S&P ETF wasn't originated until 6/2006.
