By: Larry MacDonald

The second quarter was easier on the nerves for the One-Minute Portfolio than the first quarter. The stock market continued its upward climb through April to June. As a result, the portfolio is up 15.4% from the annual rebalancing in December. The average annual gain since inception (early 2003) is now above 8%.

The One-Minute Portfolio (OMP) is a passively indexed portfolio, one that runs with a minimum of effort. It has been rebalanced annually and consists of just two exchange-traded funds (ETFs): iShares Canadian Bond Index ETF (XBB) representing bonds, and iShares S&P/TSX 60 Index ETF (XIU) representing equities.

So far the decision to hike the allocation to equities during the rebalancing in December is paying off. But we shall see what ultimately unfolds as 2009 wears on. For more details on the OMP, check out the December 18th article on the last rebalancing.