The monthly review of Ivy Portfolio and the S&P 500 moving averages for August 2026 shows a mixed picture, with the endowment‑style mix sitting in cash while the broad market index stays comfortably above its trend lines.
Ivy Portfolio Signals Show Cash Stance
At month‑end the 10‑month simple average indicated a single cash position after the iShares 7‑10 Year Treasury Bond ETF (IEF) slipped just below its reference line. All other components—U.S. stocks, international equities, real estate and commodities—remained above their respective benchmarks.
Core holdings
- Vanguard Total Stock Market ETF (VTI) – domestic equities
- Vanguard FTSE All‑World ex‑US Index Fund (VEU) – foreign equities
- iShares 7‑10 Year Treasury Bond ETF (IEF) – intermediate‑term bonds
- Vanguard Real Estate ETF (VNQ) – property sector
- Invesco DB Commodity Index Tracking Fund (DBC) – commodities
The Ivy approach keeps each class at equal weight, then checks the monthly close against its 10‑month average. If a fund finishes below, the rule calls for a sale and cash hold; a rise above prompts continued ownership.
Compared with the “risk‑parity” models used by other university endowments, the Ivy method is more mechanical. It trades on a single signal rather than juggling multiple risk metrics, which can simplify portfolio management but also limits flexibility when markets turn sharply.
S&P 500 Remains Above Key Averages
The index posted a 2.6 % gain in August, ending a two‑month losing streak. More importantly, the close sat 7.5 % higher than the 10‑month simple line, 8.5 % above the 12‑month simple line, and 7 % over the 10‑month exponential variant.
These positions translate into an “invest” signal for the fifth consecutive month on the shorter line and the sixteenth month on the longer one. Historically, staying in the market when it is above these benchmarks has captured most of the upside since 1995 while cutting deep drawdowns.
Charts date back to the mid‑1990s.
They show the strategy missing only a handful of the biggest spikes, yet avoiding the worst of the 2000, 2007 and 2020 downturns. The trade‑off is occasional lag when a rally peaks, as seen in the 2020 whipsaw.
Investors should remember that the signals apply to it. Dividend reinvestment can shift a fund’s line a few points, so the exact timing may differ for products like the SPY ETF.
Using a tax‑advantaged account and a low‑cost broker keeps more of the return in the pocket of the holder rather than slipping to fees or taxes.
The data set remains valid through the market close on September 31, 2026. For those who prefer raw numbers, an Excel file with monthly closes from Yahoo! Finance is available via the original source.
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