100 Level

Disadvantages of Passive (Index) Investing: Are There Any?

The arguments in favor of passive investing are far too compelling to completely ignore.  If there are any disadvantages, what are they? 1.  At one time the availability of passive or index funds were limited, particularly in certain asset classes.  Availability of index funds is no longer a problem as ITA readers know.  We can find an index ETF to fill every asset … [Read More...]

Searching for the Strategic Asset Allocation Holy Grail

Establishing a strategic asset allocation (SAA) plan for a portfolio requires at least two major decisions.  1) What asset classes should be included in the portfolio.  2) What percentage of the total portfolio is allocated to each asset class.  Decision number two is the more difficult of the two.  Where do I come up with the various asset allocation plans found in the various … [Read More...]

300 Level

IVY-2: Ten ETF Portfolio

The second portfolio recommended by Faber and Richardson contains ten ETFs.  There are a few new asset classes added such as small-cap, emerging markets, and foreign or international REITs.  Are we able to improve the Return/Risk ratio and elevate the Diversification Metric with these additions?  Check the analysis below for the answer. A "seat of the pants" analysis … [Read More...]

Bohr Portfolio Update: 24 September 2012

Several changes took place in the Bohr Portfolio since the last update.  I sold shares of VOT in order to bring mid-cap growth into balance.  I also sold a few shares of VTV, but large-cap value is still 1.1% above target.  Cash from these sales was used to purchase VWO, PCY, and DBC.  Emerging markets and commodities are within target limits, but I still need to pick up more … [Read More...]

200 Level

Sample Portfolio For Thirty (30) Year Old Investor

The following portfolio was passed on to me by a Platinum member as an example of a Strategic Asset Allocation plan for a thirty year-old investor.  Nine ETFs are used in this portfolio and many of the investment securities are familiar to ITA readers.  In fact, all nine Exchange Traded Funds can be found in one or more portfolios with exception of RWO.  RWO is a global real estate … [Read More...]

Portfolio Performance: 14 January 2012

This week saw absolute gains in every portfolio and relative gains against the VTSMX benchmark in five of the eleven portfolio.  Only the Newton and Bohr lost a small fraction of a percentage point with respect to the VTSMX while the Curie, Schrodinger, Kepler, and Euclid remain unchanged.  It was encouraging to see the Einstein, Kenilworth, Maxwell, Madison, and Gauss gain small amounts … [Read More...]

400 Level

VTI Within Striking Distance

Readers following this blog know about the Tactical Asset Allocation or market timing method we are about to employ with the Maxwell and Euclid portfolios.  These two portfolios were selected as they consistently lag behind the VTSMX benchmark.  I want to come up with a title more original than the Faber-Richardson method so users can do a search and easily find information on what is … [Read More...]

Seeking For Low Correlated ETFs

When the market shies away from equities and gravitates toward less volatile securities such as bonds and treasuries, we need access to those ETFs that have a low correlation with holdings such as VTI, VEU, and VWO.  What ETFs do we flee to when the equities market begins to wane.  If included in the ranking worksheet, we can easily identify those ETFs that have the strongest … [Read More...]