100 Level

ETFs For Different Asset Classes

As requested in a recent comment, here are ETFs to use in the thirteen asset classes. ETF Table #1:  Since the table is so wide, I am not able to capture it in one screen shot so I broke it into two sections.  Here is the first piece.  In some cases it is a little hard to determine which asset class the ETF belongs as the letters are clipped.  For example, PCY goes into Int'l Bond and VEA into … [Read More...]

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

300 Level

Growth: Portfolio #5

Moving one step closer to increasing the projected return, this post is about the Growth Portfolio, number 5 out of 6 in this series.  Bond and income is reduced to 16% in this portfolio so it is definitely tilting toward the aggressive side of investing.  Two ETFs, BND and IEF are eliminated from this portfolio as we will concentrate our income holdings in TIP and TLT. Platinum … [Read More...]

Highly Selected Stocks

One of my data sources changed their format and the changes eliminated information I use in my "Watch List" spreadsheet.  Unless I am able to find that data, I will need to change the makeup of my "Creme List."  For investors who use a few individual stocks in their portfolios, I will continue to post a list of interesting companies.  It will differ from the old … [Read More...]

200 Level

Stress Testing the Modest Retirement Portfolio

Back on January 7 of this year I posted a "Modest Portfolio" that readers can locate and see the entire analysis.  Below is the same portfolio with a stress test included.  Since this is a middle of the road type portfolio, it is an excellent example to use for a stress test. The portfolio holds only nine ETFs and there are times when one will want to be out of SDS.  Now … [Read More...]

Rethinking Asset Allocation

Keeping David Swensen's Strategic Asset Allocation model in mind, it is possible to use all seventeen asset classes available in the TLH Spreadsheet to fulfill his recommendations.  Platinum members will see how this is accomplished when the Gauss Portfolio is reviewed tomorrow.  Instead of using six ETFs as I showed in an earlier post, we will use many more, but still stick with … [Read More...]

400 Level

What Is A Good Sortino Ratio?

Seeking a Good Sortino Ratio A reader of ITA Wealth Management was seeking an answer to the question, what is a good Sortino Ratio?  The simple and quick answer is - anything above zero.  Check this definition of the SR.  While the equation is quite simple, the difficulty comes in calculating the denominator. SR = (P - T)/DR where P is the portfolio return T is a portfolio … [Read More...]

VEU And The ITA Risk Reduction Model

Using the ITA Risk Reduction model for VEU tells a completely different story from the prior analysis of VTI.  Using the same time frames as we did for VTI, the first examination is to see what we do at the end of the month. … [Read More...]