100 Level

The Simple Six Swensen Portfolio

Amid all the discussion of various technical indicators resides a simple six-asset portfolio advocated by David Swensen.  The six asset classes are: U.S. Equities, Developed International Markets, Emerging Markets, REITs, Treasury Bonds, and Treasury Inflation-Protected Securities.  That's it.  Six ETFs will provide global coverage. The following slide shows the Quantext … [Read More...]

Active Management: A Mistake

Much is written about active vs. passive management. Harold Evensky defines active management in his book, "Wealth Management" and I quote. "Active Management is the art and science of security selection based on a belief in a manager's ability to consistently and accurately evaluate current and/or future events better than other investors. The core philosophical basis is … [Read More...]

300 Level

“Creme List” as of 1 July 2011

Platinum members interested in spicing up their ETF portfolios with a stock or two will find the following list of companies of interest.  No companies were purged due to missing 13 consecutive weeks, but a few are in jeoparty of losing their position next week.  Two companies are new to the list.  Stock selection is not the focus of portfolio construction here at ITA Wealth … [Read More...]

Bohr QPP Projections

Using current ETF percentages held in the Bohr Portfolio, what are the Quantext Portfolio Planner (QPP) projections indicating for the next several months?  The S&P 500 is assumed to grow at 7.0% over the next year.  In the prior blog post, I showed the Efficient Frontier graph, and it presents a somewhat defensive portfolio.  This QPP projection shows much the same expectation going … [Read More...]

200 Level

Keeping It Simple

Investors wishing to keep their portfolio as simple as possible, yet obtain global diversification, can do it with no more than three ETFs. 1.  VTI will cover all U.S. Equities. 2.  VEU is the all-world except U.S. international ETF.  This ETF provides the global exposure we require, even for a very simple portfolio. 3.  BND, or an all bond ETF provides a diversifier or risk … [Read More...]

Portfolio Performance Data: 2/16/11

Portfolio Performance Data Table When looking over the following data table, note when the portfolios were last updated as not all are current as of 2/16/11.  Portfolios tracked by Captool are only updated at the end of the month. As one looks down column 7 or the column of data measuring the difference between the IRR value for the portfolio and the IRR measurement for the ITA Index, one … [Read More...]

400 Level

Update On ITARR Big Seven ETFs

Most of us using the ITA Risk Reduction model are in the "neglect" period so this information is not all that essential.  For those who are still thinking about using ITARR, all but VTI are now priced below their respective 195-Day EMAs.  Yes, IWN, VEU, VWO, VNQ, IGE, and RWX are all priced below their EMAs.  Some are well below while others are only a tad below. Once … [Read More...]

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]