100 Level

DFA Portfolio vs. Euclid Portfolio Over Thirteen-Year Period

How does the performance of a DFA oriented portfolio perform when compared with the Euclid Portfolio, one of the older portfolios tracked here at ITA Wealth Management?  I selected the Euclid as it is one of the poorer performing portfolios over the last thirteen years.  The reason for the lagging performance is that I allowed too much cash to site idle in the portfolio for long periods … [Read More...]

Review of ITA Wealth Management

The ITA Wealth Management blog originated over four years ago. It was on February 14, 2008 that I wrote my first entry and published it on an old blog site that was hacked. I first began this effort as I wanted to learn something about blogs. I never intended to begin a serious investment blog, so what began as an experiment evolved into ITA Wealth Management. If one is going to write a blog, one … [Read More...]

300 Level

Launching a New Portfolio and Initializing ITA Index

Platinum readers know about the funding of the new ITA-RR portfolio. Since tomorrow is the last business day of the month (December) I will take a careful look at the price points for VTI, IWN, VEU, VWO, VNQ, RWX, and IGE and compare them with their respective 195-Day EMAs.  If nothing were to change tomorrow, on January 3, 2012, I will take out a full position in VTI, IWN, and VNQ.  … [Read More...]

$100,000 Starter Portfolio

For prospective investors just beginning a portfolio, here is a sample based on the Momentum-Optimization Model (MOM).  MOM is discussed elsewhere on this blog.  Just search to full title or MOM to find this material. We first begin with a ranking of all the securities we might consider for our holdings.  This includes approximately 30 ETFs.  Most are commission free to clients of … [Read More...]

200 Level

Einstein Portfolio Review: 5 March 2012

Scheduled for review is the Einstein Portfolio.  I am using a modified version of the ITA Risk Reduction model with the Einstein.  What this means is that I am tracking critical ETFs held in the portfolio.  These include: VTI, VEU, VWO, VNQ, and RWX.  Should any of these ETFs (price of ETF) drop below their respective 195-Day Exponential Moving Average (EMA) I will sell off the … [Read More...]

Eight Asset Porfolio

Photograph: When I first walked Devastation Trail in late 1961 or early 1962, there was no vegetation to be seen as it was soon after the eruption. Consider the following portfolio that holds eight assets including cash.  In this analysis, I am using the 20-year treasury ETF, TLT, to represent cash, a substitution that gives the portfolio a slight boost over current money market rates.  … [Read More...]

400 Level

Fama & French – Value Risk Factor

  Sculpture on Main Sacred Way to Ming Tombs Fama-French’s value risk factor is at the heart of their paper, The Cross-Section of Expected Stock Returns.  This link connects you to an abstract of their paper.  It takes someone like William Bernstein to explain the research study and its importance.  Let me quote from "The Intelligent Asset … [Read More...]

Sortino Ratio: What Is It?

The following discussion of the Sortino Ratio may get a little "heavy" for some readers.  However, this information is very important for the serious investor, so stick with me and follow along.  Users of the TLH spreadsheet are familiar with the Sortino Ratio as one of the worksheets is built specifically to calculate this number.  The equation is quite simple but very … [Read More...]