100 Level

Three-Year Anniversary

Today is the three-year anniversary of ITA Wealth Management.  Thank you for checking in from time to time to view what I am trying to articulate.  In the three years, nearly one million viewers requested this blog.  Of course this is counting crawlers from Google so the number of live readers are much lower.  I think I've seen a viewer from every country except North … [Read More...]

15-Stock Diversification Myth

Diversification Myth Debunked   How many stocks does it take to eliminate portfolio risk?  The number 12 to 15 often crops up.  If that is too few, then maybe 20 to 30 will do.  This number has also come under fire, particularly in a world economy where U.S. companies no longer make up the majority of available companies and our economy is shrinking as a percentage of the … [Read More...]

300 Level

The Basic Portfolio & The Delta Factor

When setting up a Basic Portfolio, investors want to include at least the "Big Six" asset classes from the U.S. equities market.  Then add some bonds, developed international markets, emerging markets, and REITs.  For larger portfolios, commodities, international REITs, and international bonds are common additions. Remember, this is a basic or core portfolio. This blog entry … [Read More...]

Thinking Through a Basic ETF Portfolio

Thinking through the process of constructing the following ETF rich portfolio several required specific goals be met. This material is not for publication elsewhere on the Internet. The portfolio needed to be simple.  While 15 ETFs are not exactly simple, neither is it overly complicated.  To simplify one could reduce the number of bond and treasury ETFs. All ETFs must be commission free … [Read More...]

200 Level

Large vs. Small Cap Allocations: Is A Reallocation In Order?

I am reading material that indicates a change in asset allocation is in order for the third, and perhaps, fourth quarter.  This post is very short so expect more details later this week. … [Read More...]

Core ETFs Optimized for Maximum Return

To answer my own question of what ETFs are critical to most portfolios, I put together what I call the "Essential Twelve."  The plan is to cover the U.S. Equities, Emerging and Developed International Markets.  REITs, commodities, bond, and treasury instruments are included in the following analysis. The following information is not available for publication elsewhere on the Internet. … [Read More...]

400 Level

Maxwell Update: 6 June 2012

As one of the five ITA Risk Reduction model portfolios, the Maxwell was initially selected as the portfolio Internal Rate of Return (IRR) lagged both the VTSMX and ITA Index benchmarks.  The hope is that over a few market cycles, we will be able to push the portfolio IRR above both benchmarks. … [Read More...]

A Risk-Parity Look At The New Normal Portfolio

While I don't know if the current makeup of assets matches my most recent copy of the New Normal, a look at a risk reduction or equal rating of risk is instructive.  Check out the QPP analysis below. … [Read More...]