100 Level

Five ETF Portfolio

Adding REITs What happens if a fifth ETF is added to the portfolio.  In addition to U.S. equities (VTI), developed international markets (VEU), emerging markets (VWO), and bonds/income (TLT), we add REITs (VNQ).  Can we increase projected return and diversification without sacrificing uncertainty or risk?  Below is the screen shot of a five asset class portfolio. … [Read More...]

Goofus vs. Gallant

As a follow up to The Golden Rule of Investing, I am bringing this post forward so new readers of ITA Wealth Management will not miss it. This post drives home the importance of investing frequently and early. As a small boy, my family subscribed to a magazine called “Children’s Activities.” Each issue contained a story of two characters, Goofus and Gallant. We all wanted to be … [Read More...]

300 Level

QPP Analysis of Actively Managed Mutual Fund Portfolio

Actively Managed Mutual Fund Portfolio The following QPP analysis is one where the portfolio is made up of actively managed mutual funds.  Long-time readers know my opinion about such funds, even though I used them throughout my teaching career.  It was a mistake.  Data was missing for JVLAX so I lumped the money market funds and the percentage (9.54%) held in JVLAX into … [Read More...]

Portfolio Performance: 25 February 2011

Photograph: Harvest in the Sacred Valley of Peru with Andes in the background. Portfolio Performance Since posting the last performance table, the February 25 update shows nearly all portfolios gaining ground on the benchmarks.  Several of the larger portfolios also exhibited an increase in both the Sortino and Retirement Ratios.  It seems as if the portfolios are structured to show … [Read More...]

200 Level

“New Normal” Portfolio With Risk Reduction Allocation Plan

Following up on the risk adjusted Ten ETF Portfolio analyzed yesterday, what does the "New Normal" group of stocks and ETFs look like when the same risk management algorithm is applied.  In this analysis I was able to stretch the historical period out over five-years.  The percentage allocated to the different stocks and ETFs look reasonable when the low variance BND ETF is not … [Read More...]

Launching That $100,000 Portfolio

What does a $100,000 portfolio look like or how might one go about building a portfolio with this amount of money?  Before launching into the investment particulars, be sure to lay out a portfolio plan.  Think through what risks makes sense for your situation.  Will you be populating the portfolio using individual stocks or will you be using non-managed index funds or index … [Read More...]

400 Level

Risk Reduction Model In Review

When I first began to think about the ITA Risk Reduction model, the idea was to first identify the major asset classes and attach a particular ETF that would capture that particular asset class.  I wanted the coverage to be global in scope, yet confined to a few ETFs so the labor was manageable.  Here are the asset classes I selected for the risk reduction model. U.S … [Read More...]

Pre-Maxwell Review

This weekend the Maxwell Portfolio is up for review, and as Platinum members will recall, this portfolio is one of the five used to test the ITA Risk Reduction model.  Of the critical eight ETFs used in this experiment, only DBC is currently priced below its 195-Day Exponential Moving Average (EMA).  While I expect this to continue through today's market, that could easily change as … [Read More...]