100 Level

Commodity Holdings: DBC vs. DJP

Faber and Richardson recommend using DBC as the commodity holding in their five and ten ETF portfolios.  I favor DJP, an Exchange Traded Notes (ETN) as the commodity placeholder.  Readers can look up the difference between and ETF and ETN on the Internet.  How do these two commodity holdings compare over a time duration of interest.  Since commodities have a rather short … [Read More...]

ETF Commandments

Nearly two years ago I referred ITA readers to this link.  There were only a few readers at that time and not many folks picked up the reference.  By brining this blog forward, readers have another chance to see the reference and also check to see if the blog notification plugin is working properly. An Internet friend directed me to this article titled, "Ten Commandments of ETF … [Read More...]

300 Level

Analysis of Submitted Portfolio

The following list of tickers and associated percentages were submitted for analysis.  I made a few changes that may have a small impact on the projected outcomes.  For the bond allocation I am using BND as the holding.  For cash I used TIP, not an exact, but reasonable replacement.  TIP actually gives the portfolio a return boost. The analysis was cut to something under three years as a number … [Read More...]

Year End Portfolio Hints

This year, the last business day arrives on December 31st and that gives us a chance to balance our portfolios to the nearest penny. At least TDAmeritrade clients have a high probability of receive access to their statements before the market opens the following week. Go through your portfolio Monday and see if you have any tax losses you might want to capture in 2010. If the loss is small, I … [Read More...]

200 Level

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

Portfolio #4: Ages 56 – 65

As with the portfolio for ages 36 - 55, this portfolio covers a critical period in life.  This is a time when one can normally increase the monthly savings rate.  The children are likely educated and the house is, or will be paid off.  Extra dollars can be funneled into this portfolio.  As the investor moves toward retirement, the portfolio becomes more conservative in that … [Read More...]

400 Level

Examining “Delta Factor” for ETF Equities

Which ETFs show the highest probability of doing well over the next six to twelve months when compared to the VTSMX index fund?  The "Delta Factor" graph shown below provides a few clues. … [Read More...]

“Delta Factor” – What is it and is it useful?

Context is essential when developing an argument, and that is what this post on the "Delta Factor" is designed to do.  Rather than use ETFs in the "Delta Factor" argument, I selected 20 well-known stocks so I could dip back to the late 1900s for data.  Many ETFs we use did not exist in the late 1900s and early 2000s and most that did lack the necessary historical data … [Read More...]