100 Level

How To Use This Blog

  From time to time I write a help session, particularly for new Platinum members, on how to use this blog.  How to find information is essential, and there are two primary methods.  1) Use the Search tool.  This will bring up the latest information first.  For example, if you go to the Search option found in the right-hand sidebar and type in ITA Risk Reduction or ITARR, you will find … [Read More...]

ITA Risk Reduction Followers

Early this morning I ran through the primary ETFs used to populate most portfolios and only commodities and gold are in the doghouse.  That is, DBC and GTU are currently priced below their 195-Day Exponential Moving average.  To see what this looks like, here is the link for DBC, our primary commodity holding. Portfolios managed using the ITARR model are out of gold and commodities.  I may hold … [Read More...]

300 Level

QPP Analysis of “Top 17 Stocks”

Selecting the recommended stocks from the 40 securities listed in a prior blog, here is the Quantext Portfolio Planner (QPP) analysis of those 17 stocks.  Included is the Correlation Matrix graph and for good measure, I threw in the "Delta Factor" projections.  Since there were fewer stocks than in the original analysis I was able to show all the correlations. QPP Analysis:  As in the prior QPP … [Read More...]

Benchmarking a Portfolio

What are the requirements of a good benchmark? The topic of portfolio benchmarks came up again on a forum, so I thought it a good idea to lay down some rules for what constitutes a good benchmark. Here are my ideas on this subject.     1. A good benchmark must be one that an investor can actually purchase. Call it an investable benchmark. This is why investors should shun the … [Read More...]

200 Level

ITA Wealth Management Portfolios Update

Exactly one month passed since I last posted the portfolio performance data table.  All portfolios showed an increase in absolute value.  The gain or loss compared to the two critical benchmarks is mixed.  Portfolios that gained with respect to the ITA Index were the following:  Bohr, Madison, and Gauss.  There was no change in the Curie, Newton, Einstein, and Kenilworth portfolios.  The … [Read More...]

Optimizing a Basic Portfolio: 3 and 5 Year Analysis

The sample portfolio shown below consists of 16 ETFs that cover all major markets found in the eleven portfolios tracked here at ITA Wealth Management.  VTI covers all of the "Big Nine" asset classes.  We add VIG for added dividends and IWN for any possible push toward small-cap value, or where Fama and French find added alpha. VEU is our developed international market and VWO is the ETF used … [Read More...]

400 Level

Ranking Vanguard’s Sector ETFs

One of the portfolios up for review this week is the Gauss.  In preparation for that update I'm looking for ways to improve the performance of this portfolio as it still lags the VTSMX benchmark.  I thought I would rank the Vanguard sector ETFs (minus VNQ) to see if there are any potential "momentum" ETFs among this group.  Below is the latest ranking. Sector Rankings:  The financial (VFH) ETF … [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...]