100 Level

A Portfolio Construction Policy

Photograph: Main Gate to University of Glasgow, Scotland As an educational investment blog, ITA Wealth Management is all about portfolio construction, management, and monitoring.  In this post I will focus on the beginning steps of portfolio construction.  Portfolio construction is the process of assembling security holdings using a Strategic Asset Allocation blueprint.  We will … [Read More...]

VTI Switches Indices: Are You Concerned?

If I were to hazard a guess, most readers of ITA Wealth Management are not aware that VTI made a switch its underlying index benchmarks from MSCI to the CRSP indices (for US exposure) and FTSE indices (for international).  While this is of some concern, it will not significantly impact our portfolios as we do not invest only in the VTI index.  While the VTI will lose some exposure to mid- and … [Read More...]

300 Level

8 Dividend Stocks Supercharge the Swensen-Six Portfolio

Eight dividend aristocrats added to the "Swensen-Six" Portfolio boost return, increase yield, without doing extensive damage to the portfolio volatility. The following screen-shots show the original "Swensen" portfolio, a supercharged version, the correlation matrix for the supercharged portfolio, and the "Delta Factor" projections for the supercharged portfolio when … [Read More...]

Sixteen Dividend Stocks

Platinum members interested in selecting individual stocks will be interested in this list of dividend oriented companies. In the first screen shot we have the screens applied to over 9800 stocks.  From this group we extract only sixteen.  Those companies are shown in the second screen.   Several of the sixteen stocks that make this "dividend" cut are part of the … [Read More...]

200 Level

The Permanent Portfolio Approach

The following comment generated this response.  The question is quoted so readers will follow the context of my post.  This is likely to be a long post so prepare yourself for some detailed information. "I would appreciate your comments on the following: I’ve been thinking about the Permanent Portfolio approach, and the Feynman studies; and possibly how to meld them together. First, about the … [Read More...]

Portfolio Performance: 21 January 2012

This was a good week for most of the portfolios.  Not only did we see absolute gains, but relative improvement as well.  The majority of the portfolios gained a little ground on either the ITA Index, the VTSMX benchmark, or one of the three uncertainty measurements. The exaggerated figures related to Gauss are to be expected as this is a young portfolio.  Annualized calculations … [Read More...]

400 Level

“Delta Factor” Plus “Conservative Delta Index”

Platinum members, here is the extended screen shot that includes another column of information. Platinum membership available for $5.00 per month. … [Read More...]

Harry Browne’s Permanent Portfolio

Risk-Parity Look at Permanent Portfolio Much is written about Harry Browne's Permanent Portfolio, particularly since it held up well during the "Black Swan" markets of the early 21st century.  Below is a look at the equal allocation plan as advocated by Browne, and a Risk-Parity examination of the same four asset classes.  Both the equal allocation and Risk-Parity … [Read More...]