100 Level

Index Freeloaders

Take a few minutes to read and smile while reading this article about freeloading index investors.  As passive investors, we need to be grateful for active investors. … [Read More...]

Portfolio Construction

  With the advent of commission free ETFs, TDAmeritrade made it simpler to construct a portfolio.  Readers can watch the slow development of the Kenilworth Portfolio as an example.  Once you have selected the 10 to 15 asset classes, just "stair-step" the building process into a robust portfolio.  Here are my thought processes as to how to assemble a portfolio. … [Read More...]

300 Level

Einstein Portfolio Review

Last week I added a few shares of RWX, VWO, and EMB to the Einstein to bring a few asset classes into balance.  Other than the Bonds & Income asset class, this portfolio is now in balance. One Tactical Asset Allocation I will be making is to shift one percentage point from Small-Cap Growth over to Small-Cap Value.  i will use IWN for my Small-Cap Value ETF.  Another change is … [Read More...]

Swensen Portfolio Plus Dividend ETF VIG

As suggested by one reader, I removed the individual stocks from the Swensen-Six Portfolio and added VIG, a dividend oriented ETF.  Below is the Quantext Portfolio Planner (QPP) analysis, correlation matrix, and "Delta Factor" projections when using five years of historical data.  One big advantage of using VIG instead of several individual stocks is one of simplicity.  … [Read More...]

200 Level

Rebalancing Portfolio: Blending Dashboard and Optimizer

Now that an optimizing tool is available, how does one rebalance a portfolio by combining the output of an optimizer with the Dashboard guidelines?  The larger topic is one of asset allocation so I will start with the following Dashboard that defines an asset allocation plan. Dashboard:  Assume the following Dashboard lays out the Strategic Asset Allocation plan for a portfolio.  Only pay … [Read More...]

Asset Allocation: The Mortar of Portfolios

Asset allocation is a subject frequently mentioned here at ITA Wealth Management.  For many beginning investors, it is a new topic, yet so familiar to the investing world it is assumed everyone knows what it means.  This blog post is to show a sample asset allocation plan and explain some of the reasons why it is set up as it is.  Here we have a Dashboard worksheet extracted from … [Read More...]

400 Level

Risk Reduction Comments

Next week, February 6th, the Maxwell portfolio is up for ITA Risk Reduction examination.  When I checked this morning, before the market opened, all the ETFs used in the Maxwell were priced above their respective 195-Day EMAs.  That well could change by next week.  For example, the commodity, DBC, was only nine cents above its 195-Day EMA.  This raises an interesting … [Read More...]

Working With The Basic Portfolio

Eventually I plan to move more of the ITA portfolios toward the following 20 ETFs.  In some portfolios I need to broaden the diversification and in others I need to reduce the number of securities in an effort to simplify.  Reducing cost is another motivation as all but two of the following ETFs can be purchased free if one is a TD Ameritrade client.  The two exceptions are GTU and VHT.  In this … [Read More...]