100 Level

Twelve ETF Portfolio: Moving From HYG to LQD

Here is the link to a basic 12-ETF portfolio.  In addition to examining the ETFs that make up the portfolio, take time to look at the Correlation Matrix. Over time I plan to sell some shares in HYG and move those funds over to LQD.  View this comparison link to see why I might be inclined to make the change.  If looking for income, HYG does have a higher yield than LQD.   … [Read More...]

Walking Your Way To Independent Portfolio Management

Portfolio management is not equivalent building a house or overhauling a car engine.  It is not that hard, so don't throw up your arms and say you cannot do it yourself.  With Internet access, it is much easier than it was ten to fifteen years ago.  Here are steps to setting up your own portfolio, managing the assets, and monitoring it on a yearly basis. 1) Open up an account … [Read More...]

300 Level

ETF Rankings: VNQI for RWX

In the following rankings, I substituted VNQI for RWX as it shows up as a better performer in the international REIT space over the past two plus years.  Otherwise, this is the list of ETFs readers can use to populate their portfolios.  A few things to note.  An international bond (BWX) and a corporate bond (LQD) ETF moved from below to above the performance of SHY.  This is the first I've seen … [Read More...]

Kenilworth Portfolio Update: May 1st

Platinum members who took the time to look over the current holdings of the Kenilworth were aware that some tweaking of the asset allocation is needed so as to increase the possible return for this portfolio.  In the following screenshots we look at the dashboard, performance data, and the Buy-Hold-Sell recommendations.  Due to the small size of the portfolio and limited new cash, there are … [Read More...]

200 Level

Active vs. Passive Investing: Part 9

Section Nine of the Active vs. Passive article focuses on the chance argument. "Indexers dismiss individuals' long-run record of outperformance with the argument that "It doesn't count because it was only to be expected from the random variable outcomes of cumulative 50/50 yearly probabilities of beating the index (i.e. luck not talent)". The intuitive error in that logic … [Read More...]

Newton Portfolio Update: 7 February 2012

Once more it is time to update or review the Newton Portfolio.  Shares of RWX, VWO, VOT, and PCY were recently added to bring various asset classes into balance.  Most of the February dividends are included in this review.  As usual, the first order of business in any update is to go to the broker account and make sure all the latest transactions are recorded.  I've done … [Read More...]

400 Level

Current Condition of ITA Risk Reduction Model

Platinum members who implemented the ITA Risk Reduction model must be smiling.  Of the "Big Seven" ETFs used in this model, only VNQ is currently holding firm above its 195-Day Exponential Moving Average (EMA).  VTI, IWN, VEU, VWO, IGE, and RWX are all priced below there respective 195-Day EMAs.  ITARR users need to remember we are in the "neglect phase" of this … [Read More...]

Retirement Ratio: Portfolio Performance and Uncertainty Measurement

What is the Retirement Ratio (RR)?  I never heard of such a ratio, at least as it is defined below.  Before going into an explanation, let me digress and address similar ratios.  Portfolio performance measurements that combine both return and risk are readily available to investors.  The Sharpe ratio is perhaps the best known "efficiency ratio" where it measures the … [Read More...]