100 Level

Which Family of ETFs Should I Use?

Question sixteen (16) in this blog entry asked the following question.  "If one prefers Vanguard ETFs, but one's investment service company does not offer commission-free Vanguard ETFs, then is the best option to choose equivalent commission free ETFs that are offered (iShares)?"  Yes, is my answer, and others can chime in with your ideas. Vanguard, Barclay Global … [Read More...]

Move Out of Actively Managed Mutual Funds – NOW!

Whether you are holding actively managed mutual funds as a result of your own decisions or are locked it through your companies saving plan, do everything possible to extricate yourself from these funds and move into non-managed index funds or non-managed ETFs.  If you are not sure why I pass on this advice, you only need to read Richard A. Ferri's book, The Power of Passive … [Read More...]

300 Level

Newton Portfolio Update: 15 May 2012

How well is the Newton Portfolio performing?  Below are screen shots of the Dashboard and Portfolio Performance data.  Even though the Newton is not part of the ITA Risk Reduction experiment, I did lighten up on both international and emerging markets.  The follow table reflects asset classes where I sold some holdings in VEU, VWO, and DBC.  So far those moves helped the … [Read More...]

Six “Mad Money” Stocks

Here are six stocks that qualify for "Mad Money" investments.  Do your own thorough research. These stocks are not for publication elsewhere. … [Read More...]

200 Level

Why Sector Allocation Is Diversification Deficient

There are investors who build their portfolios around sectors instead of asset classes.  The following optimization shows why sector allocation comes up short when it comes to portfolio diversification.  As a reminder, asset classes cover all sectors, but sectors do not cover all asset classes. … [Read More...]

Asset Allocation and Benchmarking Portfolio

A few days ago I read the following comment.  I did not question the reasoning behind this statement.  "Calculating return is relatively pointless if you are investing in indices." While the point of not calculating the portfolio return may make sense for the investor who selects one or two broad index funds for their complete portfolio, it lacks sound reasoning for … [Read More...]

400 Level

“Delta Factor” for Wide Array of ETFs

One reader requested to see what the "Delta Factor" looks like for a wide array of ETFs.  Platinum readers will see the "Delta Factor" for two different periods, three and four years.  If sufficient data were available for these ETFs, I would have displayed a five-year "Delta Factor."  Looking at the two slides below, the time frame selected makes a … [Read More...]

Bullish Percent Indexes: 10 May 2013

BPI Index:  We experienced another good market for U.S. Equities and the following Bullish Percent Index data is testament to this fact.  The NYSE turned positive leaving only the NASDAQ in the hands of the defensive team.  With so many of the broad indexes in the over-bought zone (>70%) it is only a matter of time before we see some sort of draw-down.  This could take a few weeks, but it will … [Read More...]