100 Level

Sample Portfolio

In response to a request from a Platinum member, I ran the following analysis of seventeen investments with the associated percentages.  For assumptions, I used the most recent three years of data and I projected the S&P 500 would return 7.0% over the next year.  As readers can see, the projected return is 7.2% or a little higher than we expect from the S&P 500.  The … [Read More...]

Active Management: A Mistake

Much is written about active vs. passive management. Harold Evensky defines active management in his book, "Wealth Management" and I quote. "Active Management is the art and science of security selection based on a belief in a manager's ability to consistently and accurately evaluate current and/or future events better than other investors. The core philosophical basis is … [Read More...]

300 Level

Preparing a New Portfolio for a Customized Benchmark

Within the TLH Spreadsheet is the capability to develop a customized benchmark for any portfolio that uses any combination of the 17 asset classes found in this blog post. If you are new to ITA Wealth Management, note that we pay a lot of attention to asset allocation, even though it has recently fallen out of favor, particularly since the 2008 market crash.  Why build a customized … [Read More...]

Bohr QPP Projections

Using current ETF percentages held in the Bohr Portfolio, what are the Quantext Portfolio Planner (QPP) projections indicating for the next several months?  The S&P 500 is assumed to grow at 7.0% over the next year.  In the prior blog post, I showed the Efficient Frontier graph, and it presents a somewhat defensive portfolio.  This QPP projection shows much the same expectation going … [Read More...]

200 Level

What ETFs To Use For Different Asset Classes

A question came up regarding what ETFs do we use for the different asset classes.  Below is a listing of the different asset classes and the primary, but not only, ETFs we use to populate the asset classes. … [Read More...]

Putting It All Together: Portfolio Construction

David Swensen writes in his "Unconventional Success" book, "Construction of a financial-asset portfolio involves full measures of science and art.  The science encompasses the application of basic investment principles to the problem of combining core asset classes in an efficient, cost-effective manner.  The art concerns the use of common-sense judgment in the challenge … [Read More...]

400 Level

“Delta Factor” for International ETFs

What is the outlook for international ETFs?  The following screen show shows the "Delta Factor" projections for a long list of options. … [Read More...]

Ranking Critical ETFs

Now that I have the capability to work with more than 20 ETFs within the ranking worksheet, I made a list of the critical securities one might use to construct a portfolio.  There are three sector ETFs in this group and a special ranking of sector instruments will be conducted to determine which are part of this larger grouping. While the ranking is important, also pay attention to the … [Read More...]