100 Level

Commodity Holdings: DBC vs. DJP

Faber and Richardson recommend using DBC as the commodity holding in their five and ten ETF portfolios.  I favor DJP, an Exchange Traded Notes (ETN) as the commodity placeholder.  Readers can look up the difference between and ETF and ETN on the Internet.  How do these two commodity holdings compare over a time duration of interest.  Since commodities have a rather short … [Read More...]

Kiva Loans Making a Difference

Long time ITA Platinum members know that a significant percentage of the profits from this blog are donated to help the less fortunate.  Search for MEDA or MEDA Trust on this blog for more information.  Since MEDA Trust shut down last March, I switched my giving over to Kiva where 28 loans are active.  I think two of those loans are now paid off so 26 are active, including four more that were … [Read More...]

300 Level

“Delta Factor” Changes Over Last Week

How are the "Delta Factor" projections altered after a positive week in the market?  To answer this question, I listed many of the ETFs used in various portfolios and ran the analysis for two different time frames.  The first screen shot shows the Delta and Delta Factor from 10/3/2007 through 10/3/2011.  The second screen shot captures the data from 10/10/2007 through … [Read More...]

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...]

200 Level

Active vs. Passive Investing: Part 7

Section Seven of the "Active vs. Passive Investing" article is sumarized the following paragraph. "Some indexers never claim passive investing gives superior returns. They claim only that active investors do better than the benchmark some of the time, and worse some of the time, while passive investing gets rid of that risk by equaling the benchmark every time. They admit some … [Read More...]

Asset Allocation for Small Global Portfolios

If your portfolio is small and yet you want global diversification, this portfolio is one to consider.  This six asset class portfolio is built around asset allocation guidelines laid out by David Swensen in his book, "Unconventional Success."  Thirty percent of the portfolio is allocated to U.S. Treasury Bonds (TLT) and TIPs (TIP).  Domestic REITs are covered with the VNQ … [Read More...]

400 Level

Condition of Risk Reduction ETFs

ETFs used in the ITA Risk Reduction model experiment include the following "critical" eight:  VTI, IWN, VEU, VWO, VNQ, RWX, DBC, and PCY.  If the market closes this afternoon close to where it is now, only DBC will reside below its 195-Day Exponential Moving Average (EMA).  VEU and VWO, both international ETFs, are hanging above the cross-over point by pennies.  We … [Read More...]

Madison Portfolio Update: ITA Risk Reduction Model

This weekend was examination time for the Madison Portfolio, one of the ITA Risk Reduction model candidates.  Below is the Dashboard from the TLT Spreadsheet as of the market close on 2/17/2012. … [Read More...]