100 Level

ITA Wealth Management: An Investment Blog For Serious Investors

ITA Wealth Management is a blog that espouses the virtues of saving, living a modest life-style, index investing, asset allocation, value loading, and portfolio rebalancing.  Readers coming to this blog understand the importance of saving and living a modest life-style.  If not, search for "The Golden Rule of Investing."  Index investing, particularly when it comes to … [Read More...]

Fama-French Three Factor Model

Have you ever asked yourself, why are all the asset allocation plans for the various ITA Wealth Management portfolios tilted toward the value side of the investing spectrum and why are they skewed toward smaller cap size?  If you are a new reader, the reason is based on research by Eugene Fama and Kenneth French.  Their work is known as the Three-Factor Model.  Here are the three … [Read More...]

300 Level

Bohr Portfolio Examined

This month the Bohr Portfolio received an infusion of cash and reduced shares of TLT to pull down the percentage held in the over allocated bond/income asset class.  A few May dividends were added keeping the IRR for the portfolio well ahead of the VTSMX benchmark and in line with the ITA Index, a customized benchmark. Shown below is the current Dashboard for the Bohr.  Limit orders are … [Read More...]

Bohr Portfolio Update: 29 April 2013

Since the last Bohr update 33 days ago there were four trades in this portfolio.  Based on the optimizer I sold 100 shares of Precious Metals (GTU), the 29th ranking ETF as you will see in a later slide.  No shares of GTU are recommended for this portfolio.  I also sold 100 shares of Emerging Markets (VWO) and based on the optimizer should sell more.  Shares (100) of Domestic REITs (VNQ) were … [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...]

Swensen Six and Faber “Ivy Ten” Portfolios

Two model portfolios to consider using are those recommended by David Swensen, chief investment officer of Yale University and author of Unconventional Success, and Mebane Faber, portfolio manager at Cambria Investment Management and co-author of The Ivy Portfolio.  While Faber's book focuses on Ivy League portfolios, there are differences in the make up of the portfolios recommended by … [Read More...]

400 Level

Watching Prices and 195-Day EMAs

I've been tracking or at least observing the prices of the eight critical ETFs and their respective 195-Day Exponential Moving Averages (EMAs) and was relieved to see the upticks today. The Madison is up for review this weekend and based on the closing numbers, I can place this portfolio on automatic pilot for another month.  That leaves the Gauss to be evaluated at the end of the … [Read More...]

Sharpe Ratio: Why I prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma     (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, … [Read More...]