100 Level

Index Investing Puzzles

Check out this interesting article titled, "The Weighting Game, and Other Puzzles of Indexing."  Here are the opening two paragraphs. "If we had hosted a panel discussion about active and passive investing 15 years ago, we would have titled it: "Indexing, Does It Make Sense, and If So, Why?" The burden of proof would have lain at the feet of the indexers. That's … [Read More...]

Buffett or Steadman

For every Warren Buffet there are a hundred Charlie Steadman's.  While nearly every investor has heard of Buffett, few remember Charlie Steadman. Is there a reason for this short memory? “Until he died at age 83 in 1997, Charlie Steadman burned through investors’ assets at a rate unseen in the fund business since the Great Depression–and, we hope, never to be seen … [Read More...]

300 Level

Possible Portfolio For 2013

As we look forward to 2013, what might a possible portfolio look like considering the uncertain future.  In the following QPP analysis I built this possible portfolio using the Swensen Six Portfolio as a base.  Then I added several risk adverse ETFs as Platinum members can see. The following material is not available for publication elsewhere on the Internet. … [Read More...]

Is It Worth 50 Basis Points – Or Higher?

Approached recently about the possibility of investing in index funds that are only available through fee based advisors, I decided to take a closer look.  The question of whether to pay 50 to 100 basis points for access to specialized index funds is an honest question.  The first step was to define what risk (portfolio uncertainty) might be required as this would determine the … [Read More...]

200 Level

Active vs. Passive Investing: Part 11

Section Eleven of the Active vs. Passive paper poses several interesting issues.  In the first paragraph the author points out that it is the active investors who 'correct' the market.  This implies the market is efficient, even though the second paragraph implies the reverse is true.  Passive investors should be grateful there are active investors as they do help to create … [Read More...]

Optimized Mosaic Portfolio

While the following portfolio is not exactly one of the eleven portfolios tracked here at ITA Wealth Management, there are many similar ingredients.  To create this portfolio I selected 26 ETFs that are frequently part of at least one ITA portfolio.  Familiar ETFs such as VTI, VEU, VWO, DVY, VTV, IWN, VOE, VOT, VNQ, RWX, etc. are among the 26 ETFs.  Nine (9) bond ETFs were in the group, but most … [Read More...]

400 Level

VNQ: A Look At The Technical Indicators

Vanguard's REIT ETF, VNQ, is part of every portfolio I track and due to its importance merits close attention. I track a number of technical indicators for each ETF in the portfolios and here are a few of them. One of the first metrics I examine is my own "Delta Factor" which is a reversion-to-the-mean projection of how well an ETF is expected to perform with respect to the broad … [Read More...]

Asset Allocation: Why Select This Mix of ETFs?

Gauss is the newest portfolio launched (12/27/2011) here at ITA Wealth Management.  While the annualized performance is a respectable 25%, it still lags both the VTSMX and ITA Index benchmarks as it took time to populate all fifteen equity and bond asset classes.  The broad market was in a positive mood during the launch phase and as a result, the portfolio fell behind the … [Read More...]