100 Level

Downsides to ETFs

  ETF Negatives   There are a few, but not many, negatives to working with ETFs. A broker is required to purchase and sell ETFs.  I use TDAmeritrade and it costs me $7.00 to purchase and $7.00 to sell ETFs.  Now 101 ETFs are commission free with TDA. Therefore I generally deal in blocks of 100 shares or more.  This is done to keep commissions to a low percentage of … [Read More...]

Anne Murray: CD Recommendation for November

One of my favorite female singers is Anne Murray as she has one of the most melodious and easy to listen to alto voices.  Of the many CD she has recorded, I'll begin with Croonin'.  Perhaps I will list other favorites in the future.  If you are not familiar with Murray, this is a great CD to use as a starter. Here is one positive review from an Amazon viewer. "I've been a fan of Anne Murray … [Read More...]

300 Level

Sample Portfolio Analysis

An ITA reader sent in the following portfolio for analysis.  Two funds, VXUS and VNQI, had short histories so the analysis is limited to 25 months of data.  Below is the QPP analysis and the correlation matrix for this group of holdings.  The S&P 500 is assumed to return 7.0% over the next six to twelve months. QPP Analysis:  Anytime a portfolio is projected to return approximately 100 … [Read More...]

Supercharging The Swensen Six Portfolio By Adding Three Stocks And Two More ETFs

A reader of ITA suggested adding three dividend stocks (T, JNJ, & PG) to see how it might enhance the "Swensen Six" portfolio.  I made those additions, changed the allocation between TLT and TIP, and added international real estate (RWX) and commodities (DBC) to the portfolio.  These changes enhanced the projections for the "Swensen Six" in all the major metrics. … [Read More...]

200 Level

The Permanent Portfolio Approach

The following comment generated this response.  The question is quoted so readers will follow the context of my post.  This is likely to be a long post so prepare yourself for some detailed information. "I would appreciate your comments on the following: I’ve been thinking about the Permanent Portfolio approach, and the Feynman studies; and possibly how to meld them together. First, about the … [Read More...]

Portfolio Performance: 12 August 2011

Asset Allocation wins again.  The following data table is what ITA Wealth Management is all about.  It is about setting up a Strategic Asset Allocation plan, following through with a passive style of investing, and monitoring the results to see how well the portfolios compares with their benchmarks. While few folks expected to see absolute gains over the last week to ten days, in such … [Read More...]

400 Level

Using Treasuries to Reduce Risk

Compare the following portfolio (QPP analysis) with the risk reducing portfolio I suggested last week.  In the following portfolio, I stripped percentages off several equity and REIT ETFs and allocated those assets to a combination of TIP and TLT.  While the projected return is reduced, the projected standard deviation comes down at a faster rate giving one a higher Return/Uncertainty … [Read More...]

Pre-Maxwell Review

This weekend the Maxwell Portfolio is up for review, and as Platinum members will recall, this portfolio is one of the five used to test the ITA Risk Reduction model.  Of the critical eight ETFs used in this experiment, only DBC is currently priced below its 195-Day Exponential Moving Average (EMA).  While I expect this to continue through today's market, that could easily change as … [Read More...]