100 Level

Is It Wise To Pay An Advisor For Access To DFA Funds?

Save the Fees Save the fees and manage your own money using low cost ETFs.  You are going to be dollars ahead and here is the evidence.  Let me describe the process I went though to come to this conclusion - and I am not finished with the analysis.  This data is not going to win me friends among DFA advisors. I logged on to one of the premier web sites on the Internet to find … [Read More...]

Rule #4 of Investing

When we get up this high in the numbering system, to use the word Rule sounds a tad stiff or rigid. It might go down a bit easier if one were to think of Rule #4 as a suggestion or guideline. Regardless, this next idea builds off Rule #3 of building a portfolio. In the first two rules we determined the importance of saving and staying disciplined with our program. Now we need to know what to do … [Read More...]

300 Level

Simplified “Holy Grail” Portfolio: A 12-ETF Approach

12-ETF Portfolio Following up on yesterday's blog post, here is a simplified revision of the "Holy Grail" portfolio.  Any time one can reduce the number of holdings and improve the return and volatility projections, give the new portfolio high marks.  The following group of twelve (12) ETFs provides a higher Return/Risk ratio than the portfolio discussed yesterday.  … [Read More...]

TLH Spreadsheet Assistance

TLH spreadsheet users who also are using the ITA Index capabilities of the spreadsheet will find this video/audio clip of use in adding the International REITs to the calculation. … [Read More...]

200 Level

Retirement Planning Web Sites

Below are links to three sites that will aid you in planning for retirement.  These resources come from Vanguard, The Motley Fool, and Fidelity. Here at ITA Wealth Management, we also have a retirement planner, but we require more information than the three sites referenced below. Here are the three references. 1. Vanguard site can be found here. 2. The Motley Fools site can be found at … [Read More...]

Active vs. Passive Investing: Part 4

Section Four of the Active vs. Passive paper is long, stretching over two pages.  If I were to quickly summarize pages 5 and 6 it would go like this - stay away from actively managed mutual funds and buy index mutual funds or non-managed index ETFs.  The author accurately points out the high costs of managing a mutual fund that involves active management.  He starts this section of … [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...]

Sortino Ratio

Sortino Ratio: Calculation Steps Calculating the Sortino Ratio is not too difficult assuming you have historical data for the Internal Rate of Return (IRR) of the portfolio and the IRR for a benchmark. Here at ITA Wealth Management our primary benchmark is Vanguard's Total Market Index Fund, or VTSMX. Eventually we plan to move to the ITA Index, a customized benchmark for each portfolio. In … [Read More...]