100 Level

Become Your Own Investment Advisor and Save The Fees

Taking on the responsibility of managing your own portfolio can be, but need not be, a daunting task.  Some folks just don’t want anything to do with managing their own financial affairs.  It seems either too difficult, too important, or simply carries no interest.  While I have had almost a life-long interest in investing, it is understandable why many find it rather … [Read More...]

Emerging Markets

The standard ETF used to cover emerging markets in most of the ITA portfolios is VWO.  I'll continue to included it in the portfolios as they grow large enough to include that asset class.  For even larger portfolios, one might think about adding special countries. … [Read More...]

300 Level

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...]

Dow 30 And The “Delta Factor”

Normally, I reserve the "Delta Factor" analysis for non-managed index ETFs.  Deviating from that pattern, below is a table for the Dow Jones Industrial 30 stocks.  ITA followers, who are also Mosaic investors, will find this list of interest.  Are there any mega-cap stocks that show promise of price growth over the next six to twelve months? When examining a table such as … [Read More...]

200 Level

Basic Financial Principles To Consider When Building A Portfolio

Basic financial principles to consider when building a portfolio include the following. Diversity across global markets Orientation toward equity or growth Inflation protection Low correlated assets Diversity across global markets will include both developed international markets and emerging markets.  To provide the necessary growth for retirement, the portfolio will need … [Read More...]

Preparing for Einstein Update

One of the primary reasons for the advanced preparation for the Einstein update is to show readers a list of ETFs that provide global coverage while including enough low correlated ETFs for all types of markets.  This list of ETFs does not differ all that much from the 18 used in The Feynman Study.  Instead of many iShares I've substituted Vanguard ETFs as they have sufficient historical records … [Read More...]

400 Level

Harry Markowitz

  Modern Portfolio Theory This morning I came across an interesting article on Harry Markowitz, the father of Modern Portfolio Theory (MPT).  Early in "The Big Bang" article are the fundamental principles of MPT. Quoting from the article, here are the three basic investment techniques or ideas that come out of MPT. "Those techniques are based on three foundational … [Read More...]

Bond “Delta Factor” Summary

As promised, below is a screen shot of a "Delta Factor" data table for AGG, BIV, BSV, HYG, JNK, IEF, TLT, and TIP.  The reference bond ETF I use in this analysis is BND.  I've done almost no testing with bonds so I don't know the quality of the predictive powers when it comes to bonds. … [Read More...]