100 Level

Portfolio of Actively Managed Mutual Funds

The following Quantext Portfolio Analysis contains actively managed mutual funds and the portfolio is designed for a 40-50 year old investor.  Keep in mind a few assumptions and expectations.  1) In this analysis the S&P 500 is assumed to grow at 7.0% over the next few years.  2) When putting together an array of securities we expect the projection will exceed 7.0% by 100 basis points.  3) The … [Read More...]

Basic Five Asset Class Portfolio

What are the basic asset classes that belong in every portfolio?  Investors beginning the portfolio construction process would do well to include each of the following five asset classes in their portfolio.  The ETF ticker suggestions are among those I use to populate these five asset classes.  This group of ETFs provide broad coverage of the world market, although there are still a … [Read More...]

300 Level

Kenilworth Receives Cash Infusion

Last week two cash deposits came into the Kenilworth permitting more limit orders to be set in an effort to bring the asset classes into balance.  In the following screen shot, readers can view the current Strategic Asset Allocation plan and where we are in the building process for this young portfolio. Platinum members will recall, when this portfolio was launched, the plan was to build up … [Read More...]

Is It Worth 50 Basis Points? Part II

Yesterday, I posted a conservative portfolio built around index funds only available through qualified advisors.  The portfolio projections were based on the last five years of data.  The following screen shot presents future projections of the same portfolio using the last four years of data.  As readers will see, nothing really changes in the way of projections.  What does … [Read More...]

200 Level

Portfolio Performance: 15 July 2011

Photograph: Mercedes All portfolios tracked using the TLH Spreadsheet lost ground this week.  Those are the absolute results.  On a relative basis, the vast majority gained ground on either or both the ITA Index and VTSMX benchmarks.  Most portfolios also picked up strength with both the Sortino and Retirement ratios.  Inflation dipped 0.01%, a modest positive signal. Asset … [Read More...]

Active vs. Passive Investing: Part 3

Section Three of the Active vs. Passive paper deals with the non-trivial problem of how to measure portfolio returns.  This is a nasty problem for mutual fund money managers as clients are moving cash in and out of their portfolios at different times.  This cash flow has nothing to do with the managers style of management.  To comply with the Association for Investment Management … [Read More...]

400 Level

Working With The Basic Portfolio

Eventually I plan to move more of the ITA portfolios toward the following 20 ETFs.  In some portfolios I need to broaden the diversification and in others I need to reduce the number of securities in an effort to simplify.  Reducing cost is another motivation as all but two of the following ETFs can be purchased free if one is a TD Ameritrade client.  The two exceptions are GTU and VHT.  In this … [Read More...]

Identifying ETFs For Possible Purchase

Back on December 2, 2011, I introduced a new set of metrics for identifying which ETFs have a higher than average probability of performing well over the next six to twelve months.  This post can be found at this location.  Seven metrics go into identifying which ETFs are showing the strongest signals.  Here are the indicators that go into this valuation system. This material is … [Read More...]