100 Level

Dividend ETFs & Commodities

We are always on the lookout for ways to diversify a portfolio.  Platinum readers see this in our QPP analysis efforts.  Here are a few references of ways to diversify using dividend oriented ETFs and commodities.  Let's begin with dividend references.  One place to go for yield is to search out bonds.  I use a number of bond ETFs in different portfolios depending on … [Read More...]

Active vs. Passive Investing: Part 7

Section Seven of the "Active vs. Passive Investing" article is sumarized the following paragraph. "Some indexers never claim passive investing gives superior returns. They claim only that active investors do better than the benchmark some of the time, and worse some of the time, while passive investing gets rid of that risk by equaling the benchmark every time. They admit some … [Read More...]

300 Level

ITA Ratio Video/Audio Clip

Here is another help session for users of the TLH spreadsheet.  This clip provides additional explanation of how to introduce the ITA Ratio, a new performance bar for index portfolios. … [Read More...]

In Search of the “Holy Grail” Portfolio Asset Allocation

Searching for that idea asset allocation is a never ending challenge. Particularly if one does not want an overly complicated portfolio. Below is a slight variation of a Strategic Asset Allocation plan laid out earlier this week. While the projected return meets the goal of exceeding the projected return for the S&P 500 by more than 100 basis points (1.0%), the projected uncertainty is a … [Read More...]

200 Level

Portfolio Performance: 14 January 2012

This week saw absolute gains in every portfolio and relative gains against the VTSMX benchmark in five of the eleven portfolio.  Only the Newton and Bohr lost a small fraction of a percentage point with respect to the VTSMX while the Curie, Schrodinger, Kepler, and Euclid remain unchanged.  It was encouraging to see the Einstein, Kenilworth, Maxwell, Madison, and Gauss gain small amounts … [Read More...]

Active vs. Passive Investing: Part 1

The article, "Why I Prefer Index Instruments" stirred up a little discussion on Seeking Alpha.  Within all the comments was a link to a most interesting 12 page rebuttal of passive investing.  I suggest readers print out this article and number the bullet points of each section.  My plan is to write twelve (12) blogs using as an outline the twelve points discussed in the … [Read More...]

400 Level

Where Are The Best International Opportunities?

If you are not satisfied with broad international ETFs such as VEU, VEA, VWO, and EFA, but want to search for individual countries, the following Delta Factor analysis and projections might be of interest.  In the following QPP analysis I show the Delta Factor projections for a broad range of countries followed by several other ways to look at some of the specific countries that are showing … [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...]