100 Level

Harold Evensky’s Definition of Active and Passive Portfolio Management

Debating which investing style, passive or active, is the superior method is unlikely to end soon. The research is too conflicting and exceptions still exist. The difference of opinion has a long and acrimonious history – and it continues to this day. Before we enter the debate and provide some opinions, it is important to define what is meant by passive and active. A third investing style, the … [Read More...]

Please Keep It Simple: A Basic Seven-Eight ETF Portfolio

Is it possible to put together a simple portfolio?  I don't want anything too complicated, particularly when I am just beginning my investing career.  Such requests are common and the answer is - yes, it is possible to build a simple portfolio.  The diversification may not be the best, but that issue can be address later.  Below is a basic portfolio any investor can … [Read More...]

300 Level

Asset Allocation and Benchmarking Portfolio

A few days ago I read the following comment.  I did not question the reasoning behind this statement.  "Calculating return is relatively pointless if you are investing in indices." While the point of not calculating the portfolio return may make sense for the investor who selects one or two broad index funds for their complete portfolio, it lacks sound reasoning for … [Read More...]

US Dominated Porfolio: Analysis Part I

The following portfolio was submitted by a Platinum member for analysis.  As you will see, this is a U.S. Equities dominated portfolio.  As a result, you will note in the Historical Section how well it performed with respect to the S&P 500 over the past five year.  Only 10% is invested in bonds and this should serve the portfolio well over the next five years.  Here is the QPP analysis and in … [Read More...]

200 Level

Asset Allocation: The Basic 17 Asset Classes

Much is made of the importance of asset allocation here at ITA Wealth Management.  Not all portfolios tracked on this blog use the seventeen asset classes, but we want to list the stable of assets we draw from depending on the size of the portfolio and goals of the investor.  Cash is included as one of the 17 in the data table shown below. Below the title row we have the three cap sizes ranging … [Read More...]

Portfolio Performance Data – 29 April 2011

While this was a good week for all portfolios in absolute terms, relatively speaking, nearly every portfolio lost ground to one or more of the benchmarks.  Advances from last week were essentially wiped out this week.  When the market is in a strong bull phase as is now the case, it is difficult for a broadly diversified portfolio to keep up with U.S. equities and that is what we saw … [Read More...]

400 Level

Reviewing Buy and Sell Decisions: Using VNQ as Example

Platinum members are aware of the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) ITA Risk Reduction (ITARR) portfolios.  In an effort to reduce risk there are times when the price of the ETF runs well ahead of its 195-Day Exponential Moving Average (EMA) and we want to protect profits.  How can we do this?  Here are some suggestions and an example.  Remember, this pertains to a situation … [Read More...]

Historical Basis for ITA Risk Reduction Model

A few days ago I was asked if there was any historical data supporting the ITA Risk Reduction (ITARR) model.  The quick answer is - no.  The model has been operational for about four months or insufficient time to build any sort of record.  However, I did use a similar model successfully during the 1980s.  There were a few differences in that model vs. the ITARR model.  … [Read More...]