Several weeks passed since I last updated the “Delta Factor” projections for international ETFs. In addition to the usual Delta Factor projections, I also ran an optimization of these ETFs to see where the QPP indicates best buys. First, the Delta Factor projections.
This morning I had an article published over on Seeking Alpha. One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher. Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio.
The add link function does not seem to be working this morning so below is the URL to the SA article.
Taking the same set of ETFs the only change I made was to constrain the yield to be 3.0% or higher. Note that in this Optimization Analysis the yield came in at 3.0%. If I pushed that requirement much higher I would need to raise the holding limits on bonds from 3.0% to 4% or higher. I don’t want to hold a high percentage in bonds as it is only a matter of time before interest rates move higher. In may be more than a year away, but interest rates will go up.
ITA Platinum members looking for dividend growth stocks will find this list of interest. I am not recommending any companies for purchase, but rather throwing out a list of companies that passed stringent screens. Do your own research before making any investment decisions.
The following information is not for publication elsewhere on the Internet.
Here is my optimization analysis on a 12-Dividend portfolio made up of individual stocks. It might be interesting to look at a portfolio made up of 20 to 30 individual stocks.
I like the 9.0 projected return and the high Return/Risk ratio. A yield of 2.7% is also quite respectable.
Do these results match others who are using this optimizer in conjunction with the QPP software?
If you are looking for the best book on portfolio management, I don’t think you will find it in print. The best source I know of is right here at ITA Wealth Management. Flexibility is the reason ITA is your best source. 1) Asset Allocation is emphasized. 2) The TLH Spreadsheet does it all for the interested investor. The latest version even helps users identify the number of shares of specific ETFs necessary to keep the portfolio in balance. 3) Development of the Optimization Worksheet now integrates with the QPP software. 4) Customized analysis is performed for Platinum members upon request. No private information is required – only the ticker symbols and the percentage invested in each ticker.
Any portfolio management book would soon be out of date. Can you image what a book looked like before the advent of ETFs? Portfolio management, even for passive managers, is a dynamic activity as rebalancing occurs. While I review each portfolio every 32 days, most investors need only do it about once per year.
Instead of looking for the “best portfolio management book,” click on the 300 Level material and find all the material on Portfolio Management.