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Re: Global Minimum Volatility Fund

I own this fund for a large share of my portfolio. Previously, I owned a similar index (ACWV). I took a look at ACWV and noticed it trades at a rather hefty premium to the global total stock market: ACWV: PE 22.78, PB 4.28 VT: PE 18.3, PB 2.0 Pretty interesting, considering that I previously read t...
by dnaumov
Tue Apr 22, 2014 5:59 pm
 
Forum: Investing - Theory, News & General
Topic: Global Minimum Volatility Fund
Replies: 29
Views: 1783

Re: Can we ever expect VG to offer ISV or EMV?

I would be all over an All-World Small Cap Value ETF.
by dnaumov
Tue Apr 22, 2014 5:36 pm
 
Forum: Investing - Theory, News & General
Topic: Can we ever expect VG to offer ISV or EMV?
Replies: 18
Views: 1474

global bond index funds

First of all, I am not a US resident, so no need to answer my questions with a "just buy US Treasuries / Total Bond Market" :) Why are global bond index funds market weighted? While this does make sense for stocks, this doesn't at all seem to make sense for bonds. Why would you want to loa...
by dnaumov
Thu Apr 17, 2014 8:20 am
 
Forum: Investing - Theory, News & General
Topic: global bond index funds
Replies: 2
Views: 428

Re: Investor from Finland

I am not at all saying it is a bad instrument. The main point I was trying to make to you is that the european-domiciled reinvesting ETFs are not at all expensive when you take into account the effect of taxation and that just simply comparing their TER to Vanguard ETF TER is not smart. One should m...
by dnaumov
Sun Apr 13, 2014 3:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Such is the magic of compounding reinvested dividends over a long period of time. Over a short timeframe, such as 3-5 years, obviously stock price movements will have the biggest impact by far, but over 25-30 years or even longer periods, roughly half of your overall total return will come from rei...
by dnaumov
Sun Apr 13, 2014 2:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Personally, I consider both distributing and reinvesting ETFs to be roughly equally reasonable choices. I own VT myself, because it's a fantastic 1-fund solution with both developed and emerging markets and with both large and small caps, all in one, with good liquidity and low spreads. But if there...
by dnaumov
Sun Apr 13, 2014 10:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Such is the magic of compounding reinvested dividends over a long period of time. Over a short timeframe, such as 3-5 years, obviously stock price movements will have the biggest impact by far, but over 25-30 years or even longer periods, roughly half of your overall total return will come from rein...
by dnaumov
Sun Apr 13, 2014 7:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. Lets put it this way: if you intend to buy once and sit on it forever without ever buying more shares, I'd go with SSAC as it would reinvest the dividends back and compound ov...
by dnaumov
Sat Apr 12, 2014 6:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

It has often been written on this forum that "capitalizing funds are superior". I want to stress that any advantage or disadvantage depends on national tax laws that can be completely different. For example, consider these (national) tax laws that make capitalizing funds less attractive: ...
by dnaumov
Sat Apr 12, 2014 6:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. Lets put it this way: if you intend to buy once and sit on it forever without ever buying more shares, I'd go with SSAC as it would reinvest the dividends back and compound ov...
by dnaumov
Sat Apr 12, 2014 3:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. They seem to only be listed on the London exchange, meaning that I have to pay 0.50% extra as taxes each time I buy securities from that exchange. Ah, tax laws. :twisted: You ...
by dnaumov
Sat Apr 12, 2014 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Look at the pages, they have all the info. Yes they reinvest dividends and no, they are not listed on the finnish exchange. Lets put it this way: if you intend to buy once and sit on it forever without ever buying more shares, I'd go with SSAC as it would reinvest the dividends back and compound ove...
by dnaumov
Sat Apr 12, 2014 3:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Is this a dividend reinvesting ETF? http://www.spdrseurope.com/product/fund.seam?ticker=SPY5%20GY Looks good, pretty cheap too (TER 0.15%) and it can be bought in Euros. Still need to find a global-EX US ETF though. Income Treatment: Distribution. On a sidenote: considering you live in Finland, why...
by dnaumov
Sat Apr 12, 2014 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Is this a dividend reinvesting ETF? http://www.spdrseurope.com/product/fund.seam?ticker=SPY5%20GY Looks good, pretty cheap too (TER 0.15%) and it can be bought in Euros. Still need to find a global-EX US ETF though. Income Treatment: Distribution. On a sidenote: considering you live in Finland, why...
by dnaumov
Sat Apr 12, 2014 2:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

Now, to confuse you even further: In my personal opinion, picking Vanguard ETFs that distribute dividends or european-domiciled ETFs that reinvest them is really a matter of taste. If "cheap" is the one and only thing that truly matters to you, you do, in fact, want the european-domiciled ...
by dnaumov
Sat Apr 12, 2014 2:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

NONE of the Vanguard ETFs automatically reinvest dividends. Not a single one. DB-X offers some ETFs that reinvest dividends and some that don't. Same thing for iShares. You need to look up each fund and look at info page for "use of income". Some will say "reinvesting" and some ...
by dnaumov
Sat Apr 12, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

NONE of the Vanguard ETFs automatically reinvest dividends. Not a single one. DB-X offers some ETFs that reinvest dividends and some that don't. Same thing for iShares. You need to look up each fund and look at info page for "use of income". Some will say "reinvesting" and some w...
by dnaumov
Sat Apr 12, 2014 1:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Investor from Finland

You seem to be very confused on a multitude of issues. First of all, the DB-X and iShares ETFs with 0,4-0,6% TER are VERY CHEAP. You are failing to take into account that these ETFs automatically reinvest the dividends back into the fund, allowing you to dodge the need to pay taxes on them. As a per...
by dnaumov
Sat Apr 12, 2014 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Is there an alternative view ? [Alternatives to index fu

nisiprius wrote:Now, add to this the fact that DFA's funds are not index funds, but it is a little difficult for someone who isn't a DFA advocate to give a fair presentation of what they are.

I call them passive quant funds.
by dnaumov
Sat Apr 12, 2014 11:50 am
 
Forum: Investing - Theory, News & General
Topic: Is there an alternative view ? [Alternatives to index funds]
Replies: 14
Views: 1334

Re: Investor from Finland

First of all, when investing in stock market ETFs, you shouldnt really care about the currency said ETFs trade in beyond considering the costs of exchanging currencies when you buy and sell ETF shares. An S&P500 ETF will give you the same return regardless of whether you pay for it in USD, EUR o...
by dnaumov
Sat Apr 12, 2014 11:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 49
Views: 996

Re: Ishares lowered TER to 0,07%

In general: US-domiciled stock ETFs traded on US exchanges: + offer higher trading volume and as a result, smaller spreads + generally offer noticably lower fees (the Ireland-domiciled SACC fund you mention is a VERY rare exception to this) - they pay out their distributions, meaning most european i...
by dnaumov
Wed Apr 09, 2014 9:55 am
 
Forum: Investing - Theory, News & General
Topic: Ishares lowered TER to 0,07%
Replies: 3
Views: 378

Re: Ishares lowered TER to 0,07%

Most of the people on this forum are US investors and as such, are unfamiliar with ETFs that accumulate/reinvest dividends back into the fund. Technically such funds can exist in the US, but since due to US tax code, the holder of the ETF shares would still be liable for taxes to be paid on the dist...
by dnaumov
Wed Apr 09, 2014 9:38 am
 
Forum: Investing - Theory, News & General
Topic: Ishares lowered TER to 0,07%
Replies: 3
Views: 378

Re: very long term perspective

selftalk wrote:It is my understanding if I read it correctly that John Bogle, in his speech in 2002, said that all the asset classes return about the same over the very long term. I would like to see this for myself on a chart.

I am pretty sure he never said that.
by dnaumov
Sun Jan 26, 2014 6:19 pm
 
Forum: Investing - Theory, News & General
Topic: very long term perspective
Replies: 13
Views: 1194

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$? Yes, an article on Yahoo says that the cost of production at many mines is $1000 - $1200 per ounce. Keith It's a mistake to assume that the price of gold cannot drop below the co...
by dnaumov
Sat Jun 29, 2013 4:00 am
 
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 17113

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$? What fraction of the world gold supply is produced each year? Does gold mined hundred or thousands of years ago degrade? Demand for physical is not exactly drying up, quite the c...
by dnaumov
Fri Jun 28, 2013 1:35 pm
 
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 17113

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$?
by dnaumov
Fri Jun 28, 2013 1:20 pm
 
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 17113

Re: Warren Buffett

If you could ask Warren Buffett one question, what would it be :?: I would ask him to elaborate (or point towards sources of information) regarding his thought process when it comes to selling public securities. There are dozens and dozens of books regarding his thought process with regard to buyin...
by dnaumov
Wed Mar 06, 2013 11:50 am
 
Forum: Investing - Theory, News & General
Topic: [if you could ask] Warren Buffett [one question]
Replies: 14
Views: 785

Re: Selling... like Buffett does?

but my impression is he only really sells stocks -- and does so rarely -- when he "needs" the capital, i.e. it can be deployed better elsewhere (another security or some business need). That much I already knew :) What I want would be pointers towards way way more in-depth description of ...
by dnaumov
Mon Mar 04, 2013 8:24 pm
 
Forum: Investing - Theory, News & General
Topic: Selling... like Buffett does?
Replies: 3
Views: 517

Selling... like Buffett does?

While not really a Boglehead'ish topic, I don't quite know of a better place to ask since this forum is so full of knowledgable people. There's an absolutely crazy amount of books, articles, etc describing Buffett's thought process when it comes to buying securities. However, a very imporant piece o...
by dnaumov
Mon Mar 04, 2013 7:22 pm
 
Forum: Investing - Theory, News & General
Topic: Selling... like Buffett does?
Replies: 3
Views: 517

Re: Bogleheads, why is this taboo?

Others can chime in with theoretical arguments, but to me the biggest impediments are practical. There are not many very good ways to leverage your personal portfolio -- margin rates are high , leveraged ETFs have horrendous tracking error due to resetting daily, and most other leveraged investment...
by dnaumov
Thu Feb 28, 2013 10:26 pm
 
Forum: Investing - Theory, News & General
Topic: Bogleheads, why is this taboo? [Use Leverage in a Portfolio]
Replies: 189
Views: 14123

Re: What is your current Asset Allocation Policy and why?

Age: 29

Equities: 100%

20% Vanguard Total World Stock ETF
10% DFA Emerging Markets Value
70% individual stocks

I also keep a cash position roughly 1/10 the size of my stock portfolio, but I prefer to not count this cash position into my asset allocation, as it's essentially an emergency fund.
by dnaumov
Wed Jan 09, 2013 6:27 pm
 
Forum: Investing - Theory, News & General
Topic: What is your current Asset Allocation Policy and why?
Replies: 83
Views: 8642

Re: DFA Emerging Markets Value fund tracking error?

Thanks for the replies everybody. And yes, by "benchmark", I specifically ment the MSCI Emerging Markets Value index (which would be the appropriate benchmark for the fund in question).
by dnaumov
Mon Dec 31, 2012 10:54 pm
 
Forum: Investing - Theory, News & General
Topic: DFA Emerging Markets Value fund tracking error?
Replies: 32
Views: 2104

Re: DFA Emerging Markets Value fund tracking error?

larryswedroe wrote:Why do you think there was tracking error that was large?
Value premium was negative pretty much everywhere and so you would expect the EMV to underperform EM, just as EMS did.

Because the benchmark is a Value index and the fund massively underperformed said Value index.
by dnaumov
Sat Dec 29, 2012 5:38 pm
 
Forum: Investing - Theory, News & General
Topic: DFA Emerging Markets Value fund tracking error?
Replies: 32
Views: 2104

DFA Emerging Markets Value fund tracking error?

Can anyone explain me what exactly happened in 2011 that made the DFA Emerging Markets Value fund have such a massive tracking error vs it's benchmark?
by dnaumov
Sat Dec 29, 2012 4:50 pm
 
Forum: Investing - Theory, News & General
Topic: DFA Emerging Markets Value fund tracking error?
Replies: 32
Views: 2104

Re: Scott Burns is investing in Gold

I've been re-reading Dr William Bernstein's "The Four Pillars of Investing". More and more, I am coming to the opinions that first, there is no gold standard for monetary policy any more. Get over it. Second, there is no rational theory for gold as an investment vehicle. If gold is not mo...
by dnaumov
Fri Dec 28, 2012 4:38 pm
 
Forum: Investing - Theory, News & General
Topic: Scott Burns is investing in Gold
Replies: 126
Views: 8346

Re: Jack Bogle on International Investing at Bogleheads 11

Own Vanguard Total World Stock (VT) and forget about it.
by dnaumov
Fri Oct 26, 2012 8:41 pm
 
Forum: Investing - Theory, News & General
Topic: Jack Bogle on International Investing at Bogleheads 11
Replies: 45
Views: 4312

Re: As stock investor, you're competing against 54% of Ameri

This also makes me wonder, with Americans so heavily invested in stocks now (and the past 13+ years), will stock market returns necessarily be lower long-term simply because such a huge proportion of the American population is invested in stocks? What? I am quite sure I have been seeing a lot of ar...
by dnaumov
Wed Aug 29, 2012 4:51 am
 
Forum: Investing - Theory, News & General
Topic: As stock investor, you're competing against 54% of Americans
Replies: 33
Views: 3258

Re: ETF = VT

VT is the core of my portfolio, it is (IMO) the best exchange-traded product in existance. It became a fair bit better this year, since it has: 1) Decreased costs further (0,25% -> 0,22%) 2) Changed the index to FTSE Global All Cap Index, previously it was essentially a Mega/Large Cap fund. 3) Will ...
by dnaumov
Fri Aug 03, 2012 9:26 pm
 
Forum: Investing - Theory, News & General
Topic: ETF = VT
Replies: 19
Views: 2072

Re: Are ETFs turning investors into day traders?

ETFs are way less convenient for regular investing than mutual funds. This assumes you practice a buy and hold strategy. This greatly depends on where you live. Where I live (Finland), good and cheap broad index mutual funds simply do not exist: you get either cheap index funds that hold 30-40 secu...
by dnaumov
Mon Jul 30, 2012 9:43 pm
 
Forum: Investing - Theory, News & General
Topic: Are ETFs turning investors into day traders?
Replies: 20
Views: 2016

Re: Should I avoid total stock market index funds?

If you subscribe to the basic idea of passive stock market indexing, there is no reason to think that such large companies you are talking about couldn't see a massive resurgence when circumstances and/or management changes. A great example would be Apple, it was a big company in the 80ies. In the 9...
by dnaumov
Sat Jul 21, 2012 6:53 pm
 
Forum: Investing - Theory, News & General
Topic: Should I avoid total stock market index funds?
Replies: 45
Views: 3983

Re: Bonds are getting stupid everywhere

Johm221122 wrote:
chicagobear wrote:I only hold stocks, gold and cash at the present time. Long term bonds are not worth the risk of increasing rates which will happen at some point.

Permanent portfolio?

1/4 of the Permanent Portfolio is precisely long term bonds.
by dnaumov
Sat Jul 21, 2012 10:57 am
 
Forum: Investing - Theory, News & General
Topic: Bonds are getting stupid everywhere
Replies: 27
Views: 3928

Re: Bonds are getting stupid everywhere

The only "expected" return of bonds is their yield, everything else is speculation. If yields were at say, 5%, and I would be making an investment decision based on my perception of what direction the yields are going, that would be market timing and speculation. By looking at the yield, y...
by dnaumov
Sat Jul 21, 2012 6:55 am
 
Forum: Investing - Theory, News & General
Topic: Bonds are getting stupid everywhere
Replies: 27
Views: 3928

Bonds are getting stupid everywhere

I am a semi-boglehead (my portfolio core is broad stock and bond index funds, but majority of portfolio is individual stocks, long-term holdings, paying attention to costs and taxes, etc) european investor and I would like to complain about bonds. My perspective is european, but I am obviously follo...
by dnaumov
Sat Jul 21, 2012 4:35 am
 
Forum: Investing - Theory, News & General
Topic: Bonds are getting stupid everywhere
Replies: 27
Views: 3928

Re: Investing in gold: Are coins different?

You can't invest in gold, just as with currencies, you can only speculate.
by dnaumov
Mon Jan 30, 2012 12:46 am
 
Forum: Investing - Theory, News & General
Topic: Investing in gold: Are coins different?
Replies: 26
Views: 2216

Re: My Annual Hedge Fund update

Larry, out of curiosity, what do you think of Bridgewater and their consistent long-term outperformance?
by dnaumov
Fri Jan 27, 2012 10:14 am
 
Forum: Investing - Theory, News & General
Topic: My Annual Hedge Fund update
Replies: 24
Views: 2217

Re: Understanding Corning's drop

Corning is a great company with solid management and a balance sheet that is in very good shape, however: Their fortunes are currently tied to their LCD glass business, since it accounts for more than 40% of their revenue and more than 70% of their earnings. They were already projecting that their m...
by dnaumov
Thu Jan 26, 2012 12:59 pm
 
Forum: Investing - Theory, News & General
Topic: Understanding Corning's drop
Replies: 16
Views: 1211

Re: Stock Market Shrinks Amid Heavy Buybacks

Stock buybacks, when done at sensible valuations and when the company has actual real excess cash, is a method to return value to the shareholders in a tax-free fashion.
by dnaumov
Tue Jan 17, 2012 4:10 pm
 
Forum: Investing - Theory, News & General
Topic: Stock Market Shrinks Amid Heavy Buybacks
Replies: 18
Views: 1872

Re: Don't play the loser's game.....

And other article on indexing and rebalancing by Henry: http://www.businessinsider.com/warning- ... ash-2012-1
by dnaumov
Tue Jan 17, 2012 3:57 pm
 
Forum: Investing - Theory, News & General
Topic: Don't play the loser's game.....
Replies: 13
Views: 3202

Re: wikipedia "investment" page a bit unusual

Are both of you claiming that your use broadly diversified index funds by virtue of pure faith in them or are putting money into them "with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return"? No? Didn...
by dnaumov
Sun Jan 01, 2012 7:52 am
 
Forum: Investing - Theory, News & General
Topic: wikipedia "investment" page a bit unusual
Replies: 7
Views: 462

Re: The Extraordinary Popular Delusion of Bubble Spotting

What looks like a bubble to me is college tuition. Got all the markings. I hope a big, fat, hat pin gets put to it. Bubbles are bid up by speculation. People buy tulip bulbs, real estate or gold with the idea that it will go higher so they can make a profit. I don't see what the equivalent of this ...
by dnaumov
Sat Dec 31, 2011 9:24 am
 
Forum: Investing - Theory, News & General
Topic: The Extraordinary Popular Delusion of Bubble Spotting
Replies: 127
Views: 7618
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