Search found 914 matches

by ftobin
Fri Jul 24, 2015 1:02 pm
Forum: Investing - Theory, News & General
Topic: 50% currency hedged ETFs
Replies: 3
Views: 419

Re: 50% currency hedged ETFs

I don't know if 50%-hedged funds would be more costly to run than fully hedged or unhedged The less currency hedging you are doing, the lower the transaction costs, although those costs in pretty low for currency markets anyway. I was thinking that a complication might be the rebalancing between th...
by ftobin
Thu Jul 23, 2015 1:38 pm
Forum: Investing - Theory, News & General
Topic: Index Funds May Work a Little Too Well
Replies: 19
Views: 3567

Re: Index Funds May Work a Little Too Well

This is a really good thought-provoking article. In particular, it talks about should companies be aligned to compete against each other, or lift the shareholders value. If the shareholders dominate and hold both companies, we've abstracted out the company to the shareholder, which causes problems f...
by ftobin
Thu Jul 23, 2015 12:41 pm
Forum: Investing - Theory, News & General
Topic: 50% currency hedged ETFs
Replies: 3
Views: 419

50% currency hedged ETFs

IndexIQ just launched some ETFs based on FTSE Russell indexes which are 50% currency-hedged: The three new ETFs track indexes from FTSE, a global leader in indexing: ⋅ HFXI seeks to track the performance of the FTSE Developed ex North America 50% Hedged to USD Index, which is made up prima...
by ftobin
Thu Jul 16, 2015 9:35 am
Forum: Personal Consumer Issues
Topic: Vanguard's Security image going away?
Replies: 71
Views: 6976

Re: Vanguard's Security image going away?

PayPal has items that generates a six digit number that is used for every log in. It is small and easy to carry. If there could be a way for all finical sites to use the same item that would be great. Even better, instead of the fob you can use an app on your phone. Instead of using Paypal's propri...
by ftobin
Tue Jul 14, 2015 10:43 pm
Forum: Personal Consumer Issues
Topic: Vanguard's Security image going away?
Replies: 71
Views: 6976

Re: Vanguard changing sign on.

Anyone else that Vanguard is stopping the two step log on process? I think its a giant step r name and password on the same page. Actually I think having two pages for username/pass could be more secure than two pages. If you are using a passphrase extension for your browser, having both credential...
by ftobin
Sun Jul 12, 2015 1:28 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 119
Views: 15028

Re: New Vanguard AMT-free National Municipal Bond Fund

cfs wrote:Shameless disclaimer: I will not invest in any mutual fund charging purchase or redemption fees.

Well, someone needs to pay the costs of new purchases. The question is whether existing shareholders or the new buyer should pay these costs.
by ftobin
Thu Jul 09, 2015 10:03 am
Forum: Personal Consumer Issues
Topic: Vanguard's Security image going away?
Replies: 71
Views: 6976

Re: Vanguard's Security image going away?

I think they should offer email as an option to augment the user ID and password. I fully agree. That's what Treasury Direct and many other services do. While I agree that email sort-of diminishes the two-factorness, it can be mitigated by two-factor authentication for the email account (which Gmai...
by ftobin
Thu Jul 09, 2015 9:37 am
Forum: Personal Consumer Issues
Topic: Vanguard's Security image going away?
Replies: 71
Views: 6976

Re: Vanguard's Security image going away?

How does not having it increase security? At least when I see it I have some assurance that I'm on the true VG site. People ignore security best practices all the time - why penalize a person who actually looks at the security image. I'm hoping there is more to it than that. As with all software, t...
by ftobin
Sun May 24, 2015 1:24 pm
Forum: Investing - Theory, News & General
Topic: Are Bond ETFs a bad idea?
Replies: 43
Views: 3331

Re: Are Bond ETFs a bad idea?

The main mechanism Vanguard uses to protect long term shareholders from traders is fair value pricing. This is used on a routine basis for international funds and I trust Vanguard to use it if a flash crash or similar occurs at the close. While fair value pricing is one mechanism, it puts a lot of ...
by ftobin
Sun May 24, 2015 12:50 pm
Forum: Investing - Theory, News & General
Topic: Are Bond ETFs a bad idea?
Replies: 43
Views: 3331

Re: Are Bond ETFs a bad idea?

All the more so if the MF expenses are higher. The expenses I've paid to the mutual fund entitle me to a certain amount of trading expenses when I decide to leave the fund. Expense ratios do not and should not be expected to include trading costs. Redemptions during illiquid times is a cost to exis...
by ftobin
Thu May 21, 2015 7:51 am
Forum: Investing - Theory, News & General
Topic: suitability of Vanguard Target retirement funds
Replies: 16
Views: 2404

Re: suitability of Vanguard Target retirement funds

Just for comparison, here is the tax COST ratio for some Target Retirement Funds and other staples. This would roughly be the tax-take for persons in the highest income bracket. The first four filled-in columns are 1, 3, 5, and 10-year tax cost ratios. http://i.imgur.com/DXpPQsW.png VTINX: Target Re...
by ftobin
Wed May 20, 2015 9:18 pm
Forum: Investing - Theory, News & General
Topic: a look at study using R-Squared to predict returns of funds
Replies: 9
Views: 1060

Re: a look at study using R-Squared to predict returns of funds

Larry Swedroe's link just seems to be the abstract so I can't read the actual paper, but a simple and robust way to handle a multiple testing situation like this one is called "Bonferroni's inequality," and simply consists of performing the test at 1/25th the desired significance level. T...
by ftobin
Mon Mar 30, 2015 3:31 pm
Forum: Investing - Theory, News & General
Topic: iShares/Blackrock iBonds ETFs for CD laddering
Replies: 6
Views: 921

Re: iShares/Blackrock iBonds ETFs for CD laddering

Just a note on your approach, which may be over-valuing the product. You said these were a liquid holding, yet you expected to hold them to maturity. If you are holding to maturity, liquidity shouldn't matter. I bring this up because you could hold a more illiquid offering to maturity, and reap a il...
by ftobin
Thu Mar 12, 2015 10:46 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CRSP index fund turnover rates (2014)
Replies: 22
Views: 1563

Re: Vanguard CRSP index fund turnover rates (2014)

Maybe so, but I was reading Gasteneau's book on ETFs and he was discussion that active fund managers were shying away from the ETF marketplace because of the daily disclosure rule. It struck me as very difficult to front run, even if one could observe trends. I assure you many people make their liv...
by ftobin
Thu Mar 12, 2015 10:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CRSP index fund turnover rates (2014)
Replies: 22
Views: 1563

Re: Vanguard CRSP index fund turnover rates (2014)

But of the hundreds of positions in a fund, how could anyone know what direction they're going with a position? The only possible consideration is if a fund is being compared to a published index and an observer detects an underweight in certain securities, but even then it's highly uncertain if th...
by ftobin
Thu Mar 12, 2015 9:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CRSP index fund turnover rates (2014)
Replies: 22
Views: 1563

Re: Vanguard CRSP index fund turnover rates (2014)

I just read that WSJ article you linked to above. I don't understand how daily disclosure harms a fund via freeriding or front running. After all, the disclosure lists trades that already happened, so there's nothing one can do to harm values. I don't get it. The full trade can happen over the cour...
by ftobin
Wed Mar 04, 2015 12:25 am
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 27334

Re: International increase in Target Retirement & LifeStrate

As long as Vanguard is never reversing their changes without serious just cause, their constancy seems to be in their trajectory, not in one particular allocation.
by ftobin
Tue Mar 03, 2015 9:32 pm
Forum: Investing - Theory, News & General
Topic: Taylor Larimore Honored
Replies: 59
Views: 6383

Re: Taylor Larimore Honored

Thank you for all your contributions towards fellow men and women!
by ftobin
Sun Mar 01, 2015 3:57 pm
Forum: Investing - Theory, News & General
Topic: Truths About Stop Losses
Replies: 14
Views: 1581

Re: Truths About Stop Losses

ShiftF5 wrote:It seemed like others could see my stop loss order, come down and touch that price (triggering my sale) and pop right back up.

Stop orders are not represented in the market, but your broker has knowledge of them.
by ftobin
Sat Feb 28, 2015 5:31 pm
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 27334

Re: International increase in Target Retirement & LifeStrate

No one should ever not know what they are invested in. Probably 90% of people don't know what they're really invested in, or the risks they're exposed to. If they can hand this off to an organization like Vanguard, who could estimate their tolerance with a few simple questions, all the better. Addi...
by ftobin
Sat Feb 28, 2015 12:02 pm
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 27334

Re: International increase in Target Retirement & LifeStrate

dbr wrote:However, this does show that there is no such thing as "invest and forget." You still should pay attention to what is going on TR fund or not.

Or not pay attention and let Vanguard manage the risk :-)
by ftobin
Thu Feb 26, 2015 12:37 pm
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 27334

Re: International increase in Target Retirement & LifeStrate

My takeaways: 1) Do not rely on the current allocations if you are trying to set your own targets. 2) Vanguard is moving on a path towards global market weightings, assuming this can be achieved in a low-cost manner. 3) The allocations are not off the beaten path, and just "different" than...
by ftobin
Thu Feb 26, 2015 8:40 am
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 27334

International increase in Target Retirement & LifeStrategy

Vanguard announced it will increase the international equity and fixed income allocations for Vanguard Target Retirement Funds and Vanguard LifeStrategy® Funds to offer investors enhanced global diversification. Increased global diversification The international equity allocation for both types of ...
by ftobin
Wed Feb 25, 2015 8:56 am
Forum: Investing - Theory, News & General
Topic: Converting VG ETFs to open ended funds
Replies: 15
Views: 831

Re: Converting VG ETFs to open ended funds

I suspect there could be liquidity concerns with the pricing of shares, though I would think that would be manageable.

I do wish your concerns about simplicity could be addressed through better interfaces for trading ETFs, making it just as simple as mutual funds.
by ftobin
Wed Feb 11, 2015 12:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Ultra-Short-Term Bond Fund now available
Replies: 49
Views: 7959

Re: Vanguard Ultra-Short-Term Bond Fund now available

I believe this fund is aimed at institutional investors who won't be able to use money market funds with fixed share values in the future: The fund may be of interest to certain institutional investors who won't have access to a "retail" or "prime" money market fund with a fixed ...
by ftobin
Fri Feb 06, 2015 1:52 pm
Forum: Investing - Theory, News & General
Topic: "What My Daughter Learned From the Stock-Market Crash"
Replies: 13
Views: 3575

Re: "What My Daughter Learned From the Stock-Market Crash"

Gropes & Ray wrote:So Rick supporting investing on margin during the stock crash? :P

It was really an expensive put he was offering to sell to his daughter.
by ftobin
Thu Feb 05, 2015 4:25 pm
Forum: Investing - Theory, News & General
Topic: Changing a submitted order at a broker
Replies: 34
Views: 1877

Re: Changing a submitted order at a broker

Dont some exchanges support a direct cancel/replace instruction, rather than having to cancel, wait for confirmation, and then submit the new order? That's kind of what he's describing, although it admittedly gets messier with market makers and off exchange considerations. Yes, cancel-replace/modif...
by ftobin
Thu Feb 05, 2015 2:59 pm
Forum: Investing - Theory, News & General
Topic: Changing a submitted order at a broker
Replies: 34
Views: 1877

Re: Changing a submitted order at a broker

1) Lock the record for the order if it is not completely filled already. While it is locked nothing else can update it. There is no such thing as "locking" an order in trading equities. In fact, your online broker doesn't even have control of the order -- it's placed with a market maker o...
by ftobin
Thu Feb 05, 2015 1:04 pm
Forum: Investing - Theory, News & General
Topic: Changing a submitted order at a broker
Replies: 34
Views: 1877

Re: Changing a submitted order at a broker

Because if you get a partial fill the remaining odd lot may be hard to get executed. But in any case "all or known" may work better than "fill or kill". A fill-or-kill (FOK) is equivalent to an all-or-none (AON) plus immediate-or-cancel (IOC). In other words, if an order can be ...
by ftobin
Thu Feb 05, 2015 11:24 am
Forum: Investing - Theory, News & General
Topic: Changing a submitted order at a broker
Replies: 34
Views: 1877

Re: Changing a submitted order at a broker

AONs have much fewer regulatory protections than regular orders. I wouldn't recommend using them unless you really know what you are doing.
by ftobin
Wed Feb 04, 2015 6:43 pm
Forum: Investing - Theory, News & General
Topic: Changing a submitted order at a broker
Replies: 34
Views: 1877

Re: Changing a submitted order at a broker

So my questions which I placed at the top of this post is to ask what your experience has been in situations like this. Does your broker allow you to change limit orders and what happens when you are in the middle of changing your order and the order executes fully or partially? From the broker's p...
by ftobin
Tue Jan 06, 2015 9:58 am
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 119
Views: 15028

Re: Vanguard introduces first muni bond index fund and ETF

Some stats on this index can be found at http://us.spindices.com/indices/fixed-income/sp-national-amt-free-municipal-bond-index Highlights: Modified Duration (different from effective duration?): 4.74 years Yield to Maturity: 3.00% This index is also followed by an iShares ETF, MUB. Strangely, iShar...
by ftobin
Tue Jan 06, 2015 9:20 am
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 119
Views: 15028

Vanguard introduces first muni bond index fund and ETF

[Thread merged into here, see below. --admin LadyGeek] Vanguard Tax-Exempt Bond Index Fund marks our first tax-exempt index fund and ETF. The fund's target benchmark is the S&P® National AMT-Free Municipal Bond Index. It will offer investors exposure to investment-grade municipal bonds across t...
by ftobin
Wed Dec 31, 2014 2:22 pm
Forum: Investing - Theory, News & General
Topic: Why donate to charity?
Replies: 61
Views: 4400

Re: Why donate to charity?

So the key question is simply whether you wish to donate to charity. If so, then why not send them the portion that the IRS would otherwise take? Donating to charity simply reduces your income that the government taxes. This allows you to donate 100% of your pre-tax income, and not owe any income t...
by ftobin
Tue Dec 16, 2014 9:52 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 302
Views: 34263

Re: "Vanguard converting mutual fund accounts to brokerage?

I work in banking sector but not related to selling any financial products. when i try to open the vanguard acct online its asking me approval from my employer. Did anyone had same experience opening a vanguard brokerage account who works in banking?. what approval do they usual need from employer?...
by ftobin
Thu Dec 04, 2014 2:48 pm
Forum: Investing - Theory, News & General
Topic: Pensions Provide Benefits at Half the Cost of 401Ks
Replies: 16
Views: 1655

Re: Pensions Provide Benefits at Half the Cost of 401Ks

The notion that you have to save/contribute more money in a DC plan than a DB plan for the same benefits is disingenuous. The only way this could be true is if DB plans had lower costs and/or greater returns. The money needs to come from somewhere. The reason why it seems like you need to save/cont...
by ftobin
Fri Oct 10, 2014 9:50 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 302
Views: 34263

Re: "Vanguard converting mutual fund accounts to brokerage?

I don't understand why this change isn't viewed more positively. The change is allowing you to hold stock, bonds, etfs, and mutual funds all in the same account without having to keep it separate. There won't be any need for separate mutual fund and brokerage accounts. If all you want to buy is mut...
by ftobin
Fri Oct 10, 2014 12:04 am
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 233
Views: 33831

Re: When people put all their eggs in the wrong basket

I was just over perusing at the Contrarian board and found a 51-year old Harvard law graduate who apparently had been very successful in his own business . He gets progressively frustrated at GTAT's Board of Directors and management for not answering questions and frustrated at his fellow Contraria...
by ftobin
Thu Oct 09, 2014 11:40 am
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 233
Views: 33831

Re: When people put all their eggs in the wrong basket

Even a Vanguard actively-managed fund got caught up pretty severely. Vanguard Capital Value fund had 2% of its portfolio in GTAT:
Image
by ftobin
Thu Oct 09, 2014 10:17 am
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 233
Views: 33831

Re: When people put all their eggs in the wrong basket

A lot of people are second guessing what we could have done different, and the biggest thing is that a lot of us should have been more diversified. And I think that is the biggest takeaway from all of this. Yep. Interestingly, the person you quoted is the exact same forum Administrator/Staff Member...
by ftobin
Wed Oct 08, 2014 3:08 pm
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 233
Views: 33831

Re: When people put all their eggs in the wrong basket

This post personifies the attitude over there. It was made on Sept 9. Eerily prescient. http://forum.thecontrarianinvestor.com/index.php?threads/gt-advanced-technologies-inc-gtat.69/page-320#post-20215 Not really. Investing in index funds would be a dangerous game for me: If I put all of my money i...
by ftobin
Tue Oct 07, 2014 10:55 am
Forum: Investing - Theory, News & General
Topic: Mutual Funds vs. Exchange Traded Funds (ETFs)
Replies: 37
Views: 3143

Re: Mutual Funds vs. Exchange Traded Funds (ETFs)

I then tried placing a limit order at $0.01 ABOVE the "ask" price, and Fidelity's website rejected the order because it was above the "ask" price. In short, I couldn't get it at the ask price and Fidelity's website wouldn't let me make an offer at above the ask price. As the pri...
by ftobin
Tue Oct 07, 2014 10:45 am
Forum: Investing - Theory, News & General
Topic: Mutual Funds vs. Exchange Traded Funds (ETFs)
Replies: 37
Views: 3143

Re: Mutual Funds vs. Exchange Traded Funds (ETFs)

d0gerz wrote:That would definitely work, although with a $25,000 minimum Vanguard Charitable isn't an option for me at the moment.

I recommend considering Fidelity Charitable with their lower $5000 initial contribution minimum -- I have an account with them as well (predates my Vanguard account).
by ftobin
Tue Oct 07, 2014 7:51 am
Forum: Investing - Theory, News & General
Topic: Mutual Funds vs. Exchange Traded Funds (ETFs)
Replies: 37
Views: 3143

Re: Mutual Funds vs. Exchange Traded Funds (ETFs)

On the flip side, I donate appreciated ETFs. This doesn't require the charity to have a Vanguard account. If you want to donate mutual funds, however, the recipient must have a Vanguard account. I've donated mutual funds several times, held at TD Ameritrade, Vanguard, and Fidelity, but only to dono...
by ftobin
Mon Oct 06, 2014 8:53 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 302
Views: 34263

Re: "Vanguard converting mutual fund accounts to brokerage?

Did you finally merge them at Fidelity? Any benefit from doing it? After my employer began allowing accounts at "preferred brokers", of which Fidelity is one of three, I did convert my account into a brokerage account on my request. There has been no benefit yet, but if I find a need to b...
by ftobin
Mon Oct 06, 2014 7:42 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 302
Views: 34263

Re: "Vanguard converting mutual fund accounts to brokerage?

Fidelity used to have a dual-mode system like Vanguard, having mutual fund account separately from the brokerage. I kept a mutual fund-only account for many years after they merged their brokerage operation and fund operation. I was even allowed to create a new mutual fund-only account later when th...
by ftobin
Mon Oct 06, 2014 1:30 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 302
Views: 34263

Re: "Vanguard converting mutual fund accounts to brokerage?

I wish their FAQ covered whether people can opt-opt of this. Working in the trading industry, my employer will not allow a brokerage account at Vanguard for compliance reasons (I have to use "preferred" brokers). Given what nisiprius, I definitely prefer the level of automatic-ness I can a...
by ftobin
Wed Sep 03, 2014 12:12 am
Forum: Investing - Theory, News & General
Topic: An inefficient market creating drag on index returns
Replies: 54
Views: 4456

Re: An inefficient market creating drag on index returns

The Russell is well known for front running for several reasons but I don't think it is unique to the russell its just much easier to study. Front running was detected in this index because: 1. They were rebalancing once a year. 2. In the 90s it was the major small cap passive benchmark so nearly a...
by ftobin
Tue Sep 02, 2014 4:50 pm
Forum: Investing - Theory, News & General
Topic: Philosophy Differs From Strategy
Replies: 33
Views: 3688

Re: Philosophy Differs From Strategy

commodities tend to track inflation I'm trying to imagine a world in which that isn't true. One in which, for instance, the price of oil triples without raising other prices through its effect on transportation and manufacturing costs. Probably depends on whether the commodity is consumable. For ex...
by ftobin
Wed Aug 27, 2014 3:07 pm
Forum: Investing - Theory, News & General
Topic: Motif Investing - own the S&P500 for less
Replies: 93
Views: 8852

Re: Motif Investing - own the S&P500 for less

Actually, the real secret is that there is no point in slavishly trying to track any index. The fact is that if one has enough separate holdings, it really doesn't matter too much what exactly those holdings are, or in what weights. One will end up tracking the overall market regardless. (Modulo, s...

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