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Re: Due diligence on RAFI Pure Small Value

Multi-factor value sort with a backdoor load on profitability thru P/CF and P/E. It even has a Price/5 year "value" component that PE10 folks can appreciate. What's not to like? Hmm, maybe the presence of lower cost, better performing alternatives? PXSV lifetime to date vs Vanguard SV (I'...
by vesalius
Thu Jul 24, 2014 7:15 am
 
Forum: Investing - Theory, News & General
Topic: Due diligence on RAFI Pure Small Value
Replies: 98
Views: 8088

Re: a close look at value and momentum

Again its a personal choice on what actions, if any, we should take. Personally, I have no problem with someone holding a (world) market index fund as their only stock holding, just as I don't have an issue with someone holding the iShares MSCI USA Momentum fund. I can see a rationale for either. T...
by vesalius
Sat Jul 19, 2014 5:10 pm
 
Forum: Investing - Theory, News & General
Topic: a close look at value and momentum
Replies: 259
Views: 17262

Re: a close look at value and momentum

The iShares fund has matched fairly closely the returns of the MSCI Momentum Index since the funds inception. If the iShares MSCI Momentum Fund has the same long-term characteristics (factor loads, including its close to zero alpha) as its underlying index had from Jan 1980 then it will capture par...
by vesalius
Sat Jul 19, 2014 12:25 pm
 
Forum: Investing - Theory, News & General
Topic: a close look at value and momentum
Replies: 259
Views: 17262

Re: Do any bogleheads hold the "Larry Portfolio?"

Yes I do for around 2 years now and I am happy with it.
by vesalius
Fri Jul 18, 2014 2:56 pm
 
Forum: Investing - Theory, News & General
Topic: Do any bogleheads hold the "Larry Portfolio?"
Replies: 18
Views: 2402

Re: Bet it ALL on Small Cap Value when you're young

Target2030

Those 2 funds are only available through BAM affiliated advisors. Larry's group helped to devise them and they get sole access, as far as I know.
by vesalius
Thu Jul 17, 2014 4:08 pm
 
Forum: Investing - Theory, News & General
Topic: Bet it ALL on Small Cap Value when you're young
Replies: 64
Views: 6175

Re: was Bogle right about ETFs?

kenner wrote:Perhaps Mr. Bogle is more concerned about investor psychology and decision-making. Decades of real knowledge prove the importance of these factors.

Exactly. ETFs are fine and here to stay. How people use them in regards to investor psychology and decision-making can be the problem.
by vesalius
Thu Jul 17, 2014 11:34 am
 
Forum: Investing - Theory, News & General
Topic: was Bogle right about ETFs?
Replies: 26
Views: 2885

Re: was Bogle right about ETFs?

About trading ETFs - yes Bogle was right. ETFs were designed to be sold and bought, sold and bought, etc... Bogleheads don't buy products designed to be sold. For expats who can't purchase mutual funds, the creation of ETFs is quite significant. I like ETFs because I know what price I am buying at....
by vesalius
Thu Jul 17, 2014 11:32 am
 
Forum: Investing - Theory, News & General
Topic: was Bogle right about ETFs?
Replies: 26
Views: 2885

Re: Persistence of SV performance

Real funds have to deal with slippage and transaction costs, that will reduce returns even though it won't show up in an index. Large caps are generally super liquid, and small caps less so. Only looking at indexes will make small cap look better then it should. A fair response would be to find a d...
by vesalius
Wed Jul 16, 2014 6:20 am
 
Forum: Investing - Theory, News & General
Topic: Persistence of SV performance
Replies: 71
Views: 3829

Re: Bet it ALL on Small Cap Value when you're young

Browser wrote:If BETA is the enemy, why not a low-beta fund or allocating to low-beta sectors: consumer durables, heathcare, and utilities?

Did anyone call beta the enemy? It seems to me that saying that there are other factors to consider beyond beta is is far cry from saying beta is bad?
by vesalius
Tue Jul 15, 2014 7:52 pm
 
Forum: Investing - Theory, News & General
Topic: Bet it ALL on Small Cap Value when you're young
Replies: 64
Views: 6175

Re: Due diligence on RAFI Pure Small Value

I'm saying that the change of index does not change the fact that PSVX was a small-value fund since inception. And everyone else but you seems to realize that different indices can have wildly different returns even in the same asset class. 1 index is not a sufficient proxy for all the others. :?: ...
by vesalius
Tue Jul 15, 2014 7:47 pm
 
Forum: Investing - Theory, News & General
Topic: Due diligence on RAFI Pure Small Value
Replies: 98
Views: 8088

Re: a close look at value and momentum

Countmein DFA and Bridgeway use MOMENTUM screens similarly, screening out negative MOM stocks and using positive MOM signals to have preference in order of what gets sold when it reaches sell range. AQR uses both long and long short momentum. Very different DFA adds profitability screens. AQR uses ...
by vesalius
Tue Jul 15, 2014 7:42 pm
 
Forum: Investing - Theory, News & General
Topic: a close look at value and momentum
Replies: 259
Views: 17262

Re: Due diligence on RAFI Pure Small Value

If anybody is interested, here is the TellTale chart of PXSV vs VTSAX : http://i58.tinypic.com/x4rq5u.jpg :oops: From the OP by Robert T. "This is now tracked by the Powershares Fundamental Pure Value Series (PXSV) starting June 16, 2011 (note that PXSV tracked a different index before June 20...
by vesalius
Tue Jul 15, 2014 7:32 pm
 
Forum: Investing - Theory, News & General
Topic: Due diligence on RAFI Pure Small Value
Replies: 98
Views: 8088

Re: what is "at-cost investing" ?

It means that Vanguard will and have both lowered and raised expense ratios on existing funds as the cost to run the fund dictate. Other providers may use certain ETFs and mutual funds as loss leaders or lower expense ratios below thier cost simply to undercut Vanguard. Vanguard doesn't do that. Alt...
by vesalius
Tue Jul 15, 2014 4:22 pm
 
Forum: Investing - Theory, News & General
Topic: what is "at-cost investing" ?
Replies: 8
Views: 1346

Re: Small cap valuations "appear to be stretched"

This is just as damning for Bogle's corparate bond suggestions.
by vesalius
Tue Jul 15, 2014 12:57 pm
 
Forum: Investing - Theory, News & General
Topic: Small cap valuations "appear to be stretched"
Replies: 11
Views: 1384

Re: Persistence of SV performance

So, there is a SV premium, but retail investors can't capture it through funds from Vanguard etc? Ok.. Interesting I guess, but not really actionable advice for 99% of people here. If Vanguard is any good at tracking an index, which most would agree they are, then the new CRSP indices they switched...
by vesalius
Tue Jul 15, 2014 12:31 pm
 
Forum: Investing - Theory, News & General
Topic: Persistence of SV performance
Replies: 71
Views: 3829

Re: How many veteran investor have LARGE MAJORITY in three-f

I have a large majority in a very simple 4 fund portfolio, but it is the Larry portfolio.
by vesalius
Wed Jul 09, 2014 1:59 pm
 
Forum: Investing - Theory, News & General
Topic: How many veteran investor have LARGE MAJORITY in three-fund?
Replies: 56
Views: 3840

Re: Suggestions for teaching new MDs about finance?

And to carry this a step further, you might let them know that 50% of docs will change jobs in their first 2 years out of training and 75% within 3 years. Do you have a reference for these percentages? I have seen and used them when talking to residents/fellows before, but I am not sure how or from...
by vesalius
Tue Jul 01, 2014 3:32 pm
 
Forum: Investing - Theory, News & General
Topic: Suggestions for teaching new MDs about finance?
Replies: 39
Views: 2671

Re: Suggestions for teaching new MDs about finance?

What are people's opinions on investment services like Betterment or FutureAdvisor for MDs (or non-MDs) who are totally incapable of being trusted with their own money? I wouldn't use one, but I know many MDs who THINK they are good with money (probably cocky because they're good at lots of other t...
by vesalius
Mon Jun 30, 2014 10:27 am
 
Forum: Investing - Theory, News & General
Topic: Suggestions for teaching new MDs about finance?
Replies: 39
Views: 2671

Re: Suggestions for teaching new MDs about finance?

I would have thought that MDs are trained to be skeptical of everything they are taught in med school as well as their teachers and other doctors. Does this not extend to other "experts" that they may come in contact with? It is the exact opposite in general. There is too much depth in wa...
by vesalius
Sun Jun 29, 2014 2:29 pm
 
Forum: Investing - Theory, News & General
Topic: Suggestions for teaching new MDs about finance?
Replies: 39
Views: 2671

Re: Are small and mid caps necessary?

Keep reading. You have plenty of time, years even to decide if you would like to tilt or not. Maximize your savings rate in the interim as that will vastly outweigh your asset allocation choices in regards to the total $$ invested in your account for the immediate future. Read Bogle, read Swedroe, r...
by vesalius
Tue Jun 24, 2014 3:08 pm
 
Forum: Investing - Theory, News & General
Topic: Are small and mid caps necessary?
Replies: 35
Views: 2374

Re: Betterment launches tax loss harvesting

Hi Andy - Do keep in mind that (unless you never sell the investments) saving on capital gains now means you'll have to pay them later, perhaps even at higher rates. However, in your case (using them along them way), you do get a tax deferral benefit. Merely incurring and maintaining the loss would...
by vesalius
Fri Jun 20, 2014 12:27 pm
 
Forum: Investing - Theory, News & General
Topic: Betterment launches tax loss harvesting
Replies: 28
Views: 2877

Re: Why is Tilting and Slice&Dice so popular in this forum?

I am aware that increasing risk has the potential to substantially increase returns for long term horizons. Not the potential--the near certainty. Make the horizon long enough, and the high-risk, high-return asset always dominates in all outcomes. If your horizon is 30+ years, seriously consider ti...
by vesalius
Thu Jun 12, 2014 12:34 pm
 
Forum: Investing - Theory, News & General
Topic: Why is Tilting and Slice&Dice so popular in this forum?
Replies: 110
Views: 6174

Re: Any [iPhone] "Apps" you like?

Another useful app is a flashlight app, there are many of them. They turn your camera flash into a flash light which can be helpful when caught in the dark. If you have iOS 7 or greater than a flashlight is now built into the OS under the Control Center, and unless you have an iPhone 4 or earlier I...
by vesalius
Wed Jun 11, 2014 1:14 pm
 
Forum: Personal Consumer Issues
Topic: Any [iPhone] "Apps" you like?
Replies: 50
Views: 3988

Re: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX

I have access to mutual funds only in a Fido brokerage account. My SCV preference is PXSV, but I hold ~50K of SFSNX due to ETF restrictions. OP, now you have me thinking...should I swap out SFSNX for QSMLX? I think so...? Only a $500 minimum for QSMLX. I would grap. OT question? I have an account a...
by vesalius
Mon Jun 09, 2014 9:19 am
 
Forum: Investing - Theory, News & General
Topic: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX)
Replies: 23
Views: 1491

Re: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX

I sort of agree with grap, dump it all in PXSV or QSMLX and move on. I would likely choose QSMLX if forced due to the management team and their dedication to implementing the best factors with the hopes that the ER is decreased over time, but PXSV, with its relatively lower ER makes it a coin toss.
by vesalius
Fri Jun 06, 2014 3:28 pm
 
Forum: Investing - Theory, News & General
Topic: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX)
Replies: 23
Views: 1491

Re: GMO's 7 year predictions

Ed, on page 8 you use various forms of "ith" and "tth", some with a superscript "th" some without. The second sentence of the "MAKING THE INVESTMENT SHARE A FUNCTION OF PREDICTED RETURN. LONG ONLY " section on page 8 carries this inconsistency forward as well....
by vesalius
Fri Jun 06, 2014 3:16 pm
 
Forum: Investing - Theory, News & General
Topic: GMO's 7 year predictions
Replies: 6
Views: 1210

Re: Which is superior? Slice & Dice or lump sum?

We collectively burn a lot of bits on that topic..... but the answer really is whatever works for you. In the end, it will not matter much. It's dwarfed by other more important topics like saving and not making rash changes as the talking heads blurt on. agreed I utilize a version of the Larry port...
by vesalius
Wed Jun 04, 2014 3:58 pm
 
Forum: Investing - Theory, News & General
Topic: Which is superior? Slice & Dice or [Total Market]?
Replies: 48
Views: 3760

Re: No BOSVX or DFSVX -- what other SCV choices?

It looks like you're right. It looks like another EM etf, TLTE, has a smaller average cap ($31B vs. $44B). It is advertised as being tilted toward value and small. Morningstar shows both as value-tilted large-cap. EVAL is more value tilted than TLTE. DGS is one of the few completely small value ori...
by vesalius
Mon Jun 02, 2014 1:09 pm
 
Forum: Investing - Theory, News & General
Topic: No BOSVX or DFSVX -- what other SCV choices?
Replies: 54
Views: 2913

Re: No BOSVX or DFSVX -- what other SCV choices?

Tell me -- why is a possible closing of an ETF a problem? If it closes, you get your money right? Then you invest it elsewhere. Am I missing something here? It's a problem only in taxable due to capital gains taxes. Thanks. I'm also considering EVAL, which is a SCV emerging ETF. It has very small A...
by vesalius
Mon Jun 02, 2014 11:44 am
 
Forum: Investing - Theory, News & General
Topic: No BOSVX or DFSVX -- what other SCV choices?
Replies: 54
Views: 2913

Re: No BOSVX or DFSVX -- what other SCV choices?

Would you choose the the AQR Small Cap Momentum Fund (which screens for size and positive momentum), over the AQR Small Cap Core Equity Fund (which screens for size, value, momentum and profitability)? If so, why? That's something I hadn't considered. I will have to do some more research before mak...
by vesalius
Mon Jun 02, 2014 11:26 am
 
Forum: Investing - Theory, News & General
Topic: No BOSVX or DFSVX -- what other SCV choices?
Replies: 54
Views: 2913

Re: No BOSVX or DFSVX -- what other SCV choices?

larryswedroe wrote:vesalius
FWIW I would choose the multi-factor one. Diversifying exposure to factors is good idea
Larry

Thanks Larry,

That was my choice and general inclination. I was looking to either learn a little from Ketawa or potentially alert him to the QSMLX option, if he has access to it.
by vesalius
Mon Jun 02, 2014 11:22 am
 
Forum: Investing - Theory, News & General
Topic: No BOSVX or DFSVX -- what other SCV choices?
Replies: 54
Views: 2913

Re: No BOSVX or DFSVX -- what other SCV choices?

Right now, I use PXSV and VBR in approximately equal amounts (in tax-advantaged). I may reduce my holdings in VBR to add an allocation to the AQR small cap momentum fund. I would probably use IJS or VIOV in a taxable account due to their lower yield, higher % of qualified dividends, and concerns ov...
by vesalius
Mon Jun 02, 2014 10:29 am
 
Forum: Investing - Theory, News & General
Topic: No BOSVX or DFSVX -- what other SCV choices?
Replies: 54
Views: 2913

Re: How diversified is the Larry Portfolio

Maybe somewhere in the time I've been on the board I've missed it (please accept my apologies in advance), but other than the 2 funds you mention DFA and Bridgeway Omni SV, are there any Vanguard funds or ETF's that could be subsituted in place of them if one does not have access to DFA? For US Sma...
by vesalius
Tue May 27, 2014 5:36 pm
 
Forum: Investing - Theory, News & General
Topic: How diversified is the Larry Portfolio
Replies: 40
Views: 3340

Re: a tale of two small value funds

Re the extra fees for DFA ---as I said, mostly IMO that's sort of a bogus issue because there are advisors who will sell you "access" so you don't need to pay for the other funds in the portfolio. Just tell them that's all your assets if you want. I've done fairly extensive research into ...
by vesalius
Mon May 19, 2014 2:46 pm
 
Forum: Investing - Theory, News & General
Topic: a tale of two small value funds
Replies: 25
Views: 1876

Re: High Net Worth Investing

If I had your problems :mrgreen: I would do the Larry Portfolio (search it but basically 70% short term/medium term government bonds/munis and 30% SCV equities in US, World and Emerging Markets). I would throw in a dose of gold stored in a safety deposit box. Agreed aside from the gold. To js1884, ...
by vesalius
Thu May 15, 2014 5:34 pm
 
Forum: Investing - Theory, News & General
Topic: High Net Worth Investing
Replies: 68
Views: 7023

Re: "Smart Beta" ?

Even though it means nothing in the grand scheme of things, I really like the term Strategic Beta as middle ground between Spindex and Smart Beta proponents.
by vesalius
Wed May 14, 2014 5:47 pm
 
Forum: Investing - Theory, News & General
Topic: "Smart Beta" ?
Replies: 12
Views: 1100

Re: Mea culpa [100% stock at 50]

Admitting you have/had a problem is the first step. Correcting it is a good next step, but not repeating it is really important.

This is one of the ways advisors add a lot of value for the majority of people.
by vesalius
Wed Apr 30, 2014 2:24 pm
 
Forum: Investing - Theory, News & General
Topic: Mea culpa [100% stock at 50]
Replies: 46
Views: 5353

Re: practicing medicine in Texas...

You cost of living should be significantly lower in TX, regardless of the city, than it is in San Diego. Your state income taxes go to $0 and if you rent your property taxes are great here in TX too. The Malpractice Laws here are much better and sensible than Ca also. Your pay should be similar, pot...
by vesalius
Fri Apr 18, 2014 5:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: practicing medicine in Texas...
Replies: 56
Views: 13993

Re: Schwab Fundamental Index Funds

Their open-end fundamental index funds have tended to lag their benchmarks by a fair amount more than their ER, except in the US large cap space. On the ETFs, I'd want to wait and see what their tracking error vs. their underlying index ends up being. It looks like fundamental EM ETF PXH did even w...
by vesalius
Mon Apr 14, 2014 5:47 pm
 
Forum: Investing - Theory, News & General
Topic: Schwab Fundamental Index Funds
Replies: 11
Views: 1735

Re: Thoughts on iShares Enhanced ETF [IELG, IESM, IEIL, IEIS

How can IEMG and EEMS achieve their positive tracking error? There's noise in fund returns so my guess is luck. I'll be pleasantly surprised if 3 year TE isn't highly negative. For funds that mostly hold liquid stocks, long term positive TE might result from trading futures, lending shares, and luc...
by vesalius
Mon Apr 14, 2014 5:33 pm
 
Forum: Investing - Theory, News & General
Topic: Thoughts on iShares Enhanced ETF [IELG, IESM, IEIL, IEIS]
Replies: 16
Views: 1800

Re: Getting over huge mistakes

I want to reiterate what other stated about not becoming too spartan. You likely have already, but make sure your spouse is OK with any drastic changes because if you don't she could ultimately feel punished for what you admit are mainly your past mistakes. Leave room for a couple of date nights out...
by vesalius
Thu Apr 10, 2014 5:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Getting over huge mistakes
Replies: 30
Views: 3743

Re: Best Tax free Muni Bond fund

I prefer the Baird Institutional Intermediate Municipal Bond Fund (BMBIX), but either it or the admiral shares of Vanguard intermediate or Limited would be my next choice. The Baird Fund has a slightly lower duration and holds higher quality, safer bonds (AAA and prerefunded) than the Vanguard inter...
by vesalius
Thu Apr 10, 2014 7:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Best Tax free Muni Bond fund
Replies: 4
Views: 554

Re: Which Muni Bond Fund in Taxable account ??

+1 on Baird Intermediate Municipal (BMBIX). Holds higher quality municipals than the comparable Vanguard fund.
by vesalius
Fri Apr 04, 2014 8:10 am
 
Forum: Investing - Theory, News & General
Topic: Which Muni Bond Fund in Taxable account ??
Replies: 14
Views: 1462

Re: Assistance with purchasing Fidelity funds

1. Clean up book keeping and transfer her HER Traditional IRA 2 with CHASE to fidelity. 2. Consider the iShares Core ETF's at fidelity in taxable. Free to trade and ETF's (outside of Vanguard where they are exactly the same as their corresponding MF) are equal or better than equivalent MF's in taxab...
by vesalius
Wed Apr 02, 2014 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Assistance with purchasing Fidelity funds
Replies: 9
Views: 994

Re: diff between "pre-refunded" and "escrowed to maturity" m

From reading the definitions only, Pre-refunded always use a safe government issued bond as the ecrowed second bond. Escrowed to Maturity bonds also use second bond issue escrow and some may use a safe government issued bond as the ecrowed second bond not all do. Government obligations, typically U....
by vesalius
Sun Mar 30, 2014 1:38 pm
 
Forum: Investing - Theory, News & General
Topic: diff between "pre-refunded" and "escrowed to maturity" munis
Replies: 3
Views: 318

Re: Dynamic Asset Allocations or do 'Valuations Matter'

So when both stocks and bonds have relatively high valuations, like now, are we supposed to switch from bonds to stocks or stocks to bonds? Based off prior post I assume this is rhetorical, but not all stocks have high valuations. I suspect someone lending actionable credence to this methodology wo...
by vesalius
Sat Mar 29, 2014 7:49 pm
 
Forum: Investing - Theory, News & General
Topic: Dynamic Asset Allocations or do 'Valuations Matter'
Replies: 30
Views: 2619

Re: Dynamic Asset Allocations or do 'Valuations Matter'

So when both stocks and bonds have relatively high valuations, like now, are we supposed to switch from bonds to stocks or stocks to bonds? Based off prior post I assume this is rhetorical, but not all stocks have high valuations. I suspect someone lending actionable credence to this methodology wo...
by vesalius
Sat Mar 29, 2014 5:36 pm
 
Forum: Investing - Theory, News & General
Topic: Dynamic Asset Allocations or do 'Valuations Matter'
Replies: 30
Views: 2619

Re: Higher Returns at Lower Risk - please comment

Frans, the fund you recommend (VBR) is only 29% Small cap Value according to morningstar as noted here: http://portfolios.morningstar.com/fund/summary?t=VBR&region=usa&culture=en-US&ownerCountry=USA Any other ETF/Fund recommendations? You will not find many if any funds/etfs that are 10...
by vesalius
Sat Mar 29, 2014 3:03 pm
 
Forum: Investing - Theory, News & General
Topic: Higher Returns at Lower Risk - please comment
Replies: 59
Views: 6426

Re: Index weighting variations

People and organizations such as Rafi, AQR, DFA and Bridgeway are doing passive multiple factor stock sorts now. I am sure there are some I missed and more to come.

You would also have to balance how quickly your index changed in relation to the tax efficiency and cost.
by vesalius
Mon Mar 24, 2014 12:52 pm
 
Forum: Investing - Theory, News & General
Topic: Index weighting variations
Replies: 23
Views: 1396
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