Search found 6853 matches

by Doc
Sat Mar 25, 2017 3:16 pm
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1203

Re: Active Bond Funds Holding Their Own

In regards to the Barclays US Aggregate Bond Index, it actually only rebalances once per month based on changes in the index. Their website has changed and the excellent Guides and Factsheets no longer seem to be available. New York – August 24, 2016 – Bloomberg L.P. announced today that it has com...
by Doc
Sat Mar 25, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 42
Views: 2552

Re: Justification for Adding REITs

I think there is a misconception here. It is not that REITS are not publically traded it is just that many of them are not listed on a major stock exchange and therefore don't get into an Equity Index. In the context of this discussion, would you consider public, non-traded REITs to be...REITs? Yes...
by Doc
Sat Mar 25, 2017 11:49 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 42
Views: 2552

Re: Justification for Adding REITs

poor way to get exposure to the non-publicly traded REIT I think there is a misconception here. It is not that REITS are not publically traded it is just that many of them are not listed on a major stock exchange and therefore don't get into an Equity Index. Most REITs are traded on major stock exc...
by Doc
Fri Mar 24, 2017 8:13 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 42
Views: 2552

Re: Justification for Adding REITs

harvestbook wrote:I'm currently 5.8 percent US REIT and 2.6 percent International REIT slowly moving toward 5 and 5 as I adjust my IRA each year.

Check out the International REIT structure. I have a vague recollection that they do not have same attributes as US.
by Doc
Fri Mar 24, 2017 7:21 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 42
Views: 2552

Re: Justification for Adding REITs

I also agree with some others that there could be diversification benefits, although I imagine the same can be said for other major stock market sectors. REITS have a unique tax structure that makes them somewhat more unique than other equity sectors. The cause of the non-qualified dividends is pro...
by Doc
Thu Mar 23, 2017 5:21 pm
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 42
Views: 2552

Re: Justification for Adding REITs

It is not a tilt. Most REITS are not traded on a stock exchange. So if you want to have a TRUE Total Market and not just a Total "Stock" market you have to add REITS. REITS are equities which unlike bonds, have no "par" value so they are considered equities despite the fact that ...
by Doc
Thu Mar 23, 2017 4:57 pm
Forum: Investing - Theory, News & General
Topic: tips on buying TIPS: new issue vs secondary market?
Replies: 24
Views: 1923

Re: tips on buying TIPS: new issue vs secondary market?

I am considering the same thing as the OP and have been weighing pros/cons of TIPS bond ladders vs. TIPS funds. The part that I am struggling with is the principal. The bond pays back the inflation adjusted principal, yes? How does that translate to a fund - does it issue capital gains distribution...
by Doc
Thu Mar 23, 2017 2:52 pm
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1203

Re: Active Bond Funds Holding Their Own

Also, keep in mind that the methodology matches portfolio behavior over the period studied, so wrong market timing over the period is not that penalized. I think it's only the ending position that is used for the "benchmark". Nevertheless the market timing is an issue. The method we used ...
by Doc
Thu Mar 23, 2017 2:31 pm
Forum: Investing - Theory, News & General
Topic: Why buy short-term bond funds when you can get 1% in savings acct?
Replies: 29
Views: 2455

Re: Why buy short-term bond funds when you can get 1% in savings acct?

If all you care about is the safety and return on your short term fixed income without any regard as to how fixed income interacts with the rest of your portfolio then listen to Kevin.

You might also ask yourself what the purpose of your AA is. Hint: the answer is not total return.
by Doc
Wed Mar 22, 2017 11:29 am
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1203

Re: Active Bond Funds Holding Their Own

Also, keep in mind that the methodology matches portfolio behavior over the period studied, so wrong market timing over the period is not that penalized. I think it's only the ending position that is used for the "benchmark". Nevertheless the market timing is an issue. The method we used ...
by Doc
Wed Mar 22, 2017 8:48 am
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1203

Active Bond Funds Holding Their Own

The latest update to the Morningstar active/passive barometer reveals that actively managed bond funds are much more likely to beat their benchmarks than equity funds. http://news.morningstar.com/articlenet/article.aspx?id=798603 The precise numbers are as follows: 65.48% of fixed-income managers o...
by Doc
Tue Mar 21, 2017 4:05 pm
Forum: Investing - Theory, News & General
Topic: Schwab vs Vanguard vs Fidelity - ER fees
Replies: 18
Views: 1426

Re: Schwab vs Vanguard vs Fidelity - ER fees

If fees between two funds that track the same index are within a few BPs I look at turnover. For instance, SCHZ is Schwab's fund which tracks the Barclay Aggregate Bond Index. Its turnover = 119% (!!!). BND is Vanguard's equivalent fund. Its turnover = 61%. Turnover matters because it potentially g...
by Doc
Mon Mar 20, 2017 12:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard corrected 1099B is now incorrect
Replies: 14
Views: 1692

Re: Vanguard corrected 1099B is now incorrect

Finally received the 2nd corrected 1099B from Vanguard which now matches exactly back to the original one! So it looks like we are all good now. Just got our second correction this AM by snail mail. Corrected date is 03/10/2017. Copy available for download is dated 03/13/17 on web site but it is th...
by Doc
Sun Mar 19, 2017 2:42 pm
Forum: Investing - Theory, News & General
Topic: Reproducing S&P 500 and Bonds rolling correlation
Replies: 9
Views: 735

Re: Reproducing S&P 500 and Bonds rolling correlation

I don't know what the intent is here but whatever the time frame for the comparison is very important. Here's two total rolling return charts for VG Intermediate Treasury fund and VG S&P 500 for the last ten years. 3 month rolling period: https://s15.postimg.org/t9uubcrtn/Capture_1.jpg upload ga...
by Doc
Sun Mar 19, 2017 7:19 am
Forum: Investing - Help with Personal Investments
Topic: Schwab vs Vanguard
Replies: 54
Views: 10414

Re: Schwab vs Vanguard

Doc I did not know that.I have read so many posts saying you cannot buy admiral shares at Schwab that I have not yet tried.Can you buy Wellesley? As far as I know you cannot buy Vg admiral at Schwab. I was addressing that there are good alternatives to index admiral funds. It's the active funds tha...
by Doc
Sun Mar 19, 2017 7:07 am
Forum: Investing - Theory, News & General
Topic: 15% International Small-Cap vs 30% Total International
Replies: 47
Views: 3278

Re: 15% International Small-Cap vs 30% Total International

Longtermgrowth wrote:What else is bringing the QDI% down in VSS? maybe the 9 plus percent real estate? How much of that is from emerging markets though? DLS has 5.7% real estate for comparison

REIT divs are not qualified.
by Doc
Sat Mar 18, 2017 3:05 pm
Forum: Investing - Theory, News & General
Topic: 15% International Small-Cap vs 30% Total International
Replies: 47
Views: 3278

Re: 15% International Small-Cap vs 30% Total International

rollsound, one thing I didn't see mentioned is if this would be in a taxable account? Roughly half of the dividends from VSS are not qualified. Maybe that doesn't matter if only holding half the amount you would otherwise hold in a total international fund like VXUS with around 70% QDI. Is this due...
by Doc
Sat Mar 18, 2017 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab vs Vanguard
Replies: 54
Views: 10414

Re: Schwab vs Vanguard

hoops777 wrote:Just switched to Schwab and would say it is superior to Vanguard in every way minus the buying admiral funds.

There are very few admiral funds that I can't buy as cheaply at Schwab with the exception of some of Vanguard's Admiral class active bond funds with $50k minimums.
by Doc
Sat Mar 18, 2017 10:09 am
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

Poorly. On some charting services like Yahoo you can get a "real" time chart of both the price of the etf and its indicative value. The two track reasonably well until the European markets close and then begin to diverge. How is the indicative value calculated? It doesn't make sense to as...
by Doc
Fri Mar 17, 2017 7:34 pm
Forum: Investing - Theory, News & General
Topic: tips on buying TIPS: new issue vs secondary market?
Replies: 24
Views: 1923

Re: tips on buying TIPS: new issue vs secondary market?

@ learning head In Swedroe's "Bond Book" I think in the appendix he opines on the % TIPS vs nominals in the 2% - 3%. real range. Since then real rates have gone through the bottom and the fed has replaced the 20 with a 30. I would suggest that you get a copy of Larry's book and consider if...
by Doc
Fri Mar 17, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: 15% International Small-Cap vs 30% Total International
Replies: 47
Views: 3278

Re: 15% International Small-Cap vs 30% Total International

in_reality wrote:Emerging market data seems entirely unreliable.

Doc says: Emerging markets data seems entirely unreliable. :D
by Doc
Fri Mar 17, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

Does any of this matter if you are buying and holding for 30 years? No. It is probably only relevant when your are tax loss/gain harvesting when you are trying to sell one fund and buy a similar fund to park your investment for 30 days. You want to have your buy/sell pairs occur in the same time fr...
by Doc
Fri Mar 17, 2017 8:35 am
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

livesoft wrote:The chart of SCHF is interesting, but polluted by the FOMC announcement.

It was not just the FOMC. The ETF price and the indicative value often diverge when the European markets close. Run the chart for today. Do it for several days. I inadvertently chose a bad day to post the data.
by Doc
Fri Mar 17, 2017 8:22 am
Forum: Investing - Theory, News & General
Topic: All things equal - Int'l in taxable?
Replies: 5
Views: 414

Re: All things equal - Int'l in taxable?

2% cash dividend & 8% foreign tax
Tax credit 2*.08=0.16 %
Total dividend 2*1.08=2.16%
Tax owed .15*2.16=0.324%

Do your own math.

Last year for one of our large cap international funds the (cash) dividend was 3% and the foreign tax was 8% of that 3% and some of the dividends were not qualified.
by Doc
Thu Mar 16, 2017 2:46 pm
Forum: Investing - Theory, News & General
Topic: 15% International Small-Cap vs 30% Total International
Replies: 47
Views: 3278

Re: 15% International Small-Cap vs 30% Total International

And yes the REAL benefit of international is in small which has lower correlation to US stocks than does Large (they tend to be more multinationals). But the biggest benefit is going to small value, not small, as you get the low correlation and even higher expected returns, allowing you to hold eve...
by Doc
Thu Mar 16, 2017 1:35 pm
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

I believe he's referring to the bump in price from the FOMC announcement at 2:00 pm Eastern (not 1:00 pm). Ah! Forgot about FOMC action; so the APs are less certain about how foreign markets will respond so they arbitrage more carefully. Neat! I wasn't. The chart I showed had the same type of patte...
by Doc
Thu Mar 16, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

Years back there were issues of people trying to game the system (and effectively disrupting funds, taking returns away from other shareholders) by buying/selling the fund based on news since the underlying securities stopped trading, so for years now there's been a common practice of fair-value pr...
by Doc
Thu Mar 16, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

Fascinating, thanks! I'm not sure I follow completely though; what market are you implying opened at 1:00 PM eastern? I don't see such a market listed at International Market Hours. In fact it appears to be half an hour after European markets close. Did I mispeak? I never could deal well with Europ...
by Doc
Thu Mar 16, 2017 11:33 am
Forum: Investing - Theory, News & General
Topic: tips on buying TIPS: new issue vs secondary market?
Replies: 24
Views: 1923

Re: tips on buying TIPS: new issue vs secondary market?

Please note: I am planning to buy inside 401k, not in taxable acct given that TIPS appear to be less tax-efficient than other stocks / bonds. I was not going to buy a TIPs fund but instead am trying to more closely match with few rungs for LMP. (Good point about e/r of a fund too) I was curious abo...
by Doc
Thu Mar 16, 2017 11:24 am
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

Market participants trading the ETF during US hours buy and sell based on their needs, like for anything else. Many are sensitive to the perceived value of the underlying holdings, which without live pricing would have to be based on estimates stemming from market/sector/company/currency exchange r...
by Doc
Thu Mar 16, 2017 10:15 am
Forum: Investing - Theory, News & General
Topic: tips on buying TIPS: new issue vs secondary market?
Replies: 24
Views: 1923

Re: tips on buying TIPS: new issue vs secondary market?

Hi Doc, are you looking at Fidelity site? As of 9:54am ET today, I see these TIPS yields Jan 2023: bid: 0.211, ask: 0.168 => diff: 4.3 bps (or 20%) Apr 2032: bid: 0.649, ask: 0.612 => diff: 3.7 bps (or 6%) Feb 2042: bid: 1.012, ask: 0.986 => diff: 2.6 bps (or 5%) Feb 2047: bid: 1.023, ask: 1.002 =>...
by Doc
Thu Mar 16, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: How do international ETFs work if they are open during US hours but international markets aren't?
Replies: 23
Views: 1634

Re: How do international ETFs work if they are open during US hours but international markets aren't?

Poorly. On some charting services like Yahoo you can get a "real" time chart of both the price of the etf and its indicative value. The two track reasonably well until the European markets close and then begin to diverge. If I am trading international ETF's I try to trade around 30 minutes...
by Doc
Thu Mar 16, 2017 9:45 am
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1583

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

Similar situation with two Schwab (?) ETFs in 2016. I use Turbo Tax. Didn't notice my issue. The cost basis adjustment is not a tax return issue until you sell. I'll report more details after the sun rises. Schwab reported the return of capital in January and the dividends on the 1099-div were adju...
by Doc
Thu Mar 16, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]
Replies: 18
Views: 1583

Re: Vanguard Inflation-Protected Securities Fund VAIPX [nondividend distribution]

Similar situation with two Schwab (?) ETFs in 2016. I use Turbo Tax. Didn't notice my issue. The cost basis adjustment is not a tax return issue until you sell.

I'll report more details after the sun rises.
by Doc
Wed Mar 15, 2017 9:39 pm
Forum: Investing - Theory, News & General
Topic: tips on buying TIPS: new issue vs secondary market?
Replies: 24
Views: 1923

Re: tips on buying TIPS: new issue vs secondary market?

I was looking when market was open and quotes were showing independent of numbers bought. Example difference for Feb 2047 TIPS around 9:41am ET this morning: 1.044% vs 1.065% YTM yield, i.e. a 2% difference in yield. I think that difference would be described as 2 bps not 2%. That's a very tight sp...
by Doc
Wed Mar 15, 2017 2:52 pm
Forum: Investing - Theory, News & General
Topic: tips on buying TIPS: new issue vs secondary market?
Replies: 24
Views: 1923

Re: tips on buying TIPS: new issue vs secondary market?

I'm seeing spreads on the order of 20 to 30 bps in yield not 2%. (3:52 E) ($25k) Were you looking at data when the market was not open or maybe buying only a few bonds perhaps?
by Doc
Tue Mar 14, 2017 12:03 pm
Forum: Investing - Theory, News & General
Topic: Fewer investment grade corporate bonds due to tax proposal?
Replies: 7
Views: 445

Re: Fewer investment grade corporate bonds due to tax proposal?

If your post was titled "If interest is not tax deductible ..." would it not break Boglehead rules? In any case , thanks Buy and Hold On, I just gave my son a heads up on the question since he is in RE development and I didn't have a reference other than "I heard on the business chann...
by Doc
Mon Mar 13, 2017 4:52 pm
Forum: Investing - Theory, News & General
Topic: Total International vs Developed Markets: a straightforward question
Replies: 21
Views: 1805

Re: Total International vs Developed Markets: a straightforward question

The total int'l fund likely will have larger transaction costs due to the higher costs associated with EM stocks, so the cost difference is likely greater than 2bp/yr. However, both costs are still low enough that the decision should be made according to which of these asset classes you prefer to h...
by Doc
Mon Mar 13, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: Total International vs Developed Markets: a straightforward question
Replies: 21
Views: 1805

Re: Total International vs Developed Markets: a straightforward question

Ah, well. You've got at least 2 data points: - a team of scientists found, frozen in the ice, what looks like an alien spacecraft, with something on board. The problem now is one of the scientists is dead, replaced by the alien, and they don't know who .... Damn teenagers never did know where to pa...
by Doc
Mon Mar 13, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: Total International vs Developed Markets: a straightforward question
Replies: 21
Views: 1805

Re: Total International vs Developed Markets: a straightforward question

I'm deliberately picking two five-year periods. I'm deliberately picking a whole slew of five year periods. :beer Five year rolling returns. https://s14.postimg.org/amthlc8fl/Capture_3.jpg image hosting over 5mb http://quotes.morningstar.com/chart/fund/chart?t=VTIAX&region=usa&culture=en_US...
by Doc
Mon Mar 13, 2017 6:55 am
Forum: Investing - Theory, News & General
Topic: Total International vs Developed Markets: a straightforward question
Replies: 21
Views: 1805

Re: Total International vs Developed Markets: a straightforward question

EM would be such a small amount of our total portfolio that it wouldn't matter. I will sleep better without worrying about something weird happening in emerging Antarctica.
by Doc
Sun Mar 12, 2017 6:01 pm
Forum: Investing - Theory, News & General
Topic: 2018-19 Toronto Vanc Sydney Melb Auckland housing crash?
Replies: 8
Views: 1041

Re: 2018-19 Toronto Vanc Sydney Melb Auckland housing crash?

OMG

Not really relevant but our Portland based daughter and her Australian husband are on their way to visit several of the potential crash sites.

Thanks for the heads up. I will hide the tablet for a few days from DW until your post disappears.

:wink:
by Doc
Sun Mar 12, 2017 5:48 pm
Forum: Investing - Theory, News & General
Topic: Estimated Quarterly Tax Payments and Capital Gains Distributions
Replies: 8
Views: 610

Re: Estimated Quarterly Tax Payments and Capital Gains Distributions

Another approach is to take a late December IRA distribution and have most of it withheld. Withholding can get distributed over all 4 quarters which sometimes can be advantageous.
by Doc
Sun Mar 12, 2017 5:28 pm
Forum: Investing - Theory, News & General
Topic: Asset Placement Turned Upside Down, Bonds in Taxable?
Replies: 51
Views: 3804

Re: Asset Placement Turned Upside Down, Bonds in Taxable?

Kevin M wrote: I'm not sure how much creditor protection you get in an IRA (I think you get more in a 401k), and I think it varies from state to state, but this is beyond my pay grade.

Doesn't require a high pay grade, just Google:

"are iras protected from creditors in ..." :sharebeer
by Doc
Sun Mar 12, 2017 5:19 pm
Forum: Investing - Theory, News & General
Topic: Asset Placement Turned Upside Down, Bonds in Taxable?
Replies: 51
Views: 3804

Re: Asset Placement Turned Upside Down, Bonds in Taxable?

Federal tax rate doesn't really matter since they are tax exempt, If you are not in a high tax bracket you may get more benefit from Treasuries which might give you higher after tax return. I'm assuming you mean positive correlation, negative correlation is what we'd want to see which means assets ...
by Doc
Sun Mar 12, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Asset Placement Turned Upside Down, Bonds in Taxable?
Replies: 51
Views: 3804

Re: Asset Placement Turned Upside Down, Bonds in Taxable?

Quickfoot wrote:I've actually thought about this a lot, I think if you are comfortable with tax exempt bond funds it can make a lot of sense....

OK depending on your state and federal tax rate and if you are unconcerned with negative correlation with equities in times of stock market stress.
by Doc
Sun Mar 12, 2017 9:16 am
Forum: Investing - Theory, News & General
Topic: Asset Placement Turned Upside Down, Bonds in Taxable?
Replies: 51
Views: 3804

Re: Asset Placement Turned Upside Down, Bonds in Taxable?

In response to Kevin: I disagree. There is inherent value in a larger Roth IRA. Even if you rebalance daily and tax-adjust your allocation daily (as if anyone does that) putting a higher expected return asset in a Roth IRA will increase the size of the Roth IRA in relation to the taxable account. Th...
by Doc
Sat Mar 11, 2017 9:06 am
Forum: Investing - Theory, News & General
Topic: Asset Placement Turned Upside Down, Bonds in Taxable?
Replies: 51
Views: 3804

Re: Asset Placement Turned Upside Down, Bonds in Taxable?

Rebalancing should decrease the effect of return, but I don't think it should eliminate it. I'll spend some time thinking about your definition of tax-efficiency though. I was using a different definition. I don't know whose definition is better, but it's hard to have a reasonable discussion when w...
by Doc
Fri Mar 10, 2017 3:27 pm
Forum: Investing - Theory, News & General
Topic: Asset Placement Turned Upside Down, Bonds in Taxable?
Replies: 51
Views: 3804

Re: Asset Placement Turned Upside Down, Bonds in Taxable?

If we are to adjust tax-deferred assets for taxes - which tax rate do we use? My current tax rate? My expected tax rate when I either convert these to a Roth or in retirement (which should be significantly lower based on current tax rates)? A guess based on future tax rates? This is addressing Asse...

Go to advanced search