Search found 954 matches

by ftobin
Fri May 06, 2016 9:58 am
Forum: Investing - Theory, News & General
Topic: "The DOL's Fiduciary Rule: Better Late Than Never"
Replies: 4
Views: 596

Re: "The DOL's Fiduciary Rule: Better Late Than Never"

I'm puzzled by one line from the author: I like the traditional load-fund model. I’ve known many excellent brokers who did their homework; placed clients into well-run, relatively low-cost funds; received an upfront commission; and counseled patience. The author seems to be in favor of both "tr...
by ftobin
Wed May 04, 2016 11:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Partnering with Yodlee
Replies: 152
Views: 22374

Re: Vanguard Partnering with Yodlee

I just input manually-added accounts for Treasury Direct holdings. Since my holdings are Savings Bonds, their value is consistent enough for portfolio overviews.
by ftobin
Wed Apr 13, 2016 9:49 am
Forum: Investing - Theory, News & General
Topic: Should value ETFs and small-cap ETFs not be used in taxable accounts?
Replies: 13
Views: 1086

Re: Should value ETFs and small-cap ETFs not be used in taxable accounts?

Actually, one's personal tax brackets change the ordering, so this statement is not quite true. This has been shown in previous threads, especially when it comes to US vs foreign funds. Can you be a little more clear on how tax brackets would change the ordering? We can also usually assume that cap...
by ftobin
Wed Apr 13, 2016 9:04 am
Forum: Investing - Theory, News & General
Topic: Should value ETFs and small-cap ETFs not be used in taxable accounts?
Replies: 13
Views: 1086

Re: Should value ETFs and small-cap ETFs not be used in taxable accounts?

The M* analysis can easily lead you astray -- the optimal decision often depends significantly on state taxes and the particular federal bracket you find yourself in. While this is true, the Morningstar numbers can be good for comparing funds since state factors and tax brackets will, in general, j...
by ftobin
Wed Apr 13, 2016 1:31 am
Forum: Investing - Theory, News & General
Topic: Should value ETFs and small-cap ETFs not be used in taxable accounts?
Replies: 13
Views: 1086

Re: Should value ETFs and small-cap ETFs not be used in taxable accounts?

Morningstar's Tax tab for funds and ETFs can give you a good comparison of after-tax returns.
by ftobin
Wed Mar 09, 2016 1:50 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

1) If you set up a scenario where dividend investor Xa, spending dividends from his stock/fund A, does better than investor Xb, who sells the same amounts on the same dates from his dividend-less instrument B I just want to throw up a caution flag here -- most of the arguments used here deal with r...
by ftobin
Mon Mar 07, 2016 4:46 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

No - please quote me carefully. The INTERNAL investments and debt management are well within the scope of what a company manager SHOULD do. Find some cheap empty buildings to build a new warehouse, weigh future needs vs borrowing costs, that sort of thing. Fair enough, I think I understand your pos...
by ftobin
Mon Mar 07, 2016 12:32 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

Another thing I find attractive about buybacks is that they are NOT periodic by custom, so management is free to take the best decision each quarter or year, e.g. making an attractive investment for expansion or stockpiling money ahead of bad borrowing times in the bond market, without worrying tha...
by ftobin
Mon Mar 07, 2016 10:32 am
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

I don't think anyone has been able to answer yet, but does any significant amount of companies perform buybacks on a quarterly basis, similar to how dividends are paid out? People mention companies "buy high" when performing buybacks, but this wouldn't be an issue if they were performed re...
by ftobin
Fri Mar 04, 2016 9:55 am
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

If you wanted that you could have sold shares to reduce your investment in same way the dividend was. As Buffett stated you want dividends create your own. Of course, there is a difference between the company paying you (dividends or buyback), and another share-holder (selling your shares to a non-...
by ftobin
Wed Mar 02, 2016 9:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard introducing new International Dividend ETFs March 2nd
Replies: 29
Views: 2886

Re: Vanguard introducing new International Dividend ETFs March 2nd

Vanguard's Announcement of the ETFs and mutual funds availability: Vanguard® International High Dividend Yield Index Fund will follow an income investing strategy and invest in companies with high dividend yields, while Vanguard® International Dividend Appreciation Index Fund will emphasize stocks w...
by ftobin
Wed Mar 02, 2016 12:32 am
Forum: Investing - Theory, News & General
Topic: Vanguard introducing new International Dividend ETFs March 2nd
Replies: 29
Views: 2886

Re: Vanguard introducing new International Dividend ETFs March 2nd

So, would these be reasonable for international value exposure? I have avoided EFV because the 0.40% expense ratio is probably too high to be worthwhile. There is a very new IVLU at 0.30%, fundamentally weighted. Even though dividend filtering in general is supposed to be the weakest of the value a...
by ftobin
Tue Mar 01, 2016 7:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard introducing new International Dividend ETFs March 2nd
Replies: 29
Views: 2886

Re: Vanguard introducing new International Dividend ETFs March 2nd

Did they create the index five years ago and now we have five years of data to see how it performs? Can it be front run? Will there be enough interest in it to make the ETF arbitrage work? Did the arbitrage work last year? Oh, it didn't exist last Year. You're right that the VIGI follows didn't exi...
by ftobin
Tue Mar 01, 2016 2:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard introducing new International Dividend ETFs March 2nd
Replies: 29
Views: 2886

Re: Vanguard introducing new International Dividend ETFs March 2nd

Pig in a poke. Please remind me to take a look in 2021.

FYI, if NASDAQ says they're listing the ETFs tomorrow, they're listing tomorrow. This is a technical bulletin for market participants to prepare.
by ftobin
Tue Mar 01, 2016 1:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard introducing new International Dividend ETFs March 2nd
Replies: 29
Views: 2886

Vanguard introducing new International Dividend ETFs March 2nd

Effective Wednesday, March 2, 2016, Nasdaq will list two new ETFs: Vanguard International Dividend Appreciation ETF (Symbol: VIGI) Vanguard International High Dividend Yield ETF (Symbol: VYMI) http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2016-44 No word from Vanguard on this, or the mutual fun...
by ftobin
Mon Feb 29, 2016 12:33 am
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

I'm curious: do a significant number of companies perform buybacks on a regular basis, similar to how many companies distribute dividends on a regular basis? I understand the rational for buybacks in theory, but I'm curious as to practical implementation differences. It seems that dividends are, in ...
by ftobin
Wed Feb 24, 2016 4:45 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey - opposes Fiduciary rule for Financial Advisors
Replies: 17
Views: 2303

Re: Dave Ramsey - opposes Fiduciary rule for Financial Advisors

I could be wrong but I have to think that the new rules are going to increase costs of plan administration. If an FA was previously working with the understanding that he/she was not a fiduciary, but now will be a fiduciary, I think there would be a fee increase for the risk increase. I don't under...
by ftobin
Mon Jan 25, 2016 3:57 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 2064

Re: Foreign ETF Trading - Best Practice

Last Wednesday VEA went from a 40 bps discount around 12:30 PM to a 30 bps premium 30 minutes before close. That same day while the European markets were still open VEA was trading at about a 20 bps discount and the discount was relatively constant while both markets were open. That's a 50 bps swin...
by ftobin
Fri Jan 15, 2016 3:46 pm
Forum: Investing - Theory, News & General
Topic: Intraday pricing of mutual funds
Replies: 20
Views: 1414

Re: Intraday pricing of mutual funds

Regular mutual funds don't have to disclose holdings except something on the order of once a month or quarter -- this is part of what allows actively-managed funds trade without disclosing too much information. If intraday pricing was provided, particularly for actively-managed funds, trading inform...
by ftobin
Fri Jan 15, 2016 3:05 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

Edit : to elaborate, if a company's share price doubles in the market (no buyback or issuance), the % vs market cap remains correct: the company is now worth double what a previously-similar-sized company is, and it's double in the fund. That's why the fund doesn't have to do anything. But if it bu...
by ftobin
Fri Jan 15, 2016 2:30 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

Why do you think the fund doesn't do this? A cap-weighted index has to reflect the company's now-reduced market cap, so the fund eventually has to sell or (equivalently, percentage-wise) buy more of the other stocks with inflows. A company that keeps doing buybacks will not grow out of proportion w...
by ftobin
Fri Jan 15, 2016 1:54 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

It's not any different. Again, simply you can sell shares in any company to generate cash and then diversify across the portfolio. They are always the equivalent. Theoretically, you could sell shares after a buyback, but I don't see evidence suggesting that's what funds do, nor seen evidence of peo...
by ftobin
Fri Jan 15, 2016 10:32 am
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

I hear all these stories about dividends to justify one's views. But that's all they are. You hear that there's agency risk if they don't pay it out. Sure, but that risk is known and in stock prices already. This is what I don't understand. The agency risk is different for each stockholder, and the...
by ftobin
Fri Jan 08, 2016 6:39 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

Warren Buffett wants all of his dividends so HE can decide what best to do with them, me too. :happy That effectively the same argument I was making regarding re-investing the regarding the cash across one's portfolio. Share buybacks and re-invested dividends across a portfolio are not equivalent. ...
by ftobin
Fri Jan 08, 2016 4:34 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 30208

Re: why do investors prefer cash dividends

Dividend payouts have the benefit of allowing the cash to be re-distributed among a portfolio's participants. I'm not sure if this is a net positive, but talking about one single company paying out dividends and re-investing in the same company is very different then a single company paying out divi...
by ftobin
Fri Jan 08, 2016 3:10 pm
Forum: Investing - Theory, News & General
Topic: walking limit order
Replies: 4
Views: 606

Re: walking limit order

What you're looking for is an order pegged to the bid. Interactive Brokers lets you perform these.
by ftobin
Tue Dec 01, 2015 12:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Int'l High Dividend Yield Index vs Total Int'l Stock Index
Replies: 5
Views: 1128

Re: Vanguard Int'l High Dividend Yield Index vs Total Int'l Stock Index

I don't have direct information on the index, but given that dividend stocks tend to correlate with a modest value play, I'd suspect it would perform similar to EFV (EAFE Value Index ETF) plus emerging markets, or also possibly similar to Vanguard's International Value fund (actively managed). The I...
by ftobin
Mon Nov 02, 2015 1:53 pm
Forum: Investing - Theory, News & General
Topic: As of Nov 2015, Baird muni fund superior to Vanguard muni fund?
Replies: 33
Views: 2692

Re: As of Nov 2015, Baird muni fund superior to Vanguard muni fund?

Baird seems a lot more concentrated. Top 10 holdings are 16% of the fund, while 2% for Vanguard's fund. Morningstar says that Baird has 48% of its holdings in "Advance Refunded", while Vanguard and category average are 8% and 6%, respectively. DEFINITION of 'Advance Refunding' 1. A bond is...
by ftobin
Thu Oct 29, 2015 3:26 pm
Forum: Investing - Theory, News & General
Topic: Security Issue?
Replies: 9
Views: 1441

Re: Security Issue?

Revealing some information that the reader desires to capture without requiring them to authenticate can be more secure than requiring to authenticate to get it. This is because each time you authenticate yourself to a service, particularly with passwords, you are slightly opening a window to an att...
by ftobin
Tue Oct 13, 2015 1:29 pm
Forum: Investing - Theory, News & General
Topic: SEC Proposes Liquidity Management Rules For Mutual Funds
Replies: 30
Views: 2660

Re: SEC Proposes Liquidity Management Rules For Mutual Funds

One of the main benefits of mutual funds over ETFs is that they offer liquidity with no fee at NAV, and they can do this precisely because almost always the buyers and sellers match up, or the differences are small, or when they aren't, the impact on the fund is modest and that happens very rarely....
by ftobin
Mon Oct 05, 2015 11:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 781
Views: 120294

Re: Vanguard sued for charging too little

Who are the parties benefiting from Vanguard's purported tax evasion? I am certainly not an expert the realm of tax code, but working in the trading industry and having to deal with SEC and FINRA regulations has led me to believe it doesn't matter who, if anyone, benefits, for the consideration of ...
by ftobin
Fri Oct 02, 2015 2:55 pm
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2522

Re: Vanguard, E-Mail Concern

So these could indeed "appear" identical, even at the "hover" text level ? Technically, yes, even in the "hover text". Hover text in Firefox seems to use punycode to display non-Latin characters so that pаypal shows up like xn--pypal-4ve in some contexts, but that's a ...
by ftobin
Fri Oct 02, 2015 2:20 pm
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2522

Re: Vanguard, E-Mail Concern

There is a way to tell if an e-mail is from the domain that it purports to be from. (Never trust the "from" address, as that is easily faked.) This approach won't handle a homograph attack in mailserver chain. The chain could just as easily show: Received: from mail.vanguаrd.com ..which i...
by ftobin
Fri Oct 02, 2015 2:14 pm
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2522

Re: Vanguard, E-Mail Concern

http://www.paypal.com and http://www.pаypal.com Wait a minute... IF one of these is somehow bogus (and what am I missing that is different??), then I don't think I want to be experimenting putting these in my browser window... just like I wouldn't be clicking on them. Am I reading a "g" a...
by ftobin
Fri Oct 02, 2015 1:26 pm
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2522

Re: Vanguard, E-Mail Concern

If one hovers, the difference is clear. Let me be more clear using an example that doesn't trip up because "hovering" is poorly implemented. Can you spot the difference between the following? Copy and paste them into your browser's URL field to see where they go. http://www.paypal.com and...
by ftobin
Fri Oct 02, 2015 9:53 am
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2522

Re: Vanguard, E-Mail Concern

Users still have to pay attention, though, because the domain could still be similar enough to fool you. Due to domain name internationalization efforts, you cannot effectively stop the attack by looking at domain names, It's called a homograph attack -- consider the following URLs. http://www.payp...
by ftobin
Sun Sep 13, 2015 10:33 pm
Forum: Investing - Theory, News & General
Topic: Vanguard muni bond index fund and ETF available
Replies: 20
Views: 3050

Re: Vanguard muni bond index fund and ETF available

Yeah but if you compare the distribution of ratings in the portfolios it appears that the credit quality of the active fund is distinctly higher, so even for VWITX vs . VTEB/Admiral there's a question of whether you want the incremental yield enough to take on the incremental credit and duration/ra...
by ftobin
Sun Sep 13, 2015 9:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard muni bond index fund and ETF available
Replies: 20
Views: 3050

Re: Vanguard muni bond index fund and ETF available

So, if you take two bonds that are otherwise equivalent but one is issued in MO and one is in NY, the one in MO will have a higher yield. While that's a good point, it doesn't seem reflected in the yields: SEC yield for MUB (1.75%) and VWITX (1.79%) are basically equivalent. Admiral shares of Vangu...
by ftobin
Sun Sep 13, 2015 11:28 am
Forum: Investing - Theory, News & General
Topic: Vanguard muni bond index fund and ETF available
Replies: 20
Views: 3050

Re: Vanguard muni bond index fund and ETF available

Duration should be the same as the ETF MUB, which tracks the same Index. Morningstar reports it as 6.34, Fidelity as 4.80, and iShares (the sponsor) as 4.73. These numbers are very similar to as VWITX, Vanguard's Interm-Bond Fund. I'm strongly considering buying the new index fund, even with the pur...
by ftobin
Tue Aug 25, 2015 8:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard muni bond index fund and ETF available
Replies: 20
Views: 3050

Vanguard muni bond index fund and ETF available

The fund's target benchmark is the S&P® National AMT-Free Municipal Bond Index. It seeks to offer diversified exposure to the national municipal bond market, representing bonds with maturities across the yield curve and an effective duration between 5-8 years. The index reflects a higher-qualit...
by ftobin
Fri Jul 24, 2015 1:02 pm
Forum: Investing - Theory, News & General
Topic: 50% currency hedged ETFs
Replies: 3
Views: 502

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: 3944

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: 502

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: 82
Views: 9816

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: 82
Views: 9816

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: 131
Views: 21675

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: 82
Views: 9816

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: 82
Views: 9816

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: 4108

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: 4108

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...

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