Search found 937 matches

by ftobin
Mon Jan 25, 2016 3:57 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1751

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: 1220

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: 272
Views: 16263

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: 272
Views: 16263

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: 272
Views: 16263

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: 272
Views: 16263

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: 272
Views: 16263

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: 272
Views: 16263

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: 536

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: 1026

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: 2250

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: 1340

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: 2508

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: 776
Views: 108329

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: 2380

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: 2380

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: 2380

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: 2380

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: 2380

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: 2666

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: 2666

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: 2666

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: 2666

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: 477

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: 3871

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: 477

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: 9360

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: 9360

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: 128
Views: 19777

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: 9360

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: 9360

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: 3863

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: 3863

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: 2516

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: 1136

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: 1047

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: 1745

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: 1745

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: 1745

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: 29169

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: 6799

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: 1666

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: 29169

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: 29169

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: 29169

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: 29169

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: 881

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: 8608

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: 3666

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: 2011

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...

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