Search found 5130 matches

by lack_ey
Sat Mar 25, 2017 3:18 pm
Forum: Investing - Theory, News & General
Topic: S&P Index Funds at Vanguard
Replies: 4
Views: 302

Re: S&P Index Funds at Vanguard

They do offer the S&P 400 and S&P 600 as mutual funds, but only in institutional share classes ($5 million minimum). Vanguard prefers to nudge people towards their main mid cap and small cap index funds, which use a different index provider, CRSP. These other indexes are broader, lacking som...
by lack_ey
Sat Mar 25, 2017 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about adding a 5% position to commodities
Replies: 21
Views: 1282

Re: Thinking about adding a 5% position to commodities

They have an expected real return of 0, which is actually OK if you're willing to appropriately rebalance when its low and when it soars. How do you figure this, and is this a long-term forecast or based on current conditions? Are you talking futures (if so, front-month rolls? what's the collateral...
by lack_ey
Fri Mar 24, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about adding a 5% position to commodities
Replies: 21
Views: 1282

Re: Thinking about adding a 5% position to commodities

Those are not ETFs, in case that's what you actually wanted. Those are ETNs, subject to issuer credit risk. In general I think you should probably prefer one of the commodity pools (e.g. DBC, the largest exchange-traded product in the commodity space, though expect a K-1 come tax time) or one of the...
by lack_ey
Thu Mar 23, 2017 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: What does this mean?
Replies: 3
Views: 618

Re: What does this mean?

Looks like... a callable preferred stock issue from a mortgage REIT that mostly just runs a leveraged portfolio of agency MBS? Pays 8% coupon relative to $25 par. Can be called at $25 on April 5th (and whenever they want to thereafter), meaning they buy back the shares, giving investors $25 a share,...
by lack_ey
Thu Mar 23, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 66
Views: 3823

Re: Blog on emerging Markets, and investors underweighting them

In Larry's book he recommended FNDE for Emerging Markets value. Looking at recent performance it has done very well. After dropping a bunch, it gained it back... I don't know if I'd say it's done "real well". It's basically has broken even since inception (less than 4 years ago). Not a ve...
by lack_ey
Thu Mar 23, 2017 12:04 pm
Forum: Investing - Theory, News & General
Topic: Why buy short-term bond funds when you can get 1% in savings acct?
Replies: 29
Views: 2452

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

Also short-to-ultrashort treasury bond funds tend to do OK during inflationary cycles in a way that cash does not, because of the interest rates changing faster than the banks do. Inflation risk is priced into bond prices in a way that is not for bank accounts. Sure, but you can switch your allocat...
by lack_ey
Thu Mar 23, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Growth stock index fund in taxable to reduce taxes on dividends?
Replies: 3
Views: 231

Re: Growth stock index fund in taxable to reduce taxes on dividends?

The advantage is smaller than you might think, maybe even negative after considering all costs. The problem is that the growth side doesn't have low enough dividends. You end up getting some 0.6% less dividends on the taxable side of your portfolio by using growth as opposed to the total market ther...
by lack_ey
Thu Mar 23, 2017 10:26 am
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 66
Views: 3823

Re: Blog on emerging Markets, and investors underweighting them

It would be good if the article data could be boiled to down a specific actionable recommendation for unsophisticated investors like me :? . Is there a recommendation on how much weight should be given to EM - consider a standard 3-Fund portfolio with 60/40 stock/bond asset allocation with 20% of s...
by lack_ey
Wed Mar 22, 2017 10:03 pm
Forum: Investing - Help with Personal Investments
Topic: ETF or Mutual Fund
Replies: 2
Views: 317

Re: ETF or Mutual Fund

No. And no, even if it weren't the same fund. Taxable bonds pay interest that gets taxed at your marginal income tax rate, no matter if you hold them directly or any kind of fund in taxable. If you're in a high tax bracket, consider muni bonds instead, which have lower yield for a given risk but don...
by lack_ey
Wed Mar 22, 2017 5:07 pm
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 66
Views: 3823

Re: Blog on emerging Markets, and investors underweighting them

On Research Affiliates I mean, it's plausible but doesn't seem particularly rigorously derived. For example, they also assume halfway mean reversion of stock valuations to the historical average over 10 years, given without real justification. I suppose if you aim too hard for rigor, then you can't...
by lack_ey
Wed Mar 22, 2017 4:53 pm
Forum: Investing - Theory, News & General
Topic: Understanding Bond Yields - Check my math...
Replies: 4
Views: 350

Re: Understanding Bond Yields - Check my math...

It shows a "Yield to Worst / Yield to Sink" of 0.354%. I get that this is the yield if the "worst case scenario occurred." This is where I get a little lost. I couldn't really find as to what this worst case actually IS, though. The only thing I could think of is that it has a p...
by lack_ey
Wed Mar 22, 2017 3:44 pm
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 66
Views: 3823

Re: Blog on emerging Markets, and investors underweighting them

My bold Also, there's maybe a case for currency movements as well, though that's always difficult to predict. For example Research Affiliates, who can't look at anything without assuming mean reversion will spring forth, like EM currencies relative to USD, but I don't take that too seriously . But ...
by lack_ey
Wed Mar 22, 2017 3:07 pm
Forum: Personal Consumer Issues
Topic: Where's the sweet spot in the cost/benefit curve for floor speakers?
Replies: 35
Views: 1948

Re: Where's the sweet spot in the cost/benefit curve for floor speakers?

Also, for a given cost, usually bookshelf speakers + cheap stands + subwoofer are better than floorstanders, though to do it properly you'd need a receiver or something that can handle splitting the signals so you don't have both the speakers and sub trying to do midbass. If you don't need below 60...
by lack_ey
Wed Mar 22, 2017 1:26 pm
Forum: Forum Issues and Administration
Topic: Best way to share PDF of 401k funds available?
Replies: 7
Views: 407

Re: Best way to share PDF of 401k funds available?

Dropbox links look like https://www.dropbox.com/s/0kp24j53azso51y/file.pdf (not an actual link to anything) I don't think there's anything there or associated with the link that would reveal the name of the account holder. But am not 100% sure. There are a number of free file hosters available as we...
by lack_ey
Wed Mar 22, 2017 12:43 pm
Forum: Personal Consumer Issues
Topic: Where's the sweet spot in the cost/benefit curve for floor speakers?
Replies: 35
Views: 1948

Re: Where's the sweet spot in the cost/benefit curve for floor speakers?

Probably under $500, maybe less. Depends what you're listening to, the volume, etc., and note that interactions with the room can dwarf out differences in competent speakers. It's not optimal spending thousands like some do before considering placement and spending on room treatment/correction, for ...
by lack_ey
Wed Mar 22, 2017 12:18 pm
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 66
Views: 3823

Re: Blog on emerging Markets, and investors underweighting them

A lot of people have a number of reservations about directly comparing valuation metrics between markets to predict relative returns, on account of (1) different accounting methods (2) different historic relationships between country valuations and subsequent country returns (though the stats for mo...
by lack_ey
Wed Mar 22, 2017 12:05 pm
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1170

Re: Active Bond Funds Holding Their Own

Most bond indexes the bond index funds/ETFs use don't keep including bonds until they mature. Obviously an intermediate-term bond index will not hold long-term or short-term bonds and an intermediate-term bond index fund has to transact considerably to maintain its portfolio to match the index. But ...
by lack_ey
Wed Mar 22, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1170

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 lack_ey
Wed Mar 22, 2017 10:56 am
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1170

Re: Active Bond Funds Holding Their Own

MnD wrote:A huge chunk of Japanese government bonds (10-year at 0.064%) in your international bond fund?

All else aside, you get like what, around 2% annualized return just from hedging JPY back to USD at current short-term forward rates. So it's not that bad.
by lack_ey
Wed Mar 22, 2017 10:36 am
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1170

Re: Active Bond Funds Holding Their Own

With active stock funds, you can get very similar exposures, via tilted index funds, sector funds, etc. that are much cheaper than the active funds themselves. Rather than pay a manager 1.1% for a small/mid blend value with a defensive bent, you could get similar with a few ETFs for 0.1%. For an act...
by lack_ey
Tue Mar 21, 2017 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: How much Vanguard Small Cap Value is in Vanguard Total Stock market
Replies: 9
Views: 886

Re: How much Vanguard Small Cap Value is in Vanguard Total Stock market

Vanguard Small Cap Value Index Fund holds stocks that are a subset of what's in Vanguard Total Stock Market Index Fund. So 100% is in the total fund. I think around or slightly above 7% of Vanguard Total Stock Market's holdings by percentage invested are also in Vanguard Small Cap Value, in case tha...
by lack_ey
Tue Mar 21, 2017 6:29 pm
Forum: Investing - Theory, News & General
Topic: How Cliff Asness Became A Billionaire By Building A Kind Of Vanguard Of Hedge Funds
Replies: 11
Views: 1735

Re: How Cliff Asness Became A Billionaire By Building A Kind Of Vanguard Of Hedge Funds

I don't think that they will release a bond fund. Most of their research into bonds goes into their alternative funds. Just checking, but you know that was in the article, right? AQR’s next planned expansion is with fixed income products. The firm already has an investment grade and a high yield ve...
by lack_ey
Tue Mar 21, 2017 6:13 pm
Forum: Investing - Theory, News & General
Topic: How Cliff Asness Became A Billionaire By Building A Kind Of Vanguard Of Hedge Funds
Replies: 11
Views: 1735

Re: How Cliff Asness Became A Billionaire By Building A Kind Of Vanguard Of Hedge Funds

I assume though that AQR is still charging 150 basis points (1.5%) + a performance fee? They run hedge funds (and a range of separately managed accounts and other pools of money for institutional clients) as well as mutual funds. Some of the former charge significantly less than the usual 2-and-20....
by lack_ey
Tue Mar 21, 2017 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Fund Comparable to VFIIX Vanguard GNMA Fund
Replies: 8
Views: 361

Re: Fidelity Fund Comparable to VFIIX Vanguard GNMA Fund

At a lot of places the sweep/cash accounts rates and short-term bond choices are lacking. This is for a reason. Just use total bond and dilute with Fidelity Short-Term Treasury Bond Index Fund (FSBAX) for lower vol if desired, if you don't want to just trade the T-notes yourself. That's assuming you...
by lack_ey
Tue Mar 21, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: etf website for total returns needed
Replies: 2
Views: 132

Re: etf website for total returns needed

To chart ETF total return at Morningstar for whatever reason you need to use the growth chart that they make unavailable on the charting tab for ETFs. So either use the URL directly or go to a mutual fund page first and then add the ETF. Directly it would look something like this (replace the ticker...
by lack_ey
Tue Mar 21, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard have contrarian funds ?
Replies: 25
Views: 1718

Re: Does Vanguard have contrarian funds ?

OK, I want to state this very carefully. There are some mutual funds that are designed to go up when the market goes down. I think investing in any of them is a very, very, very bad idea, but they exist and they do what they say. Vanguard does not offer any funds like this. Why is it a bad idea? Be...
by lack_ey
Mon Mar 20, 2017 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard have contrarian funds ?
Replies: 25
Views: 1718

Re: Does Vanguard have contrarian funds ?

A contrarian fund is one that invests in stocks that are out of favor with the market. In the old days, contrarian funds either followed a deep value strategy or engaged in sector rotation for out-of-favor sectors where sector value was found using P/E ratios or P/B ratios. That's what I would thin...
by lack_ey
Mon Mar 20, 2017 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds Exchange in Taxable Account
Replies: 12
Views: 533

Re: Bonds Exchange in Taxable Account

the muni bond fund has lower effective duration and maturity than the actual average maturity because many of the bonds it owns are callable and likely will be called. Trying to understand this "callable". I thought bonds are called during declining interest rates not when it is increasin...
by lack_ey
Mon Mar 20, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Fund Comparable to VFIIX Vanguard GNMA Fund
Replies: 8
Views: 361

Re: Fidelity Fund Comparable to VFIIX Vanguard GNMA Fund

Vanguard is frequently the only one with a cheap mutual fund in a category like this.

At Fidelity you could also look at iShares GNMA Bond ETF (GNMA) with an ER of 0.15%, which is on the commission-free list, but the spread is usually around 0.2% so beware.
by lack_ey
Mon Mar 20, 2017 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds Exchange in Taxable Account
Replies: 12
Views: 533

Re: Bonds Exchange in Taxable Account

Setting aside the idea of market timing based on the same information and assumptions others have, and which rates you're referring to by "rising rates", the muni bond fund has lower effective duration and maturity than the actual average maturity because many of the bonds it owns are call...
by lack_ey
Mon Mar 20, 2017 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard have contrarian funds ?
Replies: 25
Views: 1718

Re: Does Vanguard have contrarian funds ?

Okay, a lot of posts here will inform you that big market timing moves are not viewed favorably here (you've stumbled upon a community of largely buy-and-hold adherents, in case you haven't noticed), and you will get an earful about strategy, risk tolerance, etc. All that aside, I have a question ab...
by lack_ey
Sun Mar 19, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: an in depth look at gold
Replies: 76
Views: 4253

Re: an in depth look at gold

If gold is an inflation hedge then current price relative to inflation index should be a good indicator of it's value, again assuming that's it's purpose. That seems like a simple and logic concept since it is in fact why many buy it. Larry I don't know why they and you insist on calling it a price...
by lack_ey
Fri Mar 17, 2017 10:37 pm
Forum: Investing - Theory, News & General
Topic: an in depth look at gold
Replies: 76
Views: 4253

Re: an in depth look at gold

Wait a sec, I just skimmed the Erb and Harvey update paper. Did they seriously just look at subsequent return of gold over their entire dataset using real price (relative to historical average computed over that same dataset) as an explanatory variable? That has so many methodological problems I don...
by lack_ey
Fri Mar 17, 2017 10:22 pm
Forum: Investing - Theory, News & General
Topic: an in depth look at gold
Replies: 76
Views: 4253

Re: an in depth look at gold

While it's real value over long periods of time isn't likely to go up, it still has had investment value when it comes to smoothing out returns sufficiently to increase SWRs beyond stock and bond only portfolios, at least for the last ~40 years. A period of positive real returns for gold over which...
by lack_ey
Fri Mar 17, 2017 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: suggestions for short term bond fund
Replies: 4
Views: 413

Re: suggestions for short term bond fund

Muni. If you use corporate, only in tax-advantaged or possibly in taxable in lower tax brackets, depending. Active manager depends on the cost and the manager. Best for the category is probably Vanguard Limited-Term Tax-Exempt Fund Admiral Shares ($50k minimum, or $3k minimum with the investor share...
by lack_ey
Fri Mar 17, 2017 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Prime Money Market Fund vs. Federal Money Market Fund
Replies: 10
Views: 1668

Re: Prime Money Market Fund vs. Federal Money Market Fund

Interesting. Currently with yields at .86% for Prime Admiral vs .57% for Federal MM, that's a .29% spread. I suppose Prime comes with a tad more risk, but is it really 50% more risky? That's the spread difference. Can't imagine that is the case. Thinking of moving to Prime MM in my IRA til I alloca...
by lack_ey
Fri Mar 17, 2017 7:08 pm
Forum: Personal Consumer Issues
Topic: Video Recording and Editing Software
Replies: 3
Views: 204

Re: Video Recording and Editing Software

Screen recording, I think, so show what the video/audio output of the computer. Some of the free software for this has watermarks or limitations, though there are several that don't. Open Broadcaster Software should be reasonably simple here. It's primarily designed for realtime capture + upload (st...
by lack_ey
Fri Mar 17, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with picking bond MFs
Replies: 5
Views: 398

Re: Help with picking bond MFs

Under the current rate predictions any reason to look at other bonds that have similar tax efficiency but different maturation (something other than "intermediate")? Not unless you're good at market timing and know which way muni bond rates across the yield curve are going. The yield curv...
by lack_ey
Fri Mar 17, 2017 3:34 pm
Forum: Investing - Theory, News & General
Topic: Interesting article from John P. Hussman
Replies: 8
Views: 610

Re: Interesting article from John P. Hussman

Some of the information, conclusions, thoughts are okay. I also think a different perspective is worth reading now and then. But record aside (again, I will say that relatively short periods of time are not too indicative of much), I find it hard to read somebody who trots out cherry-picked statisti...
by lack_ey
Fri Mar 17, 2017 1:38 pm
Forum: Investing - Theory, News & General
Topic: Reproducing S&P 500 and Bonds rolling correlation
Replies: 9
Views: 734

Re: Reproducing S&P 500 and Bonds rolling correlation

Some more details for future reference. Bond yield (interest rate) and bond price are inversed: price=(coupon amount)/yield. return=price2/price1 - 1; given that coupon amount is constant, bond return will be yield1/yield2 - 1 (pay attantion to that, not yield2/yield1 - 1). So, if you know bond yie...
by lack_ey
Fri Mar 17, 2017 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Bonds?
Replies: 3
Views: 297

Re: Bonds?

Bonds are debt. If you own a bond you're effectively the lender, getting interest payments from the other side. These are marketable, meaning that if you own a bond, you can sell it on the market to whoever else, and you can buy bonds that others had off the market as well. The structure for the mos...
by lack_ey
Fri Mar 17, 2017 11:05 am
Forum: Investing - Help with Personal Investments
Topic: VBIAX vs VPGDX [Vanguard Balanced Index vs. Managed Payout]
Replies: 2
Views: 221

Re: VBIAX vs VPGDX [Vanguard Balanced Index vs. Managed Payout]

1. Is my observation about VBIAX's superior performance accurate, properly accounting for tax, costs and other factors? Yes, that's what happened. You're not taxed on what investments do inside an IRA, though, so there's no accounting for tax to be done between the two. Performance you see is what ...
by lack_ey
Thu Mar 16, 2017 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: ITOT vs VTI [iShares S&P 1500 Index vs. Vanguard Total Stock]
Replies: 10
Views: 664

Re: ITOT vs VTI [iShares S&P 1500 Index vs. Vanguard Total Stock]

If you're in Canada you should be using the Canadian ETFs (by that I mean those trading in Canada, not those investing in Canadian companies) so you don't get screwed with US withholding taxes. iShares, for reference: https://www.blackrock.com/ca/individual/en/products/product-list#!type=iSharesETFC...
by lack_ey
Thu Mar 16, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: ITOT vs VTI [iShares S&P 1500 Index vs. Vanguard Total Stock]
Replies: 10
Views: 664

Re: ITOT vs VTI [iShares S&P 1500 Index vs. Vanguard Total Stock]

For reference, minor point but ITOT ever since December 2015 no longer tracks the S&P 1500, instead using the S&P Total Market Index. So coverage is effectively identical. As for the substantive matter, you should consider it practically interchangeable and virtually the same as Vanguard's V...
by lack_ey
Thu Mar 16, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Keeping money liquid or investing?
Replies: 20
Views: 2001

Re: Keeping money liquid or investing?

The 5-year rule, again, is about taking out earnings (though this should not reset if you switch your account to Vanguard). You can always take back out contributions.

http://www.obliviousinvestor.com/roth-i ... wal-rules/
by lack_ey
Thu Mar 16, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity vs. Vangard?
Replies: 57
Views: 4481

Re: Fidelity vs. Vangard?

2) Fidelity sweep fund is awful. You get bank-like returns here -- say .15 or worse. Last time I looked, Vanguard Prime MM was paying .78. So if, as I do, you like to keep a few thousand in real cash for flexibility in your taxable account that is annoying. btw Vanguard Prime Money Market is no lon...
by lack_ey
Thu Mar 16, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: PurePoint 1.25% online savings $10K min
Replies: 29
Views: 4028

Re: PurePoint 1.25% online savings $10K min

I already had a credit card through them, so I'm not even sure it took 5 minutes to apply for the account. Still haven't transferred money, though, as I need to wait on some other things to clear up first. Good to hear the $200 came in quickly. By the way, do you recall if you saw anywhere to actual...
by lack_ey
Thu Mar 16, 2017 2:45 pm
Forum: Investing - Theory, News & General
Topic: PurePoint 1.25% online savings $10K min
Replies: 29
Views: 4028

Re: PurePoint 1.25% online savings $10K min

If you're willing to move things around, Capital One's current promotional offer may be better than that. There may be plenty of others and don't guarantee this is best in breed; I just know about this because I got it in the mail. Balances above $10k in general get 1% on the money market account bu...
by lack_ey
Thu Mar 16, 2017 11:59 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: 1633

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

when would the NAV for buy/sell orders of the corresponding mutual fund (VTIAX) be calculated? NAV is determined at US market close, as for any mutual fund, so purchase/sale orders can be processed. Years back there were issues of people trying to game the system (and effectively disrupting funds, ...
by lack_ey
Thu Mar 16, 2017 11:08 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: 1633

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

The fund operates and conducts conducts trades during the open hours in those local markets. It's doing things when the US markets are closed. 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 t...

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