Search found 38 matches

by Cantrip
Thu Jul 05, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Selling a mutual fund to buy an ETF
Replies: 7
Views: 816

Re: Selling a mutual fund to buy an ETF

I just performed this transaction today. Mutual Funds settle in day +1. Stocks/Etfs settle in day +2. You do not need to have money in the settlement to fund the etf purchase until day +2. Therefore you can buy an etf with no money in the settlement account, and then sell a mutual fund for the same ...
by Cantrip
Thu Jun 07, 2018 3:39 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: New Bogleheads Local Chapter in Little Rock, AR

Bumping up the Little Rock thread. Our next meeting is this Saturday (June 9th) at 8am at Guillermo's Coffeehouse. Hope to see you there.
by Cantrip
Wed May 30, 2018 6:44 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7401
Views: 1553363

Re: U.S. stocks in freefall

Why is VWO down 2.21% but the mutual fund equivalents (VEMAX, VEIEX) only down 1.28%? Traders expected more losses to come in the underlying stocks. Interesting. I tax loss harvested yesterday by selling VEMAX (Vanguard Emerging Markets Fund down 1.28% end of day, I expected it to be lower) and buy...
by Cantrip
Mon May 21, 2018 1:46 am
Forum: Investing - Help with Personal Investments
Topic: New retirement plan asset allocation
Replies: 4
Views: 630

Re: New retirement plan asset allocation

No one know what the future holds, and a total market portfolio may do better than a sliced one. I note that you are 51 years old and so will likely be moving from your 80/20 allocation to a more conservative one in the next 15 years. The DFA small cap funds are VERY small cap. DFSVX for instance ha...
by Cantrip
Sun May 20, 2018 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Need help firing my financial advisor
Replies: 16
Views: 2506

Re: Need help firing my financial advisor

Account transfer fee of $125 is about typical. Its a small price to pay compared with your yearly AUM fee which is several times that. I moved an account to Merrill Edge recently and when speaking with them they gave me an account bonus of the transfer fees (which I haven't seen yet) -- but I don't ...
by Cantrip
Tue May 08, 2018 4:40 am
Forum: Investing - Theory, News & General
Topic: Is Small-Cap Value's 47.2% Turnover Rate Troubling?
Replies: 28
Views: 4486

Re: Is Small-Cap Value's 47.2% Turnover Rate Troubling?

Lose 0.8% in regard to the prices of the underlying stocks in the Index assuming a 4% for 100% turnover cost (which was the turn over cost between 1995-2006). I do not know the current turnover cost for small cap value stocks. https://insight.factset.com/the-heartbeat-of-etf-tax-efficiency-part-thre...
by Cantrip
Tue May 08, 2018 4:37 am
Forum: Investing - Theory, News & General
Topic: Is Small-Cap Value's 47.2% Turnover Rate Troubling?
Replies: 28
Views: 4486

Re: Is Small-Cap Value's 47.2% Turnover Rate Troubling?

To discover turnover cost for small caps, you could take two identical ETFs following the same index but with different turnover percentages. Since I am assuming the turnover to be a substantial cost, it should swamp any differences from security lending. Examples for the S&P 600 index SLYV, ER 0.15...
by Cantrip
Tue May 08, 2018 4:05 am
Forum: Investing - Theory, News & General
Topic: Is Small-Cap Value's 47.2% Turnover Rate Troubling?
Replies: 28
Views: 4486

Re: Is Small-Cap Value's 47.2% Turnover Rate Troubling?

Bumping up this thread as turn over numbers in ETFs are troubling to me. The article linked below this paragraph shows that in 2018 transaction costs for a midcap etf was 1% per 100% turnover between the costs of the market maker and broker/dealer. It was surprising to me that this did not affect in...
by Cantrip
Sun Apr 22, 2018 3:24 am
Forum: Investing - Theory, News & General
Topic: I’m still not a fan of international bond funds
Replies: 213
Views: 22227

Re: I’m still not a fan of international bond funds

The current US total market bond (VBTLX) sec yield is 2.99% and the current total international bond (VTABX) sec yield is 0.81%. If the sec yields were switched, with US at 0.81% and international at 2.99%, would you change your mind? I presume the US fund would have a large gain in price, and the f...
by Cantrip
Wed Apr 18, 2018 5:48 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: New Bogleheads Local Chapter in Little Rock, AR

Our meetings will be quarterly from this point on. The second Saturday morning of each quarter at 8am. Location remains the same at Guillermo's Coffeehouse, next to Chilis at I430 and Rodney Parham. Therefore the schedule of our next two meetings will be: June 9 at 8am September 8 at 8am If you woul...
by Cantrip
Thu Apr 05, 2018 6:36 am
Forum: Investing - Help with Personal Investments
Topic: SPOT [Investing in Spotify]
Replies: 45
Views: 2964

Re: SPOT [Investing in Spotify]

Its market cap seems a bit high to me. A good valuation (IMO) of Spotify is here: https://www.youtube.com/watch?v=F0nONPyL6CU

I'd watch it before you make a purchase.
by Cantrip
Sat Mar 17, 2018 7:46 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: New Bogleheads Local Chapter in Little Rock, AR

Little Rock Bogleheads, As our first meeting went well, we desired to have a meeting once a month. Let's set the date for our second meeting as Saturday April 7, 2018 at 7:15am at the same location -- Guillermo's Coffeehouse, next to Chilis at I430 and Rodney Parham. On the agenda will be setting a ...
by Cantrip
Sat Mar 17, 2018 7:09 am
Forum: Investing - Help with Personal Investments
Topic: iShares vs AQR multifactor funds
Replies: 7
Views: 1094

Re: iShares vs AQR multifactor funds

As the correlations are lower, I ran some portfolios with them (admittedly for a very short time period) expecting a nice return correlation bonus but did not find any. My guess is that since they are multifactor instead of a particular class (value, growth, momentum, size) even though they have a d...
by Cantrip
Thu Mar 08, 2018 1:41 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: New Bogleheads Local Chapter in Little Rock, AR

Little Rock Bogleheads,

As a two day reminder, the time of our first meeting is at 7am on Saturday March 10. It will be at Guillermo’s Coffeehouse (which is next to Chili's at I430 and Rodney Parham).

I look forward to meeting everyone.
by Cantrip
Thu Mar 08, 2018 12:25 am
Forum: Investing - Theory, News & General
Topic: 2018 BOGLEHEADS CONFERENCE UPDATE 9-3-18
Replies: 116
Views: 29534

Re: 2018 BOGLEHEADS CONFERENCE SOLD OUT

Had friends over for dinner last night. Add me to the waiting list. Thanks :)
by Cantrip
Mon Feb 26, 2018 4:46 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: New Bogleheads Local Chapter in Little Rock, AR

Little Rock Bogleheads, Our first meeting is scheduled for 0700 on Saturday, 10 March at Guillermo’s Coffeehouse which is located at 10700 N Rodney Parham Rd (next door to Chili's at Rodney Parham & I-430). The store opens at 0700, so I anticipate a 15 minute lull while we purchase drinks and gather...
by Cantrip
Sat Feb 17, 2018 10:46 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: New Bogleheads Local Chapter in Little Rock, AR

Hello All Little Rock area Bogleheads: As the new Local Chapter Coordinator, please send me your first name, forum user name and an e-mail address where you can be reached (will be kept confidential) to the LittleRockBogleheads@gmail.com by Saturday, 24 February. Include any preferred day(s) (e.g. S...
by Cantrip
Mon Feb 05, 2018 11:39 pm
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: Any Bogleheads in Little Rock, AR?

I live in (almost) West Little Rock as well. I sleep during the day, so mornings (6am starbucks would be fine) or evenings is best for me -- prefer no lunch or afternoons.
by Cantrip
Fri Jan 26, 2018 12:16 am
Forum: Local Chapters and Bogleheads Community
Topic: New Bogleheads Local Chapter in Little Rock, AR
Replies: 32
Views: 4299

Re: Any Bogleheads in Little Rock, AR?

Azanon notified me of your thread. I'm in Little Rock and would be interested in meeting up with other posters.
by Cantrip
Tue Jan 23, 2018 7:50 am
Forum: Investing - Theory, News & General
Topic: Improving the Dalio/Robbins All-Seasons Portfolio
Replies: 93
Views: 27721

Re: Improving the Dalio/Robbins All-Seasons Portfolio

I agree with you that getting emerging market exposure through stocks rather than bonds/local currency is a cheaper/more efficient way doing it. Throwing out commodities and replacing with gold makes it simpler and the backtest (at portfoliovisualizer.com) looks even better: only a 3% max drawdown o...
by Cantrip
Fri Dec 29, 2017 7:45 am
Forum: Investing - Theory, News & General
Topic: Obtaining Exposure to Quality / Profitability Factor
Replies: 57
Views: 6716

Re: Obtaining Exposure to Quality / Profitability Factor

DFA is no longer just using profitability as a screen, but has built a new fund. Since about 60 days ago if you have DFA access you can purchase DURPX (DFA US High Relative Profitability). Top names are Amazon, Apple, and Microsoft. The fund is too new for factor regression. I've done a quick look f...
by Cantrip
Mon Dec 18, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: The negative alpha of the Value Factor
Replies: 9
Views: 1970

Re: The negative alpha of the Value Factor

Answering my own question: value-weighted is capitalization weighted (see https://alphaarchitect.com/2017/07/24/m ... gs.5VPa1Yo). Therefore FF small value is a capitalization weighted index which could be achieved with reasonable portfolio turnover.
by Cantrip
Fri Nov 24, 2017 8:07 am
Forum: Investing - Theory, News & General
Topic: The negative alpha of the Value Factor
Replies: 9
Views: 1970

Re: The negative alpha of the Value Factor

Recall that HML is calculated as 1/2 (Small Value + Big Value) - 1/2 (Small Growth + Big Growth), so there is an outsized influence of the small value and small growth portfolios. If small value outperforms relative to what is expected based on its value and size loads over a certain period of time...
by Cantrip
Thu Nov 23, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: The negative alpha of the Value Factor
Replies: 9
Views: 1970

Re: The negative alpha of the Value Factor

Totally ignored the "t-stat". Besides actively managed funds such as VPMAX (which barely squeaks by with a t-stat of 2.17) , the positive or negative alpha for pretty much any index fund put into the model (even VFINX since 1976) is not statistically significant.
by Cantrip
Thu Nov 23, 2017 7:27 am
Forum: Investing - Theory, News & General
Topic: The negative alpha of the Value Factor
Replies: 9
Views: 1970

Re: The negative alpha of the Value Factor

It turns out I was mistaken above. After many more regression analysis runs, the "alpha" on different funds seems pretty random, except that high expense ratios tend to cause more negative alpha. There are value index funds with positive alpha, and growth index funds with negative alpha. Even balanc...
by Cantrip
Mon Nov 20, 2017 6:09 am
Forum: Investing - Theory, News & General
Topic: The negative alpha of the Value Factor
Replies: 9
Views: 1970

The negative alpha of the Value Factor

William Bernstein in this post (http://www.efficientfrontier.com/ef/0adhoc/fi.htm) made it quite obvious that value investing comes with negative alpha, and growth investing comes with positive alpha. The summary of the article in my mind is: From 1926-2016 the value factor premium has been 4.8%. Ho...
by Cantrip
Sun Oct 22, 2017 1:38 am
Forum: Personal Finance (Not Investing)
Topic: Paying for medical school for son?
Replies: 79
Views: 6886

Re: Paying for medical school for son?

My story (the debt is not too bad): I graduated medical school 5 years ago, and family medicine residency 2 years ago. Because I did family medicine, I was eligible for a special kind of loan with a 0% interest rate throughout medical school and residency. The rate increased when I graduated and so ...
by Cantrip
Tue Aug 08, 2017 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Cheapest 529 Plan - Not worried about State tax deduction
Replies: 6
Views: 969

Re: Cheapest 529 Plan - Not worried about State tax deduction

I went with Vanguard for my son's 529. Easy to setup, and it's listed on the same screen as my other accounts at Vanguard. I live in Arkansas which offers a state tax deduction, but with the ER savings at Vanguard vs my own state, the difference after 18 years turns out to be a wash.
by Cantrip
Wed Aug 02, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: 1/N vs Total Stock Market since 1984
Replies: 1
Views: 457

1/N vs Total Stock Market since 1984

Last night I skimmed the "Optimal Versus Naive Diversification: How Inefficient is the 1/N Portfolio Strategy?" which on this forum is often used to support the total stock market strategy. However it appears to me, that the paper actually supports an equal weighting strategy. Taken to the extreme, ...
by Cantrip
Wed Aug 02, 2017 6:11 am
Forum: Investing - Theory, News & General
Topic: When will Microsoft leave the CRSP Value Index?
Replies: 0
Views: 385

When will Microsoft leave the CRSP Value Index?

Currently MSFT is the #1 holding of VVIAX, the CRSP Large Value Index making up 4.7% of the index. This is larger than Apple of the S&P 500 (3.6%). It has made huge gains in price the last three years. However now it is no longer a value stock versus its own industry (Tech) or the S&P. It is no long...
by Cantrip
Sat Jun 10, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 9721

Re: Larry Swedroe on REITs

If possible, you might try looking at DPS for the 5 REITS which were largest at the start of the time period, including any that no longer exist. I was unfortunately unable to find a list of the top 5 REITS in 1994. However it was easy to find a the actual *income return* paid out by the Vanguard R...
by Cantrip
Wed May 31, 2017 2:50 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 9721

Re: Larry Swedroe on REITs

Changing this as Valuethinker answered some questions and gave me homework to do. Thank you, I enjoy your posts :). Of note, Larry Swedroe states that Morningstar on March 31, 2017 listed the REIT index (VGSIX) P/CF as 7.0 which was 27% more expensive than overall market (VFINX) at 8.9. On May 31 (t...
by Cantrip
Wed May 31, 2017 1:36 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 9721

Re: Larry Swedroe on REITs

SPG, Simmons Property Group, #1 REIT in the Vanguard Index: Current dividend is $7/share vs $1.92/share in 1994 (3.65x as high today as 24 years ago) Inflation rate between 1993 and 2017 was ~2.22% per year, for 23 years that is 1.0222^23=1.66 Thus real dividend multiple increase has been 3.65/1.66=...
by Cantrip
Mon Apr 17, 2017 7:10 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing for the first time!
Replies: 5
Views: 1065

Re: Rebalancing for the first time!

The Vanguard Total International fund has ~20% allocated to small cap stocks, and ~20% allocated to emerging market stocks which are not present in the "RT L&G MSCI EAFE A" fund (thanks TropikThunder). This is easily replicated in your Vanguard Roth account by placing 6% ($3570) of your stock alloca...
by Cantrip
Sat Apr 15, 2017 3:31 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing for the first time!
Replies: 5
Views: 1065

Re: Rebalancing for the first time!

Given your desired asset allocation (which is very reasonable), I would structure the investments like this: Old 401k: All in VITSX (Domestic Stock) Current 401k: All international in "RT L&G MSCI EAFE A", All bonds in "VBTLX", rest in "RT L&G S&P 500 DC A" Roth: All in VTSMX (Domestic Stock) HSA: A...
by Cantrip
Wed Dec 02, 2015 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Cancel transaction at Vanguard?
Replies: 65
Views: 34794

Re: Cancel transaction at Vanguard?

I was trying to a do a back-door ROTH for my wife last night. Goal was to transfer $5500 from a money market fund (TRAD. IRA) to the retirement 2045 fund (ROTH IRA). Instead by mistake transferred to the retirement 2045 fund in the same account (TRAD. IRA). Vanguard will not cancel even though the t...
by Cantrip
Fri Oct 16, 2015 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Physician Independent contractor - LLC vs S corp vs other
Replies: 106
Views: 29359

Re: Physician Independent contractor - LLC vs S corp vs other

If the employer SS payment is non-recoverable, then clearly having an S-corp no longer makes sense for me. Thank you for replying Spirit Rider.
by Cantrip
Fri Oct 16, 2015 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Physician Independent contractor - LLC vs S corp vs other
Replies: 106
Views: 29359

Re: Independent contractor and LLC

"In most cases an S-corp would be disadvantageous for a moonlighting job for a high income individual. ...you have the problem of double paying social security taxes. Presumably you earn close to the maximum ceiling for social security, currently $113,700, in your day job. If you moonlight through ...