Search found 1057 matches

by danielc
Tue Mar 10, 2020 3:05 am
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

What that math shows is how returns must change as a function of volatility for Target Volatility to produce allocations that are consistent with CRRA. And it all makes perfect sense. Remember the CRRA formula allocates based on returns and volatility. So for a strategy that only uses volatility to...
by danielc
Tue Mar 10, 2020 2:57 am
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

I don't think it's likely that the model, as presented, is too complex. I'm not sure about that. I don't understand it at all, and I'm mathematically inclined. To be clear, the problem is not (for example) that I don't know what a logarithm is; the problem is that I don't know why I should expect i...
by danielc
Mon Mar 09, 2020 2:48 am
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

Determining the relative risk aversion coefficient to use to determine an asset allocation may at first appear to require circular reasoning, but doing so has real value. First, it translates a decision about acceptable portfolio losses into something far more meaningful, uncertainty in retirement ...
by danielc
Mon Mar 09, 2020 2:17 am
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

So can someone briefly translate the OP's post for the common folk (like me)? Is he saying most people should just stick with a Target Retirement fund? My cliff notes: - Don’t focus on the most efficient portfolio. Just whichever one produces the best risk and return trade off for your circumstance...
by danielc
Mon Mar 09, 2020 1:22 am
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

It's impossible to avoid modeling errors. Either you choose to make your model explicit, with math, utility functions and distributions, or you can choose to do everything by intuition. Those are not the only options. There is a whole continuum of choices with various amounts of intuitions and math...
by danielc
Thu Mar 05, 2020 4:19 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: "Leveraged ETFs? No Thanks"
Replies: 30
Views: 2093

Re: Larry Swedroe: "Leveraged ETFs? No Thanks"

In an article in "The Evidence-Based Investor," Larry Swedroe examines 44 leveraged and inverse ETFs and concludes: Leveraged ETFs? No thanks . (By the way, he says that the SEC actually approved 4X leveraged ETFs, but I think the SEC either didn't quite approve them, or rescinded the approval). I ...
by danielc
Thu Mar 05, 2020 4:15 pm
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

The goal of every investor is to maximize their utility function. Obviously it's extremely difficult to determine your exact utility function, but there are a few functions that are common in literature. One of those is the constant relative risk aversion (CRRA). Under this form of risk aversion, y...
by danielc
Thu Mar 05, 2020 4:10 pm
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

That seems completely disconnected from the way I perceive risk. If I only have enough money to make ends meet, a loss of 5% means that either I don't pay the utility bill, or I don't pay rent. If I have a billion dollars, and I lose 5%, I still have more money than I could ever spend. Well but ris...
by danielc
Wed Mar 04, 2020 8:04 pm
Forum: Investing - Theory, News & General
Topic: Risk tolerance and asset allocation with mathematics
Replies: 99
Views: 5742

Re: Risk tolerance and asset allocation with mathematics

The goal of every investor is to maximize their utility function. Obviously it's extremely difficult to determine your exact utility function, but there are a few functions that are common in literature. One of those is the constant relative risk aversion (CRRA). Under this form of risk aversion, y...
by danielc
Wed Mar 04, 2020 7:55 pm
Forum: Investing - Theory, News & General
Topic: Adding margin to Hedgefundie's 3x leveraged ETF Strategy
Replies: 38
Views: 2049

Re: Adding margin to Hedgefundie's 3x leveraged ETF Strategy

Yeah, I was just thinking that a portfolio of 3x leveraged ETFs wasn't risky enough. :happy
by danielc
Mon Mar 02, 2020 11:55 am
Forum: Investing - Theory, News & General
Topic: Why is the moving average called "support" ?
Replies: 7
Views: 348

Re: Why is the moving average called "support" ?

I'm wondering first WHAT the "moving average" is (in the S&P) and why it's often referred to as a "support line". Thanks :) A "support line" is a form of magical thinking in which you literally look at a plot of stock prices, draw a line that in recent days, weeks, or months was slightly below the ...
by danielc
Sat Feb 29, 2020 9:39 pm
Forum: Investing - Theory, News & General
Topic: Article by the founder of Intuit and Personal Capital: Bitcoin is a scam
Replies: 23
Views: 2121

Re: Article by the founder of Intuit and Personal Capital: Bitcoin is a scam

I cant say with 100% certainty about anything but theres smart people on both sides arguing for and against bitcoin. I side with bitcoin is here to stay and will increase in value. I'm sure it's "here to stay", but that doesn't make it an investment, or a currency. Ponzi schemes are here to stay. T...
by danielc
Fri Feb 28, 2020 7:29 pm
Forum: Investing - Theory, News & General
Topic: Now may be a good time to focus on your other interests
Replies: 23
Views: 1779

Re: Now may be a good time to focus on your other interests

Financial news is bad every day, stock markets are having large losses, a quick recovery almost forgone. If we end up having a bear market, followed by a recession, and daily downward spiral, then listening to more news, discussing actions posted by people every day, checking balances, and wonderin...
by danielc
Fri Feb 28, 2020 5:52 pm
Forum: Investing - Theory, News & General
Topic: Help me figure out the Target Volatility formula
Replies: 69
Views: 4221

Re: Help me figure out the Target Volatility formula

Are you trading based on volatility of UPRO/TMF? Was the plan to wait till the end of the month to get the data and then trade. This month volatility has gone parabolic with Jan end suggested 81/19 and today it points closer to 33/67. I understand, timing strategies can look quite strange and not a...
by danielc
Thu Feb 27, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: Help me figure out the Target Volatility formula
Replies: 69
Views: 4221

Re: Help me figure out the Target Volatility formula

Question regarding option 1: why does PV use only UPRO volatility, when I go 80% UPRO / 20% TMF (which means a cap on UPRO as discussed earlier?). So it turns out that what my spreadsheet does is only equivalent to PV if you tell PV that your baseline portfolio is 100% UPRO. If you use PV and you s...
by danielc
Mon Feb 24, 2020 10:31 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

The discussion on cognitive bias, illusion of control, and other behavioral aspects are derailing the thread. Please stay on-topic, which are the investing aspects. Behavioral finance can be discussed in the personal finance forum. I just saw this post. Sorry I didn't see it earlier. I won't commen...
by danielc
Mon Feb 24, 2020 10:28 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I've already made claims to not be a member of these groups. That was my entire point (2) in my original post. I am not neurotypical. It is incredibly unlikely that you are the first human discovered who is reliably immune to cognitive biases. And I brought up a cognitive bias that was the exact op...
by danielc
Mon Feb 24, 2020 10:06 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Good poker players and traders are two categories of people who are very aware of cognitive biases and in fact train themselves to be aware of and correct for any biases. They literally examine the decisions they make in each session and see if they suffered from any behavioral biases that they sho...
by danielc
Mon Feb 24, 2020 1:20 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Neither of those biases mentioned apply to everyone. WHAT? Please tell me exactly who is exempt from overconfidence bias or illusion of control. I have never heard of any individual or type of person being shown to be immune from any cognitive bias. All the studies about cognitive biases in the psy...
by danielc
Mon Feb 24, 2020 1:04 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

To play devil's advocate: Overconfidence bias , and Illusion of control . We are all fabulously bad at guessing a lot of things, including how we would react in X situation. We all think we are above average, and we all have a tendency to imagine other people (esp people who are not members of our ...
by danielc
Sun Feb 23, 2020 6:48 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

For example, here are two reasons for why this research on the typical person likely does not apply to me or some others in this thread: 1) I am not aware of any behavioral studies that look at people who say beforehand that they are pretty sure of how they would react in the case of a large drawdo...
by danielc
Sun Feb 23, 2020 6:25 pm
Forum: Investing - Theory, News & General
Topic: Gold and long-term treasuries are highly correlated recently
Replies: 35
Views: 2479

Re: Gold and long-term treasuries are highly correlated recently

A bunch of people said that correlation of gold / long bond has been 50% (lost of recent periods). To me: that is very high correlation. I am the first person who said that the gold/LTT correlation was r=0.5 over the past 5 years. It is important to remember that r=0.5 means that only 25% of the va...
by danielc
Sat Feb 22, 2020 7:10 pm
Forum: Investing - Theory, News & General
Topic: Gold and long-term treasuries are highly correlated recently
Replies: 35
Views: 2479

Re: Gold and long-term treasuries are highly correlated recently

A bunch of people said that correlation of gold / long bond has been 50% (lost of recent periods). To me: that is very high correlation. I am the first person who said that the gold/LTT correlation was r=0.5 over the past 5 years. It is important to remember that r=0.5 means that only 25% of the va...
by danielc
Sat Feb 22, 2020 6:26 am
Forum: Investing - Theory, News & General
Topic: Gold and long-term treasuries are highly correlated recently
Replies: 35
Views: 2479

Re: Gold and long-term treasuries are highly correlated recently

But then, why do Long Bonds and Gold correlate / move together? They don't. At least, not in any statistically interesting way. Humans love seeing patterns where there are none. Sure, if you plot the last 30 days and last 5 years and you intentionally don't compute a correlation coefficient you can...
by danielc
Fri Feb 21, 2020 8:48 pm
Forum: Investing - Theory, News & General
Topic: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass
Replies: 54
Views: 2525

Re: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass

danielc, Why do you assume that someone earning a median income in Sweden is having a good life? Because I lived there, I earned less than the median, and based on both my own experience and my observation of others I think that life in Sweden with a median income is a good life. <<It is perfectly ...
by danielc
Fri Feb 21, 2020 8:39 pm
Forum: Investing - Theory, News & General
Topic: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass
Replies: 54
Views: 2525

Re: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass

danielc, <<The system changes slowly, but that doesn't mean that we should ignore it. Discussions about how the system could improve can perfectly well lead to actionable results like forming a union or campaigning for your preferred political party.>> You can hope and pray that the system can chan...
by danielc
Fri Feb 21, 2020 8:34 pm
Forum: Investing - Theory, News & General
Topic: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass
Replies: 54
Views: 2525

Re: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass

Why does anyone need to buy a new minivan? They might want it cause it’s more pleasant, or to keep up with the joneses, but no one needs a new minivan. Lots of families thru the years have gotten by without one just fine. I have three brothers. For my family, if you want to drive somewhere the choi...
by danielc
Fri Feb 21, 2020 8:33 pm
Forum: Investing - Theory, News & General
Topic: Gold and long-term treasuries are highly correlated recently
Replies: 35
Views: 2479

Re: Gold and long-term treasuries are highly correlated recently

This is 100% data mining. Interest rates have been very low for a lot longer than 30 days. Look at the last few months and suddenly the "correlation" disappears. Someone posted a link to the chart over the last 5 years. I suggest you have a look and then consider whether your claim is correct. Port...
by danielc
Fri Feb 21, 2020 4:05 pm
Forum: Investing - Theory, News & General
Topic: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass
Replies: 54
Views: 2525

Re: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass

Why does anyone need to buy a new minivan? They might want it cause it’s more pleasant, or to keep up with the joneses, but no one needs a new minivan. Lots of families thru the years have gotten by without one just fine. I have three brothers. For my family, if you want to drive somewhere the choi...
by danielc
Fri Feb 21, 2020 4:04 pm
Forum: Investing - Theory, News & General
Topic: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass
Replies: 54
Views: 2525

Re: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass

We live now. We could either waste our time and energy lamenting about how life used to be better or "Do Something" to improve our life now. We cannot do both. Of course you can do both. You can do something to improve your life from 8am to 5pm and lament how life used to be during the lunch break....
by danielc
Fri Feb 21, 2020 3:54 pm
Forum: Investing - Theory, News & General
Topic: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass
Replies: 54
Views: 2525

Re: Reevaluating Inflation: The Cost-of-Thriving Index (COTI) by Oren Cass

OP, It is very simple. 1) It is horrible to earn a median income in any country. So, what else is new? 2) Either earn a lot more than the median income or save and invest to break this cycle or both. This should be obvious to anyone. KlangFool Come on KangFool. You know perfectly well that some cou...
by danielc
Fri Feb 21, 2020 3:46 pm
Forum: Investing - Theory, News & General
Topic: Gold and long-term treasuries are highly correlated recently
Replies: 35
Views: 2479

Re: Gold and long-term treasuries are highly correlated recently

Graph of TLT and GLD for last 30 days here: https://fredflinstone.tinytake.com/tt/NDA4MzMyNV8xMjU1ODQyOQ In the late 1970s, gold and bonds moved in opposite directions. Interest rates jumped, bond prices plunged, and gold prices soared. So why might these two separate asset classes have become so c...
by danielc
Fri Feb 21, 2020 7:44 am
Forum: Investing - Theory, News & General
Topic: Challenge: Fastest way to lose money in the market?
Replies: 85
Views: 5167

Re: Challenge: Fastest way to lose money in the market?

Another interesting fact is that all the outperformance of the US stock market since 1900 comes from 2% of the companies in the index. Numbers cited from memory. One good source for that is this paper: Do Stocks Outperform Treasury Bills? Perhaps the most striking illustration of the degree to whic...
by danielc
Fri Feb 21, 2020 12:43 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

MotoTrojan made a good point about adjusting the target vol. After playing around with it I found that a 15% target vol produced a risk profile very similar to the risk parity approach I'm describing above. Overall the results are very similar too. But when you look at the way the AA changes on a m...
by danielc
Thu Feb 20, 2020 11:29 pm
Forum: Investing - Theory, News & General
Topic: Challenge: Fastest way to lose money in the market?
Replies: 85
Views: 5167

Re: Challenge: Fastest way to lose money in the market?

A more interesting proposition I think, can you pick 10 stocks currently in the S&P 500 that would under-perform the broad index on a total return basis going forward some period of time? Seems to me that it would be equally difficult to pick 10 underperforming stocks as it would be to pick 10 outp...
by danielc
Thu Feb 20, 2020 1:58 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

willthrill81 wrote:
Tue Jan 21, 2020 11:17 am
25%. But I cap my allocation to UPRO at 80%.
How did you come up with 80% ? So far I have a UPRO+TQQQ cap of 70% but in all honesty I don't have an objective reason for choosing that value. I'm still in the process of deciding exactly how I want to do the adventure.
by danielc
Thu Feb 20, 2020 12:58 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I am officially out of UPRO/TMF/EDV and my Roth IRA is now 100% PSLDX. My main motivation is just to stop the urge to constantly research and tinker with my portfolio. I also had some minor complaints with M1 and now everything is back in one place. The returns were great and I could see one day ge...
by danielc
Wed Feb 19, 2020 5:44 pm
Forum: Investing - Theory, News & General
Topic: Taylor Larimore Simple Asset Allocation & Rebalancing
Replies: 6
Views: 1332

Re: Taylor Larimore Simple Asset Allocation & Rebalancing

Taylor Larimore frequently posts that he has a rather simple Asset Allocation. To quote Taylor: What I cannot afford to lose is in Vanguard Total Bond Market -- the rest is in Vanguard S&P 500 stock index fund If you were to follow Taylor's guideline when deciding on your asset allocation, wouldn't...
by danielc
Wed Feb 19, 2020 5:37 pm
Forum: Investing - Theory, News & General
Topic: How do you objectively set Stock vs Bond Allocation
Replies: 81
Views: 5830

Re: How do you objectively set Stock vs Bond Allocation

I was reading the other Bond allocation thread here and was curious how to objectively arrive at a reasonable allocation. It seemed to me that posters were happy to share where they were at, but I realized I didn’t know how they got there. Is there a way to objectively set an allocation? If stocks ...
by danielc
Wed Feb 19, 2020 5:32 pm
Forum: Investing - Theory, News & General
Topic: xkcd on stock picking
Replies: 27
Views: 3453

Re: xkcd on stock picking

Love it. I had a similar idea recently. I started a thread called Challenge: Fastest way to lose money in the market? and it's based on the same idea. If the market is efficient, it should be very difficult to intentionally lose money by picking bad stocks or ETFs.
by danielc
Mon Feb 17, 2020 4:05 pm
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 90
Views: 8239

Re: Why Take Risk on Equity Side?

Would you categorize your high-yield bond allocation under equity or bonds when looking at total stock and bond mix? Instead of thinking of risk as a bond/stock ratio, one could think of risk as a target volatility. If you assume that you know the covariance matrix of (say) intermediate treasuries,...
by danielc
Mon Feb 17, 2020 3:08 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

If you have a question about the Simba spreadsheet, the best way is either to send me a PM or to post something in the Simba thread . But I'll answer your question here. The regular Simba spreadsheet (v19b is indeed the latest) only includes mainstream data series, it does NOT include leveraged dat...
by danielc
Sun Feb 16, 2020 2:25 pm
Forum: Investing - Theory, News & General
Topic: SEC yield on stock funds
Replies: 6
Views: 626

Re: SEC yield on stock funds

The former formula seems to be based on bonds paying interest every six months. That is why I am wondering if there is one that might be slightly different for stocks, maybe 4 x (((a - b) / (c x d) + 1) ^ 3 - 1)? Companies offering stock and bond funds often show you a different yield calculation t...
by danielc
Sun Feb 16, 2020 2:18 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

For liquid ETFs, it is very difficult to get hurt on execution with market orders during market hours. Many ETfs trade with a spread of a penny these days and mostly you do not have to worry about execution quality on those. ... Thanks for the info. How do I know if an ETF is liquid? My understandi...
by danielc
Sun Feb 16, 2020 4:12 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Fidelity's new Zero funds
Replies: 36
Views: 3436

Re: Thoughts on Fidelity's new Zero funds

Neither upside or downside: FXAIX tracks the S&P 500 index, while the Zero counterpart, FNILX, tracks the "Fidelity U.S. Large Cap Index, which is a float-adjusted market capitalization-weighted index designed to reflect the performance of U.S. large capitalization stocks. Large capitalization stoc...
by danielc
Sun Feb 16, 2020 3:49 am
Forum: Investing - Theory, News & General
Topic: SEC yield on stock funds
Replies: 6
Views: 626

Re: SEC yield on stock funds

Was comparing two VG stock funds, including their SEC yield. Not remembering how that was calculated for stock funds, I looked it up. Vanguard says this: A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypot...
by danielc
Sun Feb 16, 2020 3:01 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

I think we're not even looking at the same data. I still can't find the raw simulated data in his spreadsheet. It's in the command tab in columns A through BA. These are hidden. You have to unhide columns A through BA. Poke around on the top to unhide. I'm still replying to old comments... Can you ...
by danielc
Fri Feb 14, 2020 9:21 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Hydromod and others - I was a NASDAQ market maker and sellside sales trader on wallstreet from 1997-2005. I can't find any holes in your analysis. You are basically trying to predict frictional costs for the daily rebalance. Execution quality (spread and timing) + commissions. Predicting execution ...
by danielc
Fri Feb 14, 2020 2:04 pm
Forum: Investing - Theory, News & General
Topic: Help me figure out the Target Volatility formula
Replies: 69
Views: 4221

Re: Help me figure out the Target Volatility formula

Any clue why options 2, 3, and 4 break with a TV below 24%? What probably happened is that UPRO and TMF both had a volatility higher than your TV. Option 1 pretends that TMF has a volatility of zero, while options 2,3, and 4 try take into account TMF's volatility. The flip side of that is that if b...
by danielc
Fri Feb 14, 2020 11:29 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4127
Views: 345474

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Correct. Fidelity does I believe but most are using M1 Finance as they have no transaction fees, allow fractional shares, and have a 1-button rebalancing option that is about as good as it gets for this portfolio (only thing better would be scheduled rebalances). You can even setup automatic contri...