Search found 998 matches

by ftobin
Tue Nov 28, 2017 11:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 129
Views: 11299

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

Just wondering -- who takes the other side of the trade on factor funds and why are they so dumb? Oh, I guess it's us market index fund investors... Larry Swedroe mentions research showing that hedge funds looking for home runs go for high-volatility due to their compensation mechanics: http://www....
by ftobin
Tue Nov 07, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Corporate Bond ETF listing announced
Replies: 8
Views: 1201

Vanguard Total Corporate Bond ETF listing announced

Effective Thursday, November 9, 2017, Nasdaq will list the following ETF:
Vanguard Total Corporate Bond ETF (Ticker: VTC)
http://www.nasdaqtrader.com/TraderNews. ... TA2017-202
by ftobin
Tue Oct 17, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 484
Views: 44437

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

The only thing I'll say is that don't underestimate the cost of paying wider spreads or trading in illiquid ETFs that might not be tracking NAV well. Liquidity costs are harder for your average customer to calculate, which is likely part of the reason why they can make this move -- the cost is less ...
by ftobin
Fri Sep 22, 2017 8:13 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 159
Views: 22850

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

I have a vague recollection that some people that are employed in the brokerage industry and maybe their spouses cannot have a brokerage account at another firm. Mutual fund only accounts are excluded. Maybe someone can confirm. That's true for me. Brokerage accounts are only allowed at certain bro...
by ftobin
Sun Jul 02, 2017 12:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 159
Views: 22850

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

I'm curious if they ask questions like if you're a registered rep when you convert. Ordinarily, when a brokerage account is opened, there are a bunch of regulatory questions that don't apply to a mutual fund account. Are these asked when converting?
by ftobin
Thu Jun 29, 2017 8:41 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 159
Views: 22850

Re: Vanguard upgraded my accounts - angry

If our accounts were converted/upgraded, we would be forced to move our holdings to one of the approved brokers. We explained this to Vanguard some years ago, when they first offered the upgrade, and they backed off. We have no button on our screen, or emails encouraging us to convert, as some upth...
by ftobin
Sun Jun 04, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: "Beware Fake Stock News"
Replies: 15
Views: 2548

Re: "Beware Fake Stock News"

Boglegrappler wrote:It's too obvious to educated investors that they aren't real companies.
Just picking out LBIO, I think institutions definitely were buying. They owned 60% of LBIO.
Image
by ftobin
Sun Jun 04, 2017 7:44 pm
Forum: Investing - Theory, News & General
Topic: Schwab .03% SP500
Replies: 31
Views: 2535

Re: Schwab .03% SP500

livesoft wrote:6. Something else ...?
6. Where does the income from securities lending go? We're starting to get to the point where this should be noted more significantly, as a significant differentiator between index fund providers.
by ftobin
Sat May 27, 2017 3:16 pm
Forum: Investing - Theory, News & General
Topic: Why are capital gains taxed lower than div/interest?
Replies: 20
Views: 1889

Re: Why are capital gains taxed lower than div/interest?

Dale_G wrote:A crappy investment with no real return, but the taxman wants their due.

I think the point a few people are making is that real return or not, nominal returns are taxed. Capital gains vs dividends is the focus -- I think inflation is a red herring in the discussion.
by ftobin
Thu May 25, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: BlackRock, Vanguard Mull Pressuring Exxon to Disclose Climate Risks
Replies: 33
Views: 2377

Re: BlackRock, Vanguard Mull Pressuring Exxon to Disclose Climate Risks

Active management can sell companies if they don't like their governance. Passive management has to vote in favor of improved governance and sustainability. I would actually prefer it if passive management was truly passive on these issues and abstained, letting active investors drive the discussio...
by ftobin
Wed May 17, 2017 9:25 am
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 65
Views: 9421

Re: BofA HSA dropping Vanguard Funds

Don't know if there was a typo, but this post says that ER of BDOKX used to be 1.2%! h https://www.bogleheads.org/forum/viewtopic.php?t=162233 I've been willing to attribute the underpermance to the higher ER. now that it is lower I expect the performance to improve. Perhaps that was the gross expe...
by ftobin
Tue May 16, 2017 10:54 pm
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 65
Views: 9421

Re: BofA HSA dropping Vanguard Funds

Available investments and the current ERs include WFSPX, S&P 500 index, ER 0.04% BDOKX, Total international index, ER 0.11% IUTIX, Treasury index, ER 0.2% Expense ratios are not enough to look at. BDOKX, Blackrock's "Total International", has underperformed Vanguard's Total International (VTIAX) by...
by ftobin
Mon May 01, 2017 11:19 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

1. market orders and marketable limit orders 100-9999 shares are subject to regulatory price protection I think you're confusing reporting 605/606 (best-ex) and price protection. Best-ex means the market maker will give you a good price when sending an order to them. Price protection means that you...
by ftobin
Mon May 01, 2017 5:09 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

zeugmite wrote:To clarify, when you calculate inside size, are you aggregating across all venues?
Yes. I don't claim you'll get the that amount at the inside (many quotes are effectively dups of others), but it gives an idea of how likely the market maker will internalize vs route your order.
by ftobin
Mon Apr 24, 2017 6:20 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

Thanks, that's what I was looking for. Any suggestions on less liquid securities? Just price your order 0.10% through or so. If your order is >$5000 and your trade size is >5x the inside size, consider breaking your order up into multiple pieces. Expect to pay some slippage with larger orders, and ...
by ftobin
Mon Apr 24, 2017 2:55 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

Should any of this change anything in the way I place orders? Don't worry about where your order is getting routed. The market maker arena is hyper-competitive and you're going to get a good fill as a retail user as long as your security is moderately liquid. Depending on the broker you may even ge...
by ftobin
Sat Apr 22, 2017 1:51 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 44363

Re: Larry Swedroe says "Goodby."

Larry, thank you for all the time you put into this forum. It definitely affected my investing, and allowed me to understand new ways to look at strategies. I'm glad you were around when I started taking control of my investments and understanding them. Consistent voices like your stand out. I hope ...
by ftobin
Tue Mar 28, 2017 1:00 am
Forum: Investing - Theory, News & General
Topic: Bogle Interview CNN - Sat.
Replies: 71
Views: 6264

Re: John Bogle interview: is "deep risk" growing?

Mr. Bogle definitely earns my respect. He is brilliant yet humble, and able to broach controversial subjects in a clear but non-inflamed manner.
by ftobin
Thu Mar 02, 2017 5:21 pm
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 65
Views: 9421

Re: BofA HSA dropping Vanguard Funds

Shouldn't you compare it to returns on cashlike holdings, otherwise the difference is mostly due to change in allocation? Yes, it's not apples-to-apples, but since I don't want any apples in my HSA, but oranges instead (more aggressive holdings), it's still something to point out. If you want apple...
by ftobin
Thu Mar 02, 2017 4:58 pm
Forum: Investing - Theory, News & General
Topic: Costs vs diversification in mutual funds - which is more important?
Replies: 21
Views: 1833

Re: Costs vs diversification in mutual funds - which is more important?

Just as you shouldn't double your exposure to your employer by investing heavily (or at all) in them, if you are part of a small country you are effectively doubling down by investing in it. Expect feast or famine.
by ftobin
Thu Mar 02, 2017 12:36 pm
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 65
Views: 9421

Re: BofA HSA dropping Vanguard Funds

I believe it. You need $5000 or more in the deposit account to avoid all monthly fees. Personally, I think it's a waste to try to avoid the fees. I think they came to around $60/year for me, but if you have invested that $5000 you'll likely come out better, given that a $5000 total bond ETF holding...
by ftobin
Sat Feb 25, 2017 9:48 pm
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 65
Views: 9421

Re: BofA HSA dropping Vanguard Funds

Vanguard's Total International fund VGTSX has outperformed the new Blackrock fund BDOKX by about 0.5% for the past 1, 3, and 5 years, so one might think it's due the small-cap exposure instead of just Large-Mid. However, even the Vanguard FTSE ex-US fund VFWIX, which has similar cap exposures, has b...
by ftobin
Wed Jan 18, 2017 1:35 pm
Forum: Investing - Theory, News & General
Topic: An index isn't an index isn't an index...
Replies: 23
Views: 3013

Re: An index isn't an index isn't an index...

I get the impression that CRSP indexes are designed to a large amount of funds to be invested in them without hurting the index. The more extreme the index (small caps, value-ness), the narrow the available securities and the impact of trading them is higher. The other indexes were designed before t...
by ftobin
Sat Dec 31, 2016 5:35 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

If a client submits a limit order for an odd lot that does not execute, how do they even know why it didn't execute? Many clients have tools that help surveil this activity. It's not that difficult to do historically. If we had technical issues and had problems routing to the market, we would run t...
by ftobin
Sat Dec 31, 2016 3:14 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

Also, odd-lot limit orders are not required to be displayed by market makers in their quotes on exchanges - see SEC Rule 604 . So, your odd-lot limit order (below 100 shares) might never be routed outside the market maker. In practicality, though, they're going to post an oddlot and try to get a re...
by ftobin
Sat Dec 31, 2016 2:12 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

I was thinking that one form of comparison would be to look at dividend reinvestments for the same ETF. I've noticed that Vanguard consistently fills automatic dividend reinvestment of its own ETFs (i.e. Vanguard ETFs) at better prices than other brokers. Vanguard themselves are not filling the ord...
by ftobin
Fri Dec 30, 2016 11:38 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

The new nickel pilot is taking US equities back in the wrong direction, but I don't hear the internalizers complaining about that. There are 3 test groups and there is a lot more than just nickel increment quoting going on with the ticket size pilot -- I don't recommend painting with a broad brush....
by ftobin
Thu Dec 29, 2016 5:44 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

@ftobin, thanks. So can I then say that the idea to break up an oddlot >100 shares order (103, 246, 318, e.g.) into at least two orders of a round-lot and a separate sub-100 share oddlot makes some kind of sense? I believe mixed lots (> 100 shares) are broken down into round and odd lots. But there...
by ftobin
Thu Dec 29, 2016 5:34 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

matto wrote:Just so nobody accuses me of picking on equities, the following are much worse:

1. Municipal bonds
2. Forex
3. Corporate bonds

Very, very much true. Equities in the US, in general, have a very efficient market compared to other asset classes.
by ftobin
Thu Dec 29, 2016 5:22 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

But because the rules (Reg NMS) are terrible, there are a million loopholes. I agree with almost everything you wrote, but I'd disagree here. The rules aren't perfect, but I worked pre- and post-RegNMS, and I think it added a lot of sanity to the market. Personally, I think not allowing people to t...
by ftobin
Thu Dec 29, 2016 5:10 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

[update: matto posted while I was writing, and his post looks better than mine.] @ftobin, thanks for chiming in. Would you mind giving some specific examples of what you just stated when you have time please? That might help clarify terms ilke "passive", "aggressive", "prote...
by ftobin
Thu Dec 29, 2016 1:27 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

Passive oddlot orders are not protected quotes. A broker doing a poor job will trade through them.

An aggressive oddlot order (crossing the spread) will generally receive favorable executions from the broker taking the other side, since they are presumed to have little short-term predictive quality.
by ftobin
Tue Sep 27, 2016 10:53 pm
Forum: Investing - Theory, News & General
Topic: "Uncle Sam Pays Almost Twice The Yield On Treasurys--If You Know Where To Look
Replies: 85
Views: 13541

Re: "Uncle Sam Pays Almost Twice The Yield On Treasurys--If You Know Where To Look

I've been buying $10K/year since I started working seven years ago, and will continue to do so for as long as Treasuries yield much less than EE bonds held to maturity. That's exactly my line of thought. I work on the premise that the market would price EE bonds much higher than what we can buy the...
by ftobin
Mon Aug 29, 2016 12:26 am
Forum: Investing - Theory, News & General
Topic: Fidelity competing harder w/Vanguard
Replies: 92
Views: 10930

Re: Fidelity competing harder w/Vanguard

My guess is that Fidelity reimburses the fund so that (expenses - security lending - reimbursement = stated er). So while listed in the annual reports, each dollar of security lending revenue is one less dollar Fidelity sends to the fund in reimbursements. Maybe when gross and net expenses are the ...
by ftobin
Sun Aug 28, 2016 5:01 am
Forum: Investing - Theory, News & General
Topic: Fidelity competing harder w/Vanguard
Replies: 92
Views: 10930

Re: Fidelity competing harder w/Vanguard

Will Fidelity always offer these funds at rock bottom expense ratios? What if they shift strategies and you hold it in a taxable account? There is nothing to see here. Fidelity's index fund expense ratios have been competitive and often lower than Vanguard's for more than fifteen years. Your statem...
by ftobin
Sun Aug 14, 2016 11:29 pm
Forum: Investing - Theory, News & General
Topic: When Do ETFs Distribute Capital Gains?
Replies: 5
Views: 712

Re: When Do ETFs Distribute Capital Gains?

Stock index ETFs have to sell if the underlying index removes a company from the index. Active ETFs have gains if the manager decides to sell appreciated holdings. I believe there are special baskets that the AP can work out with the fund such that even if the fund has to sell, they can still offlo...
by ftobin
Sun Aug 14, 2016 11:06 am
Forum: Investing - Theory, News & General
Topic: When Do ETFs Distribute Capital Gains?
Replies: 5
Views: 712

Re: When Do ETFs Distribute Capital Gains?

Basically, capital gains for ETFs and regular mutual funds are distributed if the fund needs to sell appreciated shares. For ETFs, there are two reasons an ETF generally doesn't need to distribute: 1) Many people buy shares from another ETF holder, so the underlying Fund's holdings are not affected ...
by ftobin
Sun Aug 07, 2016 8:18 pm
Forum: Investing - Theory, News & General
Topic: Investors love "lottery tickets" new paper supporting that theory
Replies: 33
Views: 4225

Re: Investors love "lottery tickets" new paper supporting that theory

I really wish there was a lottery where only maybe 20% of the ticket cost covered the prizes (with 1/5 of the current astronomical odds of winning) and the other 80% was quietly saved and invested on behalf of the buyer, and then returned to them at retirement age. I keep reading about how much peo...
by ftobin
Wed Jul 27, 2016 10:55 am
Forum: Investing - Theory, News & General
Topic: How Do "Short" ETFs Work?
Replies: 6
Views: 752

Re: How Do "Short" ETFs Work?

You can synthesize long or short positions with options. This is likely what the AP is hedging their position with.
by ftobin
Mon Jul 18, 2016 1:26 am
Forum: Investing - Theory, News & General
Topic: Merrill Lynch vs Merrill Lynch Edge
Replies: 5
Views: 806

Re: Merrill Lynch vs Merrill Lynch Edge

If you're posting passive limit orders (not crossing the spread), execution quality numbers really don't play a factor, as they're for aggressive orders. Whether or not your orders gets filled depends on which exchange the broker placed your orders, and all other things being equal, they'll they'll ...
by ftobin
Sun Jul 03, 2016 2:50 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

How does one know for sure that their brokerage firm is actually executing a Market-on-Open order and just a regular plain old boring market order a few seconds after the open? I know trading platforms like Interactive Brokers or (I'm assuming) Think or Swim allow you to specify a market-on-open or...
by ftobin
Sun Jul 03, 2016 2:46 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 155
Views: 17580

Re: Case study Broker trade executions

1. I submitted a limit order to sell at TDAmeritrade. I was watching real-time quotes while eating ice cream and noticed that prices had marched up and trades were executing above my limit by a few cents. WTF? Why hadn't my shares been sold? I'm thinking "stuck in a dark pool". Regulation...
by ftobin
Tue Jun 28, 2016 3:38 am
Forum: Investing - Theory, News & General
Topic: Is there structural alpha in the small cap market?
Replies: 18
Views: 2483

Re: Is there structural alpha in the small cap market?

The dates are still known, I believe the big change was in 2007 they added "banding" instead of hard cut-off points based on the explicit market cap size, which reduced tunrover, and fewer trades reduces the opportunity for someone to trade against it. m Thanks, my information must have b...
by ftobin
Wed Jun 22, 2016 10:45 pm
Forum: Investing - Theory, News & General
Topic: Is there structural alpha in the small cap market?
Replies: 18
Views: 2483

Re: Is there structural alpha in the small cap market?

Is IWN (the Russell 2000 Value etf) still vulnerable to front-running? I know that that was a concern for a while, but I wasn't sure if iShares or Russell made changes to the implementation or the index construction to address this. They reduced the impact of front-running issues several years ago,...
by ftobin
Fri May 06, 2016 9:58 am
Forum: Investing - Theory, News & General
Topic: "The DOL's Fiduciary Rule: Better Late Than Never"
Replies: 4
Views: 724

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

I'm puzzled by one line from the author: I like the traditional load-fund model. I’ve known many excellent brokers who did their homework; placed clients into well-run, relatively low-cost funds; received an upfront commission; and counseled patience. The author seems to be in favor of both "tr...
by ftobin
Wed May 04, 2016 11:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Partnering with Yodlee
Replies: 153
Views: 27428

Re: Vanguard Partnering with Yodlee

I just input manually-added accounts for Treasury Direct holdings. Since my holdings are Savings Bonds, their value is consistent enough for portfolio overviews.
by ftobin
Wed Apr 13, 2016 9:49 am
Forum: Investing - Theory, News & General
Topic: Should value ETFs and small-cap ETFs not be used in taxable accounts?
Replies: 13
Views: 1456

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

Actually, one's personal tax brackets change the ordering, so this statement is not quite true. This has been shown in previous threads, especially when it comes to US vs foreign funds. Can you be a little more clear on how tax brackets would change the ordering? We can also usually assume that cap...
by ftobin
Wed Apr 13, 2016 9:04 am
Forum: Investing - Theory, News & General
Topic: Should value ETFs and small-cap ETFs not be used in taxable accounts?
Replies: 13
Views: 1456

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

The M* analysis can easily lead you astray -- the optimal decision often depends significantly on state taxes and the particular federal bracket you find yourself in. While this is true, the Morningstar numbers can be good for comparing funds since state factors and tax brackets will, in general, j...
by ftobin
Wed Apr 13, 2016 1:31 am
Forum: Investing - Theory, News & General
Topic: Should value ETFs and small-cap ETFs not be used in taxable accounts?
Replies: 13
Views: 1456

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

Morningstar's Tax tab for funds and ETFs can give you a good comparison of after-tax returns.
by ftobin
Wed Mar 09, 2016 1:50 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 37987

Re: why do investors prefer cash dividends

1) If you set up a scenario where dividend investor Xa, spending dividends from his stock/fund A, does better than investor Xb, who sells the same amounts on the same dates from his dividend-less instrument B I just want to throw up a caution flag here -- most of the arguments used here deal with r...