Search found 242 matches

by Charybdis
Sun Nov 25, 2012 4:45 am
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 719
Views: 324647

Re: Ultimate Buy and Hold - 8 slices vs 4

Hi all! Can I use a similar portfolio here in Europe? Or you advice me to do some changes to avoid currency risk? Thank you. If you can find suitable ETFs domiciled in Europe, yes. Here are ALL the available ETFs for European investors (these are really all the options, updated daily): http://www.e...
by Charybdis
Thu Aug 16, 2012 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: AMUNDI ETF SP 500
Replies: 9
Views: 1633

Re: AMUNDI ETF SP 500

Its distribution policy could be accumulation or distribution upon decision of the fund manger. So you don't know whether you will receive dividends or not. I would not invest in such an ETF. They should tell you clearly whether the ETF is accumulating or distributing. Other ETF providers tell you t...
by Charybdis
Thu Jul 26, 2012 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Stock inheritance
Replies: 32
Views: 3747

Re: Stock inheritance

Definitely sell them all now. Then choose a lazy portfolio, according to your risk tolerance and unique circumstances of course.
by Charybdis
Thu Jul 26, 2012 3:41 pm
Forum: Investing - Theory, News & General
Topic: Call it anything but market-timing!
Replies: 51
Views: 4613

Re: Call it anything but market-timing!

pkcrafter wrote:
Charybdis wrote:Is it market timing if you increase your equity allocation due to very low bond yields?
No, it's worse. It's a behavioral mistake of chasing returns without regard to risk.

Paul
And what if the nominal yield is negative? Negative Yield on German 2-Year Note
by Charybdis
Thu Jul 26, 2012 3:29 pm
Forum: Investing - Theory, News & General
Topic: Call it anything but market-timing!
Replies: 51
Views: 4613

Re: Call it anything but market-timing!

Is it market timing if you increase your equity allocation due to very low bond yields?
by Charybdis
Thu Jul 26, 2012 3:24 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Fund SEC Yield below 2%
Replies: 73
Views: 8479

Re: Total Bond Fund SEC Yield below 2%

Do the "age in bonds" and "stay the course" rules still apply when yields are very low, or even negative? For example, investors in the negative yield European countries should still blindly hold bonds at a negative nominal yield? What would be the alternative? Brian Decreasing bond allocation, and...
by Charybdis
Thu Jul 26, 2012 9:34 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund SEC Yield below 2%
Replies: 73
Views: 8479

Re: Total Bond Fund SEC Yield below 2%

Do the "age in bonds" and "stay the course" rules still apply when yields are very low, or even negative?

For example, investors in the negative yield European countries should still blindly hold bonds at a negative nominal yield?
by Charybdis
Wed Jul 25, 2012 11:23 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund SEC Yield below 2%
Replies: 73
Views: 8479

Re: Total Bond Fund SEC Yield below 2%

And in Europe there is negative nominal yield in many countries, for example in Germany. I cannot complain, my bond portfolio yields 9.5% (inflation + 4%), I hold my bond portfolio in HUF, in Hungarian TIPS. There are exceptional high yields here, and the risk is not so high. I know that when there ...
by Charybdis
Mon Jul 09, 2012 3:19 pm
Forum: Investing - Theory, News & General
Topic: historical global equity returns
Replies: 11
Views: 1205

Re: historical global equity returns

But the history of 111 years is not so useful for a mortal human. A more useful study would be: rolling 30-year real world equity returns, assuming the investor invested equal amount of money each year, inflation indexed, minus expenses and taxes (including dividend withholding taxes). These studies...
by Charybdis
Sat Jul 07, 2012 5:56 pm
Forum: Investing - Theory, News & General
Topic: Net total return vs. gross total return - a fallacy?
Replies: 26
Views: 38824

Re: Net total return vs. gross total return - a fallacy?

I think you shouldn't add new money each month and rebalance each month, you will pay too much spread and broker commission. Add money for example quarterly, and rebalance yearly. Don't invest in too many ETFs, 3-4 ETFs max. should do it. Also don't forget that you should pay for real time market da...
by Charybdis
Sat Jul 07, 2012 12:50 pm
Forum: Investing - Theory, News & General
Topic: Net total return vs. gross total return - a fallacy?
Replies: 26
Views: 38824

Re: Net total return vs. gross total return - a fallacy?

I don't quite understand your tax situation regarding dividends, but when you buy a capitalizing EU ETF, you don't receive dividends, so no tax is payable. So you must carefully calculate which is better in your situation. Also when you receive dividend from a US domiciled ETF which invests in non-U...
by Charybdis
Sat Jul 07, 2012 10:32 am
Forum: Investing - Theory, News & General
Topic: Net total return vs. gross total return - a fallacy?
Replies: 26
Views: 38824

Re: Net total return vs. gross total return - a fallacy?

Well, let's see. The US domiciled Vanguard Total Stock Market ETF has an expense ratio of just 0.06%. It distributes dividends quarterly. Question: are you able to invest new money each quarter? Because if you invest new money quarterly, then you could buy that Vanguard Total Stock Market ETF, becau...
by Charybdis
Sat Jul 07, 2012 2:01 am
Forum: Investing - Theory, News & General
Topic: Net total return vs. gross total return - a fallacy?
Replies: 26
Views: 38824

Re: Net total return vs. gross total return - a fallacy?

Interesting topic, I had never thought about that. I understand your point and based on my knowledge about the subject I would say you are right. It would be much more clear and logical if the ETFs tracked the gross total return index. If an EU investor wanted to buy Ishares SP500, do you think he/...
by Charybdis
Wed Jul 04, 2012 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Long term successful investing portfolio
Replies: 36
Views: 8389

Re: Long term successful investing portfolio

Dear colleagues , you in US use Vanguard for the Three fund portfolio : From Vanguard's list of "core funds," the funds that are best for a three-fund portfolio are: Vanguard Total Stock Market Index Fund (VTSMX) Vanguard Total International Stock Index Fund (VGTSX) Vanguard Total Bond Market Fund ...
by Charybdis
Mon Jul 02, 2012 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Dealing with foreign currency risk
Replies: 21
Views: 3435

Re: Dealing with foreign currency risk

As I further researched foreign currency risk, here is what I found: 1) From the Credit Suisse Global Investment Returns Yearbook 2012 : It follows that currency risk should not deter investors from diversifying internationally: the benefits outweigh the attendant currency risk. Furthermore, for glo...
by Charybdis
Mon Jul 02, 2012 10:24 am
Forum: Investing - Theory, News & General
Topic: Buy ETFs with Market or Limit Order?
Replies: 50
Views: 15676

Re: Buy ETFs with Market or Limit Order?

I don't get your point. You don't buy the ETF when the US market is closed. However, you would buy the underlying stocks even if their market is closed?

When you buy the ETF, you buy the underlying stocks.
by Charybdis
Mon Jul 02, 2012 7:49 am
Forum: Investing - Theory, News & General
Topic: Buy ETFs with Market or Limit Order?
Replies: 50
Views: 15676

Re: Buy ETFs with Market or Limit Order?

And when buying an international fund, you should buy it when the underlying market or markets are open (note the time zones differences). So you should take European and/or Asian stock exchanges and their trading hours into account. That would be tricky with VT. I wouldn't worry about that too muc...
by Charybdis
Sun Jul 01, 2012 9:06 am
Forum: Investing - Theory, News & General
Topic: Aggressive Bogleheads Portfolio
Replies: 51
Views: 5493

Re: Aggressive Bogleheads Portfolio

I don't think it's a good idea to overweight small-cap value, or value so much. Why isn't 25% small-cap value enough? Instead of overweighting SCV, you could increase your stock allocation. What if SCV underperforms TSM in the next 15 years? Don't forget tracking error regret. I only have been inves...
by Charybdis
Sun Jul 01, 2012 2:59 am
Forum: Investing - Theory, News & General
Topic: ETFs and the Uselessness of iNAV
Replies: 54
Views: 6687

Re: ETFs and the Uselessness of iNAV

But if market makers and the ETF itself knows the "true" iNAV during the day (which is not the published iNAV), then why don't they publish this information for free? Because it is too valuable information to publish it for free? But ETFa could help investora to publish the "true" iNAV anyway. Or th...
by Charybdis
Sat Jun 30, 2012 3:47 pm
Forum: Investing - Theory, News & General
Topic: Buy ETFs with Market or Limit Order?
Replies: 50
Views: 15676

Re: Buy ETFs with Market or Limit Order?

And when buying an international fund, you should buy it when the underlying market or markets are open (note the time zones differences). So you should take European and/or Asian stock exchanges and their trading hours into account. That would be tricky with VT. I wouldn't worry about that too muc...
by Charybdis
Sat Jun 30, 2012 2:43 pm
Forum: Investing - Theory, News & General
Topic: Aggressive Bogleheads Portfolio
Replies: 51
Views: 5493

Re: Aggressive Bogleheads Portfolio

And what happened to REIT? :)
by Charybdis
Sat Jun 30, 2012 1:06 pm
Forum: Investing - Theory, News & General
Topic: Buy ETFs with Market or Limit Order?
Replies: 50
Views: 15676

Re: Buy ETFs with Market or Limit Order?

And when buying an international fund, you should buy it when the underlying market or markets are open (note the time zones differences). So you should take European and/or Asian stock exchanges and their trading hours into account.
by Charybdis
Sat Jun 30, 2012 11:26 am
Forum: Investing - Theory, News & General
Topic: Buy ETFs with Market or Limit Order?
Replies: 50
Views: 15676

Re: Buy ETFs with Market or Limit Order?

Only use limit orders! And pay for real time data if you see only the 15 minutes delayed data by default. Note what happened during a flash crash a while ago: http://online.wsj.com/article/SB10001424052748703630304575270773406726084.html Even the procedure for buying or selling an ETF can trip up in...
by Charybdis
Sat Jun 30, 2012 10:22 am
Forum: Investing - Theory, News & General
Topic: Aggressive Bogleheads Portfolio
Replies: 51
Views: 5493

Re: Aggressive Bogleheads Portfolio

Don't ignore the psychological factor of investing. If you are just starting out, you probably shouldn't allocate too much to equities. You can only measure your true risk tolerance, when you see your equity portfolio drop 20-30%. Start small, get the hang of it, after that increase your equity expo...
by Charybdis
Sat Jun 30, 2012 10:13 am
Forum: Investing - Theory, News & General
Topic: ETFs and the Uselessness of iNAV
Replies: 54
Views: 6687

Re: ETFs and the Uselessness of iNAV

Maybe I don't understand something, but if the end of the day NAV is accurate, and the intraday NAV isn't, then I guess there is a difference between the calculation method of the NAV and iNAV, right?

Then why don't stock exchanges/ETFs calculate the real time iNAV the same way as the NAV?
by Charybdis
Sat Jun 30, 2012 6:45 am
Forum: Investing - Theory, News & General
Topic: Average Tracking Error by ETF Provider- Vanguard is the Best
Replies: 6
Views: 809

Re: Average Tracking Error by ETF Provider- Vanguard is the

Here is a related article by Gary Gastineau at ETF Consultants LLC: The Lazy Portfolio Manager + Tracking Error ETFs do not have to hold cash balances to meet cash redemption requests. Sadly, many ETF portfolio managers have decided that holding cash makes them look better in bad years and does not ...
by Charybdis
Sat Jun 30, 2012 5:12 am
Forum: Investing - Theory, News & General
Topic: ETFs and the Uselessness of iNAV
Replies: 54
Views: 6687

Re: ETFs and the Uselessness of iNAV

Just a clarification: does it mean that I shouldn't even look at the iNAV at all? I mean iNAV is not even good for a rough estimate? But how do market makers exactly calculate the "true" iNAV then? How could I do the same? Would it be cost-effective? Or is it something which is only available to big...
by Charybdis
Fri Jun 29, 2012 11:32 am
Forum: Investing - Theory, News & General
Topic: Aggressive Bogleheads Portfolio
Replies: 51
Views: 5493

Re: Aggressive Bogleheads Portfolio

I don't know what do you mean by "aggressive". There is a portfolio by Rick Ferri which has the potential to outperform the simple three-fund portfolio, at a lower risk level (higher Sharpe-ratio). Of course, the outperformance and lower risk level is not guaranteed, but you wanted an aggressive por...
by Charybdis
Fri Jun 29, 2012 11:05 am
Forum: Investing - Theory, News & General
Topic: ETFs and the Uselessness of iNAV
Replies: 54
Views: 6687

Re: ETFs and the Uselessness of iNAV

So there is no way to know in advance whether I pay the fair price for an ETF, or not? You have to trust that the mid-point between the bid/ask spread represents close to NAV because the market makers have best estimate on what NAV is at any moment. That's the best you can do with ETFs. If you want...
by Charybdis
Fri Jun 29, 2012 6:16 am
Forum: Investing - Theory, News & General
Topic: ETFs and the Uselessness of iNAV
Replies: 54
Views: 6687

Re: ETFs and the Uselessness of iNAV

So there is no way to know in advance whether I pay the fair price for an ETF, or not?
by Charybdis
Thu Jun 28, 2012 12:13 pm
Forum: Investing - Theory, News & General
Topic: ETFs and the Uselessness of iNAV
Replies: 54
Views: 6687

Re: ETFs and the Uselessness of iNAV

I have a couple of questions. Is there a difference between the calculation method of the iNAV, and the calculation method of the NAV? If they calculate the iNAV the same way as the NAV, then even the NAV is useless? And what is the "true" value of an ETF anyway? The NAV? If the iNAV is useless, the...
by Charybdis
Tue Jun 26, 2012 11:58 am
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

That's a good question. But if Deutsche Bank goes bankrupt, here in the EU we will have bigger things to worry about. Maybe it is also a good idea to diversify among ETF providers.
by Charybdis
Tue Jun 26, 2012 11:19 am
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

I also agree that the full physical replication is the best (and not the optimized physical, or synthetic replication). But I couldn't find any full physical replication fund which is appropriate to me. So I won't avoid an ETF just because it uses optimized physical, or synthetic replication. The db...
by Charybdis
Tue Jun 26, 2012 11:06 am
Forum: Investing - Theory, News & General
Topic: so what if i wanted to learn day trading
Replies: 103
Views: 8933

Re: so what if i wanted to learn day trading

I heard that High-frequency trading is even more brutal than day trading.
by Charybdis
Tue Jun 26, 2012 11:02 am
Forum: Investing - Theory, News & General
Topic: Simba's backtesting spreadsheet [a Bogleheads community project]
Replies: 1115
Views: 620130

Re: Spreadsheet for backtesting (includes TrevH's data)

Where could I find the international or global REIT performance, from 1972 to 2011? Is there such a thing exist? I don't know where to download the global or international REIT returns.
by Charybdis
Tue Jun 26, 2012 10:38 am
Forum: Investing - Theory, News & General
Topic: AMA: Morgan & The Euro Crisis - Is this time different?
Replies: 73
Views: 7556

Re: AMA: Morgan & The Euro Crisis - Is this time different?

Passive Investing Wisdom from Taylor Larimore IU: In these trying times, do you think it's reasonable to make tactical allocation changes? Larimore: You are younger than I am or you might not call these "trying times." I have endured at least 10 bear markets when the S&P 500 declined 20% or more. I...
by Charybdis
Tue Jun 26, 2012 10:31 am
Forum: Investing - Theory, News & General
Topic: so what if i wanted to learn day trading
Replies: 103
Views: 8933

Re: so what if i wanted to learn day trading

Instead of day trading, why not bet for a sector? For example, buy and hold a small cap value emerging markets index fund. You could earn as much as 20% per year if you are lucky. Only use 5% of your portfolio for this experiment. Put 95% of your money into a Lazy Portfolio.
by Charybdis
Tue Jun 26, 2012 10:23 am
Forum: Investing - Theory, News & General
Topic: International REITs/Real Estate Allocation
Replies: 59
Views: 8435

Re: International REITs/Real Estate Allocation

You defend yourself from crash via the bond portfolio, and the emergency fund. Not by omitting REIT. And no one can predict the future correlation, volatility and return of the REIT, so your comment about valuation doesn't make sense to me. And why limit yourself only to US REIT? US REIT is just 45%...
by Charybdis
Tue Jun 26, 2012 9:58 am
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

That's right. Both the capitalizing and distributing share classes pay the same dividend withholding tax. The only extra tax you pay is the Italian dividend tax, if you choose the distributing share class. Ok seems like you aware of the fact that you pay unnecessary dividend tax in Italy, but you be...
by Charybdis
Mon Jun 25, 2012 5:21 pm
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

The db X-trackers FTSE EPRA/NAREIT GLOBAL REAL ESTATE ETF is a capitalizing REIT ETF. the stock exchange doesn't matter, only the share classes matter. Also ETFs aren't subject to UK stamp duty reserve tax. It is a synthetic ETF, but full replication ETFs aren't riskless either. They use security le...
by Charybdis
Mon Jun 25, 2012 4:53 pm
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

You sure pay double tax on ETFs. Unless you use the foreign tax credit. Do you use it? Let's say your Irish ETF holds a US stock. The ETF receives dividend from that stock. The ETF pays about 15% dividend withholding tax to the US government. Strike one. (note: the ETF can reduce the dividend withho...
by Charybdis
Mon Jun 25, 2012 3:02 pm
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

You pay unnecessary taxes? Why? Read the Bogleheads rules. 1st rule: minimize your costs, including taxes. Do you at least claim back the foreign tax credit? You pay taxes twice, this is a double taxation: First the ETF itself pays dividend withholding taxes to foreign governments, then you yet agai...
by Charybdis
Mon Jun 25, 2012 2:39 pm
Forum: Investing - Theory, News & General
Topic: International REITs/Real Estate Allocation
Replies: 59
Views: 8435

Re: International REITs/Real Estate Allocation

But you talk about only US REIT, but US REIT is only about 45% of the REIT market.
by Charybdis
Mon Jun 25, 2012 2:28 pm
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

So exactly which ETFs do you intend to buy? And which share class (USD, EUR or EUR-hedged)? I also prefer full physical replication ETFs, but if I can find only synthetic or optimized physical ETFs which are appropriate, then I buy them. So you pay dividend tax after the ETF dividends??? Then why do...
by Charybdis
Mon Jun 25, 2012 2:03 am
Forum: Investing - Theory, News & General
Topic: International REITs/Real Estate Allocation
Replies: 59
Views: 8435

Re: International REITs/Real Estate Allocation

@Valuethinker good points! The "lazy portfolios" recommend about 10% REIT allocation inside your equity portfolio. REIT is underrepresented in the total stock market index, that is why you should "tilt" towards REIT (because the economy contains more real estate than the total stock market). Here i...
by Charybdis
Sun Jun 24, 2012 1:27 pm
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

But Vanguard has only 5 distributing ETFs. Why would you buy a distributing ETF? Also did you check the tax treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between Italy and Luxembourg, Ireland? Does Ireland or Luxembourg withheld any ...
by Charybdis
Sun Jun 24, 2012 12:35 pm
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

@billco "I agree with Valuethinker that the only 'European' advice one needs is that around the tax and transaction costs of being in a particular European country." No, check my post above. There is a lot more than that: -the different tax system -learn how to trade ETFs without losing money -learn...
by Charybdis
Sun Jun 24, 2012 11:57 am
Forum: Investing - Theory, News & General
Topic: Any good European author for Bogleheads?
Replies: 32
Views: 24155

Re: Any good European author for Bogleheads?

@Valuethinker I think that my global equity portfolio in USD is a good protection against the default of my country. I considered opening a bank account in a safe foreign bank. But I get 8% interest rate in HUF, in my Hungarian bank, it is about 1.7% real interest rate after taxes (the government in...