Search found 8214 matches

by Doc
Sat Jun 23, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

Could the VIOV/ DBR thing be institutional share investors strongly objecting to the change to the CRSP indices? The alternate-index ETFs existed before the switch to CRSP. Vanguard has two basic goals: 1) collect as much AUM as possible 2) rip everyone else's face off when it comes to competing on...
by Doc
Sat Jun 23, 2018 7:04 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

https://investor.vanguard.com/etf/profile/VIOV Does anyone get nervous that on Vanguard's own page for VIOV, it recommends you "consider" VBR instead? Do you think there is a chance they will shut down the fund? It' s like they are encouraging you not to invest in VIOV. I just found that strange. I...
by Doc
Fri Jun 22, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

It's hard for me to see how this is an issue for individual investors with time horizons measured in years instead of minutes. For one thing, VIOV is trading about $1.5 million per day which is not nothing. For another thing, you can be sure that Vanguard and/or its authorized participants are moni...
by Doc
Fri Jun 22, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

Thanks. I think for portfolio construction purposes, VBR should just be viewed as approximately 50% mid-cap and 50% small-cap. I only think of small cap and large cap so for me VBR is 50% large-cap and 50% small-cap. And if I wanted that I might as well use a total market fund. I do use some VBR (~...
by Doc
Fri Jun 22, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

VIOV will be about 75% of our small-cap holdings now. I like the VIOV portfolio. The problem with VIOV that I can't resolve is the low trade volume. A Morningstar price chart for VIOV with IJS is here: http://quotes.morningstar.com/chart/etf/chart.action?t=VIOV®ion=usa&culture=en_US&dataParams=%...
by Doc
Thu Jun 21, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Are the Fed and Treasury distorting the MBS market?
Replies: 16
Views: 1508

Re: Are the Fed and Treasury distorting the MBS market?

jalbert wrote:
Thu Jun 21, 2018 12:38 pm
Treasury intervention in Fannie and Freddie is another infringement on free market forces in the MBS market.
Yes, that's a whole other problem with MBS.
by Doc
Thu Jun 21, 2018 3:34 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

VG has a tax-managed small cap mutual fund which I believe tracks the S&P600. I also prefer IJS (I actually use VIOV), but my 401k only has Vanguards small value. This I always make a point to buy VIOV first in Roth and often my taxable, to reduce/eliminate my Vanguard SCV holding. You might want t...
by Doc
Thu Jun 21, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

The size difference is day and night in my eyes. M* shows about 55% of VBR being larger than the largest stock in IJS. I calculated 40% from VG and iShares holdings data. Either my calculation was incorrect, M* is incorrect, or VG and/or iShares is reporting erroneous holdings data. I’ve formed my ...
by Doc
Thu Jun 21, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 48
Views: 2594

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

I did a comparison of VBR with IJS a S&P Small-Cap Value index fund to see the difference. Ironically I've spent a lot of time in the last two days doing the same thing. I own both but prefer the IJS. I would like to replace the Vangaurd fund with another Vanguard fund that has smaller cap but it l...
by Doc
Thu Jun 21, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 32
Views: 2123

Re: Is individual Bonds better than Bond Fund?

I think Larry Swedroe said that you should have at least 500K to go into individual bonds. He also said that one should stick with AAA/AA individual bonds. The issue of investing small amounts is an important one when it comes to municipal and corporate bonds. The reason is that larger blocks recei...
by Doc
Thu Jun 21, 2018 11:57 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 113
Views: 8522

Re: US T bills - first time user

Trade Settlement: Mutual funds: Mutual funds can be bought and sold daily. However, unlike equities and other types of securities that trade on the secondary market throughout each trading day, share transactions in a fund are carried out once each day after the close of market at 4 p.m. EST (Easter...
by Doc
Thu Jun 21, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 113
Views: 8522

Re: US T bills - first time user

Nitpick for clarity. Selling a Treasury one business day before settlement or having one mature on the settlement date of a new Treasury purchased either on the open market or at auction is "allowed" by (SEC?) regulations. Whether or not rolling a maturing Treasury into a new Treasury automatically ...
by Doc
Thu Jun 21, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 113
Views: 8522

Re: US T bills - first time user

Purchased my first US T bill (13 week) at auction this week with 25% of what I had in Schwab Prime MM at 1.83%. Investment rate on the auction results was 1.936% and with our state tax rate that corresponds to 2.03% taxable equivalent. I plan to do this every 4 weeks until I have a rolling ladder w...
by Doc
Thu Jun 21, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 32
Views: 2123

Re: Is individual Bonds better than Bond Fund?

I never buy any bond individual bond, only buy bond funds. To me individual bond is too illiquid , with 2-3% annual yield, the bid-ask spread eats too much of the income if in case you need to sell for some unplanned reason. Bond fund is very liquid and is laddered and very well diversified portfol...
by Doc
Thu Jun 21, 2018 7:22 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 113
Views: 8522

Re: US T bills - first time user

Not sure on a few details of rollover - the 13 week bills auction on Mondays and settle on Thursdays with maturity dates 13 weeks out also on Thursdays. Makes me wonder if within a given week I can buy at auction on the Monday prior to a bill maturing Thursday of that week without incurring a margi...
by Doc
Thu Jun 21, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Are the Fed and Treasury distorting the MBS market?
Replies: 16
Views: 1508

Re: Are the Fed and Treasury distorting the MBS market?

Could it be just the negative convexity with MBS coupled with rising rates that is causing the effect that you are seeing? :idea: I don’t think so. Convexity has to do with how the bond prices respond to yield changes, not how the yield changes. The behavior in question has been favorable for MBS r...
by Doc
Wed Jun 20, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Fund Yield reached 1.99% today
Replies: 18
Views: 3593

Re: Vanguard Prime Fund Yield reached 1.99% today

student wrote:
Wed Jun 20, 2018 6:31 am
I plan to keep up to $50,000 in such a saving account. So 0.5% is $250 a year if I keep $50,000, which I consider worthwhile to switch to an account that is safe but not the FDIC insured level.
You are a very conservative person.
by Doc
Tue Jun 19, 2018 8:27 pm
Forum: Investing - Theory, News & General
Topic: Do you have to invest in Bond ETF?
Replies: 7
Views: 857

Re: Do you have to invest in Bond ETF?

See Grabiner's 5 star post.
by Doc
Tue Jun 19, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard email about transition fund accounts to new brokerage platform
Replies: 37
Views: 2067

Re: Vanguard email about transition fund accounts to new brokerage platform

I currently have funds X, Y, and Z in my SEP-IRA. I have set it up so that on a certain date each month, shares of fund X worth $A are removed from fund X and those proceeds are equally deposited into funds Y and Z. This will continue for 18 months until fund X is eliminated (sound like market timi...
by Doc
Mon Jun 18, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard email about transition fund accounts to new brokerage platform
Replies: 37
Views: 2067

Re: Vanguard email about transition fund accounts to new brokerage platform

What troubles me is the Account Statements related to the brokerage accounts. There is no year to date reporting statement. With Mutual Fund Accounts, you can simple print one year to date statement each year that includes all transactions for the entire year. Go to the "Account Activity" and click...
by Doc
Mon Jun 18, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: Are the Fed and Treasury distorting the MBS market?
Replies: 16
Views: 1508

Re: Are the Fed and Treasury distorting the MBS market?

Could it be just the negative convexity with MBS coupled with rising rates that is causing the effect that you are seeing? :idea: Seems like that should produce the opposite effect. Fewer debtors executing calls/prepaying, so effective maturities and duration extend, so market prices of the MBS sho...
by Doc
Mon Jun 18, 2018 10:48 am
Forum: Investing - Theory, News & General
Topic: Are the Fed and Treasury distorting the MBS market?
Replies: 16
Views: 1508

Re: Are the Fed and Treasury distorting the MBS market?

Could it be just the negative convexity with MBS coupled with rising rates that is causing the effect that you are seeing? :idea:
by Doc
Mon Jun 18, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: Should I worry about taxation of seller's accured interest in buying tbills?
Replies: 2
Views: 311

Re: Should I worry about taxation of seller's accured interest in buying tbills?

duricka wrote:
Thu Jun 14, 2018 8:58 pm
For now I bough only those bills that had 0 accrued interest. Should I assume Schwab will correctly report my part of profit if I buy a t bill with non-zero interest paid to the seller?
Schwab does not "screw it up".
by Doc
Sat Jun 16, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: Bill Gross' fund, lately...
Replies: 12
Views: 1194

Re: Bill Gross' fund, lately...

On the other hand, I think it's fair to say that there was a cult of personality around Bill Gross personally, and that the performance of PTTRX was widely attributed to him personally. That's why investors pulled out over 3/4 of the assets in the fund following his departure. I always had the ques...
by Doc
Sat Jun 16, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Bill Gross' fund, lately...
Replies: 12
Views: 1194

Re: Bill Gross' fund, lately...

Bill Gross' departure had very little obvious-to-the-eye effect on PIMCO Total Return, and the fact that investors were able to pull out over $200 billion dollars, or over 70% of the assets in the fund, without hurting investors who stayed in the fund, is, to me, good evidence of the solidity and r...
by Doc
Sat Jun 16, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Bill Gross' fund, lately...
Replies: 12
Views: 1194

Re: Bill Gross' fund, lately...

PTTRX suffered huge outflows when he left. I added Harbor Bond Fund (HABDX) to your chart. This fund is managed by the same Pimco team that managed PTTRX both then and now. https://s8.postimg.cc/4c9wrf2at/Gross-_Capture.gif Same fall off after Gross left and same recovery when everyone realized tha...
by Doc
Fri Jun 15, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 24
Views: 2669

Re: 30 yr tips auction: june 21: 1.0% yield?

grok87 wrote:
Fri Jun 15, 2018 9:40 am
So using #Cruncher’s handy table you would want to have at least $1060 available per bond.
... by settlement day which I belive is 6/29.
by Doc
Thu Jun 14, 2018 9:11 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 24
Views: 2669

Re: 30 yr tips auction: june 21: 1.0% yield?

For what it's worth here's a chart of the 30 year yield and the added additional yield over the ten year yield.

Image

The additional amount that you get going to 30 has really diminished in the last year or so. Change in Fed action?
by Doc
Wed Jun 13, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4763

Re: How and when do you decide to do Tax Loss Harvesting?

so lets say someone is at vanguard. could you flip from their total market ETF to the mutual fund without triggering a wash sale? I Probably not. There is no tax consequence from going from investor share to admiral. So I would assume that the same would apply here. I believe you would have a wash ...
by Doc
Tue Jun 12, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1856

Re: Is Vanguard Small Cap Index really small cap?

triceratop wrote:
Tue Jun 12, 2018 5:13 pm
ts IJS/VIOV -- S&P600 Value ETF. Oh and VIOV is available at an expense of 0.20%.
VIOV average volume < 10k :(
by Doc
Tue Jun 12, 2018 2:38 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1856

Re: Is Vanguard Small Cap Index really small cap?

The tilting strategies are easier in theory than they are in practice. This is true of other investment strategies as well. One reason a lot of folks have thrown in the towel and just index. I guess I am an eternal optimist. How about an ETF? https://s22.postimg.cc/6dapb9txt/IJS_Capture.gif e/r 0.2...
by Doc
Tue Jun 12, 2018 1:59 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1856

Re: Is Vanguard Small Cap Index really small cap?

nedsaid wrote:
Tue Jun 12, 2018 1:48 pm
These type of funds are not easy too find, the ones you find have their flaws. Many have expense ratios higher than what many Bogleheads will tolerate.
Yep.
by Doc
Tue Jun 12, 2018 12:41 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1856

Re: Is Vanguard Small Cap Index really small cap?

Well, sometimes close enough is close enough. Mid-Caps perform in a similar fashion to Small-Caps, tend to have a little less return with a little less volatility. Many feel that Mid-Caps are the "sweet spot" of the stock market. I would not obsess over this. Re: "the sweet spot" Not according to L...
by Doc
Tue Jun 12, 2018 11:11 am
Forum: Investing - Theory, News & General
Topic: Impact of Fed. interest rate hike on CD rates
Replies: 4
Views: 777

Re: Impact of Fed. interest rate hike on CD rates

The Fed is expected to raise rates at the current (june 12-13) meeting. What is your prediction as to the impact a rate hike will have on CD rates? Because a Fed. benchmark rate hike is strongly predicted (as well as future hikes later this year), is this already likely factored into current CD rat...
by Doc
Tue Jun 12, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: When will Fed meet next to adjust interest rates?
Replies: 3
Views: 416

Re: When will Fed meet next to adjust interest rates?

You want to look at the Federal Open Market Committee (FOMC) calendar. https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm They are meeting today and tomorrow. I belive that they make announcements (press release) of federal rate target moves about 2:00 PM on the second day. Minutes come...
by Doc
Mon Jun 11, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4763

Re: How and when do you decide to do Tax Loss Harvesting?

michaeljc70 wrote:
Mon Jun 11, 2018 10:30 am
I also don't keep bonds in taxable accounts.
Some bonds are very tax-efficient. Notice the short bond funds at the top of the list.

From the Bogleheads Wiki:
Image

https://www.bogleheads.org/wiki/Tax-eff ... _placement
by Doc
Mon Jun 11, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4763

Re: How and when do you decide to do Tax Loss Harvesting?

michaeljc70 wrote:
Mon Jun 11, 2018 10:08 am
The amount of talk on these forums of TLH after a 9 year bull run suprises me.
It's not been a bull market in bonds.
by Doc
Sun Jun 10, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

People need to stop using a claim of Recency bias as a crutch to justify their position that 30-day T-Bills keep up with inflation! Maybe I wasn't being clear. I don't think you should use the last ~ten years US Treasury data to make any kind of predictions of future events at all because of the ex...
by Doc
Sun Jun 10, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

That said, if somebody is worried about bonds and inflation (a very legitimate concern), they can largely protect themselves with TIPS. That's another discussion and likely another thread Right. That's Grok's 30 year TIPS threads. Occasionally I throw in a rolling ten ladder into that thread instea...
by Doc
Sun Jun 10, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

FIREchief wrote:
Sun Jun 10, 2018 3:34 pm
There is no such thing as "normal" times.
Agreed, but I think we should be able to agree that the Fed action from 2008 through ~2016/17 was not normal. Using interest rate data from the past ten years fro projections is very iffy in my mind.
by Doc
Sun Jun 10, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

That narrowing gap since 2008 (between the grey and the green line) indicates that they have not been keeping up with inflation for the past 10 years. People need to stop using Treasury data starting with 2008. The '08 financial crisis and the subsequent some ten year period of Fed quantitative eas...
by Doc
Sun Jun 10, 2018 11:59 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Prudence would generally require that retirement assets not be in cash because we know cash will be beaten by inflation. Generally T-bills are considered cash and 30 day t-bills will not be beaten by inflation. Can you please elaborate? I *think* I know what you mean, but want to make sure. Thanks ...
by Doc
Sun Jun 10, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31344

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

In any case the key to compliance would be widespread availability of Admiral fund shares at other brokerages. An e/r of 10 is great but 20 should not be a deal breaker. Still, from my perspective (and I realize that my view might be different from yours), 10 basis points would cost me, round numbe...
by Doc
Sun Jun 10, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Prudence would generally require that retirement assets not be in cash because we know cash will be beaten by inflation. Generally T-bills are considered cash and 30 day t-bills will not be beaten by inflation. Can you please elaborate? I *think* I know what you mean, but want to make sure. Thanks ...
by Doc
Sun Jun 10, 2018 11:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7514

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

autolycus wrote:
Sun Jun 10, 2018 11:17 am
Prudence would generally require that retirement assets not be in cash because we know cash will be beaten by inflation.
Generally T-bills are considered cash and 30 day t-bills will not be beaten by inflation.
by Doc
Sun Jun 10, 2018 11:22 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31344

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

tibbitts wrote:
Sun Jun 10, 2018 11:10 am
In any case the key to compliance would be widespread availability of Admiral fund shares at other brokerages.
An e/r of 10 is great but 20 should not be a deal breaker.
by Doc
Sun Jun 10, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31344

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

There are a number of references addressing Vanguard Admiral Shares at other brokers. An example: She came back and said that although you can not purchase a new position in a Vanguard Admiral fund at Schwab, you can transfer an existing Admiral fund over to Schwab and then continue to buy more shar...
by Doc
Sun Jun 10, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31344

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

I don't think you would have to liquidate funds and pay taxes, but you would have to switch to more expensive share classes. I'm not sure if you would have to switch at Vanguard before moving or at the new brokerage after. Probably someone else has done this and can confirm. Might be a solution. So...
by Doc
Sun Jun 10, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31344

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

TomatoTomahto wrote:
Sun Jun 10, 2018 9:50 am
Wife’s employer has nothing against Vanguard, but they have a limited number of approved brokers (3 or 4, I believe, including Fidelity). I think it would add to their costs to expand the list.
Better your costs go up then mine. :P
by Doc
Sun Jun 10, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31344

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

People are making things up and nit-picking about inconsequential changes in order to try to justify keeping archaic mutual fund platforms. We have a mid 7 digit amount in Admiral class shares, with low 7 digit capital gains. My wife’s employer “grandfathered” Vanguard mutual fund only accounts, bu...