Search found 9 matches

by AnotherINTP
Sun Jan 08, 2012 11:44 pm
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

I find this interesting but not meaningful. Without a larger period considered, it could easily be just random. It's possible there is a penalty for rebalancing this often! What caught my attention for the TR fund numbers were the YTD performances against their composite benchmark Indices, even tho...
by AnotherINTP
Thu Jan 05, 2012 12:02 am
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

There probably won't be a penalty for rebalancing because, contrary to popular belief, rebalancing increases rather than controls risk. The reason is, when an asset class goes down it goes down because the risk of that asset class has increased proportionally...so when you buy more you increase you...
by AnotherINTP
Wed Jan 04, 2012 9:34 am
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

I find this interesting but not meaningful. Without a larger period considered, it could easily be just random. It's possible there is a penalty for rebalancing this often! Perhaps we could frame this another way. Each time any of us tinkers with our portfolio by manually intervening to rebalance, ...
by AnotherINTP
Tue Jan 03, 2012 11:15 pm
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

Another caveat emptor : The TR funds are intended to be your sole position and not mixed with other funds/ETFs. Certainly, to the extent that the Vanguard TR funds have shown a tendency to spontaneously mutate in their asset allocations with limited warning, it makes sense for portfolio customizers...
by AnotherINTP
Tue Jan 03, 2012 8:00 pm
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

One difference between a fund of funds, and an individual holding those funds is that an individual can let the asset allocatio drift a fair bit before rebalancing, while the fund of funds may try to stay very close to the intended allocation. Anyway, maybe you should start a new thread with your c...
by AnotherINTP
Tue Jan 03, 2012 1:54 am
Forum: Investing - Theory, News & General
Topic: Are Daily Rebalancing All-In-One Funds a Better Mousetrap?
Replies: 0
Views: 1758

Are Daily Rebalancing All-In-One Funds a Better Mousetrap?

Consider Larry Swedroe's perspective on rebalancing: But the purpose of rebalancing is to control risk, not increase returns, and that thus in world of no costs the only rational strategy is to rebalance daily. But we do have costs so we don't rebalance daily. And time is even a cost. Vanguard's Tar...
by AnotherINTP
Mon Jan 02, 2012 9:26 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2308
Views: 1456964

Re: Vanguard experts saw the light ahead.

Further support for this 3-Fund approach comes from the fact that these same 3 funds form the core holdings in Vanguard's own Target Retirement Funds. With the most recent changes in the Target and Life Strategy Funds, Vanguard experts finally saw the light. :wink: Happy New Year! Taylor Each New Y...
by AnotherINTP
Sat Dec 31, 2011 1:52 am
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

I just noticed Larry Swedroe's perspective: But the purpose of rebalancing is to control risk, not increase returns, and that thus in world of no costs the only rational strategy is to rebalance daily. But we do have costs so we don't rebalance daily. And time is even a cost By that measure -- howev...
by AnotherINTP
Fri Dec 30, 2011 8:37 pm
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 10005

Re: An Inside Look at Target Retirement Funds

Note: This is a bump of a very old thread. Would anyone happen to still have access to the above-linked document? Or, does anyone have any other document explicitly indicating that Vanguard's "funds of funds" are rebalanced daily? I'm struggling to find anything concrete from Vanguard themselves. (...