Search found 291 matches

by gtwhitegold
Wed Jan 16, 2019 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Debt free - now what?
Replies: 9
Views: 1016

Re: Debt free - now what?

I don’t think I want the “2nd job” of real estate so I’ll just keep growing my taxable account (HSA already maxed and 12 month e-fund.) I don’t like the idea of bonds given their low real rate of return, my long time horizon, etc The challenge is you're posting competing goals. You don't want marke...
by gtwhitegold
Tue Jan 15, 2019 8:28 pm
Forum: Investing - Theory, News & General
Topic: Vanguard New Factor Funds Portfolio Statistics
Replies: 224
Views: 34192

Re: Vanguard New Factor Funds Portfolio Statistics

In response to my own question about VFLQ. Below is an article from Larry Swedroe from 2015 that discounts the likelihood of a liquidity premium in US stocks. US micro caps traded on the NASDAQ were the only stocks that showed a liquidity premium in recent history. The reduction of the liquidity pre...
by gtwhitegold
Tue Jan 15, 2019 5:03 pm
Forum: Investing - Theory, News & General
Topic: Active Stock Fund Slump (Morningstar discussion)
Replies: 3
Views: 338

Re: Active Stock Fund Slump (Morningstar discussion)

I agree with the fees matter idea, but I am reluctant to just go TSM for US and International.

While certain styles have underperformed recently, I still believe that in the long haul, style premia such as value, momentum, quality, and size will outperform.
by gtwhitegold
Mon Jan 14, 2019 7:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard New Factor Funds Portfolio Statistics
Replies: 224
Views: 34192

Re: Vanguard New Factor Funds Portfolio Statistics

For the individual factor funds, the only one that I would consider is VFLQ since it is the only fund that targets a factor that is not widely targeted by any multi-factor fund. At first glance, I would suggest probably target 10% of my US equities, but I would still like to look at the academic res...
by gtwhitegold
Fri Jan 11, 2019 6:27 pm
Forum: Investing - Theory, News & General
Topic: Funds Overlap Tool
Replies: 9
Views: 754

Re: Funds Overlap Tool

I think that the 2 biggest differences are as follows:
1. DGS has higher maximum market capitalization than EEMS thereby including larger mid-caps than EEMS.
2. DGS excludes companies that do not have a dividend, but EEMS includes all companies in their market cap range.
by gtwhitegold
Fri Jan 11, 2019 6:20 pm
Forum: Investing - Theory, News & General
Topic: Low-volatility ETFs have beaten S&P indexes while cutting risk
Replies: 12
Views: 1230

Re: Low-volatility ETFs have beaten S&P indexes while cutting risk

columbia wrote:
Fri Jan 11, 2019 6:11 pm
USMV holds almost 24% LT treasuries.

I do not consider this ETF to be “similar” to the S&P 500.
Where do you see that? Top 10 holdings for USMV are all equities on Morningstar.com.
by gtwhitegold
Wed Jan 09, 2019 6:56 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Does The Bucket Approach Destroy Wealth?
Replies: 56
Views: 5796

Re: Larry Swedroe: Does The Bucket Approach Destroy Wealth?

My question is tangentially related to this topic. What is the safe allocation to cash for some approaching or in retirement? I was thinking 2 years, but it realistically could be more or less than that. You have to live on something, and most people don't want to be redeeming stocks/bonds on a mon...
by gtwhitegold
Wed Jan 09, 2019 6:03 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Does The Bucket Approach Destroy Wealth?
Replies: 56
Views: 5796

Re: Larry Swedroe: Does The Bucket Approach Destroy Wealth?

My question is tangentially related to this topic. What is the safe allocation to cash for some approaching or in retirement? I was thinking 2 years, but it realistically could be more or less than that.
by gtwhitegold
Wed Jan 09, 2019 5:31 pm
Forum: Investing - Theory, News & General
Topic: Opinions on First Trust International AlphaDEX ETFs
Replies: 7
Views: 469

Re: Opinions on First Trust International AlphaDEX ETFs

I'm using it in a tax advantaged account, so I'm not too concerned about fund closure. I also agree that it could be cheaper, but it looks more value biased than DGS, so I still use it.
by gtwhitegold
Tue Jan 08, 2019 6:15 pm
Forum: Investing - Theory, News & General
Topic: Opinions on First Trust International AlphaDEX ETFs
Replies: 7
Views: 469

Re: Opinions on First Trust International AlphaDEX ETFs

They have two international small value ETFs: FDTS - Int Dev Mkts Small-Cap Value and FEMS - Emerging Mkts Small/Mid-Cap Value. Volume/AUM is very low, especially FDTS, and their expense ratios are relatively high. I'm just looking for opinions on their portfolio construction since there are very f...
by gtwhitegold
Tue Jan 08, 2019 7:07 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 61
Views: 5711

Re: Factor investing with one fund.

If one looks at diversification across identified sources of return, then need to diversify across factors, and this requires tilts to them. Nice try but the real truth is, however, that it simply can't be assumed that any particular factor will outperform in any give time period. Thus by tilting t...
by gtwhitegold
Mon Jan 07, 2019 7:38 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 61
Views: 5711

Re: Factor investing with one fund.

If one looks at diversification across identified sources of return, then need to diversify across factors, and this requires tilts to them. Nice try but the real truth is, however, that it simply can't be assumed that any particular factor will outperform in any give time period. Thus by tilting t...
by gtwhitegold
Sun Jan 06, 2019 12:33 pm
Forum: Investing - Theory, News & General
Topic: RAFI Fundamental v. FTSE RAFI v. Russell RAFI
Replies: 5
Views: 505

Re: RAFI Fundamental v. FTSE RAFI v. Russell RAFI

One of the biggest differences in the international funds is that the FTSE indices include Korea as a Developed Market and the other two include Korea as an Emerging Market. Aside from that, I would run a factor regression on the funds with Portfolio Visualizer. https://www.portfoliovisualizer.com/f...
by gtwhitegold
Thu Jan 03, 2019 7:34 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: investing Uncomfortably
Replies: 88
Views: 7715

Re: Larry Swedroe: investing Uncomfortably

I agree. Any strategy could possibly fail. If you invested in 60/40 between S&P 500 and Total Bond Market and retired in January of 2000 or October of 2007, you could have been in for a very bumpy ride, likely resulting in failure. Just one more note. So far, a 60/40 U.S. portfolio hasn't ever faile...
by gtwhitegold
Wed Jan 02, 2019 6:12 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 166
Views: 34741

Re: How Do You Like My New 'Doo

I personally have appreciated your detailed reviews of your own portfolio as well Nedsaid. I also am a believer in quantitative methods, specifically quality and value like you have tried to target with your portfolio. I have taken a different view from some other readers though. I still believe tha...
by gtwhitegold
Wed Jan 02, 2019 7:32 am
Forum: Investing - Theory, News & General
Topic: Invesco to close two micro cap ETFs
Replies: 20
Views: 1336

Re: Invesco to close two micro cap ETFs

Most of the closures were pretty niche anyways. The only one that I would have seriously considered is GMFL: Invesco Multi-Factor Large Cap ETF and I would have likely went with VFMF anyways.
by gtwhitegold
Tue Jan 01, 2019 7:14 pm
Forum: Investing - Theory, News & General
Topic: 529 plan when expecting
Replies: 5
Views: 404

Re: 529 plan when expecting

I personally created a plan in my name and changed the beneficiary to my daughter after she was born. I would just check with the 529 plan provider that you are looking to use to see what you need to do to change beneficiaries.
by gtwhitegold
Tue Jan 01, 2019 3:33 pm
Forum: Investing - Theory, News & General
Topic: Emerging Market Bond Funds
Replies: 101
Views: 4062

Re: Emerging market bonds as part of your equity allocation

Personally, I would look at it through a different lense. If my main goal is to reduce country allocation in my portfolio, then I wouldn't look for fixed income to do that. I would look at what other options are available for emerging market equities. It looks like a majority of the ETFs that exclud...
by gtwhitegold
Mon Dec 31, 2018 8:20 pm
Forum: Investing - Theory, News & General
Topic: Emerging Market Bond Funds
Replies: 101
Views: 4062

Re: Emerging market bonds as part of your equity allocation

Thank you for your detailed reply! That's certainly a possibility. It's also possible that you've vastly overcomplicated what's really a very simplistic analysis of a complex subject. Absolutely! My wife will testify to my proclivity to over-complicate things. My rule of thumb for every decision in...
by gtwhitegold
Mon Dec 31, 2018 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else in frontier markets?
Replies: 31
Views: 1543

Re: Anyone else in frontier markets?

I personally have a similar allocation to Frontier Markets divided evenly between FM and FRN (Invesco Frontier Markets ETF). Frontier Markets have lower correlations with US and Developed International Equities than Emerging Market Equities. They are significantly riskier however. Main reason that I...
by gtwhitegold
Sun Dec 30, 2018 2:08 pm
Forum: Investing - Theory, News & General
Topic: DFA says stick to your plan
Replies: 16
Views: 1893

Re: DFA says stick to your plan

I totally agree that someone should only make portfolio changes after thurough review. As has been stated before, people don't make good decisions with their stomachs.

Also, don't let the tax tail wag the investment dog. If you need to sell equities to rebalance or for income, then do it.
by gtwhitegold
Fri Dec 21, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: Contri more to aft-tax when market is low
Replies: 4
Views: 303

Re: Contri more to aft-tax when market is low

Regarding tax advantaged accounts, I would recommend someone to contribute towards traditional tax-advantaged accounts until he/she reached the next lower tax bracket and contribute the remainder to Roth accounts. If you are in a higher tax bracket though, you are likely better off putting it all in...
by gtwhitegold
Fri Dec 21, 2018 1:30 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversify Globally
Replies: 47
Views: 4741

Re: Larry Swedroe: Diversify Globally

The EM label is all great. But the fact is DFA EM Value fund and other EM funds are dominated by China. Fully 1/3rd of DFEVX is China + Taiwan. Rest 40% in South Korea, India, and Brazil. Remaining countries are too small allocations and unlikely to make major impacts to returns. EM is trading low ...
by gtwhitegold
Fri Dec 21, 2018 7:35 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversify Globally
Replies: 47
Views: 4741

Re: Larry Swedroe: Diversify Globally

I think Larry makes a very good case for global diversification and I believe it. I am US 50/DM 25/EM 25 , so I even overweight EM relative to global market weight because I believe that over the long term that increased EM risk will be rewarded with increased return. The increased volatility of EM...
by gtwhitegold
Tue Dec 18, 2018 7:48 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversify Globally
Replies: 47
Views: 4741

Re: Larry Swedroe: Diversify Globally

I think Larry makes a very good case for global diversification and I believe it. I am US 50/DM 25/EM 25 , so I even overweight EM relative to global market weight because I believe that over the long term that increased EM risk will be rewarded with increased return. The increased volatility of EM...
by gtwhitegold
Mon Dec 17, 2018 8:16 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversify Globally
Replies: 47
Views: 4741

Re: Larry Swedroe: Diversify Globally

I personally allocate 30% of equities to Emerging and Frontier Markets. This combined with 20% in Developed International make up 50% of my total equity allocation. I also am using tilted options wherever I can. So, it's mostly tilted in EM since I have most of my US and Developed International inve...
by gtwhitegold
Mon Dec 17, 2018 7:59 pm
Forum: Investing - Theory, News & General
Topic: What type of bond investor are you?
Replies: 35
Views: 2715

Re: What type of bond investor are you?

Mine are A and B, but I don't need as much safety as someone who is near retirement or who is currently retired, so I'm willing to take more risk as long as it has been historically rewarded.
by gtwhitegold
Thu Dec 13, 2018 10:29 am
Forum: Investing - Theory, News & General
Topic: VMVFX (Global Minimum Volatility) as core equity holding. Your opinion?
Replies: 128
Views: 7356

Re: VMVFX (Global Minimum Volatility) as core equity holding. Your opinion?

I think that the biggest thing to draw from the RA article that you reference (for this thread) is that low beta did underperform for a significant period of time, however it still provided a likely higher risk-adjusted return due to the inherent lower volatility. (Underperformance of 1.55% per year...
by gtwhitegold
Wed Dec 12, 2018 5:46 pm
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 20311

Re: What Happened to you during the Financial crisis of 2007–2008

I personally sold out in December of 2007 from all equity funds in my TSP. I luckily bought back in around the 4th day after the bottom of the market in 2009 and then tried market timing after that. It worked okay for a few years, but I tried a new timing strategy and didn't like it (because I was o...
by gtwhitegold
Wed Dec 12, 2018 6:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard New Factor Funds Portfolio Statistics
Replies: 224
Views: 34192

Re: Vanguard New Factor Funds Portfolio Statistics

It doesn't look like it's currency hedged. I couldn't find the prospectus, but nothing on the fund's main page mentions anything about currency hedging. Vanguard international developed factor funds exist. They're available in Europe for 0.22%, although not multi factor unfortunately. Country weighi...
by gtwhitegold
Tue Dec 11, 2018 6:15 pm
Forum: Investing - Theory, News & General
Topic: Vangurad's 2019 Economic and Market Outlook
Replies: 27
Views: 2902

Re: Vanguard's 2019 Economic and Market Outlook

I agree, but hopefully something like this will temper expectations helping some to stay on course.
Taylor Larimore wrote:
Tue Dec 11, 2018 5:56 pm
Bogleheads:

No one knows what the stock market will do. Fortunately, it doesn't matter to stay-the-course investors.

Best wishes.
Taylor
by gtwhitegold
Mon Dec 10, 2018 9:42 pm
Forum: Investing - Theory, News & General
Topic: Funding tIRA from joint taxable account?
Replies: 7
Views: 504

Re: Funding tIRA from joint taxable account?

Correct me if I'm wrong, but I don't believe that you can do an "in kind" transfer if that's what you are looking for.
by gtwhitegold
Mon Dec 10, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Who is buying SCV, EM, Intl SC
Replies: 41
Views: 2770

Re: Who is buying SCV, EM, Intl SC

I sold QSMNX to buy DGS and SFENX. Now all of my US stock holdings, International Developed Large Caps, and bonds are in the TSP. Once the I Fund changes to the ACWI ex US IMI index, I will reevaluate where to allocate new money.
by gtwhitegold
Sun Dec 09, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: Ignored Risks of Factor Investing
Replies: 104
Views: 5403

Re: Ignored Risks of Factor Investing

I would tend to agree with you about the small cap premium. That would also explain the problem with junk small growth stocks. MTUM usually has a negative loading on value, for instance, which counters the benefit of owning IJS at least in part. USMV has a negative loading on size. Both IJS and MTUM...
by gtwhitegold
Sun Dec 09, 2018 4:51 pm
Forum: Investing - Theory, News & General
Topic: Vanguard New Factor Funds Portfolio Statistics
Replies: 224
Views: 34192

Re: Vanguard New Factor Funds Portfolio Statistics

Regarding VMVFX, I think that the sector biases are relatively baked in since technology is historically one of the most volatile sectors and real estate is one of the least. VFMFX also has significant significant sector biases however, so I believe that a similar international fund would have simil...
by gtwhitegold
Sun Dec 09, 2018 9:06 am
Forum: Investing - Theory, News & General
Topic: Vanguard New Factor Funds Portfolio Statistics
Replies: 224
Views: 34192

Re: Vanguard New Factor Funds Portfolio Statistics

Considering how the only international (long only) fund offered by the QEG, is the Vanguard Global Minimum Volatility Fund Investor Shares (VMVFX), I would look at the weighting restrictions of that fund and use it as a baseline. The annual and semi-annual reports mention restrictions on company wei...
by gtwhitegold
Sat Dec 08, 2018 8:50 pm
Forum: Investing - Theory, News & General
Topic: Ignored Risks of Factor Investing
Replies: 104
Views: 5403

Re: Ignored Risks of Factor Investing

I would say that it could, but it would depend upon the strength of the factor loads on each fund and what negative alpha each has. If you have a SV fund like the generic Vanguard Small Cap Value Index Fund Admiral Shares (VSIAX), there isn't a large hurdle to cross since it doesn't have very strong...
by gtwhitegold
Sat Dec 08, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: Do long-term bonds belong in one's portfolio?
Replies: 235
Views: 13173

Re: Do long-term bonds belong in one's portfolio?

I personally do target long-term treasuries in my bond allocation, but I also target long-term TIPS and I will use the TSP G Fund to reduce risk in my portfolio. For anyone who has a good stable value fund, I would suggest that that they consider doing the same.
by gtwhitegold
Wed Dec 05, 2018 8:54 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Long/Short Portfolios & Taxes
Replies: 15
Views: 1112

Re: Larry Swedroe: Long/Short Portfolios & Taxes

Larry mentioned 130/30 funds in general in the article and QRPRX, but didn't mention AQR's relaxed constraint funds specifically. I'm curious if they are treated as tax aware.
by gtwhitegold
Mon Dec 03, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: Vanguard US Multifactor Fund
Replies: 64
Views: 8845

Re: Vanguard US Multifactor Fund

I agree. Hopefully they do create at least one and preferrably two. I like having my Emerging Markets separate from my International Developed Markets. New Morningstar.com article referencing VFMF and VFMFX. Basically makes a good argument to either buy the haystack or if not, then go away from that...
by gtwhitegold
Sun Dec 02, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard US Multifactor Fund
Replies: 64
Views: 8845

Re: Vanguard US Multifactor Fund

New Morningstar.com article referencing VFMF and VFMFX. Basically makes a good argument to either buy the haystack or if not, then go away from that in a manner that has been historically rewarded i.e. value, momentum, quality, et cetera and used Vanguard Multifactor Funds as the example. https://ww...
by gtwhitegold
Sun Dec 02, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Best Multifactor Funds to use for Tilting/Replacement?
Replies: 9
Views: 1185

Re: Best Multifactor Funds to use for Tilting/Replacement?

I agree. Switching to the AQR factors make the large cap and mid cap funds look worse, but the small cap fund looks better. The Hartford multi-factor ETFs, iShares multi-factor ETFs, USAA Value Momentum Blend ETFs, and Franklin Templeton multi-factor ETFs all look compelling. Don't forget the John H...
by gtwhitegold
Sun Dec 02, 2018 12:36 pm
Forum: Investing - Theory, News & General
Topic: Best Multifactor Funds to use for Tilting/Replacement?
Replies: 9
Views: 1185

Re: Best Multifactor Funds to use for Tilting/Replacement?

True, my only complaint is that they don't target momentum. If I remember correctly, they have a screen for negative momentum like the DFA mutual funds, but I could be mistaken. The Hartford multi-factor ETFs, iShares multi-factor ETFs, USAA Value Momentum Blend ETFs, and Franklin Templeton multi-fa...
by gtwhitegold
Sun Dec 02, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: Best Multifactor Funds to use for Tilting/Replacement?
Replies: 9
Views: 1185

Re: Best Multifactor Funds to use for Tilting/Replacement?

I'm personally using QEELX and SFENX/FNDE for EM large caps; FEMS and DGS for EM small caps. My wife is using DFSTX in her 401k for US small caps. We currently don't have any quantitative funds in developed international since we are prioritizing tax advantaged space, so I'm just using the TSP I Fun...
by gtwhitegold
Fri Nov 30, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: TSP Lifecycle funds getting less conservative
Replies: 16
Views: 1820

Re: TSP Lifecycle funds getting less conservative

In your situation, I would probably just manage my own allocation and rebalance periodically. Just don't look at your portfolio more often than you need to in order to minimize the likelihood of doing something that isn't in your best interest. I've been tracking the details on the L Fund allocation...
by gtwhitegold
Fri Nov 30, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Are Corp Bonds Worth Risk?
Replies: 66
Views: 5731

Re: Larry Swedroe: Are Corp Bonds Worth Risk?

I looked at your data and found why it makes an intermediate term investment grade bond fund look better than average over the period selected. Your starting date is near the beginning of the dot-com bubble and your end date is arguably towards the end of the current US investment cycle. So, you are...
by gtwhitegold
Fri Nov 30, 2018 11:46 am
Forum: Investing - Theory, News & General
Topic: TSP Lifecycle funds getting less conservative
Replies: 16
Views: 1820

Re: TSP Lifecycle funds getting less conservative

I agree, but if you really use it as intended and don't look at it until 2060 (or other set end date), you should be good. In addition to improving investment outcomes , this pause will align the L 2030, L 2040, and L 2050 Funds with the L 2060 Fund, which will be introduced in 2020 with an initial ...
by gtwhitegold
Fri Nov 30, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Are Corp Bonds Worth Risk?
Replies: 66
Views: 5731

Re: Larry Swedroe: Are Corp Bonds Worth Risk?

I don't think that anyone is trying to disprove your example. However, most people don't invest solely in long term bonds, so it's not applicable on a practical level. It is amazing to see how often we are bombarded with anecdotes about the past to incite us to believe statements which are otherwise...
by gtwhitegold
Fri Nov 30, 2018 7:03 am
Forum: Investing - Theory, News & General
Topic: TSP Lifecycle funds getting less conservative
Replies: 16
Views: 1820

Re: TSP Lifecycle funds getting less conservative

Yes, and with the coming change of the I fund to ACWI ex US IMI, it is almost a set it and forget it portfolio. My 2 complaints about it after the change are mostly preference and one will be extremely unlikely to be implemented in any by any fund provider. First is that the Lifecycle funds are stil...