Search found 671 matches

by gtwhitegold
Fri Oct 27, 2023 10:40 pm
Forum: Investing - Theory, News & General
Topic: Frec - Low Cost (0.10%) S&P500 Direct Indexing Startup
Replies: 30
Views: 5492

Re: Frec - Low Cost (0.10%) S&P500 Direct Indexing Startup

nvrmnd wrote: Fri Oct 27, 2023 9:14 pm
MotoTrojan wrote: Fri Oct 27, 2023 8:39 pm If you really want something like this go talk to AQR and they can do it with a long/short portfolio; the ability to short allows it to generate losses for a much longer runway, even without new capital.
They don't even say what their fees are, at least from what I can find, not a good sign.
Their fees are separately managed account fees which are based off of a starting portfolio of $1,000,000 or more. 0.375% seems reasonable for what they're providing, but to each their own as far as if it seems reasonable to you. Below is a link to their SMA account disclosure.

https://www.aqr.com/-/media/AQR/Supplem ... sc_lang=en
by gtwhitegold
Wed Oct 25, 2023 9:24 pm
Forum: Investing - Theory, News & General
Topic: How lower can TLT drop from here? [iShares 20+ Year Treasury Bond ETF]
Replies: 87
Views: 11147

Re: How lower can TLT drop from here? [iShares 20+ Year Treasury Bond ETF]

mark_in_denver wrote: Wed Oct 25, 2023 2:39 pm
manuvns wrote: Wed Oct 25, 2023 2:07 pm
hitonit wrote: Sat Oct 21, 2023 3:06 pm
manuvns wrote: Fri Oct 06, 2023 11:50 am So right now the lowest it can go is 84.25$ , congrats if you got in!
$83.24!
now 82.XX ... going once ... ladies and gentleman we need a new low !
With everyone saying bond yields can only go up, maybe the bottom is in, for now.
I wouldn't bet that it's at the bottom, but I guess that I already did since I've been rebalancing into long Treasuries for a while now.
by gtwhitegold
Sun Oct 22, 2023 8:20 pm
Forum: Investing - Theory, News & General
Topic: submit ?s on small-cap value [Bogleheads® Live]
Replies: 19
Views: 3558

Re: submit ?s on small-cap value [Bogleheads® Live]

I'd like to know if there's any plans for DFA to release ETFs similar to DEMSX - DFA Emerging Markets Small Cap or DEMGX - DFA Emerging Markets Targeted Value. There aren't many very good options in the US for those who want a bigger tilt towards small and value stocks in Emerging Markets.
by gtwhitegold
Wed May 24, 2023 10:32 pm
Forum: Investing - Theory, News & General
Topic: What makes an "Emerging" market
Replies: 14
Views: 1596

Re: What makes an "Emerging" market

I would suggest that you read FTSE's public notes on their index updates if available. A lot of index changes use qualitative and quantitative methods, so even though Qatar has one of the highest GDP per capita in the world, it's still listed as emerging due to qualitative measurements such as access to healthcare or income inequality. With FTSE upgrading Poland, their previous unwillingness to downgrade any of the western European countries after the Global Financial Crisis, and their reluctance to upgrade Taiwan to a developed market status leads me to believe that they do have a significant western bias in their review process. Similarly could be said about MSCI with their exclusion of Korea and Taiwan from their developed markets index...
by gtwhitegold
Wed May 24, 2023 1:23 pm
Forum: Investing - Theory, News & General
Topic: What's The Catch With Brokered CDs?
Replies: 54
Views: 10008

Re: What's The Catch With Brokered CDs?

This has been discussed extensively previously on this forum. CDs in general are not liquid enough for financial institutions and other large investors to invest in, thus increasing the rate offered to retail investors.
by gtwhitegold
Wed May 24, 2023 1:10 pm
Forum: Investing - Theory, News & General
Topic: What makes an "Emerging" market
Replies: 14
Views: 1596

Re: What makes an "Emerging" market

I would suggest that you read FTSE's public notes on their index updates if available. A lot of index changes use qualitative and quantitative methods, so even though Qatar has one of the highest GDP per capita in the world, it's still listed as emerging due to qualitative measurements such as access to healthcare or income inequality. With FTSE upgrading Poland, their previous unwillingness to downgrade any of the western European countries after the Global Financial Crisis, and their reluctance to upgrade Taiwan to a developed market status leads me to believe that they do have a significant western bias in their review process.

Similarly could be said about MSCI with their exclusion of Korea and Taiwan from their developed markets index.
by gtwhitegold
Wed May 17, 2023 7:32 pm
Forum: Investing - Theory, News & General
Topic: does anyone disagree with this article that argues real estate is less risky and more profitable?
Replies: 169
Views: 13042

Re: does anyone disagree with this article that argues real estate is less risky and more profitable?

Many states are increasingly landlord unfriendly. For example, many cities in California have rent control, and California instituted statewide years long eviction moratoriums during the Covid pandemic. There are multiple other nuisance laws and hoops that landlords have to jump through such as what questions you can ask on your rental application. They make it easy for tenants to sue landlords if they think you have not followed the rules. Note that this is not a political statement. It is the statement of the facts for rental property owners. I would not own rental property in California. While I can appreciate someone who's not willing to purchase a property in California specifically to use as a rental property, everyone's situation is...
by gtwhitegold
Fri May 12, 2023 7:18 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

I think potatoes handily beat chillies for 'most important'. It transformed the food supply of northern Europe and some say made the industrial revolution in Germany possible by increasing food output per acre, freeing up farm labor to work in factories. From a culinary POV, I'd put tomatoes on par with chillies. It's hard to imagine pre-Columbian Southern Italian cuisine without tomatoes. I wasn't being literal about what foods likely had the most impact. I would agree regarding culinary impact in Southern Italy. In Indonesia, I would say that chillies had more of a cultural significance than any of the items previously mentioned. While potatoes are popular in Indonesia, they by no means have remotely come close to rice as a staple starch...
by gtwhitegold
Fri May 12, 2023 6:34 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

Torta are essentially a sandwich made from french style bun. It is in my opinion one of the few positive contribution from colonization. The bread in my opinon is one of the appeal of the sandwich. I also like the Ban Mi sandwiches for the same reason. You would probably not be a good candidate for Ethiopian food, which is eaten with your hands. I often like the dish kitfo, but it's a bit risky to order. Back when I lived in Philadelphia, I lived in area with a lot of Africian immigrants and had 6 Ethiopian restaurant within walking distance and Senegalese restaurant. One of these days, I should seek out how to make some of the stuff, but at the time a lot of Ethiopian receipe were really written down. I have to try more Indonesian food, b...
by gtwhitegold
Thu May 11, 2023 11:24 pm
Forum: Investing - Theory, News & General
Topic: "The Case For International Diversification"
Replies: 135
Views: 12120

Re: "The Case For International Diversification"

I was once a vociferous defender of International Diversification. I struggled for years, striving to achieve the optimal split between US and Ex-US. One day, I realized that I was looking at things the wrong way. I was trying to be diversified for diversity's sake: a maddening, illogical drive to achieve some sort of Boglehead philosophical purity. Trying to achieve optimality with stocks is a problem. I, on the other hand, just picked a 70:30 split between US and International and have stuck with that. No struggling for optimization. No maddening drive for purity. Just have to rebalance now and then, just like I do for stocks/bonds. Yeah, I picked a fixed 60:40 back when that was a mild home country bias. Easy-peasey. We're actually luck...
by gtwhitegold
Thu May 11, 2023 8:59 pm
Forum: Investing - Theory, News & General
Topic: "The Case For International Diversification"
Replies: 135
Views: 12120

Re: "The Case For International Diversification"

I was once a vociferous defender of International Diversification. I struggled for years, striving to achieve the optimal split between US and Ex-US. One day, I realized that I was looking at things the wrong way. I was trying to be diversified for diversity's sake: a maddening, illogical drive to achieve some sort of Boglehead philosophical purity. Trying to achieve optimality with stocks is a problem. I, on the other hand, just picked a 70:30 split between US and International and have stuck with that. No struggling for optimization. No maddening drive for purity. Just have to rebalance now and then, just like I do for stocks/bonds. Yeah, I picked a fixed 60:40 back when that was a mild home country bias. Easy-peasey. We're actually luck...
by gtwhitegold
Thu May 11, 2023 8:03 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: TacoLover vs. BurritoLover - US vs. International equity side discussion

Jeepergeo wrote: Thu May 11, 2023 11:49 am At Cafe Mendo in Mendocino County, CA they have a Peanut Butter Burrito that features lots of veggies and beef in a peanut sauce. Sounds weird, but tastes amazing. IMHO, the Peanut Butter Burrito is 90% USA 5% Mexico, and 5% Thailand for a 90/10 US/International split.
I don't think that I'm trying that. If it's anything like the peanut sate sauce, I know that I won't be able to eat it.
by gtwhitegold
Thu May 11, 2023 7:59 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

] Growing up Chinese means I got exposed to a lot of different food that a lot of America would not be considered food and a lot of Chinese food is essentially about texture. Frankly as I grow older, I discovered that many of the food are just variation of other foods. Pot-au-feu looks pretty much like Chinese Oxtail soup. Nigerian Ayamase is pretty much like a Chinese spicy topping over rice dish. What I notice is that a lot of old world culture tend to eat every part of the animal. Tripe may seems weird in the US, but I see tripe use in Polish, Nigerian, Mexician, Chinese, and Italian cooking. I think people should just try it before banning it. A lot of food sound exotic but is surprisingly normal in taste. Frog legs and alligator taste...
by gtwhitegold
Wed May 10, 2023 11:24 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

Most lengua taco tend to super soft, not at all chewy. My preference is tripa taco and chicaharon taco. Tripa is a bit tricky since I like it a bit crispy but sometimes they over do it. I also like menudo. I also like corn shell. Each corn has less calories than the flour but they often use 2 corn taco so it ends up being the same. I also like catus. One restaurant also once serve me a black fugus that grows on corn, but I can’t seem to find it. Supposedly you can get brain tacos too but I have not seen it. Another great Mexican item to try is a torta. I can't do the tripa or menudo. I already tried that and the texture rubs me the wrong way. I also don't think that I can get over the concept of brain tacos in order to try it. I'm the same...
by gtwhitegold
Wed May 10, 2023 11:07 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: TacoLover vs. BurritoLover - US vs. International equity side discussion

RetiredAL wrote: Wed May 10, 2023 10:37 pm When I was in college at San Jose State Univ in the early 70's, there was a small Taco Place about 1 mile away that was at that time owned by a Chinese Family. In your Mexican/Gringo style Tacos or Burritos, Sweet-n-Sour meat was available.
Sounds okay. I'm not a huge fan of sweet and sour sauce. My wife would call that American Chinese food.

I personally like Mexican / Asian fusion however. I had carnitas in Indonesian style fried rice tonight for dinner.

I might like the birria ramen if the places here around San Diego served it with better noodles. They should do better than 25¢ packaged ramen with the prices that they charge.
by gtwhitegold
Wed May 10, 2023 8:47 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

Wait what are you talking about? I thought this thread was about international diversification - corn tortillas vs flour tortillas. Why settle for one? I'd say my portfolio is about 70% corn/30% flour. I've done a lot of back tests on this and I think this is really the way to go. But seriously, whether you have a burrito or a taco, they can both be messy. The solution is the angle of approach. You can't just eat them like a wild person. Be methodical and you won't have tacos shattering or burrito contents falling out. What happens if you tilt your portfolio? Ahh yes, some would argue that you should tilt at least 10% towards emerging markets like chickpea or almond flour tortillas. Unfortunately, you have to be willing to tolerate long pe...
by gtwhitegold
Wed May 10, 2023 8:44 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: TacoLover vs. BurritoLover - US vs. International equity side discussion

I really like both. I guess that it just depends on my mood. Recently, I've eaten more burritos, but that's because I've found one small chain here around San Diego called Los Panchos which has a burrito called the Azteca burrito. It has the option of carne asada, pollo asado, or carnitas and it includes beans, queso, grilled onions, grilled cactus, and roasted salsa roja. It's really good if you have a chance to try it. I'm curious, are they serving Mission style (aka CA / SF burritos) or more traditional? From my understanding, the only thing that would make it a mission style burrito is the size. It is rather large. Otherwise, it sounds more traditional, but don't quote me on that, I don't understand the difference enough to make a educ...
by gtwhitegold
Wed May 10, 2023 8:01 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: TacoLover vs. BurritoLover - US vs. International equity side discussion

I really like both. I guess that it just depends on my mood. Recently, I've eaten more burritos, but that's because I've found one small chain here around San Diego called Los Panchos which has a burrito called the Azteca burrito. It has the option of carne asada, pollo asado, or carnitas and it includes beans, queso, grilled onions, grilled cactus, and roasted salsa roja. It's really good if you have a chance to try it.
by gtwhitegold
Wed May 10, 2023 7:54 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

I always found that burritos were wrapped in soft flour tortillas and tacos crispy corn tortillas. I was not aware that tacos can be soft corn tortillas. And that’s not nothing. So sometimes these international vs USA can be productive. Can I ask in which part of the country you live that you were unaware of soft corn tortilla tacos? Follow up question: have you ever had a cabeza, lengua, al pastor, or carnitas taco? Lengua can be great depending on the cut. I prefer the more muscular front portion of the tongue. The fatty back portion is too chewy and unctuous. I might be able to eat that. I've tried beef tongue at korean restaurants and it was too chewy for me. I didn't try lengua at any Mexican restaurants because I don't like really ch...
by gtwhitegold
Wed May 10, 2023 6:46 pm
Forum: Personal Consumer Issues
Topic: TacoLover vs. BurritoLover - US vs. International equity side discussion
Replies: 99
Views: 5917

Re: "The Case For International Diversification"

rob wrote: Wed May 10, 2023 3:07 pm Japan has some great hot-dogs ;-)
This is the truth. I love me a Shonan Dog.

https://www.freshnessburger.co.jp/menu/ ... shonan_dog

Image
by gtwhitegold
Wed May 10, 2023 1:41 pm
Forum: Investing - Theory, News & General
Topic: "The Case For International Diversification"
Replies: 135
Views: 12120

Re: "The Case For International Diversification"

TacoLover wrote: Wed May 10, 2023 1:31 pm Oh no. Here we go again.
In advance:
Hi Nathan, burrito, and beelzebub.
They can take my all USA portfolio away when they pry it from my cold dead hands!
I don't think that anyone will actively try to get you to change your portfolio. You are accepting specific risks with having a US only portfolio. People who invest internationally are accepting other risks. As long as you understand that and are comfortable with it and stick to your plan, you should do okay whether you invest internationally or not. Where people get into trouble is when they keep changing their portfolio based upon what is popular at the time.

Just my 2¢ however.
by gtwhitegold
Mon Apr 10, 2023 10:38 pm
Forum: Investing - Theory, News & General
Topic: Worldwide version of NTSX on the way [RSSB new global return stacking ETF]
Replies: 60
Views: 10395

Re: RSSB new global return stacking ETF

While I like the idea, I don't think that it's really adding anything to the market. If it had a significant factor tilt, I would consider it, but as it, I wouldn't give it a second look.
by gtwhitegold
Sun Apr 09, 2023 11:58 pm
Forum: Investing - Theory, News & General
Topic: Pre-paying as an inflation hedge
Replies: 53
Views: 4324

Re: Pre-paying as an inflation hedge

acacia24 wrote: Thu Apr 06, 2023 6:24 pm College tuition. E.g. The Michigan Education Trust allows you to "save on college tuition by buying college credits at today's price."

PS: Sorry, didn't read the original post carefully. OP indicates such programs already.
I could be wrong, but when I did the math, it seemed like it would be more cost effective to invest in a 529 plan than prepaying for school. It also gives you more options if your children don't attend college.
by gtwhitegold
Wed Apr 05, 2023 2:55 pm
Forum: Investing - Theory, News & General
Topic: AQR: Re-Emerging Equities - EM Positioned for Higher Returns
Replies: 128
Views: 9602

Re: AQR: Re-Emerging Equities - EM Positioned for Higher Returns

Chinese investor: "I don't think I'll be impacted by possible sanctions, so I'm not going to demand a lower price before I buy." non-Chinese investor: "I think I might be impacted by possible sanctions, so I'm going to seek a lower price to compensate for that risk." Yes, that's exactly how it works. But do we have precedents to analyze it? If you take S&P, it's value is the same for everyone (except maybe for the Chinese ;). So a loss of 20% would be equally painful for everyone. In case of Chinese stocks, the Chinese investor will not have the losses of a cutoff and we risk a 100% loss. Given that the Chinese stock market is mostly owned by the Chinese (I don't know for sure, but it seems very likely), the Chinese...
by gtwhitegold
Wed Apr 05, 2023 2:07 pm
Forum: Investing - Theory, News & General
Topic: AQR: Re-Emerging Equities - EM Positioned for Higher Returns
Replies: 128
Views: 9602

Re: AQR: Re-Emerging Equities - EM Positioned for Higher Returns

... That all being said, I will keep investing as I have up until this point. I have a significant overweight in EM equities with most of it invested in medium and small cap stocks with a considerable quality and value tilt. Time will tell if it works out for me. I probably have another 40-50 years to see if my experiment has worked. I also agree with the fact that EM has been ugly for the entire period that I have been investing in them and that they are higher risk than developed markets. Hopefully the current low valuation of EM value stocks does lead to future high returns. Do you use funds or individual stocks? Admittedly, my EM allocation is more complicated than it needs to be, but I feel that the smaller EM funds either don't have ...
by gtwhitegold
Tue Apr 04, 2023 11:17 pm
Forum: Investing - Theory, News & General
Topic: AQR: Re-Emerging Equities - EM Positioned for Higher Returns
Replies: 128
Views: 9602

Re: AQR: Re-Emerging Equities - EM Positioned for Higher Returns

I could take either side of the argument regarding sovereign risk within emerging markets, but I am generally less concerned since I primarily invest in small and medium cap stocks in EM. I also agree that conflict is very possible, but I don't feel like it's immanent. That all being said, I will keep investing as I have up until this point. I have a significant overweight in EM equities with most of it invested in medium and small cap stocks with a considerable quality and value tilt. Time will tell if it works out for me. I probably have another 40-50 years to see if my experiment has worked. I also agree with the fact that EM has been ugly for the entire period that I have been investing in them and that they are higher risk than develop...
by gtwhitegold
Tue Apr 04, 2023 10:40 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 269281

Re: First 20% of bonds in long-term Treasuries

3. If you have sufficient tax advantaged space, then I would put your LTT there first before putting any in taxable. I personally have some in both, but my LTT in taxable is a part of my second level emergency fund. Isn't there a lot of TLH opportunities w/ LTT? Right now all I have in taxable is VTI and VXUS. But shouldn't I have bonds there for TLH purposes? Also, I will need bonds there for the home down payment. Or is this the place for muni bonds? I have never owned muni bonds but have a 60% of my portfolio in taxable right now. Also, I am in a pretty high-tax state (MD). 4. That is a reasonable way to do it. You can also do a barbell and just re-balance between a cash account and a bond fund that is close to your desired initial dura...
by gtwhitegold
Mon Apr 03, 2023 9:54 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 269281

Re: First 20% of bonds in long-term Treasuries

I was referred to this post from a first-time portfolio advice thread where I'd asked something to the effect of "NOW WUT DO I DO WITH BONDS?". I read the first 25%, last 25%, and skimmed the middle half. I watched several intelligent and educated people attempt to discredit this 20% LTT advice, and watched them all fail. As a result, I feel I've graduated from Completely Ignorant to Not Completely Ignorant. And as a long-investment horizon investor w/ 80/20 AA, I'm convinced that I need to match my bond duration to my investment horizon. But I've one wrinkle to throw in that I didn't see Vineviz iron out. I have access to the TSP G fund, which for those who dont know is a stable value fund not sold on the open market and tied to...
by gtwhitegold
Sun Mar 26, 2023 2:59 pm
Forum: Investing - Theory, News & General
Topic: How much cash are you holding at sub-optimal interest rates?
Replies: 61
Views: 6353

Re: How much cash are you holding at sub-optimal interest rates?

Similarly to one of the posts above, I keep whatever cash I need on hand plus around $500 in my checking account. I reevaluate it each pay period. Over that, I am working to have $10,000 in my money market account with my credit union and $10,000 in a groundfloor stairs account. Anything over that goes into a brokerage account set up to be similar to an in retirement mutual fund. Right now, I'm about 42% of the way to my savings goal for my taxable accounts overall before I transition from service next year.
by gtwhitegold
Tue Mar 21, 2023 9:38 pm
Forum: Investing - Theory, News & General
Topic: TSP C Fund vs S&P ETF/MF
Replies: 5
Views: 876

Re: TSP C Fund vs S&P ETF/MF

I would say that the TSP funds are better than comparable commercial funds because you don't have to wait for dividends to be reinvested. On years that there is a positive return, you should have a greater overall return than funds like SPY which don't reinvest dividends until they are distributed. One advantage specific to the TSP I Fund is that it is exempt from foreign taxes, so it should outperform any other funds that track the MSCI EAFE index.
by gtwhitegold
Tue Mar 21, 2023 9:22 pm
Forum: Investing - Theory, News & General
Topic: Avantis ETF Filing Today
Replies: 106
Views: 19869

Re: Avantis ETF Filing Today

Let me know when they release an emerging markets small cap fund.
by gtwhitegold
Sat Mar 18, 2023 2:11 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is. If you have to ask, you're not fit to buy SCV. Just kidding :) Some people are "committed" to SCV. It's like a relationship :annoyed Others will time the market -- see livesoft's postings about this. Personally, I wouldn't make a buying or selling decision based on Boglehead's opinions about this or that. Ultimately you need to decide for yourself, otherwise you'll be changing your portfolio every other week, day, hour... I totally agree ...
by gtwhitegold
Mon Mar 13, 2023 4:13 pm
Forum: Investing - Theory, News & General
Topic: Managed Futures Improve performance
Replies: 48
Views: 6535

Re: Managed Futures Improve performance

comeinvest wrote: Mon Mar 13, 2023 3:30 am What is the essential difference between the AQR and the Wisdomtree fund?
Without going into a full review, the set volatility target, markets that are within the scope of the funds, their timing windows, how they handle reversals and much of that can be proprietary information. I looked at the WisdomTree fund a while ago and completely discarded it because it wouldn't provide much diversification for a traditional portfolio, but YMMV.
by gtwhitegold
Sun Mar 12, 2023 11:31 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

muffins14 wrote: Sun Mar 12, 2023 4:56 pm
sycamore wrote: Sun Mar 12, 2023 4:50 pm Taking a break from the SVB threads, I see not much going on here.

My small cap value fund (VBR) was down 7.8% the past week versus down 5.7% for Total Stock. Presumably a greater drop due to exposure to financial stocks?

Anyway, carry on fellow SCV investors.
Happy rebalancing. Long term treasuries were up 4% ;)
I would if I was closer to my rebalancing band, but I still have a ways to go for that. However, I am doing soft rebalancing by directing all incoming funds into the smaller cap funds available in my wife's and my employers' accounts. No real small value funds are available in either right now.
by gtwhitegold
Fri Mar 10, 2023 8:37 pm
Forum: Investing - Theory, News & General
Topic: Kudos to Robert T on AQR's QSPIX Analysis
Replies: 55
Views: 6364

Re: Kudos to Robert T on AQR's QSPIX Analysis

The acid test of this and similar funds is whether or not over longer times periods that they can have better performance and better diversification characteristics than plain old boring Investment Grade Bonds. Well, yes but is QSPIX being used optimally in a 60/30/10 portfolio? The concept behind NXST (90% stock 60% bond) is that alternatives are often a drag on portfolio returns. So a 90/60 fund held at 66% weight would still leave you at 60% bonds 40% stocks with 33% room left for alternatives. And if we are evaluating simply on inflation protection, isn't Vanguard Commodity Strategy Fund Overview much better? But yeah, I agree longer time periods are kinda essential as inflation doesn't rear it's head so often so returns will be depend...
by gtwhitegold
Sun Mar 05, 2023 6:41 pm
Forum: Investing - Theory, News & General
Topic: SEP IRA or SOLO 401 K eligibility
Replies: 12
Views: 1240

Re: SEP IRA or SOLO 401 K eligibility

vaylie wrote: Sun Mar 05, 2023 12:58 am
gtwhitegold wrote: Fri Mar 03, 2023 2:33 pm One other thing to consider is that you don't get a Qualified Business Income (QBI) Deduction for any amount that you contribute to a traditional plan like a SEP or SIMPLE IRA. That along with possibly doing backdoor Roth contributions in the future led me to choose a Solo 401k plan.
That's only true for Roth Solo 401ks, right? I thought Traditional Solo 401ks had the same drawbacks as SEP/SIMPLE IRAs when it comes to the QBI deduction.
Yes, that's what I meant. I opened a Solo 401k a few years ago for my 1099 income. I have only made Roth contributions up to this point since I make more money through my regular Job.
by gtwhitegold
Fri Mar 03, 2023 2:33 pm
Forum: Investing - Theory, News & General
Topic: SEP IRA or SOLO 401 K eligibility
Replies: 12
Views: 1240

Re: SEP IRA or SOLO 401 K eligibility

One other thing to consider is that you don't get a Qualified Business Income (QBI) Deduction for any amount that you contribute to a traditional plan like a SEP or SIMPLE IRA. That along with possibly doing backdoor Roth contributions in the future led me to choose a Solo 401k plan.
by gtwhitegold
Wed Mar 01, 2023 9:28 pm
Forum: Investing - Theory, News & General
Topic: Frontier Markets
Replies: 23
Views: 2172

Re: Frontier Markets

I personally sold out of FM years ago. When the FRN ETF was liquidated, I decided that an allocation to FM probably wasn't going to do much to help my portfolio, so I closed it out. I don't regret it.
by gtwhitegold
Thu Feb 02, 2023 9:01 pm
Forum: Investing - Theory, News & General
Topic: Increasing TSP Fund Expense Ratios
Replies: 174
Views: 19945

Re: Increasing TSP Fund Expense Ratios

I listened in on this morning's FRTIB meeting and want to report some good news on the TSP expense ratio front. The TSP's net administrative expense ratios declined in 2021 from 2020. Here are the TSP's net administrative expenses for the past few years: 2016 = 3.8 basis points 2017 = 3.3 basis points 2018 = 4.0 basis points 2019 = 4.2 basis points 2020 = 4.9 basis points 2021 = 4.3 basis points MichDad Verbally on the call they did say that the 2022 gross expense ratio before loans and forfeitures is estimated to be 6.2%. (in 2021, the net expense ratio was 1 full bp lower then the gross). My Comments based on previous presentations: This could be the most expensive year due to the converge transition combined with their replacement of a ...
by gtwhitegold
Thu Feb 02, 2023 8:53 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

SafeBonds wrote: Thu Feb 02, 2023 7:26 pm
BitTooAggressive wrote: Thu Feb 02, 2023 3:25 pm I am happy with VBR. I am fine with getting some mid cap diversification too.
I chose to move from VBR to AVUV near the covid bottoms when I tax loss harvested, and I'm happy with my decision, but I respect VBR investors. The rock bottom expense ratio is amazing. Especially as a Boglehead, you gotta admire that. Unlike the factors, lower expenses always pay off each and every year.
Nothing wrong with that. It seems like really deep value funds like RSV and DEEP don't have comparable returns to the risks that you take, but most SV tilts should be rewarded over time. People just need to be aware of what trade-offs they are making with different fund options.
by gtwhitegold
Thu Feb 02, 2023 8:14 pm
Forum: Investing - Theory, News & General
Topic: Comparing high-yield bonds to ⅓ stocks, ⅔ investment-grade bonds
Replies: 115
Views: 10761

Re: Comparing high-yield bonds to ⅓ stocks, ⅔ investment-grade bonds

After looking at the price history of the Van Eck Fallen Angel High Yield Bond ETF (ANGL), it looks like there is less loss of capital from NAV than other HY funds. NAV seems to track changes in yield relatively well from an initial glance. This makes sense since Fallen Angel Bonds normally have tighter covenants and are more likely to regain their original investment grade status and less likely to default than original issue high yield bonds. Larry Swedroe has also mentioned in articles that this is the only segment of corporate bonds where credit risk has been rewarded. I personally hold the iShares fund FALN myself.

The reason that I chose ANGL for this is review that it is the older of the two current Fallen Angel Bond funds.
by gtwhitegold
Thu Feb 02, 2023 12:26 am
Forum: Investing - Theory, News & General
Topic: What will happen to mutual funds vs ETFs
Replies: 80
Views: 6937

Re: What will happen to mutual funds vs ETFs

Active funds are actively dying too, and it seems to me that the evolve or die mentality will force many of them to convert to ETFs. This thread is already collecting a set of current examples to support this thesis. My prognostication is that there will still be open-ended mutual funds 50 years from now, but they'll probably be about as rare and niche as the old school Unit Investment Trusts that once were the staple of 401K plans. I feel much the same way. I think that the mutual funds that grow will be the ones that are liquid enough to trade daily, but not liquid enough or too complex to properly price more than daily. QSPIX - AQR Style Premia Alternative Fund is a possible example. One step further than this would be interval funds. M...
by gtwhitegold
Wed Feb 01, 2023 9:37 pm
Forum: Investing - Theory, News & General
Topic: Fund ETF Conversion in Employer Accounts
Replies: 5
Views: 848

Re: Fund (BOTSX) ETF Conversion in Employer Accounts

With Bridgeway likely converting BOTSX - Bridgeway Tax Managed Omni Small Cap Value Fund and DFA, JP Morgan, Fidelity and other companies either already converted funds or are in the process of doing so, how does this work for accounts that are not set up to hold ETFs like certain 401k, 403b, and similar types of accounts? Are they normally liquidated before the conversion or is the fund still held? As more fund managers convert their funds into ETFs, this definitely becomes more of an issue to investors. This is my understanding: Assuming Bridgeway's BOTSX conversion to ETF proxy vote goes for "Yes" on Feb 15th, then on Mar 10th, any shares of BOTSX held in any brokerage anywhere will either be automatically converted to a round...
by gtwhitegold
Sun Jan 29, 2023 3:55 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

From looking at correlations between AVDV and BOSVX, it looks like BSVO - Bridgeway Omni Small-Cap Value ETF will be highly correlated with AVDV once the fund is converted to an ETF format. This would make them good tax loss harvesting partners if you just want a small value slant. However, I'm thinking about using AVUV or BSVO and AVDV alongside the iShares Multifactor funds, SMLF and ISCF since they have considerably different factor profiles. My line of thinking is that this would add a small rebalancing bonus. Does this make sense or is it probably overkill at this point ? It seems like overkill. Constantly tinkering with a portfolio is counterproductive. I'm trying to resist the temptation to constantly check the markets. I've pretty ...
by gtwhitegold
Sun Jan 29, 2023 3:41 pm
Forum: Investing - Theory, News & General
Topic: Which do you think is the better investment: real estate or the stock market?
Replies: 141
Views: 15296

Re: Which do you think is the better investment: real estate or the stock market?

As has already been discussed, anyone who owns their property is already invested in real estate, whether they recognize it as an investment or not. I personally own three properties, one I am currently living in, one for my mother, and a third that I kind of inherited by paying the back taxes on after my uncle passed away so that it would stay in the family. I am by no means an active real estate investor, but I do plan on retaining at least two of these properties to use as rentals if my situation changes. I know that two of these properties would be cash flow positive as soon as I had a tenant, but I have no interest in going much further with real estate investing. I feel like the biggest issue with people who invest in real estate is o...
by gtwhitegold
Sat Jan 28, 2023 1:45 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

From looking at correlations between AVDV and BOSVX, it looks like BSVO - Bridgeway Omni Small-Cap Value ETF will be highly correlated with AVDV once the fund is converted to an ETF format. This would make them good tax loss harvesting partners if you just want a small value slant. However, I'm thinking about using AVUV or BSVO and AVDV alongside the iShares Multifactor funds, SMLF and ISCF since they have considerably different factor profiles. My line of thinking is that this would add a small rebalancing bonus. Does this make sense or is it probably overkill at this point ? It seems like overkill. Constantly tinkering with a portfolio is counterproductive. I'm trying to resist the temptation to constantly check the markets. I've pretty ...
by gtwhitegold
Sat Jan 28, 2023 12:55 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

From looking at correlations between AVDV and BOSVX, it looks like BSVO - Bridgeway Omni Small-Cap Value ETF will be highly correlated with AVDV once the fund is converted to an ETF format. This would make them good tax loss harvesting partners if you just want a small value slant.

However, I'm thinking about using AVUV or BSVO and AVDV alongside the iShares Multifactor funds, SMLF and ISCF since they have considerably different factor profiles. My line of thinking is that this would add a small rebalancing bonus. Does this make sense or is it probably overkill at this point?
by gtwhitegold
Sat Jan 28, 2023 12:33 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623823

Re: Small Cap Value heads Rejoice !!!

That sort of data is why I was long interested in finding a reasonably inexpensive way to invest in EM Value, but not so much concerned about EM Small or specifically EM Small Value. AVES is an excellent fund. It is actually quite small at 16B average weighted market cap. But it's too difficult to invest in specifically EM SMALL Value due to trading frictions/liquidity. The compromise doesn't seem to be all that significant by going a little larger and selectively targetting value I agree that it is difficult to invest in EMSV, but I'm trying to do so anyway. I currently have a hodgepodge of holdings in EM with an attempt to target EMSV, but I'm comfortable with it and I expect it to do well in the future. My current EM allocation is below...
by gtwhitegold
Tue Jan 24, 2023 11:15 pm
Forum: Investing - Theory, News & General
Topic: 2020 tax costs for US and international value ETFs
Replies: 37
Views: 7272

Re: Tax costs for US and international value ETFs

I got my tax forms today and own AVUV and AVDV. My AVUV dividends were 100% qualified. All of my AVDV shares were accumulated 2nd half of year so all my dividends were paid in December. Of those dividends, 80.42% were qualified and 10.26% of dividend is listed as foreign tax. Any comments on the tax efficiency of AVDV? This is better than I was expecting so was curious on your opinion. Avantis hasn't published its tax information yet, but those numbers would make AVDV very tax efficient. In a 24% tax bracket, the tax cost would be Dividend yield * (15%*80.42% + 24%*19.56% -10.26%) which would be only 7% of the dividend. (Replace 15% and 24% by your own tax rates to calculate your personal tax cost) In 2021, the dividend was low, but the fo...
by gtwhitegold
Tue Jan 24, 2023 3:45 pm
Forum: Investing - Theory, News & General
Topic: 2020 tax costs for US and international value ETFs
Replies: 37
Views: 7272

Re: Tax costs for US and international value ETFs

I got my tax forms today and own AVUV and AVDV. My AVUV dividends were 100% qualified. All of my AVDV shares were accumulated 2nd half of year so all my dividends were paid in December. Of those dividends, 80.42% were qualified and 10.26% of dividend is listed as foreign tax. Any comments on the tax efficiency of AVDV? This is better than I was expecting so was curious on your opinion. Avantis hasn't published its tax information yet, but those numbers would make AVDV very tax efficient. In a 24% tax bracket, the tax cost would be Dividend yield * (15%*80.42% + 24%*19.56% -10.26%) which would be only 7% of the dividend. (Replace 15% and 24% by your own tax rates to calculate your personal tax cost) In 2021, the dividend was low, but the fo...