Search found 1342 matches

by asset_chaos
Fri Sep 21, 2018 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Still haven't made sense of this 50-50 AA situation
Replies: 9
Views: 1119

Re: Still haven't made sense of this 50-50 AA situation

I think you're doing mental gymnastics, not for naught perhaps, but not for very much. If it really bothers you to take an RMD from bond funds that might decline 5% or so in a year, then put three (or a number that makes you comfortable) years of anticipated RMDs into a much shorter duration bond fu...
by asset_chaos
Fri Sep 21, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: 23 with 130k cash to invest in index funds need help [Australia]
Replies: 4
Views: 334

Re: 23 with 130k cash to invest in index funds need help [Australia]

You could start by reading through the Bobleheads wiki pages on investing in Australia. At the top of every forum page look for the link labeled "Wiki" and follow to the Australia page, or the direct link is https://www.bogleheads.org/wiki/Investing_in_Australia.
by asset_chaos
Wed Sep 19, 2018 4:40 pm
Forum: Investing - Theory, News & General
Topic: Matter/scatter, part 9. Small-cap value and the "ten-fund portfolio."
Replies: 10
Views: 1021

Re: Matter/scatter, part 9. Small-cap value and the "ten-fund portfolio."

With respect to the factors, the results here seem to reinforce that factors are a risk story. Factor premia exist largely or solely because they are reward for bearing non-diversifiable risk of one kind or another that are different than straight market risk. If you personally can bear some of thes...
by asset_chaos
Wed Sep 19, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: Why are there so few long-term investors?
Replies: 18
Views: 2678

Re: Why are there so few long-term investors?

I can google and find that somewhat less than 1% of apple shares are traded on a typical day over some recent time period. (I don't know the right search terms to use to get that number for the total market.) With a couple of hundred trading days in the year, does that 1% a day turnover mean that ev...
by asset_chaos
Sun Sep 16, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Industry Wide Expenses
Replies: 7
Views: 607

Re: Australian Superannuation Industry Wide Expenses

I think it’s positive that some super providers are gradually reducing fees and providing some index options. I am hoping they start adding more different index options allowing for riskier or more conservative allocations or giving the full scope of index options to mix yourself. I think sunsuper ...
by asset_chaos
Sun Sep 16, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Industry Wide Expenses
Replies: 7
Views: 607

Re: Australian Superannuation Industry Wide Expenses

https://www.australiansuper.com/-/media/australian-super/files/Campaigns/Adviser%20Resources/Fact%20sheets/AustralianSuper_InvestmentOptionIndexedDiv.pdf .16% fees per annum, not an issue just wanted to correct it. You have 1.05, not sure where this came from. Thank you. It is good to see the inves...
by asset_chaos
Sun Sep 16, 2018 4:50 am
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Industry Wide Expenses
Replies: 7
Views: 607

Re: Australian Superannuation Industry Wide Expenses

I also noticed in the wiki that the Australian super index diversified fees are way off but the rest is really great. How so? I wrote that bit. I try to get things right, but always happy to have corrections. (And who knows, it may have just changed in the last couple of months.) If you can provide...
by asset_chaos
Wed Sep 12, 2018 6:13 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Industry Wide Expenses
Replies: 7
Views: 607

Australian Superannuation Industry Wide Expenses

The Australian Prudential Regulation Authority (APRA https://www.apra.gov.au/) publishes spreadsheets with data on the largest 200 superannuation fund complexes here https://www.apra.gov.au/publications/annual-fund-level-superannuation-statistics . Frankly the sheets are a bit daunting, but there ar...
by asset_chaos
Tue Sep 11, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26516

Re: Bill Sharpe's preferred portfolio

CyberBob wrote:
Tue Sep 11, 2018 10:19 am
19,509,800 - U.S. bonds - FTSE US Broad Investment-Grade index
Why the par amount instead of market value? Not that they are very different now. Aug 31 factsheet says 19,619.75 for market value.
by asset_chaos
Sun Sep 09, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Global Bond Index Portfolio (annuity)
Replies: 20
Views: 3100

Re: Vanguard Global Bond Index Portfolio (annuity)

As far as I understand, there is no currency hedging with this bond fund (or its index). I think the non-US bonds are currency hedged, but Vanguard have badly written the information so that this (very important) point is confusing. At the top of the page under Objective they write, "track the perf...
by asset_chaos
Sat Sep 08, 2018 10:49 pm
Forum: Investing - Theory, News & General
Topic: Why Bull Markets Are Dangerous
Replies: 152
Views: 16593

Re: Why Bull Markets Are Dangerous

I had to have a similar talk with my mother, but a while ago and in the opposite direction. Around 2003 or 2004 she called me to complain that stocks did nothing but go down. She had been 30:70 stocks:bonds for the previous 8 or 9 years. I finally convinced her that she had enough to do everything s...
by asset_chaos
Tue Sep 04, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a better way to do International than Total Index??
Replies: 22
Views: 2850

Re: Is there a better way to do International than Total Index??

I'm currently enamoured by a quote from Harry Markowitz, " Remember that the future will not necessarily be like the past. Therefore we should diversify." [italics mine] I think the broad diversification and low cost of total international will have the highest probability of meeting the investment ...
by asset_chaos
Tue Sep 04, 2018 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is there an alternative of this wiki page for non resident aliens?
Replies: 1
Views: 144

Re: Is there an alternative of this wiki page for non resident aliens?

There is a wiki page for Non-US domiciles here https://www.bogleheads.org/wiki/Outline_of_Non-US_domiciles . The information is sparse and not all countries have information. I don't think there is a direct equivalent of the lazy portfolios page specific to each country outside the US. If you find g...
by asset_chaos
Tue Sep 04, 2018 5:35 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 4965

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

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by asset_chaos
Sun Sep 02, 2018 7:09 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 4965

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

The last column on the alphas is for typical investor's post. For the entire interval there was a noticeable, but not statistically significant, difference in the alphas. For the latest interval that difference has disappeared, and both remain indistinguishable from zero. I am not fluent in alpha s...
by asset_chaos
Sun Sep 02, 2018 1:43 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 4965

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

A link to portfolio visualizer for VBR, IJS comparision, https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1&symbols=VBR+IJS&startDate=02%2F01%2F2004&endDate=06%2F19%2F2018&factorDataSet=2&marketArea=0&factorModel=3&useHMLDevFactor=false&includeQualityFactor=true&includeLowBeta...
by asset_chaos
Sun Sep 02, 2018 1:16 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 4965

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

A link to portfolio visualizer for VBR, IJS comparision, https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1&symbols=VBR+IJS&startDate=02%2F01%2F2004&endDate=06%2F19%2F2018&factorDataSet=2&marketArea=0&factorModel=3&useHMLDevFactor=false&includeQualityFactor=true&includeLowBeta...
by asset_chaos
Thu Aug 30, 2018 8:00 pm
Forum: Investing - Theory, News & General
Topic: Diversification as important as ever in strong markets?
Replies: 5
Views: 735

Re: Diversification as important as ever in strong markets?

When asked in an interview about his best money advice, Harry Markowitz (https://en.wikipedia.org/wiki/Harry_Markowitz) said (https://pcdailycapital.wpengine.com/financial-planning-2/nobel-prize-winner-harry-markowitz-answers-your-top-ten-questions-about-money/), "I only have one piece of advice. Di...
by asset_chaos
Tue Aug 28, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias
Replies: 31
Views: 2644

Re: Home Country Bias

It's not that the US market does not have risks, I just feel that I am more aware of the risks compared to other countries. One of the most well documented behavioral biases is feeling the familiar is automatically safer. Just a couple of references near the top of a search https://www.psychologyto...
by asset_chaos
Sun Aug 26, 2018 10:25 pm
Forum: Investing - Theory, News & General
Topic: Non-US residents adding BNDX or just BND alone?
Replies: 4
Views: 358

Re: Non-US residents adding BNDX or just BND alone?

If you look at Vanguard's UK or Swiss websites, you can find that the global aggregate bond index fund/etf is available hedged to half a dozen currencies. Perhaps one of those is suitable for your needs. I don't think there is a Vanguard global aggregate etf yet. VBND, hedged to Australian dollars,...
by asset_chaos
Sat Aug 25, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Help Approximate Total Bond Fund
Replies: 13
Views: 991

Re: Help Approximate Total Bond Fund

I would either use the TIPs fund or the target retirement income fund, recognizing that the income fund has 30% stocks so I'd need to put more than 5% of my portfolio into it to get to my desired bond level. The issue with the investment grade bond funds is credit quality. Intermediate investment gr...
by asset_chaos
Sat Aug 25, 2018 5:26 pm
Forum: Investing - Theory, News & General
Topic: Non-US residents adding BNDX or just BND alone?
Replies: 4
Views: 358

Re: Non-US residents adding BNDX or just BND alone?

If you look at Vanguard's UK or Swiss websites, you can find that the global aggregate bond index fund/etf is available hedged to half a dozen currencies. Perhaps one of those is suitable for your needs.
by asset_chaos
Fri Aug 24, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias
Replies: 31
Views: 2644

Re: Home Country Bias

There's a pithy remark Harry Markowitz https://en.wikipedia.org/wiki/Harry_Markowitz gave to an interviewer's question https://pcdailycapital.wpengine.com/financial-planning-2/nobel-prize-winner-harry-markowitz-answers-your-top-ten-questions-about-money/ Q: What are the top pieces of advice you give...
by asset_chaos
Thu Aug 23, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: Still astonished at how much securities lending covers some Vanguard fund costs
Replies: 17
Views: 1605

Still astonished at how much securities lending covers some Vanguard fund costs

A couple of years ago I noticed that securities lending income amounted to 47% of the Vanguard small cap value index fund's total expenses. I found that astonishingly large. As the annual report for Vanguard's small cap funds landed in my inbox today, I want to report that I'm still astounded. The f...
by asset_chaos
Mon Aug 20, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Please look at my portfolio and give me advice [Norway]
Replies: 18
Views: 1487

Re: Please look at my portfolio and give me advice [Norway]

For some additional context around investing from a smaller market country, this image from a Vanguard report shows for selected countries that country's global stock market weight (bilious green) and the average investor's percentage of domestic stocks (cyan). https://vgy.me/pR3Y36.png This data su...
by asset_chaos
Mon Aug 20, 2018 3:28 am
Forum: Investing - Help with Personal Investments
Topic: Please look at my portfolio and give me advice [Norway]
Replies: 18
Views: 1487

Re: Please look at my portfolio and give me advice [Norway]

I personally advocate that most people, especially people living and working in smaller market countries, default to a global stock portfolio. And then to ask themselves, are there particular cost or tax or temperament issues that imply I should overweight my home country or region. If the answer i...
by asset_chaos
Sat Aug 18, 2018 8:11 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Funds with Index Investing: Costs and Choice
Replies: 15
Views: 1129

Re: Australian Superannuation Funds with Index Investing: Costs and Choice

Note I work for a competing super fund. Knowing the providers hostplus use the only arrangement in their index line up that isn't attempting physical replication of an index is Macquarie True index Australian fixed income (and cash I guess, since the bank bills index is itself synthetic). That's 7....
by asset_chaos
Sat Aug 18, 2018 4:08 am
Forum: Investing - Theory, News & General
Topic: Vanguard Momentum ETF (VMOM). Any thoughts on it? [UK investor]
Replies: 27
Views: 1469

Re: Vanguard Momentum ETF (VMOM). Any thoughts on it? [UK investor]

What do you mean by "understand"? I personally don't understand why a momentum premium exists, even though I can look at past data and empirically see that it has. I find the explanations given in literature vague and unconvincing. I really don't understand where the large premiums that are claimed ...
by asset_chaos
Sat Aug 18, 2018 3:45 am
Forum: Investing - Help with Personal Investments
Topic: Please look at my portfolio and give me advice [Norway]
Replies: 18
Views: 1487

Re: Please look at my portfolio and give me advice [Norway]

One of the more important aspects of a portfolio is that you will be able to stick with your plan, no matter what the market does. So you have to be content with your portfolio and with your reasons for the particular decisions you've made for your portfolio to be one way instead of another. However...
by asset_chaos
Tue Aug 14, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: Magic Formula Results
Replies: 20
Views: 2065

Re: Magic Formula Results

As noted these magic formula fellows have their gotham hedge funds. The short 3 year record for their enhanced S&P 500 index fund (GINDX) is successful so far over its short life in some sense, in that it's beaten the 500 index by a couple of percent a year so far. On the other hand, GINDX, says M*,...
by asset_chaos
Tue Aug 14, 2018 8:08 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1051
Views: 81984

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Didn't read the entire thread, but I can see from its length that it's consonant with my reasons to make total world my core stock fund. I have stocks. The domestic-foreign split is one less thing to worry about, regret, or to agonize over.
by asset_chaos
Sat Aug 04, 2018 5:55 am
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Funds with Index Investing: Costs and Choice
Replies: 15
Views: 1129

Re: Australian Superannuation Funds with Index Investing: Costs and Choice

I've added a slightly edited version of the original post to the wiki under Investing in Australia into the Superannuation section ( https://www.bogleheads.org/wiki/Investing_in_Australia#Superannuation ). The tables are unformatted because I don't know how to do that. Also the accompanying spreadsh...
by asset_chaos
Sun Jul 29, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: J. Clements: 5 Enduring Predictions that Refuse to Materialize
Replies: 12
Views: 2161

Re: J. Clements: 5 Enduring Predictions that Refuse to Materialize

Not So Predictable I’M STILL WAITING. Along with many others, I have spent much of my investing career expecting five key financial trends to play themselves out—and yet they’ve stubbornly refused to do so. I thought his investing career was much longer than 10 years. Most of these perpetual predic...
by asset_chaos
Fri Jul 27, 2018 8:03 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Funds with Index Investing: Costs and Choice
Replies: 15
Views: 1129

Re: Australian Superannuation Funds with Index Investing: Costs and Choice

Valuethinker wrote:
Thu Jul 26, 2018 3:19 am
Could this be turned into a wiki? For our Australian readers?
That's a good idea. I've never done that, but I'll send a note to one of the moderators to ask how it works.
by asset_chaos
Fri Jul 27, 2018 8:01 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Funds with Index Investing: Costs and Choice
Replies: 15
Views: 1129

Re: Australian Superannuation Funds with Index Investing: Costs and Choice

Nice overview with lots of choice. A few observations: 1. The First State Super 'index fund option', indeed all their investment options, has an admin fee of '$52 per year ($4.33 per month) plus an asset-based administration fee of 0.40% per year ($200 per $50,000).' That 40bp ensures your costs ar...
by asset_chaos
Wed Jul 25, 2018 9:06 pm
Forum: Investing - Theory, News & General
Topic: Australian Superannuation Funds with Index Investing: Costs and Choice
Replies: 15
Views: 1129

Australian Superannuation Funds with Index Investing: Costs and Choice

This note will be of interest primarily to Australians who both can choose their superannuation (tax advantaged retirement) fund and want to use low cost indexed investments. I've calculated the all-in investment costs of several super funds that offer indexed investments of some type. This note may...
by asset_chaos
Mon Jul 23, 2018 3:42 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26516

Re: THE 60/40 SOLUTION by Peter Bernstein

asset_chaos wrote; I have no evidence of where the 60:40 conventional wisdom came from. THE 60/40 SOLUTION by Peter Bernstein Best wishes. Taylor That's a good article, which I've read before, but it doesn't say where 60:40 comes from, just that 60:40 "was so popular in the era before the bull mark...
by asset_chaos
Sun Jul 22, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26516

Re: Bill Sharpe's preferred portfolio

It is weird but 60% stocks/40% bonds is a time tested investing formula that works well. I don't think anyone really knows why for sure, my theory is that it is a good round number that intuitively makes sense. I hypothesize that it's based on a fallacy of equivalence. US stocks have done better on...
by asset_chaos
Fri Jul 20, 2018 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: How to make inherited Roth last longer?
Replies: 9
Views: 1379

Re: Inherited Roth - how to make it last?… (allocations /RMD w 4 funds)

You could simplify by selling all four of those funds and putting everything into Vanguard's lifestrategy moderate or conservative growth funds. You'd keep exposure to all four global asset classes (diversification is good) but in different proportions (e.g. more domestic stock), automatically rebal...
by asset_chaos
Thu Jul 19, 2018 3:11 am
Forum: Investing - Theory, News & General
Topic: InvestorPlace: Best Vanguard Funds for the Second Half of 2018
Replies: 5
Views: 1418

Re: InvestorPlace: Best Vanguard Funds for the Second Half of 2018

Second half of 2018? I don't expect to even look at my portfolio again until the end of the year. I guess I'll have to miss out on whatever exciting timing possibilities there are. More seriously, making periodic investment switches is unlikely to beat buy and hold.
by asset_chaos
Thu Jul 19, 2018 3:05 am
Forum: Investing - Theory, News & General
Topic: Market timing benefit? Or just pure luck?
Replies: 15
Views: 2185

Re: Market timing benefit? Or just pure luck?

Just published is a simple framework for understanding the most basic math of market timing https://doi.org/10.1371/journal.pone.0200561 . Among other things, the paper calculates boundaries for the past feasible set for market timing by making, with the benefit of hindsight, perfectly good market t...
by asset_chaos
Mon Jul 16, 2018 8:43 pm
Forum: Investing - Theory, News & General
Topic: turnover rate impact on return
Replies: 13
Views: 932

Re: turnover rate impact on return

asset chaos in other words if the index fund is tracking its index closely and the buying and selling is done in a way that the capital gain distribution is zero then the turn over is a moot point. thanks for your detailed reply. Its starting to make more sense now. Yes, that's what I mean. You're ...
by asset_chaos
Mon Jul 16, 2018 1:49 am
Forum: Investing - Theory, News & General
Topic: turnover rate impact on return
Replies: 13
Views: 932

Re: turnover rate impact on return

asset-chaos i looked at the morning report for vsiix, you are right there are no capital gains over the last year but it does pay out a dividend. i find that confusing if you are paying a dividend, why is not being taxed? Dividends are taxed, but the question was about the consequences of turnover....
by asset_chaos
Sun Jul 15, 2018 8:14 pm
Forum: Investing - Theory, News & General
Topic: turnover rate impact on return
Replies: 13
Views: 932

Re: turnover rate impact on return

If you're looking at an index fund, the gauge for the effect of any cost is how closely does the fund track its index and has it made taxable capital gains distributions. Vaguard's info page says its small value fund (vsiax, the admiral shares because that's what I use) has over its life (past 7 yea...
by asset_chaos
Sun Jul 15, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: All-In VTSAX
Replies: 37
Views: 4171

Re: All-In VTSAX

Thinking about getting rid of IEMG and VEA and all-in VTSAX . This is for retirement fund. I am asking for advice if getting rid of emerging market and international are acceptable from boglehead investment style? i.e, I am trying to consolidate more and more into 2 Fund portfolio. Thanks! You've g...
by asset_chaos
Sun Jul 15, 2018 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: What to sell for Mom's RMD
Replies: 15
Views: 1222

Re: What to sell for Mom's RMD

It's in a tax sheltered environment. Sell all of it, take the required distribution, and redeploy the rest into a less risky, less costly, and more reasonable portfolio for an 80 year old. Is this not on the table because there is sentimental attachment that this was what dad did, so I don't want to...
by asset_chaos
Fri Jul 13, 2018 9:26 pm
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 362
Views: 17827

Re: COMING SOON: BOGLEHEADS PODCASTS

More Wealth, More Fun: Bogleheads!
by asset_chaos
Fri Jul 13, 2018 4:40 pm
Forum: Investing - Theory, News & General
Topic: Source of information on global stock market caps
Replies: 5
Views: 351

Re: Source of information on global stock market caps

If your objective is to have your stock investment be substantially identical with the global stock market, then, while not the only way, investing in a global stock index fund is the simplest way to accomplish your objective.
by asset_chaos
Fri Jul 13, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: Source of information on global stock market caps
Replies: 5
Views: 351

Re: Source of information on global stock market caps

Go to the information page about Vanguard's total world stock index fund (or ETF) and see the country breakdown there. Or, the Vanguard fund follows the FTSE Global All-Cap index; go to the FTSE webpage for the index and the information page (updated quarterly) gives a country breakdown. MSCI also p...