Search found 420 matches

by selters
Wed Oct 18, 2017 6:12 am
Forum: Investing - Theory, News & General
Topic: Intriguing: S&P 1000 ETF (70% S&P 400/30% S&P 600)
Replies: 10
Views: 1591

Re: Intriguing: S&P 1000 ETF (70% S&P 400/30% S&P 600)

The expense ratio of this fund is now 0.05%. It also has a new ticker: SPMD (https://us.spdrs.com/en/etf/spdr-portfolio-mid-cap-etf-SPMD) Some people prefer the S&P indexes for small and mid caps over indexes that include all small and mid caps, because financial viability screens in the S&P indexes...
by selters
Sat Oct 14, 2017 6:32 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3182

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

David Scubadiver wrote:
Sat Oct 14, 2017 6:06 pm
Besides having your terminology confused, your hypothetical makes no sense since there is no circumstance in which one could possibly be so limited.
We've seen worse 401k options many times on this very forum.
by selters
Sat Oct 14, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3182

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

What if framed the question like this: If you could only hold Apple and the bottom 1000 stocks in TSM, would you hold them at market weight? If you could only hold the top five stocks in the US and the bottom 2000, would you hold them at market weight? If you could only hold the top 50 stocks in the...
by selters
Sat Oct 14, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3182

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

The reason I'm asking is that every now and then the question comes up, is market cap weighting the best way to invest? Isn't it too concentrated in its top holdings? And then we get the usual string of replies, like market cap weighting is the most diversified, market cap weighting is on the effici...
by selters
Sat Oct 14, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3182

Which would you rather own: AAPL or S&P 600 Small Cap Index?

If you had to choose, which equity exposure would you rather have, 100% Apple stock or 100% S&P 600 small cap index? I'm wondering, since they have approximately the same market cap. Apple is worth $803 billion and the combined value of the constituents in the S&P 600 is $780 billion. Total stock ma...
by selters
Fri Oct 06, 2017 9:03 am
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 4666

Re: Are stocks going up only because all the alternatives are lousy?

my guess for the S&P 500 moved from 110th to 33rd in 6 days in the BH contest Darn, you beat me :( I'm at 42nd. Maybe stocks are going up because alternatives are lousy. But that was not the case in 2000. Intermediate term bonds yielded something like 7% back then, but still CAPE reached >40. If lo...
by selters
Sat Sep 30, 2017 6:55 am
Forum: Investing - Theory, News & General
Topic: Share buybacks vs Dividends
Replies: 102
Views: 4692

Re: Share buybacks vs Dividends

Everywhere I look, share buybacks and dividends are viewed as roughly the same thing but I don't understand how that is. With share buybacks, the company buys its own shares and therefore there are less shares outstanding. The EPS rise and therefore the stock prices rise. With dividends, when the c...
by selters
Fri Sep 29, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: Which # by market cap is the smallest S&P 500 constituent?
Replies: 3
Views: 731

Which # by market cap is the smallest S&P 500 constituent?

Contrary to popular belief, the S&P 500 does not consist of the 500 largest publicly traded companies in the US. The S&P 500 (and many other S&P indices) have liquidity and profitability screens that need to be passed to make it into the S&P 500. Also, the index has constraints to make sure that eve...
by selters
Fri Sep 29, 2017 4:57 am
Forum: Investing - Help with Personal Investments
Topic: Investing in ETFs MSCI World + MSCI Emerging Market [Germany]
Replies: 18
Views: 1175

Re: Investing in ETFs MSCI World + MSCI Emerging Market [Germany]

If you live in Germany, surely you can buy any stock or ETF traded on the German stock market, right? Look for these tickers on Deutsche Börse EUNL: iShares Core MSCI World UCITS ETF (ER 0.20%) IS3N: iShares Core MSCI EM IMI UCITS ETF (ER 0.25%) And the commission should be a lot lower than 1.50%, m...
by selters
Wed Sep 20, 2017 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: My Current 401k Allocation
Replies: 2
Views: 259

Re: My Current 401k Allocation

Moving out of the target date fund was probably a wise choice, since costs are higher in actively managed funds. But you moved into other actively managed funds with pretty high costs. You might want to reconsider those choices. The Bogleheads investment philosophy says that you should use index fun...
by selters
Sun Sep 17, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: Are long-term market returns reliable?
Replies: 38
Views: 4066

Re: The myth about long-run stock returns

So when did the worst 30 year period end? And are these real or nominal returns?
by selters
Fri Sep 15, 2017 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target Retirement Funds added to 401k
Replies: 15
Views: 1187

Re: Vanguard Target Retirement Funds added to 401k

2) I am wanting to get an AA of 80/20 (stock/bond) and with the stock breakdown being about 66/33 (domestic/international). Just be aware that the Target funds are 60/40 US/international. In my opinion this is close enough to your desired 66/33 that the difference is worth the simplicity and ER sav...
by selters
Fri Sep 15, 2017 3:35 am
Forum: Personal Finance (Not Investing)
Topic: Paying off debt vs. max savings
Replies: 53
Views: 5734

Re: Paying off debt vs. max savings

What order you do things in is less important than how much you save, invest or pay down debt. $50,000 a year in the wrong order will always trump $40,000 in the right order.
by selters
Thu Sep 14, 2017 3:20 am
Forum: Investing - Help with Personal Investments
Topic: adapt portfolios to european investor
Replies: 54
Views: 2997

Re: adapt portfolios to european investor

Another popular portfolio is: 10% iShares Core MSCI Emerging Markets IMI UCITS ETF (TER:0,25%), EIMI 90% iShares Core MSCI World UCITS ETF (TER:0,20%), IWDA +1 You are investing for a long time, 50+ years. We have no clue which economies will flourish and which will peter out; ditto for currencies....
by selters
Sun Sep 10, 2017 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Preparing To Adjust 401k To Three-Fund Portfolio
Replies: 11
Views: 962

Re: Preparing To Adjust 401k To Three-Fund Portfolio

Just go 100% SSgA S&P 500 Index Ret Opt (TEIF), [ER=0.90]. Contribute up to the match in the 401k and then supplement with international (or bonds, if desired) in an IRA to get to your desired asset allocation. If there's money left over after that, max your 401k or save more for your house. When yo...
by selters
Thu Sep 07, 2017 12:24 pm
Forum: Investing - Theory, News & General
Topic: What does "beat the market" mean?
Replies: 40
Views: 1824

Re: What does "beat the market" mean?

And there are plenty of index funds (non-total-market-index) that track groups of stocks that have certain kinds of higher risk and some think should have higher return. There are a lot of ideas about which risks, characteristics more broadly, or even mispricings, might lead to better returns over ...
by selters
Sun Sep 03, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: a list of major factor asset classes
Replies: 12
Views: 1057

Re: a list of major factor asset classes

selftalk wrote:
Sat Sep 02, 2017 7:40 pm
Where can I get a list of all factor etf major asset classes ? No multi-factors.
You mean low size, value, momentum, profitability/quality, and (arguably) minimum volatility?
by selters
Sat Sep 02, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: Does shorting negate the arithmetic of active management?
Replies: 5
Views: 534

Does shorting negate the arithmetic of active management?

I took part in an online discussion about active/passive management the other day. One of the participants claimed that once you allow short selling (or covered calls or other complex trading products) in a market, the arithmetic of active management argument breaks down. That is, the market is no l...
by selters
Fri Sep 01, 2017 3:26 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3972
Views: 1055940

Re: Another point of view

True but it might take a very long time. After 1929 crash Dow didn't recover until 1950s ... zenon: According to "Outperforming the Market" by author John Merrill, if you had invested $1,000,000 in September 1929 at the top of the bull market, you would have $921,000 nominal and $1,142,000 real (af...
by selters
Wed Aug 30, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott: Dump US stocks buy EM
Replies: 65
Views: 5672

Re: Rob Arnott: Dump US stocks buy EM

Simplegift wrote:
Wed Aug 30, 2017 12:02 pm
It would be nice to see that chart currency adjusted. I think quite a bit of European and Emerging Markets earnings growth get buried under currency weakening against USD in that chart.
by selters
Wed Aug 30, 2017 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: where to put Tesla stock [Roth or another type of account]
Replies: 26
Views: 1058

Re: where to put Tesla stock [Roth or another type of account]

Am I wrong to think that as long as Tesla is a growth company that doesn't pay any dividends, you might as well put it in a taxable account and use your tax deferred space for more tax inefficient equities?
by selters
Wed Aug 30, 2017 7:39 am
Forum: Investing - Theory, News & General
Topic: First article I've read against indexing that seems convincing
Replies: 40
Views: 5761

Re: First article I've read against indexing that seems convincing

Everyone who speaks of the decline in number of public stocks mentions the artificial high of 7500 in 1999-2000. What about some numbers from other times in history?
by selters
Wed Aug 30, 2017 4:25 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott: Dump US stocks buy EM
Replies: 65
Views: 5672

Re: Rob Arnott: Dump US stocks buy EM

whodidntante wrote:
Tue Aug 29, 2017 7:53 pm
lazyday wrote:
Tue Aug 29, 2017 6:49 pm

My favorite emerging value fund: FNDE
That fund overweights South Korea at about 20% of total. Just FYI.
That's not too bad. South Korea's weight in the MSCI EM index is something like 12-13% to begin with.
by selters
Tue Aug 29, 2017 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Go 100% Into Stocks?
Replies: 24
Views: 2172

Re: Should I Go 100% Into Stocks?

I started investing at the age of 40 (I am now 42) and plan on retiring at around 65. I currently do the Vanguard Balanced Index Fund for my portfolio via 401k and IRA. Lately, I have considered going 100% into stocks. Specifically, the Vanguard Total Stock market. I figure I'd count my Social Secu...
by selters
Sun Aug 27, 2017 1:11 pm
Forum: Investing - Theory, News & General
Topic: Demographic Headwinds for Stocks and Bonds?
Replies: 47
Views: 5105

Re: Demographic Headwinds for Stocks and Bonds?

There's enough population momentum in the world to have a growing world population for at least another 40-50 years, even if fertility rates fall much below 2.1 in many parts of the world. I don't worry too much about the world's population starting to shrink again - even from a strict investment re...
by selters
Sun Aug 27, 2017 12:53 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 160
Views: 6895

Re: Review with Me - Larry Swedroe's new book

One thing that has bothered me about book value is how can investors trust that book values are correct. Aren't reasonably correct book values a prerequisite for value investing to work? Case in point: Four years ago, Seadrill was the biggest offshore rig firm the world, with a market cap of almost ...
by selters
Sun Aug 27, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 160
Views: 6895

Re: Two books to review

Taylor, note also my discussion of the "anti-factors". I am very surprised nobody ever comments on this though I have brought this up several times. My belief is that the well constructed indexes for the most part screen out the "anti-factors" and that is one reason that indexing works so well. It ...
by selters
Sun Aug 27, 2017 6:04 am
Forum: Investing - Help with Personal Investments
Topic: How EXACTLY does investing work? PROs needed.
Replies: 5
Views: 903

Re: How EXACTLY does investing work? PROs needed.

I should BUY MORE when the stock market goes down because then I can buy more shares with the same amount of money. If the stock market goes down, do NOT sell these shares because they will ONLY go back up in the future in the long run. You can only do that if you have cash to spare. If you are alr...
by selters
Sun Aug 27, 2017 5:21 am
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 160
Views: 6895

Re: Review with Me - Larry Swedroe's new book

What exactly are long/short portfolios? Portfolios where you buy stocks that you expect to increase in value and short sell stocks that expect to decrease in value? If that's what this book is talking about, how can long only investors (like most Bogleheads) implement the information in the book?
by selters
Wed Aug 23, 2017 7:56 am
Forum: Investing - Theory, News & General
Topic: I'm Calling an Emerging Markets Bottom
Replies: 250
Views: 42874

Re: I'm Calling an Emerging Markets Bottom

Emering Markets are up 25.5% YTD and 50.4% since this thread was started.
by selters
Tue Aug 22, 2017 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: 12 Things Not to Do if You Win the Lottery
Replies: 9
Views: 1951

Re: 12 Things Not to Do if You Win the Lottery

CoAndy wrote:
Tue Aug 22, 2017 2:53 pm
I have read many stories on windfalls being absolutely squandered. I find it mind boggling.
Any good books with such stories?
by selters
Sat Aug 19, 2017 7:36 am
Forum: Investing - Theory, News & General
Topic: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."
Replies: 87
Views: 19086

Re: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."

What exactly are crimes against humanity? [...] My point is that this is an extremely slippery slope. I read Article 7(1) of the Rome Statute. I'm not seeing the slippery slope that you're so afraid of. Your example doesn't count as a crime against humanity. Pretty open and shut. I'm sure crime aga...
by selters
Fri Aug 18, 2017 1:21 am
Forum: Personal Consumer Issues
Topic: Powerball - $510 million?
Replies: 64
Views: 4719

Re: Powerball - $510 million?

How high would the grand prize have to be for the expected return of the lottery ticket to be positive?
by selters
Wed Aug 16, 2017 4:33 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."
Replies: 87
Views: 19086

Re: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."

I agree they should be following the index. But I am a bit dismayed opposing genocide is "political" or something to do with being "politically correct" rather than basic human rights. :| I don't think anyone is "for" genocidal activities, but the framing of the question is dishonest and manipulati...
by selters
Wed Aug 16, 2017 8:30 am
Forum: Investing - Theory, News & General
Topic: Study: The Rate of Return on Everything, 1870-2015
Replies: 85
Views: 11907

Re: Study: The Rate of Return on Everything, 1870-2015

How do they actually measure the rate of return on real estate? Do they just find data from the areas where people live or want to live today? If so, then the results are probably massively skewed by survivorship bias. I'm sure the annualized return of real estate in Dubai or Shanghai has been 30% f...
by selters
Wed Aug 16, 2017 8:11 am
Forum: Investing - Theory, News & General
Topic: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."
Replies: 87
Views: 19086

Re: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."

Proposal 7— A shareholder proposal to institute transparent procedures to avoid holding investments in companies that, in management’s judgement, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights. While I certainly don't condone genocide,...
by selters
Mon Aug 14, 2017 9:19 am
Forum: Investing - Theory, News & General
Topic: Dave Ramsey spends two segments on his investing advice
Replies: 65
Views: 7351

Re: Dave Ramsey spends two segments on his investing advice

Some of Dave Ramsay's advice may be bad, but it is not bad because he filed for bankruptcy 30 years ago, has ads for blinds on his show or because he tells people to place their money in four not clearly defined categories of mutual funds (growth, growth and income, aggressive growth, and internatio...
by selters
Mon Aug 14, 2017 1:37 am
Forum: Personal Finance (Not Investing)
Topic: Due to 8 Year Bull Market, Pay Off Rental Now?
Replies: 35
Views: 3872

Re: Due to 8 Year Bull Market, Pay Off Rental Now?

I'm not sure you can predict the market....so why do this? Let your tenants pay your mortgage...that's the best solution. Real losses hurt more than opportunity losses. Tenants pay rent, but it is still the OP who pays the mortgage. If the OP wants the freedom of being debt free, I think now, when ...
by selters
Sun Aug 13, 2017 6:49 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey spends two segments on his investing advice
Replies: 65
Views: 7351

Re: Dave Ramsey spends two segments on his investing advice

Dave Ramsey doesn't mention this very often, but I've been listening to his show more than I probably should in the last year, and he's said a few times that he has all of his taxable investments in the Vanguard S&P 500 index fund, but that he uses active funds for his tax deferred accounts. His tax...
by selters
Wed Aug 09, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Why Worry About US Estate Tax for Non-Resident Aliens
Replies: 25
Views: 1906

Re: Why Worry About US Estate Tax for Non-Resident Aliens

It's not the 0.07% vs 0.04% expense ratio that is the problem. The problem is the double taxation of dividends in accumulating mutual funds traded in Europe. Before dividends from S&P 500 companies are reinvested into the S&P 500 index fund, at least 15% of the dividends are withheld by the US gover...
by selters
Wed Aug 09, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: Still Buying As planned Regardless Of The World Situation
Replies: 72
Views: 8188

Re: Still Buying As planned Regardless Of The World Situation

Chrono Triggered wrote:When the market is high or stagnant, buy shares. When the market is down, buy even more shares.
So increase your allocation to stocks as the market falls?
by selters
Wed Aug 09, 2017 2:55 am
Forum: Personal Finance (Not Investing)
Topic: Why Worry About US Estate Tax for Non-Resident Aliens
Replies: 25
Views: 1906

Re: Why Worry About US Estate Tax for Non-Resident Aliens

Good question. I don't hold US ETFs worth more than $60,000 right now, but in a few years I will - hopefully. How exactly is this law enforced when a NRA dies?
by selters
Tue Aug 08, 2017 12:11 pm
Forum: Investing - Theory, News & General
Topic: Factor crowding
Replies: 19
Views: 1558

Re: Factor crowding

Ric Edelman, although not always the best source of information, stated on his most recent show that in 2014 ~30% of all mutual fund inflows were in smart beta funds.... If that was ever true, it isn't true today if ETF inflows even remotely reflect mutual fund inflows: http://www.etf.com/sections/...
by selters
Mon Aug 07, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Tot Intl funds vs Venezuela
Replies: 19
Views: 1964

Re: Vanguard Tot Intl funds vs Venezuela

Unrest in Venezuela will probably increase oil prices, which has been good for ex US stocks historically.
by selters
Sun Aug 06, 2017 1:15 am
Forum: Investing - Theory, News & General
Topic: Vanguard Puts Rivals on Notice: Fee Wars Will Only Heat Up
Replies: 62
Views: 6150

Re: "Vanguard Puts Rival Firms On Notice: Fee Wars Will Only Heat Up"

It seems to me that if it wasn't for Vanguard, these other firms would not be lowering their fees (or offering index funds at all). +1 Sure. Vanguard deserves all the praise in the world for starting the price war. That does not mean that Bogleheads should welcome a development in the fund manageme...
by selters
Sat Aug 05, 2017 1:17 am
Forum: Personal Finance (Not Investing)
Topic: only have 401k & emergency funds. what's next?
Replies: 24
Views: 1824

Re: only have 401k & emergency funds. what's next?

A few other random thoughts: Pile up some cash for when the baby comes. Or just keep the emergency fund and pay off the credit cards with cash flow. Some breathing room when you have small kids is great to have. $1500 a month in debt reduction and investing at your level of income will never make yo...
by selters
Sat Aug 05, 2017 12:43 am
Forum: Personal Finance (Not Investing)
Topic: only have 401k & emergency funds. what's next?
Replies: 24
Views: 1824

Re: only have 401k & emergency funds. what's next?

401k currently - VANG INST INDEX PLUS (VIIIX) FID INTL INDEX INS (FSPNX) VANG TOT BD MK IS PL (VBMPX) Excellent! You can't do better than what you've selected. So don't spend any mental energy by tinkering with it - at least not until you're debt free except the home, which will take a few years. A...
by selters
Thu Aug 03, 2017 7:09 am
Forum: Personal Consumer Issues
Topic: Should I spend 5k annually on travel?
Replies: 74
Views: 7504

Re: Should I spend 5k annually on travel?

Why do people run calculations on what a $20,000 car at age 25-30 costs you in lost stock market returns, but not what $4000 a year on travel for five years at age 25-30 costs in lost stock market returns?
by selters
Fri Jul 28, 2017 3:08 am
Forum: Investing - Help with Personal Investments
Topic: "Timing the Market" / Deciding when to make along term purchase
Replies: 32
Views: 1864

Re: "Timing the Market" / Deciding when to make along term purchase

$3,000 as a percentage of your projected lifetime contributions is very low. Lump sum right now, I'd say.