Search found 555 matches

by selters
Fri Jul 13, 2018 1:23 pm
Forum: Investing - Theory, News & General
Topic: [EU] How to bypasses MIFID II, PRIPS and buy US ETFs
Replies: 4
Views: 324

Re: [EU] How to bypasses MIFID II, PRIPS and buy US ETFs

If I understand this correctly, this is possible, but your dividends will be taxed in the US when you receive them? And then you have to pay taxes on them again when you transfer the money back to your home country? The costs of this will be greater than if you just bought the iShares Core S&P 500 U...
by selters
Fri Jul 13, 2018 1:16 pm
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 340
Views: 9660

Re: COMING SOON: BOGLEHEADS PODCASTS

The Bogleheads Podcast
:sharebeer
by selters
Thu Jul 12, 2018 4:41 am
Forum: Investing - Theory, News & General
Topic: Six stocks make up 98% of S&P 500 gains in 2018
Replies: 71
Views: 8578

Re: Six stocks make up 98% of S&P 500 gains in 2018

I suspect the 98% number is relatively meaningless. Based on the numbers given in the article, it looks like each company's contribution to S&P 500 returns as w * r / R, where: - w is the weight of that company in the S&P500 - r is the return of that company for the last year - R is the total retur...
by selters
Sun Jul 08, 2018 3:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard Isn't Taking in as Much Money; Neither Is Anyone Else
Replies: 8
Views: 2698

Re: Vanguard Isn't Taking in as Much Money; Neither Is Anyone Else

AlwaysWannaLearn wrote:
Sat Jul 07, 2018 8:58 pm
davidkw wrote:
Sat Jul 07, 2018 6:40 am
Inflows

Bloomberg does a great job of following Vanguard. Eric Balchunas follows the inflows often.
And your point, OP, is um... What??? :confused
Sorry if I missed it. What's your question?
Are questions required?
by selters
Sat Jul 07, 2018 6:11 am
Forum: Personal Consumer Issues
Topic: Replace car battery after X years or wait till it dies?
Replies: 162
Views: 19158

Re: Replace car battery after X years or wait till it dies?

As a European, one thing that strikes me about Americans is their obsession with very frequent oil changes and religiously changing car batteries every 3-5 years.
by selters
Tue Jul 03, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 11972

Re: Expected returns for 80/20 stock bond for next 10 years.

wootwoot wrote:
Tue Jul 03, 2018 12:16 am
So many fortune tellers in here. What makes you think that anyone can reliably predict future returns?
These forcasts are based on back-tested models for expected returns. The models are very inaccurate, but they are the most accurate models we have.
by selters
Sat Jun 30, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to avoid bad companies in S&P 500?
Replies: 92
Views: 4472

Re: Is there a way to avoid bad companies in S&P 500?

For small caps it seems to work if you leave out companies that are not profitable. IJR, an S&P 600 small cap fund, has returned 403% since 2000. IWM, a Russell 2000 index fund, has returned 243% since 2000. For large caps, we haven’t seen the same effect in the data. Look at the morningstar forums ...
by selters
Sat Jun 30, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to avoid bad companies in S&P 500?
Replies: 92
Views: 4472

Re: Why would creating an intelligent S&P 475 be so difficult to do?

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities . There is over USD 9.9 trillion indexed or benchmarked to the index, with indexed assets comprising approximately USD 3.4 trillion of this total. The index includes 500 leading companies and captures approximately ...
by selters
Sat Jun 30, 2018 3:49 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 5643

Re: Dave Ramsey against index funds?

Wealthy people don't (and have never) listen to Dave Ramsey. They just don't. You cannot become wealthy following his advice. You cannot shrink your way to wealth. Are you talking about Bogleheads now, or Dave Ramsay? If you listen to Dave Ramsay, one of the things he spends the most time talking a...
by selters
Fri Jun 29, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 5643

Re: Dave Ramsey against index funds?

You can save like Dave, just don't invest like him. He's probably not lying when he says he uses active funds for tax sheltered accounts. But for his taxable mutual fund investments, he is 100% allocated to the Vanguard 500 Index Fund. He has most of his net worth in real estate, but if his net wor...
by selters
Wed Jun 27, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner Investment Questions
Replies: 22
Views: 1507

Re: Beginner Investment Questions

The $25 a month into mutual funds may be beneficial to get into the habit of saving and investing. But $25 a month will not grow into a meaningful amount of by the time you reach retirement age. But its not going to keep you from paying off your debts either. Do what you feel like. Mathematically, t...
by selters
Sun Jun 24, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: If I had a large enough sum to move the entire market significantly in a few days, which stocks would move the most?
Replies: 2
Views: 485

If I had a large enough sum to move the entire market significantly in a few days, which stocks would move the most?

I am asking this question as a follow up to the discussion on whether market cap weighted total stock market index funds can create bubbles of any kind in the stock market. Let's assume that I have a large enough sum to move the entire market significantly in a few days. I'll define significantly as...
by selters
Sun Jun 24, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: Hidden Index Bubble - I'd love to hear some thoughts!
Replies: 27
Views: 2158

Re: Hidden Index Bubble - I'd love to hear some thoughts!

Investing in cap-weighted total-market index funds really is different from every other strategy. It is the only strategy in which investors, by investing in the fund, do not alter the composition of the remaining assets available for purchase by other investors . It is the only strategy which does...
by selters
Sat Jun 23, 2018 8:31 pm
Forum: Investing - Theory, News & General
Topic: Why won't Vanguard drop VTI & VOO expense to 0.03?
Replies: 39
Views: 3601

Re: Why won't Vanguard drop VTI & VOO expense to 0.03?

My baseless prediction: Fees will go to zero and then we will be paid to invest. My son asked me to take a look at his 401k at Fidelity where his first paycheck made a contribution. The S&P fund there is 0.01283%. Yes....less than half of what SCHB charges. I'm sure the company pays some fees. But ...
by selters
Sat Jun 23, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: Why won't Vanguard drop VTI & VOO expense to 0.03?
Replies: 39
Views: 3601

Re: Why won't Vanguard drop VTI & VOO expense to 0.03?

Unlike other funds companies, Vanguard's expense ratio is backwards looking. Last year, the cost of running VTI was 0.04%. The costs for 2018 won't be ready until 2019, but they will almost certainly be lower than the costs for 2017, but maybe not low enough to round the expense ratio down to 0.03%....
by selters
Wed Jun 20, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Is technology the reason for low inflation?
Replies: 57
Views: 3296

Re: Is technology the reason for low inflation?

I listened to an interview recently where the interviewee, I think it was Ed Yardeni, criticized the way the hedonic adjustment in the CPI was calculated. For example since the 15 inch $2000 laptop of today has four times as much RAM, four times the processing power and four times the number of pixe...
by selters
Sat Jun 16, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: I feel like selling my 3 fund
Replies: 57
Views: 7739

Re: I feel like selling my 3 fund

Including your cash, your allocation to stocks is about 40%. That's not a lot. I'm not a US resident, so take what I say regarding taxes with a grain of salt, but as far as I've understood, anyone over 21 with a taxable earned income can open an IRA, which is a tax advantaged account. You may want t...
by selters
Fri Jun 15, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2626

Re: Factor-based strategy is better (winer), OK. then who are the losers?

larryswedroe wrote:
Mon Sep 05, 2016 8:03 am
selters
Factors are LONG/SHORT portfolios so the factors that underperform are the SHORT side, so large, growth, low profitability, high investment, negative momentum, and so on.
Larry
by selters
Sat Jun 09, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: High priced stocks that turned out to be great investments?
Replies: 4
Views: 776

High priced stocks that turned out to be great investments?

With many stocks (Tesla, Amazon Netflix) now being priced at trailing P/Es in the hundreds, I'm wondering if these stocks will be good investments even if their businesses will do well. Cisco since 2000 and many Japanese companies since 1989 have done just fine as businesses, but have been bad inves...
by selters
Sat Jun 02, 2018 3:19 am
Forum: Personal Finance (Not Investing)
Topic: Have $2.5M at 30, career advice needed
Replies: 49
Views: 5343

Re: Have $2.5M at 30, career advice needed

You make 550k and you are (nearly) debt free. I don't think property taxes of 30k is what keeps you from retiring early. With your income, you have a lot of room for both spending and saving/investing compared to 99% of the population, even in the richest countries in the world. As long as you save ...
by selters
Wed May 30, 2018 5:16 am
Forum: Investing - Help with Personal Investments
Topic: ITOT versus VTSAX
Replies: 25
Views: 1937

Re: ITOT versus VTSAX

Is the Vanguard Total Market ETF (VTI) available in Etrade? They are both indexed funds tracking the Russel 1000 TR benchmark. The expenses for ITOT are lower than for VTI/VTSAX. I think Morningstar uses the Russell 1000 index in their charts but VTI and ITOT track total stock market indexes from C...
by selters
Wed May 30, 2018 4:51 am
Forum: Investing - Help with Personal Investments
Topic: Opened 401K - Slavic Portfolio Help Please
Replies: 6
Views: 522

Re: Opened 401K - Slavic Portfolio Help Please

10% Vanguard Total Bond Market Index Admiraldetails VBTLX 60% Vanguard Total Stock Market Index Admiradetails VTSAX 20% iShares MSCI EAFE International Index Kdetails BTMKX 10% DFA Emerging Markets Core Equitydetails DFCEX Or you can just go 100% Vanguard Target Retirement 2050 VFIFX, which does all...
by selters
Sat May 26, 2018 3:53 am
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 13120

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

Many investors I know in their 50s and 60s have been US-only. It has worked out great for them. Many McDonalds, Microsoft, Exxon Mobil, Nike, Disney, Berkshire, Amazon employees have been company stock only. It has worked out from fine to great for them, too. Not so well for Enron, Lehman Brothers ...
by selters
Tue May 22, 2018 1:23 am
Forum: Investing - Help with Personal Investments
Topic: Help with international using MSCI Indexes.
Replies: 14
Views: 1011

Re: Help with international using MSCI Indexes.

MSCI EAFE index is developed markets minus US and Canada. If you want to cover the whole world, you should use an Emerging Markets fund, too. I would not worry too much about not getting any Canada exposure.
by selters
Fri May 18, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5342

Re: Rob Arnott:index Investors Buy High, Sell Low

https://www.bloomberg.com/news/videos/2018-05-17/meet-the-portfolio-manager-overseeing-1-trillion-video Is the fact that the VTI managers are able to track the fund's benchmark index perfectly (not underperform it by its expense ratio) due to dumb luck? Even if you account for securities lending rev...
by selters
Mon May 14, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds really needed - why not 100% stocks?
Replies: 71
Views: 5702

Re: Are bonds really needed - why not 100% stocks?

The difference is 1.1% Which is huge. Taylor wrote a post a few days ago where he said that one should own some bonds, if only to learn about them. I can agree with that. But the volatility dampening effects of bonds are pretty small at low bond allocations, and your bond allocation is going to be ...
by selters
Sun May 06, 2018 7:03 am
Forum: Investing - Help with Personal Investments
Topic: Allocation to combine Dave Ramsey and Vanguard?
Replies: 79
Views: 7276

Re: Allocation to combine Dave Ramsey and Vanguard?

In defense of sticking to the Dave Ramsay way: There is great value in picking a strategy and sticking to it, even if, strictly speaking, the strategy is illogical and not really in line with best research on the field. Pick a diet and stick to it. Pick a training program and stick to it. Pick an as...
by selters
Sat May 05, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 18
Views: 1125

Re: [EU] About the cost of taxes on dividends in European funds

You are right. When a US company pays dividends to a European listed S&P 500 fund, US tax authorities withhold between 15% and 30% of the dividends before they are paid out to the S&P 500 fund or ETF. This is often called a dividend tax leakage. I don't know what determines the withholding rate, but...
by selters
Sat May 05, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Basic knowledge-inexperienced and overwhelmed
Replies: 43
Views: 3521

Re: Basic knowledge-inexperienced and overwhelmed

Schwab, which is also quite popular among Bogleheads, has index funds at the same cost as Vanguard, with a minimum investment of $1.
by selters
Sat May 05, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Correcting an Error? Invested high dividend index fund in taxable account.
Replies: 25
Views: 1882

Re: Correcting an Error? Invested high dividend index fund in taxable account.

The standard Boglehead advice is to put everything in taxable in Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX).
by selters
Sat May 05, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Accumulating ETF - Additional Units or Increase in Price
Replies: 65
Views: 4545

Re: Accumulating ETF - Additional Units or Increase in Price

For accumulating ETFs the reinvested dividends are reflected in the share price of the ETF. You do not receive additional shares.
by selters
Sat Apr 28, 2018 3:14 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8858

Re: What's wrong with this critique of indexing?

P.S. Lauretta, just for fun... somewhat tangential to your topic, but worth the effort... take a little while to look at the October, 2017 annual report , page 7, schedule of investments for the PowerShares Russell 2000 Equal Weight Portfolio (EQWS). It is holding a total of $23,137,392 worth of st...
by selters
Sat Apr 28, 2018 2:44 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8858

Re: What's wrong with this critique of indexing?

Can you please point out at which point the following reasoning is wrong? 1) If one believes in the EMH and in common asset pricing models, then one accepts the idea that all information about firms in the stock market is baked into their current prices, so that for every stock you should expect th...
by selters
Wed Apr 25, 2018 6:54 pm
Forum: Investing - Theory, News & General
Topic: What happened to the Dow Jones between 1966-1982?
Replies: 72
Views: 4728

Re: What happened to the Dow Jones between 1966-1982?

I was just finalizing what to do with my extra 50k when my wife asked me what's the longest we'd have to wait to get our initial investment back. I didn't know the answer and just looked it up. If you put 50k in the stock market in 1966 it continued to drop until 1982 (16 years). It would have been...
by selters
Sat Apr 21, 2018 5:23 am
Forum: Personal Finance (Not Investing)
Topic: Is the first 100k really the hardest?
Replies: 156
Views: 42797

Re: Is the first 100k really the hardest?

At some point, provided that you have positive returns, the annual gains in your portfolio will become larger than your annual contributions.

With a savings rate in the 10-30% range and annual returns in the 5-10% range, this will happen after something like 5-15 years.
by selters
Fri Apr 20, 2018 6:14 pm
Forum: Investing - Theory, News & General
Topic: Interesting S & P 500 facts
Replies: 9
Views: 1968

Re: Interesting S & P 500 facts

but it is not an index of the 500 largest-cap stocks. Do you by chance know what the largest-cap companies are that are not included? The easiest way is to check the holdings of the Vanguard Extended Market Index Fund/ETF, which is a market cap weighted fund that owns all US listed stocks that are ...
by selters
Tue Apr 17, 2018 7:58 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Don’t Exclude Emerging Markets
Replies: 30
Views: 3471

Re: Larry Swedroe: Don’t Exclude Emerging Markets

He's probably using numbers from MSCI.

MSCI World IMI total market cap is 45.92 trillion. MSCI Emerging Markets IMI total market is 6.33 trillion. MSCI's EM indexes include South Korea as an emerging market.
by selters
Mon Apr 16, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Total Return ETF ?
Replies: 11
Views: 1255

Re: S&P 500 Total Return ETF ?

No. If you want the returns of the S&P500 Gross Return Index if you live outside the US, you need to take the dividends, pay taxes on them every year, and then fill out the French tax credit form. If you buy something like the iShares S&P 500 UCITS ETF, you will only get the returns of the S&P 500 N...
by selters
Fri Apr 13, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard dominating first quarter
Replies: 16
Views: 2681

Re: Vanguard dominating first quarter

But these numbers do not include ETFs, do they?

I think Blackrock has the highest ETFs inflows by far right now.
by selters
Tue Apr 10, 2018 4:19 am
Forum: Investing - Theory, News & General
Topic: Who Does Vanguard Europe Serve?
Replies: 2
Views: 734

Who Does Vanguard Europe Serve?

Is Vanguard Europe a for profit company whose intention is to make money for its US shareholders (that is, the owners of US listed Vanguard mutual funds and ETFs), or is it a company that intends to pass on its profits to the holders of European listed Vanguard mutual funds and ETFs by continually l...
by selters
Fri Apr 06, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6683
Views: 1448737

Re: U.S. stocks in freefall

At least international equities aren't as bad today. HEFA (currency hedged eafa) and EFA (eafa) are down 1.25% and 0.82% as we speak. The S&P 500 is down 2,50%. With volatile stocks like US stocks, why hold them at all? Time to go 100% international? Was this said tongue-in-cheek, or are you seriou...
by selters
Fri Apr 06, 2018 2:34 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6683
Views: 1448737

Re: U.S. stocks in freefall

lostdog wrote:
Fri Apr 06, 2018 2:24 pm
At least international equities aren't as bad today.
HEFA (currency hedged eafa) and EFA (eafa) are down 1.25% and 0.82% as we speak. The S&P 500 is down 2,50%. With volatile stocks like US stocks, why hold them at all? Time to go 100% international?
by selters
Sun Apr 01, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: Is backtesting worthless? Are there ANY insights you can get from it?
Replies: 69
Views: 5144

Re: Is backtesting worthless? Are there ANY insights you can get from it?

If backtesting is worthless, is there any investment knowledge out there that is not worthless?
by selters
Wed Mar 21, 2018 5:44 pm
Forum: Personal Consumer Issues
Topic: Kettlebell Swing experience?
Replies: 50
Views: 4639

Re: Kettlebell Swing experience?

Whatever you do, remember that kettlebell swings are a hip hinge movement. They are not a combination of a squat and a front raise.
by selters
Tue Mar 13, 2018 5:18 am
Forum: Investing - Theory, News & General
Topic: International completion index for EAFE
Replies: 8
Views: 939

Re: International completion index for EAFE

The MSCI EAFA index is identical to the MSCI (developed) World ex US index, except Canada is not included. Any low cost Emerging Markets index fund would be good enough to compmement the EAFE index. If really want to be exact about this, you can use the iShares MSCI Emerging Markets IMI ETF and the ...
by selters
Sun Mar 11, 2018 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to approximate VTSAX with my 401k choices
Replies: 30
Views: 1703

Re: Best way to approximate VTSAX with my 401k choices

I would argue that combining value and growth is inefficient, pick one factor and stick with it. What do you mean by inefficient? A 50% split between growth and value is pretty much identical to a blend fund and will yield pretty much the same results as a blend fund. If you choose one or the other...
by selters
Sun Mar 11, 2018 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to approximate VTSAX with my 401k choices
Replies: 30
Views: 1703

Re: Best way to approximate VTSAX with my 401k choices

I would argue that combining value and growth is inefficient, pick one factor and stick with it. What do you mean by inefficient? A 50% split between growth and value is pretty much identical to a blend fund and will yield pretty much the same results as a blend fund. If you choose one or the other...
by selters
Sat Mar 10, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Boglehead-approved personal finance podcasts?
Replies: 27
Views: 4034

Re: Boglehead-approved personal finance podcasts?

... Fantastic list! I listen to most of these already but will try out the rest. I would add one more which has recently become my favourite: Invest Like the Best Virtually every episode is fascinating, and with unique takes different from the typical personal finance discussions. While engaging an...
by selters
Tue Mar 06, 2018 2:31 pm
Forum: Investing - Theory, News & General
Topic: NEWS-BlackRock, Vanguard less likely to vote against CEO compensation
Replies: 7
Views: 1235

Re: NEWS-BlackRock, Vanguard less likely to vote against CEO compensation

https://www.msci.com/ceo-pay

A recent study concludes that the companies with the lowest ceo pay have provided investors with the highest returns.