Search found 211 matches

by Dominic
Sat Mar 03, 2018 9:24 pm
Forum: Investing - Theory, News & General
Topic: Retail vs. Institutional Investing
Replies: 9
Views: 1277

Re: Retail vs. Institutional Investing

In some sense, mutual funds and ETFs are institutional investors. The largest index mutual fund families can typically have near-zero transaction costs or tax implications. As for pulling your money out early in a crash, they can't predict the future. Yesterday looked like it was going to be a down ...
by Dominic
Fri Mar 02, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total International (VXUS) is an inferior choice?
Replies: 14
Views: 7047

Re: Vanguard Total International (VXUS) is an inferior choice?

Regarding the holdings difference, I did some detective work a few months ago, and by my guesstimates, most of the holdings that you miss out on by holding VXUS instead of VEA/VWO are China A-Shares. The story with these is that the Chinese stock market has many share classes, which are traded in di...
by Dominic
Fri Mar 02, 2018 3:07 pm
Forum: Personal Investments
Topic: Any ETFs that resemble a balanced index or target fund?
Replies: 5
Views: 882

Re: Any ETFs that resemble a balanced index or target fund?

I don't have a broker, just Fidelity. That statement made me laugh out loud! Thanks! (I think it might be a good advertising blurb for Vanguard though. :twisted:) (Also: I don't think that e.r. for GAL is really that low.) I'm seeing a 0.25% expense ratio for GAL, and I don't know if that includes ...
by Dominic
Fri Mar 02, 2018 2:59 pm
Forum: Personal Investments
Topic: Any ETFs that resemble a balanced index or target fund?
Replies: 5
Views: 882

Re: Any ETFs that resemble a balanced index or target fund?

A handful of ETFs-of-ETFs: - AOA - iShares Core Aggressive Allocation ETF - 40% US equities, 40% international equities, 16% US bonds, 4% international currency-hedged bonds - AOR - iShares Core Growth Allocation ETF - 30% US equities, 30% international equities, 32% US bonds, 8% international curre...
by Dominic
Fri Mar 02, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Harvard blows $1Billion picking stocks, averaged 4.4% returns over last decade
Replies: 79
Views: 11517

Re: Harvard blows $1Billion picking stocks, averaged 4.4% returns over last decade

On one hand, I get it. The three-fund portfolio that's good enough for most Bogleheads isn't good enough for Harvard, because we have different needs. This is a multibillion dollar institution, and they don't want to take too much risk and lose their donations. They need to diversify past a market w...
by Dominic
Fri Mar 02, 2018 2:01 pm
Forum: Personal Investments
Topic: AOBC, horrible decision [American Outdoor Brands]
Replies: 30
Views: 4373

Re: AOBC, horrible decision [American Outdoor Brands]

I'd get out. Not worth hanging on to the risk of holding an individual stock. We all make investing mistakes. This one is a $2800 capital loss, minus any dividends you received over the course of holding it. Not too big of deal in the grand scheme of things, and it's a learning experience. If you ha...
by Dominic
Fri Mar 02, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12802
Views: 2197014

Re: U.S. stocks in freefall

And the Total Stock Market Index is up very slightly for the day.

False alarm folks. Back to your regularly scheduled asset allocations.
by Dominic
Wed Feb 28, 2018 11:53 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12802
Views: 2197014

Re: U.S. stocks in freefall

These daily swings a + 30 - 40 + 45 - 40 make zero sense to me. It’s just volatility. It’s nothing new. The long term trend is up. What was new was the total lack of volatility in 2017. No month with a loss, no day with a rise of more than 1.4%, no days with substantial drawdowns. 2018 is just back...
by Dominic
Wed Feb 28, 2018 11:27 pm
Forum: Investing - Theory, News & General
Topic: Your Paradigm for Long-term Inflation Risk?
Replies: 29
Views: 2508

Re: Your Paradigm for Long-term Inflation Risk?

I'm early in the accumulation phase. At this point, stocks are a good enough hedge against inflation for me. I'm considering adding a very small amount of a commodities index as an additional uncorrelated inflation hedge, but I'm still unsure of how commodities futures funds actually work. I probabl...
by Dominic
Tue Feb 27, 2018 9:21 pm
Forum: Investing - Theory, News & General
Topic: TSP fails secuity audit
Replies: 19
Views: 3508

Re: TSP fails secuity audit

Be sure to also understand the inheritance rules for a TSP since they are in some situations a lot worse than for an IRA. *snip* Thanks for this. Seems crazy. If they dismantle the G fund as they'd like to (proposed, folks who haven't heard can google it, please no further discussion) I think most ...
by Dominic
Tue Feb 27, 2018 8:39 pm
Forum: Personal Consumer Issues
Topic: Any downside to WiFi calling?
Replies: 25
Views: 4598

Re: Any downside to WiFi calling?

The only downside is that if you leave the WiFi network mid-call, there could be an issue in the handover to the cell network. This depends on your device.
by Dominic
Tue Feb 27, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: AAPL, AMZN, or GOOG?
Replies: 95
Views: 11311

Re: AAPL, AMZN, or GOOG?

Apple, then Google, then Amazon. I'm basing this purely on valuation ratios. I think Amazon is priced way too high to return as well as the market, and Google is almost as bad on that front. Apple is valued pretty reasonably. That said, I'd never buy stock in any of them directly. I'll take what Van...
by Dominic
Tue Feb 27, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: U.S. stock inflows over the past 12 months: $25 billion. Taxable bond inflows: $392 billion
Replies: 18
Views: 3363

Re: U.S. stock inflows over the past 12 months: $25 billion. Taxable bond inflows: $392 billion

Investors are sticking with their allocations because things have been good. The market has been rising pretty steadily, and the economy looks healthy, so they aren't worried. I don't think investor behavior has changed; the environment has. If things go south, I think they'll start bailing. Hopeful...
by Dominic
Mon Feb 26, 2018 1:42 pm
Forum: Personal Investments
Topic: Investment Grade Bond Interest Rate Hedged (IGIH) ETF
Replies: 9
Views: 523

Re: Investment Grade Bond Interest Rate Hedged (IGIH) ETF

So the basic idea of this fund is that you're supposed to be earning the spread between corporates and Treasuries, minus the cost of shorting. Most of what I've read regarding bonds is that the credit risk premium doesn't pay. You get more return, but the risk (which is correlated strongly with mark...
by Dominic
Sun Feb 25, 2018 11:26 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What Investors Should Worry About
Replies: 121
Views: 13768

Re: Larry Swedroe: What Investors Should Worry About

Nedsaid, Thanks for putting the effort into that last post; very interesting read. Jared Kiser from Larry’s firm published a paper showing that REIT returns are really explained by the underlying factors size, value, and I think term. Based on that I’ve elected to access those factors with stocks a...
by Dominic
Sun Feb 25, 2018 10:11 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What Investors Should Worry About
Replies: 121
Views: 13768

Re: Larry Swedroe: What Investors Should Worry About

Obviously no guarantees. Robert . Honestly, I haven't even bothered reading the article. Anyone stating (paraphrasing): "equity like returns with 25% of the volatility" is either intentionally or unintentionally deluding themselves. There is NO FREE LUNCH. It is easy to write about it, but on an ex...
by Dominic
Fri Feb 23, 2018 12:10 am
Forum: Personal Investments
Topic: Wanna try a more risky fund in Roth IRA
Replies: 16
Views: 2352

Re: Wanna try a more risky fund in Roth IRA

if you have total market equities already covered, how about some small cap and or emerging market tilt in the Roth? This. If you're going to tilt, tilt to a small-cap value index and/or an emerging market index. These segments have higher expected returns, but you can invest in them cheaply and pa...
by Dominic
Thu Feb 22, 2018 11:51 pm
Forum: Personal Investments
Topic: Wanna try a more risky fund in Roth IRA
Replies: 16
Views: 2352

Re: Wanna try a more risky fund in Roth IRA

if you have total market equities already covered, how about some small cap and or emerging market tilt in the Roth? This. If you're going to tilt, tilt to a small-cap value index and/or an emerging market index. These segments have higher expected returns, but you can invest in them cheaply and pa...
by Dominic
Thu Feb 22, 2018 11:01 pm
Forum: Investing - Theory, News & General
Topic: Will Emerging China Change Things for Domestic Investing?
Replies: 28
Views: 2871

Re: Will Emerging China Change Things for Domestic Investing?

It won't. Diversification has always been, and will always be, our best method of minimizing risks and maximizing returns. This is true whether China continues its rapid growth, or it begins to stagnate. Hold international index funds. Anywhere between 20% of equities and market cap weight. If you'...
by Dominic
Thu Feb 22, 2018 10:58 pm
Forum: Personal Investments
Topic: Diversification when total market isn't an option...
Replies: 10
Views: 1082

Re: Diversification when total market isn't an option...

The S&P 500 covers about 80% of the total market.

If you really want the rest of the market, buy the Extended Market Index in a taxable account or an IRA. Otherwise, you can do something like 85% S&P, 7.5% mid-cap value, and 7.5% mid-cap growth, and that would cover almost the entire market.
by Dominic
Thu Feb 22, 2018 5:21 pm
Forum: Investing - Theory, News & General
Topic: Will Emerging China Change Things for Domestic Investing?
Replies: 28
Views: 2871

Re: Will Emerging China Change Things for Domestic Investing?

It won't. Diversification has always been, and will always be, our best method of minimizing risks and maximizing returns. This is true whether China continues its rapid growth, or it begins to stagnate. Hold international index funds. Anywhere between 20% of equities and market cap weight. If you'r...
by Dominic
Wed Feb 21, 2018 6:26 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12802
Views: 2197014

Re: U.S. stocks in freefall

I've never liked VBTLX as a bond fund. Returns are dismal. There are a lot better choices (PONDX comes to mind) out there. We sometimes forget that bonds are for safety. In the stock bear market of 2008, PONDX fell -5.8% when safety was needed. Meanwhile Total Bond Market gained +5% (a 10.8% differ...
by Dominic
Wed Feb 21, 2018 5:46 pm
Forum: Investing - Theory, News & General
Topic: Telling Tales: Value, Size, Int'l, REITs (2017 update)
Replies: 25
Views: 3452

Re: Telling Tales: Value, Size, Int'l, REITs (2017 update)

These charts are pretty dense. I've been debating the merits of small-cap value investing for a few months now, and these graphs are pulling me away from the idea somewhat. Your first graph shows that the value premium is effectively nothing for large-cap stocks. Moreover, the size premium has reall...
by Dominic
Tue Feb 20, 2018 4:33 am
Forum: Investing - Theory, News & General
Topic: J. Montier: US equity market is obscenely overvalued
Replies: 33
Views: 4117

Re: J. Montier: US equity market is obscenely overvalued

I am still holding, because even though valuations are at all-time highs, interest rates are at all time lows. For all I know, the valuations are perfectly reasonable in this market.

And to paraphrase, researchers predict 100 out of every 5 crashes.
by Dominic
Sun Feb 18, 2018 2:39 pm
Forum: Investing - Theory, News & General
Topic: Stock Market Trend [Theories/Myths]
Replies: 6
Views: 736

Re: Stock Market Trend Conspiracy Theories/Myths

I've heard that, if you subtract January, the value premium doesn't manifest itself.

There's also a commonly held belief that a secret Fed agency buys up equities on days where the market is close to shutting down for dropping too much in a single day.
by Dominic
Sun Feb 18, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: 6 and 12 MO CD's or Treasury Bills
Replies: 13
Views: 4033

Re: 6 and 12 MO CD's or Treasury Bills

The spread between T-bills and CDs looks pretty narrow right now. I'd trade a few basis points of yield for the extra liquidity and safety of Treasuries. (The FDIC doesn't guarantee interest rates, and might take a few days to reimburse you, particularly with a brokered CD.)
by Dominic
Sat Feb 17, 2018 1:09 am
Forum: Personal Investments
Topic: Bonds — Appreciate Some Advice
Replies: 9
Views: 1263

Re: Bonds — Appreciate Some Advice

Provided you hold for the duration of the fund (Vanguard's total bond fund has a duration of 5-7 years, typically), you'll make roughly the current yield in dividends. That's very good news -- as long as you stay the course, you're going to make more money as yields rise. That said, you don't know t...
by Dominic
Thu Feb 15, 2018 10:41 pm
Forum: Personal Investments
Topic: Torn between Vanguard, Fidelity and Schwab
Replies: 182
Views: 35896

Re: Torn between Vanguard, Fidelity and Schwab

I've had very good interactions with Schwab's customer service. (I haven't had to deal with Vanguard's customer service in the time I've been using them.) And another +1 for Schwab's checking account, which is outstanding. From a funds perspective, all three offer excellent index mutual funds, provi...
by Dominic
Wed Feb 14, 2018 10:17 pm
Forum: Personal Investments
Topic: Is VTI really "total stock market" with only 1478 holdings?
Replies: 17
Views: 4626

Re: Is VTI really "total stock market" with only 1478 holdings?

Is VTI really "total stock market" with only only 1478 holdings? Compared to the Russell 3000 or the Wilshire 5000? And is VXUS really "total international stock market" when it has half the holdings of VEA (Vanguard Developed Markets)? 909-1827 I'm trying to get on board with the 3-fund portfolio....
by Dominic
Wed Feb 14, 2018 6:21 pm
Forum: Personal Investments
Topic: Rebalancing thru contributions?
Replies: 12
Views: 1167

Re: Rebalancing thru contributions?

If you have taxable, B should be more tax-efficient, since you're not selling shares to rebalance.
by Dominic
Tue Feb 13, 2018 10:26 pm
Forum: Investing - Theory, News & General
Topic: What's your U.S. : International ratio?
Replies: 246
Views: 46755

Re: What's your U.S. : International ratio?

I'm 60/40 since that's what Vanguard defaults to in their fund-of-funds. If I were doing this manually (i.e. I could afford admiral shares of the four-fund portfolio), I'd probably keep that split. It's close enough to the market cap allocation, but gives me a touch less exposure to currency risk. I...
by Dominic
Tue Feb 13, 2018 9:42 pm
Forum: Personal Investments
Topic: Deciding Between Treasuries and Munis in Taxable
Replies: 15
Views: 3003

Re: Deciding Between Treasuries and Munis in Taxable

For 10 basis points, take the Treasuries. Municipal bonds are almost always safe, but Treasuries have substantially lower credit risk. That's worth paying a little extra for. If you were really itching to save those 10 bps, you could probably build your own Treasury latter and not have to pay the fu...
by Dominic
Mon Feb 12, 2018 11:39 pm
Forum: Personal Investments
Topic: Blockchain Technology Companies and Funds/ETFs/Futures
Replies: 24
Views: 2897

Re: Blockchain Technology Companies and Funds/ETFs/Futures

Sit tight. This technology is young and will be adopted by big business in time. Big companies have the funding and scale to make wide spread adoption happen. IMHO, adoption, not technological innovation, is the name of the game. Cryptocurrencies filled a void, but there are many industries where t...
by Dominic
Sun Feb 11, 2018 12:04 am
Forum: Investing - Theory, News & General
Topic: split international into developed and emerging for lower expenses?
Replies: 3
Views: 804

Re: split international into developed and emerging for lower expenses?

I don't think it's worth it to save on expenses. Reducing expenses is about not buying funds that have massive expense ratios; not shaving off one or two basis points.

If you want to tilt to emerging (to reduce portfolio correlations), that's about the only reason I'd buy separate funds.
by Dominic
Sat Feb 10, 2018 11:53 pm
Forum: Personal Consumer Issues
Topic: Relearning Calculus
Replies: 81
Views: 9135

Re: Relearning Calculus

I find that there are good resources on-line that are not official courses. For example, the YouTube channel 3Blue1Brown (https://www.youtube.com/channel/UCYO_jab_esuFRV4b17AJtAw) has a great series of videos introducing Calculus - "Essence of Calculus." 3Blue1Brown is outstanding. I highly recomme...
by Dominic
Sat Feb 10, 2018 9:22 pm
Forum: Investing - Theory, News & General
Topic: Just how safe is a short-term corporate bond fund?
Replies: 53
Views: 9182

Re: Just how safe is a short-term corporate bond fund?

Personally I'm not a fan. Vanguard's short-term corporate fund currently yields about 2.7%, with a duration of about 3 years. Compare that to about 2% yield for their 2 year duration short-term Treasury fund. You're taking on significantly more credit risk and term risk with the corporate fund. More...
by Dominic
Sat Feb 10, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: [Ally online savings now at 2.20%]
Replies: 285
Views: 53276

Re: Ally online savings now at 1.45%

They may also be getting pushed by mutual fund money markets finally. Vanguard Prime is 1.45% as well, perhaps not a coincidence? I've been looking at Schwab Prime Money currently at 1.29%. Question with money funds is, is there a tax reporting difference between them and traditional savings? I ask...
by Dominic
Fri Feb 09, 2018 11:00 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard leaders weigh in on the outlook for the stock market"
Replies: 5
Views: 1102

Re: "Vanguard leaders weigh in on the outlook for the stock market"

Who cares what Vanguard says? I don't get why so many bogleheads think that if Vanguard says something then it must be true. Vanguard can't tell the future any better than the rest of us. I agree with your premise. But the guy suggested a pretty bogleheadish move. Buy. Low. There's a purist argumen...
by Dominic
Sun Nov 26, 2017 4:47 pm
Forum: Personal Investments
Topic: Taxable 3 fund portfolio at Vanguard vs Fidelity
Replies: 12
Views: 1682

Re: Taxable 3 fund portfolio at Vanguard vs Fidelity

Regarding tax efficiency, ETFs are more tax-efficient than mutual funds because ETFs are created/destroyed by trading bundles of their components for shares. This structure allows ETFs to avoid capital gains. Vanguard's mutual funds and ETFs are actually different share classes of the same underlyi...
by Dominic
Sun Nov 26, 2017 3:58 pm
Forum: Personal Investments
Topic: Taxable 3 fund portfolio at Vanguard vs Fidelity
Replies: 12
Views: 1682

Re: Taxable 3 fund portfolio at Vanguard vs Fidelity

Regarding tax efficiency, ETFs are more tax-efficient than mutual funds because ETFs are created/destroyed by trading bundles of their components for shares. This structure allows ETFs to avoid capital gains. Vanguard's mutual funds and ETFs are actually different share classes of the same underlyin...
by Dominic
Sat Nov 25, 2017 2:32 am
Forum: Investing - Theory, News & General
Topic: A checkup on the S&P 500 index
Replies: 9
Views: 2378

Re: A checkup on the S&P 500 index

I don't think the margin screen is necessary. If a company is making a lot of profit per share, it doesn't matter how much they spent to get there. As long as the profit is sustainable, it's good. Similarly for the dividend screen: I don't care if a company reinvests everything or nothing. If I get ...
by Dominic
Sun Oct 01, 2017 11:46 pm
Forum: Investing - Theory, News & General
Topic: Current Bull Market could last years
Replies: 89
Views: 12518

Re: Current Bull Market could last years

It'll end when it ends.

Don't get overconfident but don't be afraid.
by Dominic
Wed Sep 27, 2017 6:17 pm
Forum: Investing - Theory, News & General
Topic: Share buybacks vs Dividends
Replies: 102
Views: 7398

Re: Share buybacks vs Dividends

As I see it, there's no difference except in tax treatment. It's more tax efficient to have a company never issue dividends. You don't pay any taxes until you sell, and all of those taxes are at the capital gains rate (whereas some dividends are taxed as ordinary income). On the topic of reinvesting...
by Dominic
Sun Sep 24, 2017 12:27 pm
Forum: Personal Consumer Issues
Topic: Where do you get your news?
Replies: 131
Views: 12077

Re: Where do you get your news?

A combination of Reddit, NPR, and the Washington Post. I supplement with the NY Times and occasionally BBC.
by Dominic
Thu Jul 06, 2017 4:57 pm
Forum: Investing - Theory, News & General
Topic: Should Indexers give up their voting rights? Bill McNabb says "No"
Replies: 8
Views: 1547

Re: Should Indexers give up their voting rights? Bill McNabb says "No"

Indexers DO care about governance.

Vanguard's managers can't sell shares of companies they don't like. All they can do is vote in the long term interests of the company, and in turn, the long term interests of their shareholders.
by Dominic
Tue Jul 04, 2017 2:42 pm
Forum: Personal Investments
Topic: Advice on what are the best ways to invest on a college campus?
Replies: 25
Views: 2614

Re: Advice on what are the best ways to invest on a college campus?

I am very focused on my education. That is what I will do. I think I will work the on-campus job I currently do, I'll try to sell some of my college game day tickets because I don't go to those games all that much, and simply focus on school. I really only enjoy investing and want to be as involved...
by Dominic
Wed Jun 28, 2017 4:45 pm
Forum: Investing - Theory, News & General
Topic: VXUS vs VWO + VEA [Number of Holdings]
Replies: 7
Views: 4115

Re: VXUS vs VWO + VEA [Number of Holdings]

It is not even a matter of number of holdings; the index coverage is different. VWO holds Chinese A-shares while VXUS does not. Right. So why own VXUS when it's not fully representative? Is the only reason for simplicity? Some people actively dislike China A shares. Other people (such as myself) co...
by Dominic
Tue Jun 27, 2017 6:15 pm
Forum: Investing - Theory, News & General
Topic: VXUS vs VWO + VEA [Number of Holdings]
Replies: 7
Views: 4115

Re: VXUS vs VWO + VEA [Number of Holdings]

It is not even a matter of number of holdings; the index coverage is different. VWO holds Chinese A-shares while VXUS does not. Right. So why own VXUS when it's not fully representative? Is the only reason for simplicity? Some people actively dislike China A shares. Other people (such as myself) co...
by Dominic
Fri Jun 23, 2017 4:46 pm
Forum: Investing - Theory, News & General
Topic: Sheltering in the TSP's G Fund...A bad idea?
Replies: 20
Views: 2955

Re: Sheltering in the TSP's G Fund...A bad idea?

In my personal opinion, there's no reason to own any fixed income other than the G Fund if you have access to it. It has the return of intermediate to long bonds, but the risk of cash. Granted, you never get the upside of rate fluctuations, but you eliminate the downside. If you want capital gains f...
by Dominic
Fri Jun 16, 2017 10:36 am
Forum: Personal Consumer Issues
Topic: College grad building credit history
Replies: 11
Views: 1224

Re: College grad building credit history

If she can afford it, pay in cash. It's probably not worth paying the interest to build a credit history if she can build her report by reliably paying credit cards and utility bills. Credit mix is a factor in credit scoring, but it probably won't make a big enough impact to justify the extra cost (...