Search found 498 matches

by ThrustVectoring
Sun Sep 16, 2018 4:46 pm
Forum: Investing - Theory, News & General
Topic: What are the "best" factors?
Replies: 23
Views: 1976

Re: What are the "best" factors?

Long-Term Treasury bonds are generally about 2-3 times as volatile as short-term Treasuries. Levering up ST bonds by 20x is far more risky than using long-term bonds. The two-year treasury futures contract currently has a DV01 of $35.77 per $200k contract. The 30-year ultra has a DV01 of $262.69 pe...
by ThrustVectoring
Sun Sep 16, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: What are the "best" factors?
Replies: 23
Views: 1976

Re: What are the "best" factors?

Bet Against Beta is really nice IMHO. There's really strong theoretical arguments for it (leveraged constrained investors bid up high risk / high return assets in lieu of levering up low risk / low return assets to an appropriate risk and reward), studies have shown it to pop up in many environments...
by ThrustVectoring
Sun Sep 16, 2018 2:13 pm
Forum: Investing - Theory, News & General
Topic: Equity allocation for Flagship clients?
Replies: 47
Views: 3956

Re: Equity allocation for Flagship clients?

Absolute asset levels don't matter particularly much, IMO. What matters is the assets-to-expenses ratio, and possibly your ability to cut spending in down markets. If your assets-to-expenses ratio is at 25 (that is, the 4% rule applies), then you can't afford to take significantly more risk than the...
by ThrustVectoring
Sun Sep 09, 2018 11:49 pm
Forum: Investing - Theory, News & General
Topic: 3 fund portfolio with Money Market instead of Bonds
Replies: 26
Views: 2846

Re: 3 fund portfolio with Money Market instead of Bonds

I've said this countless times and have meant it every time: each portion of your portfolio should be contributing a comparable amount of risk to the total portfolio. Bonds, ideally, should not be for safety. They should contribute an equal amount of risk (but with a different economic driver behin...
by ThrustVectoring
Sat Sep 08, 2018 3:21 am
Forum: Investing - Theory, News & General
Topic: Hold cash in Treasury Bills or in Money Market Fund?
Replies: 36
Views: 4690

Re: Hold cash in Treasury Bills or in Money Market Fund?

I want to hold about 10% of my retirement portfolio in a form that is close to cash. Which of the following is preferable (and why)? 1. Treasury Bills of 1 month, 3 months, or maybe 6 months? 2. The Fidelity Money Market fund FNSXX with a 7 Day Yield of 2.12% net of expenses (usually a $10,000,000 ...
by ThrustVectoring
Fri Sep 07, 2018 7:46 pm
Forum: Investing - Theory, News & General
Topic: D. E. Shaw fund prospectus - would you invest?
Replies: 35
Views: 2247

Re: D. E. Shaw fund prospectus - would you invest?

inbox788 wrote:
Fri Sep 07, 2018 6:24 pm
What kind of interest rates do these loans have to have to make 8% returns?
If the fund is allowed to use leverage, then as long as the spread over cost of borrowing is positive and the default rate is low enough, they can lever up to hit the targeted returns.
by ThrustVectoring
Fri Sep 07, 2018 6:36 pm
Forum: Investing - Theory, News & General
Topic: Deep ITM call options and asset allocation
Replies: 12
Views: 962

Re: Deep ITM call options and asset allocation

i suppose if i wanted to, i could just buy puts ATM or slightly OTM with the same expiration. this put would "protect" a certain amount of my profits. if the puts expire worthless then it means i've made money from here on out or haven't lost any (apart from the put premium). if the price begins to...
by ThrustVectoring
Fri Sep 07, 2018 2:39 pm
Forum: Investing - Theory, News & General
Topic: Hold cash in Treasury Bills or in Money Market Fund?
Replies: 36
Views: 4690

Re: Hold cash in Treasury Bills or in Money Market Fund?

I want to hold about 10% of my retirement portfolio in a form that is close to cash. Which of the following is preferable (and why)? 1. Treasury Bills of 1 month, 3 months, or maybe 6 months? 2. The Fidelity Money Market fund FNSXX with a 7 Day Yield of 2.12% net of expenses (usually a $10,000,000 ...
by ThrustVectoring
Thu Sep 06, 2018 12:48 pm
Forum: Investing - Theory, News & General
Topic: Are the stock market movements really random?
Replies: 37
Views: 2898

Re: Are the stock market movements really random?

Math/statistics aside: "Random" isn't an inherent property of measures. A coin flip seems "random", but if you have a high-speed camera hooked up to a computer program you can actually predict which way it'll land. No, "random" is merely shorthand for "there isn't a practical way to predict this pro...
by ThrustVectoring
Wed Sep 05, 2018 4:37 pm
Forum: Investing - Theory, News & General
Topic: First Time Poster: Are Rental Properties Worthwhile?
Replies: 17
Views: 2297

Re: First Time Poster: Are Rental Properties Worthwhile?

Here's my experience: When I was buying my second home, I kept the first and rented it out. I fortunately got a very good renter and they have been there 6+ years. Only ever had this one tenant - he keeps the lawn up to date, doesn't hassle me about the little things and takes care of my house trem...
by ThrustVectoring
Tue Sep 04, 2018 4:23 pm
Forum: Investing - Theory, News & General
Topic: Why are you not compensated for taking unsystematic risk?
Replies: 42
Views: 2413

Re: Why are you not compensated for taking unsystematic risk?

I haven't seen anyone saying low beta as a factor of outperformance. Holding all else equal, low beta stocks should have lower expected return. Low beta have lower expected returns, but even lower risks. This is because capital and leverage constrained investors need absolute return, not risk-adjus...
by ThrustVectoring
Tue Sep 04, 2018 4:00 pm
Forum: Investing - Theory, News & General
Topic: First Time Poster: Are Rental Properties Worthwhile?
Replies: 17
Views: 2297

Re: First Time Poster: Are Rental Properties Worthwhile?

However a cash flowing rental property can give you money every month with no impact on the value of the portfolio. You definitely want to distinguish between not having any actual losses vs simply not marking your portfolio to market prices. It's a super common mistake with illiquid investments - ...
by ThrustVectoring
Tue Sep 04, 2018 1:46 pm
Forum: Investing - Theory, News & General
Topic: First Time Poster: Are Rental Properties Worthwhile?
Replies: 17
Views: 2297

Re: First Time Poster: Are Rental Properties Worthwhile?

My impression is that if you enjoy and are willing to DIY a lot of the management and upkeep, then rental properties can often have a better return over the stock market. If you're contracting out everything, then those fees will basically eat up all the excess returns and then some. On the other ha...
by ThrustVectoring
Tue Sep 04, 2018 2:49 am
Forum: Investing - Theory, News & General
Topic: "6 Reasons The Rich Should Pay-Off Their Mortgage"
Replies: 192
Views: 35257

Re: "6 Reasons The Rich Should Pay-Off Their Mortgage"

Bogleheads: I made the original post: "The Rich Should Pay-Off Their Mortgage." I'm not "rich," but I could pay-off my mortgage if I wanted to. I prefer not to pay-off my mortgage. Here's why: I am age 94 with a desire to help my family and various charities while I am still alive. Unfortunately, a...
by ThrustVectoring
Tue Sep 04, 2018 2:38 am
Forum: Investing - Theory, News & General
Topic: Why are you not compensated for taking unsystematic risk?
Replies: 42
Views: 2413

Re: Why are you not compensated for taking unsystematic risk?

The return of a diversified portfolio is simply the weighted average of the return of the various stocks you hold. If you take all the stocks of a diversified portfolio and hand each individual one to a different investor, the average return stays the same because you have the exact same securities....
by ThrustVectoring
Sun Sep 02, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Placing a stop-loss order with vanguard
Replies: 29
Views: 2463

Re: Placing a stop-loss order with vanguard

There's no such thing as a free lunch. Stop-loss orders don't work like people think they should. First, the market doesn't have to ever offer you a price near your stop-loss. If you buy a stock at $125 and put in a stop-loss at $120, the market could discover fraud and open tomorrow at $100. Or it ...
by ThrustVectoring
Sun Sep 02, 2018 1:43 pm
Forum: Investing - Theory, News & General
Topic: Can margin be beneficial for long-term investing?
Replies: 61
Views: 3705

Re: Can margin be beneficial for long-term investing?

I'd personally limit use of leverage to maintaining a 0% average cash allocation even while earning a paycheck, having occasional larger expenses, etc. This. I think one of the biggest benefits of using margin is optimizing cash allocation. Instead of parking money in a savings or checking account,...
by ThrustVectoring
Thu Aug 30, 2018 4:28 pm
Forum: Investing - Theory, News & General
Topic: Can margin be beneficial for long-term investing?
Replies: 61
Views: 3705

Re: Can margin be beneficial for long-term investing?

Look up the Kelley Criterion beforehand. 100% is plenty aggressive, although you can technically go up to 140% (depending on assumptions) before the requirements of buying high and selling low to maintain leverage ratios kicks in faster than the extra gain from levering up. I'd personally limit use ...
by ThrustVectoring
Wed Aug 29, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring. 28 y.o. $5M in cash. Asking for advice for portfolio.
Replies: 80
Views: 13729

Re: Retiring. 28 y.o. $5M in cash. Asking for advice for portfolio.

You're planning on spending $50k/yr out of a $5M portfolio. That's under 1% spend. At that level, you could happily keep 10% in cash, put the rest in index funds, and live off the cash buffer + dividends indefinitely. The cash buffer is enough for 10 years of expenses, so you basically only have to ...
by ThrustVectoring
Tue Aug 28, 2018 7:30 pm
Forum: Investing - Theory, News & General
Topic: Most commonly misused/misunderstood investing terms and concepts (on BH forum)
Replies: 220
Views: 11570

Re: Most commonly misused/misunderstood investing terms and concepts (on BH forum)

Two often seen on the forum even though they are written up nicely in the wiki, BH books, and blogs: -Market timing: the predictive component is sometimes misunderstood. -Rebalancing: the purpose, which is to maintain a preset allocation, is sometimes misunderstood. And related, the notion of "dry ...
by ThrustVectoring
Mon Aug 27, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring. 28 y.o. $5M in cash. Asking for advice for portfolio.
Replies: 80
Views: 13729

Re: Retiring. 28 y.o. $5M in cash. Asking for advice for portfolio.

Question: Does the ETF selection make sense? You're paying somewhat higher fees than necessary. 0.25% for the stocks, 0.1% for the bond. For comparison, VTI has 0.04%, VXUS has 0.11%, and BND has 0.05%. You can get global equities pretty easily through a combination of US equities (VTI) and global ...
by ThrustVectoring
Wed Aug 22, 2018 1:18 pm
Forum: Investing - Theory, News & General
Topic: 60/40 vs 100% with Trailing Stop Loss
Replies: 36
Views: 2323

Re: 60/40 vs 100% with Trailing Stop Loss

A stop loss order is not the same thing as a put option, and doesn't de-risk your position like owning a put option does. First off, the market does not have to ever give you the stop loss price. If you have a stop loss at $90 of a security currently trading at $100, the market could decide to open ...
by ThrustVectoring
Wed Aug 22, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9280

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

(for general exposition: being long T note futures has essentially the same return as buying cash T notes and and financing them in the repo market, but the repo rate is a lot closer to 2+ yr T yields now than it was pretty recently). That's not exactly correct IIRC. Anyone who is long cash treasur...
by ThrustVectoring
Tue Aug 21, 2018 11:33 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9280

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

Honestly, you should probably just DIY it on the treasury futures contracts. I agree there's not a lot of space in between where one understands this well enough to invest in a fund that does it, and understanding how to do it yourself and what exactly you are doing. Although, doing it yourself mea...
by ThrustVectoring
Tue Aug 21, 2018 1:15 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9280

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

As a general FYI, it appears this ETF qualifies as a commission-free ETF under Vanguard's new no-fee expansion that went live today, despite it being partially leveraged. Interestingly, though, it does not appear on the master list ( https://personal.vanguard.com/pdf/etfcfl.pdf ) of commission-free...
by ThrustVectoring
Mon Aug 20, 2018 2:54 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21501

Re: Treasury Bonds are the Only Bonds You Need

Q on Vanguard Long-Term Treasury Fund Admiral Shares (VUSUX) https://advisors.vanguard.com/web/c1/fas-investmentproducts/VUSUX It says the fund holds 59 bonds and the turnover rate is 102.70%. Why would this fund need to replace 100% of its bond holdings every year? For example, a 20-yr T-bond will...
by ThrustVectoring
Thu Aug 16, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Betting Against Beta
Replies: 12
Views: 1544

Re: Larry Swedroe: Betting Against Beta

Is it just me, or do many of Larry's research reviews have the potential to cause investors to react, whether they should or not? Well, information is only useful if you can behave differently with it, and Larry is in the business of providing people with useful information. The "just buy an index ...
by ThrustVectoring
Mon Aug 13, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: Should I contribute to 401k this year if retirement income will be higher?
Replies: 4
Views: 657

Re: Should I contribute to 401k this year if retirement income will be higher?

You probably want to do Roth 401k contributions if eligible, or a combination of traditional 401k contributions + Roth conversions.

Roth accounts are typically better than taxable, so using the 401k contribution space you have to contribute more to Roth accounts is the way to go.
by ThrustVectoring
Sat Aug 11, 2018 8:34 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9280

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

When the fund is holding treasury note or tbill futures? Is it getting interest payments on the futures that it owns? Would not getting interest payment hurt returns. Treasury futures act something like a zero coupon bond. The dividends from the underlying asset are baked into the future value. So ...
by ThrustVectoring
Sat Aug 11, 2018 1:23 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9280

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

From what I've read, treasury futures only require something like 3% margin, which for the 60% bonds means they've got a margin requirement of about 1.8% of total assets, meaning the fund is overcollateralized by over 5.5x before it hits a margin call. This is why it is so important that this fund ...
by ThrustVectoring
Sat Aug 11, 2018 3:53 am
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9280

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

I didn't see what duration bonds they were buying with the 60% allocation. It makes a huge difference whether they're playing in the 2-year treasury futures market or the 10-year. Like, from a risk perspective, you can very roughly measure your risk limit through the margin requirements of the futur...
by ThrustVectoring
Mon Aug 06, 2018 6:39 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21501

Re: Treasury Bonds are the Only Bonds You Need

Practical question. Currently, I invest $1k in TBM per month using Vanguard automatic investment. How do I auto-invest $1k per month in Treasury? Create an account at TreasuryDirect and set up recurring purchases with direct deposit. The instructions are on their website: https://www.treasurydirect...
by ThrustVectoring
Mon Aug 06, 2018 5:53 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21686

Re: "Don't Obsess About Expense Ratios"

There's honestly a lot of slack when it comes to expense ratios and investment choice. As long as you're broadly diversified, you own enough stock, and have solidly low expense ratios, then your actual investment choices aren't particularly important. Both Vanguard, Schwab, or Fidelity are good enou...
by ThrustVectoring
Mon Aug 06, 2018 3:51 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21501

Re: Treasury Bonds are the Only Bonds You Need

Picking a duration that is significantly shorter or longer than your investment horizon is an ACTIVE decision to make a bet on the direction of future interest rates (and in a complicated way that view investors understand). I mean on this logic, any long-term investor should be entirely in long-te...
by ThrustVectoring
Mon Aug 06, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21501

Re: Treasury Bonds are the Only Bonds You Need

Picking a duration that is significantly shorter or longer than your investment horizon is an ACTIVE decision to make a bet on the direction of future interest rates (and in a complicated way that view investors understand). I mean on this logic, any long-term investor should be entirely in long-te...
by ThrustVectoring
Mon Aug 06, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21501

Re: Treasury Bonds are the Only Bonds You Need

Picking a duration that is significantly shorter or longer than your investment horizon is an ACTIVE decision to make a bet on the direction of future interest rates (and in a complicated way that view investors understand). I mean on this logic, any long-term investor should be entirely in long-te...
by ThrustVectoring
Sun Aug 05, 2018 11:18 am
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6163

Re: Will dividend spending only portfolio last forever ?

Not necessarily. Generally it'll last a very long time due to the low withdrawal rate - and if your portfolio is total market index funds, that withdrawal rate will let it last forever. There are, however, some companies that will pay a great dividend for a while and then shut down, and it's extraor...
by ThrustVectoring
Tue Jul 24, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Confused about Treasury bills and notes
Replies: 11
Views: 1203

Re: Confused about Treasury bills and notes

...you "Enter the Purchase Amount (from 100 to 5,000,000 in $100 increments)." This is a classic example of why I refuse to use Treasury Direct. From experience. I know exactly what those instructions mean. But if I didn't, I would be thoroughly confused. TD is supposed to be a consumer site, not a...
by ThrustVectoring
Mon Jul 23, 2018 10:36 pm
Forum: Investing - Theory, News & General
Topic: Value Stocks and Margin Loans as Inflation Hedges
Replies: 12
Views: 1017

Re: Value Stocks and Margin Loans as Inflation Hedges

If you want to do this in a brokerage account, shorting long term Treasuries can be thought of as borrowing long term. Given how low interest rates are right now, and the low spread between short term and long term rates, this isn't such a bad idea right now. As for buying assets that rise with inf...
by ThrustVectoring
Mon Jul 23, 2018 5:21 pm
Forum: Investing - Theory, News & General
Topic: Are socially responsible funds just another marketing ploy?
Replies: 25
Views: 2267

Re: Are socially responsible funds just another marketing ploy?

Socially responsible funds face a pretty awful dilemma. On the one hand, they could work. The only way refusing to invest in "bad" companies could work, though, is by increasing their cost of capital. By refusing to lend or buy shares from a company, it increases the price they must pay to fund new ...
by ThrustVectoring
Thu Jul 19, 2018 12:34 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 206
Views: 15761

Re: Why is leveraging property good but leveraging stocks bad?

Bodie discusses a LEAPS ladder in a general way. https://poseidon01.ssrn.com/delivery.php?ID=13709806600708811607211900010801708900001802308600802810106809509407506803012300602406005509812106700710502911001704401709304609408609606912207208300211909306302000800610212100009607411200709007609602111100...
by ThrustVectoring
Thu Jul 19, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 17
Views: 2275

Re: Why age is not how to determine risk tolerance

B) 100/0 is a lousy AA in term of risk-adjusted return. So, it is the wrong AA at any age. You can't eat risk-adjusted return. If you're not willing to use leverage, and you're willing to wait 30 years, the 100/0 AA will wind up with a higher balance even at 5th percentile stock market returns. Unl...
by ThrustVectoring
Tue Jul 17, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 206
Views: 15761

Re: Why is leveraging property good but leveraging stocks bad?

Leverage in general is good as long as you don't take too much risk. Banks have departments dedicated to making sure they don't lend to people taking too much risk, because if they do then the bank loses money. So you generally have to try pretty hard to take out too much leverage on real estate. In...
by ThrustVectoring
Tue Jul 17, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 17
Views: 2275

Re: Why age is not how to determine risk tolerance

B) 100/0 is a lousy AA in term of risk-adjusted return. So, it is the wrong AA at any age. You can't eat risk-adjusted return. If you're not willing to use leverage, and you're willing to wait 30 years, the 100/0 AA will wind up with a higher balance even at 5th percentile stock market returns. If ...
by ThrustVectoring
Mon Jul 09, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Why 3-funds and not 4-funds or even 2-funds?
Replies: 56
Views: 4820

Re: Why 3-funds and not 4-funds or even 2-funds?

I'm not a believer in the 3 fund approach. The 3 fund approach offers ample diversification in stocks, but not in bonds. I am a believer in simplicity. Those with access to a good stable value fund can use that as a fourth. Others can round out/diversify their bond allocation by adding inflation pr...
by ThrustVectoring
Sat Jul 07, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Having first child - Life Insurance question
Replies: 37
Views: 2774

Re: Having first child - Life Insurance question

You want term life insurance for both you and your wife, regardless of whether each parent is working. Definitely term life insurance - whole life is primarily for giving fat commissions to salespeople. For term, twenty or thirty years both work well. Ideally, in twenty years you've saved enough mon...
by ThrustVectoring
Sat Jul 07, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle is not a "buy&hold at any price goose", he looks at valuations, he sold his stocks in year 2000
Replies: 48
Views: 6947

Re: Jack Bogle is not a "buy&hold at any price goose", he looks at valuations, he sold his stocks in year 2000

Well, how did that decision play out...75% vs 35% stock allocation from 2000 to 2018? I am guessing, but thinking stay-the-course won. Pretty well , actually. The 75/25 portfolio finally pulled ahead in 2017. :| Let's put "Pretty well" in perspective. In order to get a 0.5% more CAGR, the investor ...
by ThrustVectoring
Tue Jul 03, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: Are options, futures good investments?
Replies: 19
Views: 1905

Re: Are options, futures good investments?

These are tools that allow you to do absolutely stupid things as well as useful stuff. YOLOing isn't a good idea, but holding treasury futures instead of underlying bonds could be a good idea (it essentially gets you 60% long term / 40% short term capital gains treatment rather than ordinary income ...
by ThrustVectoring
Mon Jun 25, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: How does a guaranteed income stream affect stock/bond ratio?
Replies: 21
Views: 2213

Re: How does a guaranteed income stream affect stock/bond ratio?

Treating guaranteed income (e.g., pension) as a bond equivalent seems tricky given that there isn't any principal that you can draw upon. Having $1M in bonds that pays out $30K a year in income is a lot more valuable than having $30K in income in the form of a pension. There's tricks you can pull w...
by ThrustVectoring
Sun Jun 24, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Why won't Vanguard drop VTI & VOO expense to 0.03?
Replies: 39
Views: 3965

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

Securities lending does appear to be more lucrative in Small Caps. Have you checked VSS (Vanguard FTSE All-World ex-US Small-Cap ETF)? Last I heard anything about that fund, the securities lending revenue more than offset the 0.13% expense ratio. It's nice getting paid to hold International Small C...