Search found 273 matches

by zonto
Mon Sep 28, 2020 7:14 pm
Forum: Personal Investments
Topic: Fidelity REITs
Replies: 21
Views: 6741

Re: Fidelity REITs

SpideyIndexer wrote: Mon Sep 28, 2020 7:13 pm Yes ditto. Have you bugged Fidelity for an explanation of the 25/25 index?
I have not. Easy enough to check the fund info page in December. It's probably just a typo.
by zonto
Mon Sep 28, 2020 1:07 pm
Forum: Personal Investments
Topic: Fidelity REITs
Replies: 21
Views: 6741

Re: Fidelity REITs

Zonto: The index used by FSRNX (Dow Jones US Select Real Estate Index) did not previously include net lease REITs (such as Realty Income, WP Carey, National Retail Property, and others), nor did it include specialized REITs that owned things like cell towers (such as American Tower and Crown Castle). These sectors have done well over the last few years, and thus I suspect without them the Dow Jones US Select Real Estate Index did not perform well versus an index that did have them. So, it was index construction issue that caused the variance in performance not the fund itself. Now, a couple months ago the Dow Jones US Select Real Estate Index (that FSRNX follows) added net lease REITs. Which I think is a positive addition. However, Dow Jon...
by zonto
Mon Aug 10, 2020 1:58 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard U.S. Growth Fund?
Replies: 41
Views: 8391

Re: Why not Vanguard U.S. Growth Fund?

I think the most important reasons are (1) the fact that the total U.S. market is already tech-heavy enough and (2) growth has outperformed value for the vast majority of the last 13 years, leaving value with much more attractive valuations than the historical averages.

Image
(source)
by zonto
Sun Aug 09, 2020 9:32 am
Forum: Investing - Theory, News & General
Topic: How Can I Reduce Total Market's (VTI) Tech of 25%
Replies: 42
Views: 4506

Re: How Can I Reduce Total Market's (VTI) Tech of 25%

brad.clarkston wrote: Wed Aug 05, 2020 5:36 pm This is why I tilt more small-value and REIT.
Similar rationale here. Though I don’t work in the tech sector, I work almost exclusively as a service provider to it, so makes sense to reduce my exposure as well. Recall too that lots of commercial real estate is privately held; another reason for a REIT tilt.

50% of equities in international equities also helps.
by zonto
Sat Jul 11, 2020 1:17 pm
Forum: Investing - Theory, News & General
Topic: Are you adjusting your REIT Allocation?
Replies: 69
Views: 8940

Re: Are you adjusting your REIT Allocation?

I find it interesting that these kinds of threads are never started when the tilt is outperforming the broader market, and that people often seem to eliminate their tilts to “simplify” during periods of underperformance. Happens most frequently with international, small cap value, value generally, TIPS, and REITs. If the rationale for the tilt was sound before, it is sound now. Stick to the plan. That said, to respond to your original question directly: I increased my global REIT and real estate allocation from 14% to 20% on April 24. On the same date, I increased my SCV allocation from 7% to 10%. Why? Those asset classes have been hammered this year so I wanted to purchase more shares. Shares of my highly appreciated long term Treasury and...
by zonto
Fri Jun 12, 2020 3:12 pm
Forum: Investing - Theory, News & General
Topic: Why have our employers only offered mutual funds (and not stocks / bonds / ETFs)?
Replies: 34
Views: 2335

Re: Why have our employers only offered mutual funds (and not stocks / bonds / ETFs)?

My wife's former employer only offers mutual funds within the 401(k), which is to be expected. They use Fidelity as the provider and offer BrokerageLink access. What irks me is that there is also a mutual-fund-only restriction within the BrokerageLink account as well...

My employer also uses Fidelity and offers BrokerageLink access, but has no BrokerageLink restrictions for stocks/ETFs (as it should be, considering that's kind of the point).
by zonto
Fri Jun 05, 2020 2:37 pm
Forum: Investing - Theory, News & General
Topic: Long Term Treasury (VGLT) vs. Ext Duration Treasury (EDV)
Replies: 38
Views: 5750

Re: Long Term Treasury (VGLT) vs. Ext Duration Treasury (EDV)

Running out of space in my tax-deferred accounts, so will need to add bonds back to a taxable account soon. In a taxable account, are there any special considerations for holding EDV that one would not need to consider for holding VGLT?

Distribution pages: It looks like EDV makes distributions quarterly vs. monthly for VGLT. EDV also had short-term and long-term capital gains last year, whereas VGLT had none.
by zonto
Fri Jun 05, 2020 2:20 pm
Forum: Personal Investments
Topic: Deciding Between Treasuries and Munis in Taxable
Replies: 16
Views: 3844

Re: Deciding Between Treasuries and Munis in Taxable

@Noobvestor, what did you decide to do here?

Found this thread in a search today as I'm quickly running out of tax-sheltered space so will need to add bonds to taxable soon.
by zonto
Thu Jun 04, 2020 7:31 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623833

Re: Edit needed

Taylor Larimore wrote: Thu Jun 04, 2020 6:24 pm Valuables:

Please edit your post : "Of course you are joyful ..." I did not make that quote you attributed to me.

Thank you and best wishes.
Taylor
Jack Bogle's Words of Wisdom:
"Avoid funds at the top of the performance deck with hot recent records."
Please see: viewtopic.php?f=10&t=282533&p=5119358&h ... l#p5119358
by zonto
Thu Jun 04, 2020 5:57 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623833

Re: Small Cap Value heads Rejoice !!!

I think it's pretty easy to see the hypocrisy if one replaces "SCV" in the post in question with various other investments:
It's neat to see SCV [international equities / long-term Treasuries / gold] up 2% while the S&P is negative. :happy
One should not be chided on the forum for expressing an observation about one-day diversification benefits simply because the fund down that day happens to comprise 100% of many members' equity allocations and they may take offense.
by zonto
Tue Jun 02, 2020 3:11 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 765
Views: 50400

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used

I agree. If one cannot lump sum any non-life-changing amount into their existing asset allocation, it means their portfolio is not diversified and/or conservative enough.
by zonto
Tue Jun 02, 2020 2:21 pm
Forum: Investing - Theory, News & General
Topic: Disconnect between market and economy
Replies: 12
Views: 1666

Re: Disconnect between market and economy

The final paragraph reads:
Our advice to investors trying to navigate these uncertain waters has been consistent this year: rely on tried-and-true disciplines like diversification (across and within asset classes) and regular rebalancing (trimming into strength and adding into weakness). Keys to long-term investment success do not rely on the precise timing of market tops and bottoms. Investing is—and always has been—a process over time. It should never be about moments in time.
Sound advice. Similar to @Portfolio7, I completed my quarterly rebalance at the end of April and am staying the course.
by zonto
Tue May 19, 2020 5:06 pm
Forum: Investing - Theory, News & General
Topic: Why no love for REITs?
Replies: 265
Views: 46469

Re: Why no love for REITs?

I'm very on the fence about them. I like the idea that REITs might have relatively low correlations to the general stock market, and I like that they should provide inflation protection. However, I have read that REITs don't provide anything that can't be explained by the Fama-French equity model plus term and credit risk. Any time I've tried this, the R^2 is around 0.7. Not sure if that's normal for a sector, if I'm doing it wrong, or if REITs genuinely have special qualities. i see that study referenced from time to time in discussions with REIT and i can't help but dismiss it. let's look at the past, pick this type of stock, pick that type of bond, move the slider for AA and behold, we've found something that matches the risk/return of ...
by zonto
Tue May 19, 2020 4:09 pm
Forum: Investing - Theory, News & General
Topic: BDREX - broadstone real estate access fund
Replies: 7
Views: 776

Re: BDREX - blackstone real estate access fund

Minimum for I shares is $1M, so we're talking about W shares with a minimum of $2,500 for most investors. From their fact sheet : Class W includes a shareholder servicing fee of .25%. Class I gross expenses are 4.23% and net expenses after fee waiver and reimbursement are 2.71%, Class W gross expenses are 4.48% and net expenses after fee waiver and reimbursement are 2.96%*. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until September 25, 2020, to ensure that the net annual fund operating expenses will not exceed 1.99% for Class W and 1.74% for Class I, subject to possible recoupment from the Fund in future years. Please review the Fund’s prospectus for more detail on ...
by zonto
Fri May 15, 2020 5:54 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 56251

Re: Why international?

. . . So, this study just confirmed my point - US has soundly beaten the other parts of the world for 117 years straight. See page 11: https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2018/02/giry-summary-2018.pdf Making it a bit easier for folks to look at the primary source vs. your interpretation: "Figure 5 shows that the USA performed well, ranking third for equity performance (6.5% per year) and sixth for bonds (2.0% per year). This confirms our earlier conjecture, namely, that US returns would be high since the US economy has been such an obvious success story, and that it was unwise for investors around the world to base their future projections solely on historical US evidence. However, Fi...
by zonto
Fri May 15, 2020 10:52 am
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2574

Re: What's the point of TLH when you already have booked losses?

What's the point of not harvesting more losses? Only one I can think of is wanting to leave assets to your heirs with a higher basis.

Otherwise, might as well harvest to offset future gains as others have stated. Could be a boon decades from now when withdrawing from the portfolio or wanting to rebalance.
by zonto
Thu May 14, 2020 7:34 pm
Forum: Investing - Theory, News & General
Topic: Why no love for REITs?
Replies: 265
Views: 46469

Re: Why no love for REITs?

Updated April 2020 rent collection article on REIT.com: https://www.reit.com/news/blog/market-commentary/updated-reit-industry-april-rent-collections. Commentary, in relevant part: In the retail sector, there are three sub sectors, shopping centers, regional malls, and free standing. The sample was not representative for regional malls so those results are not presented. The free standing subsector collected an estimated 70% of typical rents collected in April, a relatively strong performance for the retail sector. Many free-standing tenants are essential services like grocery stores, drug stores, or banks which are a stabilizing influence for the subsector. Shopping centers collected an estimated 47% of typical rents collected, on the high...
by zonto
Thu May 14, 2020 7:07 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 56251

Re: Why international?

Check the identical tobacco companies performance in the US and non-US. Same industry, same product, same everything. US side beats non-US soundly even with the product volume decreasing. This is not to argue about individual stock investments, but rather as a case study with the same input variables, except for the US/non-US variable. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showY...
by zonto
Thu May 14, 2020 1:58 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 56251

Re: Why international?

Stef wrote: Thu May 14, 2020 5:44 am These fixed period comparisons don't make sense at all. Of course the region with the most recent best performance will come out the best.

Rolling returns would be more useful.
Agreed. I finally remembered where I saw this data recently: The Long-Term in International Stocks (A Wealth of Common Sense blog)

Image
by zonto
Wed May 13, 2020 11:46 am
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 56251

Re: Why international?

Depends what your home country is. When it's my country, the USA, and its stock and bond markets, it's not foolish at all. Diversification as a religion might be the foolish thing, if returns are more important in the end. . . . I'm a Boglehead in terms that I've had a solid base in the Vanguard S&P 500 and the bond fund, but I also find it important not to pass on long term investing in single stocks if you see that the future is bright (I've owned AAPL and GOOG for a long time, and the returns have dwarfed what I've made with the S&P and bond fund). Even if it means I've "double-invested" in a stock due to being in an index fund that holds them. This argument is internally inconsistent. It reads as: "Diversificatio...
by zonto
Tue May 12, 2020 3:56 pm
Forum: Personal Investments
Topic: Why international?
Replies: 636
Views: 56251

Re: Why international?

As of the COB May 11, 2020, VG Total International Admiral is down 18.19% YTD. Vanguard S&P500 Admiral is down 8.68% YTD, Total Stock Market Admiral is down 9.49%. Since inception of VTIAX on 11/29/2010 it has returned a total of 31.22% wherein $10K became $13,122.19, in that same time period . Since that same date The Total Stock Market Fund (VTSAX) has had a total return of 190.61% wherein $10K became $19,060.83 and the S&P 500 (VFIAX) returned 201.07% and a $10K investment became $20,106.69. Let's say it wasn't a $10K investment.. let's say you retired 11/29/2010 with a $1M portfolio split in typical 60/40 equity fixed income fashion and again 60/40 US International. The 40% ($240K) you had in Total International became 314,928....
by zonto
Tue May 12, 2020 7:50 am
Forum: Investing - Theory, News & General
Topic: Why no love for REITs?
Replies: 265
Views: 46469

Re: Why no love for REITs?

abuss368 wrote: Tue May 12, 2020 7:44 am
zonto wrote: Tue May 12, 2020 7:40 am
REET is an exception because it only holds REITs, even internationally. In my opinion the allocation doesn’t make sense because REET is about 2/3 invested in what USRT already holds (U.S. REITs).
Interesting. So it has a lot of overlap. One option would be to simplify to just REET which is all US I believe.
I agree with the consolidation. REET is 66% US / 34% international. (source)
by zonto
Tue May 12, 2020 7:40 am
Forum: Investing - Theory, News & General
Topic: Why no love for REITs?
Replies: 265
Views: 46469

Re: Why no love for REITs?

I have also maintained an allocation to REITs over the years. Used to be 10% of equities (7% of portfolio in each of VNQ (or similar Fidelity options) and VNQI. I upped this at the end of April to 10% of portfolio in each. A few of my favorite resources on REITs: Heitman: Why REITs? – Five Reasons to Invest in Real Estate Through Public Markets Fidelity white paper: REIT Stocks: An Underutilized Portfolio Diversifier Greenstreet Advisors: Average Premium to NAV (updated monthly) One response to the below: for those with > 10% allocation towards REITs, has recent events changed your perspective or not? whether you're staying the course or not, why/why not? I have roughly 12% of my portfolio in REITs split between domestic (USRT) and internat...
by zonto
Tue May 12, 2020 7:24 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623833

Re: "Fool me once your fault. Fool me twice my fault."

wawoodjr wrote: Mon May 11, 2020 10:03 pm So Taylor, I should abandon my long term Investment Policy Statement when one segment of my portfolio isn't performing well and not rebalance? That's not what I've learned from the Bogleheads. Have you abandoned international equities?
Ironically he has abandoned international equities. Another example of the “Bogleheads conundrum” with regard to tilting away from global market cap under the guise of simplicity (e.g., home and recency bias).
by zonto
Sat May 09, 2020 5:26 am
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 212
Views: 26865

Re: A bond rule of thumb better than "age in bonds"

Noobvestor wrote: Sat May 09, 2020 4:21 am It also seems to be largely (if indirectly) in service of another, deeper, much-discussed conviction about long bonds - a first step in getting people used to that idea.
All due respect, but no it doesn’t. It has absolutely nothing to do with that. Yet you’ve chosen to continue in this thread your crusade on this topic from an unrelated thread. Please give it a rest.
by zonto
Fri May 08, 2020 11:22 am
Forum: Investing - Theory, News & General
Topic: 2007 to 2020: The changing advice of "A Random Walk Down Wall Street"
Replies: 82
Views: 19413

Re: The changing advice of "A Random Walk Down Wall Street" - 2007 to 2020

As another data point, in the 2012 version (page 378) Malkiel lists the following portfolio for "Age: Mid-Fifties" (which I assume corresponds to those in the original post):
  • 55% stocks (one-half in U.S. stocks with good representation of smaller growth companies; one-half in international stocks, including emerging markets)
  • 12.5% real estate (REITs)
  • 27.5% bonds (zero-coupon Treasury bonds, no-load high-grade bond fund, some Treasury inflation protection securities; if bonds are to be held outside of tax-favored retirement plans, tax-exempt bonds should be used)
  • 5% cash (money market fund or short-term bond fund (average maturity 1 to 1.5 years)
by zonto
Sun May 03, 2020 7:14 pm
Forum: Investing - Theory, News & General
Topic: VSS really small cap value?
Replies: 19
Views: 2905

Re: VSS really small cap value?

grabiner wrote: Sun May 03, 2020 6:47 pm You might look at Avantis International Small-Cap Value (AVDV), an actively-managed international small-cap value ETF. ETF.com says that it has P/E of 11.50, P/B of 0.72, versus 20.94 and 1.04 for VSS.
I’m intrigued by this, but can’t commit until we get a sense for its tax efficiency. No room for anything but bonds and REITs in tax advantaged accounts anymore.
by zonto
Wed Apr 29, 2020 7:23 pm
Forum: Investing - Theory, News & General
Topic: Does the market have a mind of its own?
Replies: 6
Views: 451

Re: Does the market have a mind of its own?

I'd recommend watching this YouTube video: The Stock Market vs. The Economy.
by zonto
Wed Apr 29, 2020 11:16 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 269297

Re: First 20% of bonds in long-term Treasuries

Ok... that's a nice story. What will you do when interest rates goes up to 10%? Look, 10 years ago I wanted to go LTT, but couldn't because interest rates were so low (thinking they would go up). And now they are even lower. . . . My honest answer, is I don't know. Back in 2008, I thought interest rates wouldn't go lower and so I held off buying LTT. Now in 2020, it's even lower. So does that further my resolve not to buy LTT? Maybe in 2040 we'll hit negative interest rates?! Thanks(?). You say you couldn't purchase LTT 10 years ago. What you really mean is that you didn't because you were trying to market time by predicting rates, instead of purchasing bonds based on your investment horizon as this thread has been encouraging folks to do....
by zonto
Tue Apr 28, 2020 5:56 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 269297

Re: First 20% of bonds in long-term Treasuries

If we had all only added LTT when the OP first started this thread in August 2019... :shock: Vineviz had posted about long-term Treasurys in other threads before that time as well. See one example here: De-Risking and Diversification aren't the same thing . As luck would have it, I allow myself to make structural changes to my portfolio every January and July, and after months of research last July I made the move from total bond market indices (US and int'l, per Vanguard recommendation) to long-term Treasurys. Though the bond market liquidity issues last month were frustrating (and affected the entire bond market, not just long-term Treasurys), the ballast my bond allocation has provided over this past year has been incredible. There's be...
by zonto
Tue Apr 28, 2020 2:49 pm
Forum: Investing - Theory, News & General
Topic: International REIT
Replies: 84
Views: 18323

Re: International REIT

I think it's important to note that much of the difference between the two is likely due to the fact that REET holds only REITs (meaning the actual legal structure), whereas SFREX (and VNQI for that matter) track indices that include real estate operating companies and other real estate companies. The latter give broader exposure to ex-US real estate markets because many countries, including China, have not (yet?) adopted a legal structure akin to U.S. REITs (source).
by zonto
Tue Apr 28, 2020 8:21 am
Forum: Personal Investments
Topic: considering pausing my global REIT allocation
Replies: 18
Views: 1063

Re: considering pausing my global REIT allocation

abuss368 wrote: Tue Apr 28, 2020 8:16 am I do recall that now. So 3% of the fund is real estate management companies and 97% REITs correct?
Looks like it. See page 2: https://www.msci.com/documents/10199/ef ... 19e8f517a3. I think it’s important to not read too much into this, as many countries simply have not adopted a legal structure akin to a U.S. REIT. More info here: https://www.reit.com/investing/global-r ... investment.
by zonto
Tue Apr 28, 2020 8:09 am
Forum: Personal Investments
Topic: considering pausing my global REIT allocation
Replies: 18
Views: 1063

Re: considering pausing my global REIT allocation

abuss368 wrote: Tue Apr 28, 2020 7:21 am While International RE/REIT does include REOCs I do not recall the Vanguard US REIT fund having anything other than equity only REITs.
Here you go: https://www.vanguard.com/pdf/reitltr.pdf.
by zonto
Tue Apr 28, 2020 4:03 am
Forum: Investing - Theory, News & General
Topic: Any other investors with 70/30 portfolio?
Replies: 130
Views: 28231

Re: Any other investors with 70/30 portfolio?

Another 70/30 investor checking in. 34 years old, with a high savings rate. Equities: 15% S&P500 index (VFIAX) 10% U.S. small cap value index (VIOV) 10% U.S. REIT / real estate index (VGSLX/FREL/FSRNX) 25% total international index (VFWAX/FZILX) 10% international REIT / real estate index (VNQI) Fixed income: 30% long term U.S. Treasurys (EDV/FNBGX) Above does not include emergency / down payment fund. Had rebalanced back to portfolio targets at the end of January this year. As of last week, allocation was sitting at 59/41, so completed my quarterly rebalance. Used this as an opportunity to slightly increase SCV and REIT allocations to what you see above (were each 7% of portfolio before). Have been grateful for the ballast the bonds hav...
by zonto
Tue Apr 28, 2020 2:34 am
Forum: Personal Investments
Topic: considering pausing my global REIT allocation
Replies: 18
Views: 1063

Re: considering pausing my global REIT allocation

abuss368 wrote: Mon Apr 27, 2020 10:45 pm VNQ is the US REIT. Believe the fund was global of ex-US REIT. International REIT has been horrible. Many are not REITs but rather real estate type companies.
International REITs have outperformed (on average) the broader international stock market since inception of VNQI. I wouldn’t say that’s horrible. Most of the “underperformance” of international funds has simply been due to the strength of the USD over the past decade.

And while VNQI holds a number of REOCs and other non-REIT issues, that’s also been true for VNQ and other U.S. “REIT” funds for many years.
by zonto
Sun Apr 26, 2020 1:27 pm
Forum: Personal Investments
Topic: considering pausing my global REIT allocation
Replies: 18
Views: 1063

Re: considering pausing my global REIT allocation

It's absolutely certain that REITs are in trouble. That’s not true for diversified REIT investors, at least right now. See: https://www.reit.com/news/blog/market-commentary/nareit-member-survey-results-covid-19-and-april-rent-collections [T]he valuation argument was nothing as compelling as it was in 2000 when REITs were trading at 20%+ discounts to NAVs and from memory 6-8% yields. At last update, Greenstreet estimates were that REITs were trading at a discount to NAV of nearly 22%. See: https://www.greenstreetadvisors.com/insights/avgpremnav. Yahoo! and Morningstar list the TTM yields of VGSLX (tracks an MSCI index) at 4.54%; FSRNX (Fidelity’s REIT index, tracks a Dow Jones index) of 4.31%; and VGRLX (international REIT and real estate i...
by zonto
Sun Apr 26, 2020 12:55 pm
Forum: Investing - Theory, News & General
Topic: Worried about the future of REITs
Replies: 71
Views: 9047

Re: Worried about the future of REITs

Agreed. Recency bias has been strong on the forums recently.

If you’ve made the decision to tilt to REITs and/or SCV, then rebalancing when they are 30%+ from peak values seems like a no brainer. Or you could sell REITs low, buy a total market index (i.e., big tech) high, and then consider getting into REITs again some time later, likely right after they’ve outperformed again.
by zonto
Fri Apr 24, 2020 11:08 am
Forum: Investing - Theory, News & General
Topic: Your Favorite Vanguard Fund
Replies: 93
Views: 16247

Re: Your Favorite Vanguard Fund

Vanguard Extended Duration Treasury ETF (EDV). :twisted: This fund, though extremely volatile, has kept me sane and my equity-heavy, young-accumulator portfolio afloat during the market craziness this year. Its runup over the last year, coupled with the recent market tumble, turned my 70/30 portfolio to a 59/41 portfolio. With my quarterly rebalance and tax loss harvest extravaganza completed (as of this morning!), I was able to sell a chunk of those appreciate long-term Treasury shares to buy shares of VIOV (Vanguard S&P Small Cap 600 Value Index ETF) and US and international REIT / real estate index funds at great discounts. If I had to pick just ONE Vanguard fund to hold forever though, it would probably be LifeStrategy Moderate Grow...
by zonto
Fri Apr 24, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: whos' just about had it w/ SCV ?
Replies: 277
Views: 24188

Re: whos' just about had it w/ SCV ?

I just went through this analysis after tax loss harvesting VTMSX (Vanguard Tax Managed Balanced). Decided to “bite the bullet” and just sell the mutual fund shares and buy shares of VIOV the next morning. Just processed that transaction. I was not enthused about any other tax loss harvest mutual fund partner, except VSMVX. :wink:
by zonto
Wed Apr 22, 2020 3:24 am
Forum: Personal Investments
Topic: Fidelity REITs
Replies: 21
Views: 6741

Re: Fidelity REITs

For some reason over the last couple years the Dow Jones index that FSRNX tracks has been underperforming the MSCI index that VNQ/VGSLX and FREL track. It’s not clear to me why, as neither index is a pure REIT index and both include REOCs.

Any ideas?

Edit: In case anyone reads this post later, the above performance is not limited to FSRNX but appears to be a Dow Jones index construction point as compared to the MSCI indices. FSRNX performance has tracked the performance of the Schwab US REIT ETF (SCHH) nearly identically, which follows a similar index.
by zonto
Tue Apr 07, 2020 8:02 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 623833

Re: Small Cap Value heads Rejoice !!!

Here you go:

Image
by zonto
Wed Mar 25, 2020 7:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 124001

Re: Vanguard Municipal Money Market VMSXX 1.39%

Seems too good to be true. What are the risks here?
by zonto
Fri Mar 20, 2020 2:31 pm
Forum: Investing - Theory, News & General
Topic: TIPS
Replies: 271
Views: 24000

Re: TIPS go Crazy!

Chip wrote: Fri Mar 20, 2020 2:24 pm . . . I would note that the Schwab TIPS fund (SCHP) that I own is up 2.75% today. Seems like a big move to me.
LTPZ (PIMCO's long term TIPS ETF) is up 9.62% today as of this post.
by zonto
Thu Mar 19, 2020 4:28 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 269297

Re: First 20% of bonds in long-term Treasuries

I am wondering whether this might be a good moment for me to adopt this strategy in my equity-heavy (75/25) portfolio. Currently, I hold VGIT (intermediate Treasuries) for my bonds. It has performed well, but it has not moved opposite stocks the way long-term Treasuries did for the first several days of this crisis. Then again, it has not gotten crushed the way long Treasuries have lately. Any thoughts, vineviz? Does your analysis still apply? First, let me say that I generally advise against making any significant changes in portfolio design during periods of abnormal market volatility. But, yes, if your investment horizon is in the 15+ year timeframe I think the analysis I presented earlier applies just as much now as ever. If my bond al...
by zonto
Fri Mar 13, 2020 12:54 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 269297

Re: First 20% of bonds in long-term Treasuries

It definitely happens with Vanguard’s Treasury ETFs, especially long term Treasury funds this week. EDV and VGLT are (were?) trading at pretty significant discounts to NAV.

Holding tight here for now, but plan to soon rebalance back into stocks. Wish I would have sold Monday afternoon. :D