alternatives/suggestions

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fiverus
Posts: 83
Joined: Wed Jan 04, 2017 11:56 am

alternatives/suggestions

Post by fiverus » Mon Apr 17, 2017 10:41 am

Hello,

Currently I have a 3 fund portfolio with my 40lk. Looking at the specific funds are there other alternatives? or is current funds ok?
Suggestions are welcome.

VBTIX
VINIX
VTIAX


PTTRX
VBTIX
PRRIX
PHIYX
VEIRX
RFNGX
VINIX
JLGMX
LVOYX
VMCIX
MVSSX
VSCIX
FSMLX
FARCX
RERGX
VTIAX
FEMKX
TRRIX
TRRFX
TRRAX
TRRGX
TRRBX
TRRHX
TRRCX
TRRJX
TRRDX
TRRBX
TRRHX
TRRCX
TRRJX
TRRDX
TRRKX
TRRMX
TRRNX

Thank you.

delamer
Posts: 4812
Joined: Tue Feb 08, 2011 6:13 pm

Re: alternatives/suggestions

Post by delamer » Mon Apr 17, 2017 10:46 am

You need to add the names of the funds to your post.

lack_ey
Posts: 6560
Joined: Wed Nov 19, 2014 11:55 pm

Re: alternatives/suggestions

Post by lack_ey » Mon Apr 17, 2017 10:47 am

Okay, with that many ticker symbols I demand you list all the fund names and expense ratios so every person looking at this thread doesn't have to spend minutes looking all of them up. That only seems right in the name of efficiency. Also the ER is important because in 401k plans these can differ from what is generally offered.

Aside from that, what are you looking for in your portfolio allocation anyway, and why are you asking? Is there particular reason you're wondering about owning anything else, or reasons to be dissatisfied with broad market exposure? What would you consider "ok" and not okay?

DaufuskieNate
Posts: 247
Joined: Wed May 28, 2014 11:53 am

Re: alternatives/suggestions

Post by DaufuskieNate » Mon Apr 17, 2017 11:03 am

This is a list of funds, and while you may get people to weigh in on this or that fund, what you really need is a strategy. I would start by reading a few books. Plenty of good ones mentioned here with a simple search. Personally, I would recommend books by Bogle, Swedroe and Bernstein as a starting point. Develop a strategy based on your own situation. At that point, the choice of specific funds will be clearer.

TBillT
Posts: 353
Joined: Sat Sep 17, 2011 1:43 pm

Re: alternatives/suggestions

Post by TBillT » Mon Apr 17, 2017 11:29 am

Looks a little like my wife's 401k choices.
Do you have TR SVF Stable Value Fund?
I like that one, although has not been as good last couple years.

I did not see some of my favs (PONDX in particular)

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Duckie
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Joined: Thu Mar 08, 2007 2:55 pm

Re: alternatives/suggestions

Post by Duckie » Mon Apr 17, 2017 6:02 pm

fiverus wrote:Currently I have a 3 fund portfolio with my 40lk. Looking at the specific funds are there other alternatives? or is current funds ok?
VINIX, VTIAX, and VBITX are all good. You're missing mid/small caps which are about 20% of US stocks so if you wanted to could make your US stock AA 80% VINIX, 6% VMCIX, and 14% VSCIX. But it's not crucial.

Christian NY
Posts: 66
Joined: Fri Apr 14, 2017 3:46 pm

Re: alternatives/suggestions

Post by Christian NY » Mon Apr 17, 2017 9:03 pm

Duckie wrote:
fiverus wrote:Currently I have a 3 fund portfolio with my 40lk. Looking at the specific funds are there other alternatives? or is current funds ok?
VINIX, VTIAX, and VBITX are all good. You're missing mid/small caps which are about 20% of US stocks so if you wanted to could make your US stock AA 80% VINIX, 6% VMCIX, and 14% VSCIX. But it's not crucial.
May I ask a silly question? Is there any reason a lesser percentage of the "equities" portion is usually allocated to mid-cap? In the allocation by Duckie above, it's 80% VINIX(large-cap), while only 6% mid-cap and 14% small-cap. Portfolios that were created for me by several experienced investors are also skewed towards that-for example 30% VOO, 8% VOE, 14% VBR.

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Duckie
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Re: alternatives/suggestions

Post by Duckie » Tue Apr 18, 2017 3:44 pm

Christian NY wrote:Is there any reason a lesser percentage of the "equities" portion is usually allocated to mid-cap? In the allocation by Duckie above, it's 80% VINIX(large-cap), while only 6% mid-cap and 14% small-cap.
I got my percentages from the free Morningstar Instant X-Ray calculator. Looking at the "Stock Style Diversification/Valuation" box as of 4/18/17:
  • 100% VTSMX shows:
    • 24 24 24
      06 06 07
      03 03 03
    80% VFINX, 6% VIMSX, 14% NAESX shows:
    • 24 23 23
      07 08 07
      03 03 03
Close enough is good enough.

Christian NY
Posts: 66
Joined: Fri Apr 14, 2017 3:46 pm

Re: alternatives/suggestions

Post by Christian NY » Tue Apr 18, 2017 4:08 pm

Duckie wrote:
Christian NY wrote:Is there any reason a lesser percentage of the "equities" portion is usually allocated to mid-cap? In the allocation by Duckie above, it's 80% VINIX(large-cap), while only 6% mid-cap and 14% small-cap.
I got my percentages from the free Morningstar Instant X-Ray calculator. Looking at the "Stock Style Diversification/Valuation" box as of 4/18/17:
  • 100% VTSMX shows:
    • 24 24 24
      06 06 07
      03 03 03
    80% VFINX, 6% VIMSX, 14% NAESX shows:
    • 24 23 23
      07 08 07
      03 03 03
Close enough is good enough.
Wow! Awesome tool! Question is, what do these numbers mean? How do I learn how to read that box?
I entered my current portfolio and the numbers are:
24 21 18
12 9 4
6 4 1

:?: :oops: :?

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Duckie
Posts: 5672
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Re: alternatives/suggestions

Post by Duckie » Tue Apr 18, 2017 5:55 pm

Christian NY wrote:Question is, what do these numbers mean? How do I learn how to read that box?
I entered my current portfolio and the numbers are:
24 21 18
12 9 4
6 4 1
The top line is large caps, the middle is mid caps, and the bottom is small caps. The left column is value, the middle is core, and the right is growth. If you're trying to match the total US stock market you want to get close to the numbers of VTSMX. If you're trying to match the total international stock market use VGTSX as the comparable.

For your current portfolio it means that the stock portion is tilted slightly toward value and mid caps.

Christian NY
Posts: 66
Joined: Fri Apr 14, 2017 3:46 pm

Re: alternatives/suggestions

Post by Christian NY » Wed Apr 19, 2017 8:54 am

Duckie wrote:
Christian NY wrote:Question is, what do these numbers mean? How do I learn how to read that box?
I entered my current portfolio and the numbers are:
24 21 18
12 9 4
6 4 1
The top line is large caps, the middle is mid caps, and the bottom is small caps. The left column is value, the middle is core, and the right is growth. If you're trying to match the total US stock market you want to get close to the numbers of VTSMX. If you're trying to match the total international stock market use VGTSX as the comparable.

For your current portfolio it means that the stock portion is tilted slightly toward value and mid caps.
Thank you for that explanation,that is very valuable however I was not trying to match VTI, if that was the case I would just buy VTI. I was trying to tilt the portfolio towards a more optimal allocation than in VTI. Is there any market data or analysis tool that would tell me what would be the optimal allocation to VOO, VOE and VBR based on historical data since 1970? or since 1929 :P

dbr
Posts: 27039
Joined: Sun Mar 04, 2007 9:50 am

Re: alternatives/suggestions

Post by dbr » Wed Apr 19, 2017 8:58 am

Christian NY wrote: Thank you for that explanation,that is very valuable however I was not trying to match VTI, if that was the case I would just buy VTI. I was trying to tilt the portfolio towards a more optimal allocation than in VTI. Is there any market data or analysis tool that would tell me what would be the optimal allocation to VOO, VOE and VBR based on historical data since 1970? or since 1929 :P
Have you read Larry Swedroe's book yet?

A tool that might be informative or might simply add more questions is this one https://www.portfoliovisualizer.com/

dbr
Posts: 27039
Joined: Sun Mar 04, 2007 9:50 am

Re: alternatives/suggestions

Post by dbr » Wed Apr 19, 2017 9:05 am

Christian NY wrote:
Duckie wrote:
Christian NY wrote:Is there any reason a lesser percentage of the "equities" portion is usually allocated to mid-cap? In the allocation by Duckie above, it's 80% VINIX(large-cap), while only 6% mid-cap and 14% small-cap.
I got my percentages from the free Morningstar Instant X-Ray calculator. Looking at the "Stock Style Diversification/Valuation" box as of 4/18/17:
  • 100% VTSMX shows:
    • 24 24 24
      06 06 07
      03 03 03
    80% VFINX, 6% VIMSX, 14% NAESX shows:
    • 24 23 23
      07 08 07
      03 03 03
Close enough is good enough.
Wow! Awesome tool! Question is, what do these numbers mean? How do I learn how to read that box?
I entered my current portfolio and the numbers are:
24 21 18
12 9 4
6 4 1

:?: :oops: :?
If you Google for "Morningstar stock style" the first entry is http://www.morningstar.com/InvGlossary/ ... e_box.aspx which contains the following description:


Morningstar Style Box

This is a proprietary Morningstar data point. The Morningstar Style Box is a nine-square grid that provides a graphical representation of the "investment style" of stocks and mutual funds. For stocks and stock funds, it classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis). Fixed income funds are classified according to credit quality (the vertical axis) and sensitivity to changes in interest rates (the horizontal axis).

By providing an easy-to-understand visual representation of stock and fund characteristics, the Morningstar Style Box allows for informed comparisons and portfolio construction based on actual holdings, as opposed to assumptions based on a fund's name or how it is marketed. The Style Box also forms the basis for Morningstar's style-based fund categories and market indexes.

How It Works
The vertical axis of the Style Box defines three size categories, or capitalization bands-small, . . . . .

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