What to pair with NTSX?

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schismal
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Re: What to pair with NTSX?

Post by schismal »

caklim00 wrote: Sat Mar 07, 2020 11:56 am
schismal wrote: Sat Mar 07, 2020 10:21 am Since Jan 2019 (%):
NTSX: +27.04
USMV: +22.48
VBINX: +18.54
SPY: +19.02

YTD (%):
NTSX: -2.32
USMV: -2.16
VBINX: -2.57
SPY: -7.58

Since 2/18/20 (%):
NTSX: -8.14
USMV: -7.75
VBINX: -6.00
SPY: -11.71
Numbers make sense. In less than 2 weeks my notional value on my ladder went from 784K to 815K. Up about 4%. NTSX appears to be doing its thang :)
Everyone keeps perseverating over whether the appropriate comparison for NTSX is a pure S&P 500 fund or an unleveraged 60/40 fund. The correct answer is: neither.
caklim00
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Re: What to pair with NTSX?

Post by caklim00 »

schismal wrote: Sat Mar 07, 2020 12:22 pm
caklim00 wrote: Sat Mar 07, 2020 11:56 am
schismal wrote: Sat Mar 07, 2020 10:21 am Since Jan 2019 (%):
NTSX: +27.04
USMV: +22.48
VBINX: +18.54
SPY: +19.02

YTD (%):
NTSX: -2.32
USMV: -2.16
VBINX: -2.57
SPY: -7.58

Since 2/18/20 (%):
NTSX: -8.14
USMV: -7.75
VBINX: -6.00
SPY: -11.71
Numbers make sense. In less than 2 weeks my notional value on my ladder went from 784K to 815K. Up about 4%. NTSX appears to be doing its thang :)
Everyone keeps perseverating over whether the appropriate comparison for NTSX is a pure S&P 500 fund or an unleveraged 60/40 fund. The correct answer is: neither.
I agree its definitely neither. Although 60/40 is closer assuming you are investing 50% more money :)

I can definitely attest though that my 35% positon in bonds and treasury futures ladder is no where near enough to counteract volatility in my 65% equities. But it has lessened some of the SCV pain.
ChrisBenn
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Re: What to pair with NTSX?

Post by ChrisBenn »

willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
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willthrill81
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Re: What to pair with NTSX?

Post by willthrill81 »

ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm
willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
ChrisBenn
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Re: What to pair with NTSX?

Post by ChrisBenn »

willthrill81 wrote: Sat Mar 07, 2020 12:29 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm
willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
Nope, you can buy and hold it at vanguard (i did)
HawkeyePierce
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Re: What to pair with NTSX?

Post by HawkeyePierce »

I'm holding it at TD Ameritrade (they maintain my Vanguard 401k's brokerage link).
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willthrill81
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Re: What to pair with NTSX?

Post by willthrill81 »

ChrisBenn wrote: Sat Mar 07, 2020 12:30 pm
willthrill81 wrote: Sat Mar 07, 2020 12:29 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm
willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
Nope, you can buy and hold it at vanguard (i did)
That's odd since they restrict most leveraged ETFs.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
occambogle
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Re: What to pair with NTSX?

Post by occambogle »

willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I’m holding it at Interactive Brokers and didn’t have any issue buying it...
ChrisBenn
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Re: What to pair with NTSX?

Post by ChrisBenn »

willthrill81 wrote: Sat Mar 07, 2020 12:38 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:30 pm
willthrill81 wrote: Sat Mar 07, 2020 12:29 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm
willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
Nope, you can buy and hold it at vanguard (i did)
That's odd since they restrict most leveraged ETFs.
I've only actually seen people have issues with the daily reset funds - there might be some unintended conflation there. Vanguard also allows PSLDX which is leveraged (mutual fund)
nullisland
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Re: What to pair with NTSX?

Post by nullisland »

schismal wrote: Sat Mar 07, 2020 12:22 pm Everyone keeps perseverating over whether the appropriate comparison for NTSX is a pure S&P 500 fund or an unleveraged 60/40 fund. The correct answer is: neither.
Yep. Shockingly, it turns out that US large caps and leveraged treasuries perform just like US large caps and leveraged treasuries: since inception NTSX has been essentially identical to 93% SPY/7% TMF https://www.portfoliovisualizer.com/bac ... ation3_2=7
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willthrill81
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Re: What to pair with NTSX?

Post by willthrill81 »

ChrisBenn wrote: Sat Mar 07, 2020 2:30 pm
willthrill81 wrote: Sat Mar 07, 2020 12:38 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:30 pm
willthrill81 wrote: Sat Mar 07, 2020 12:29 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm

I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
Nope, you can buy and hold it at vanguard (i did)
That's odd since they restrict most leveraged ETFs.
I've only actually seen people have issues with the daily reset funds - there might be some unintended conflation there. Vanguard also allows PSLDX which is leveraged (mutual fund)
Interesting. Thanks.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
lexor
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Re: What to pair with NTSX?

Post by lexor »

willthrill81 wrote: Sat Mar 07, 2020 12:29 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm
willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
I hold NTSX at Vanguard and E-Trade. Then I use Fidelity to rebalance.
Last edited by lexor on Sat Mar 07, 2020 9:43 pm, edited 2 times in total.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle
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willthrill81
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Re: What to pair with NTSX?

Post by willthrill81 »

lexor wrote: Sat Mar 07, 2020 9:36 pm
willthrill81 wrote: Sat Mar 07, 2020 12:29 pm
ChrisBenn wrote: Sat Mar 07, 2020 12:28 pm
willthrill81 wrote: Sat Mar 07, 2020 10:37 am After the performance of NTSX since this year, I doubt that they'll have any issues with insufficient assets.

I'm wondering which brokerages people are using to hold NTSX.
I think only Merril Lynch has a block on it?
Vanguard won't let you buy it either to my knowledge.
I hold NTSX at Vanguard and E-Trade.
Thanks. I didn't know that Vanguard would permit trading of NTSX. They won't allow leveraged ETFs like UPRO and TMF.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
caklim00
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Re: What to pair with NTSX?

Post by caklim00 »

I still think its odd Vanguard does options but not futures. :annoyed
Wyodoc
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Re: What to pair with NTSX?

Post by Wyodoc »

Agree, it’s strange. I have NTSX in my Vanguard brokerage account and can buy PSLDX in my R-IRA.... but no leveraged ETFs
lexor
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Re: What to pair with NTSX?

Post by lexor »

caklim00 wrote: Sat Mar 07, 2020 10:23 pm I still think its odd Vanguard does options but not futures. :annoyed
Do E-Trade and Fido both offer futures? I didn't know Vanguard didn't.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle
caklim00
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Re: What to pair with NTSX?

Post by caklim00 »

lexor wrote: Sat Mar 07, 2020 10:44 pm
caklim00 wrote: Sat Mar 07, 2020 10:23 pm I still think its odd Vanguard does options but not futures. :annoyed
Do E-Trade and Fido both offer futures? I didn't know Vanguard didn't.
etrade, schwab, ikbr does, no clue about fido. As soon as a brokerage offers a decent interest rate on cash, no monthly fees, and competitive contract rates I'm bouncing from IKBR lite.
lexor
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Re: What to pair with NTSX?

Post by lexor »

caklim00 wrote: Sun Mar 08, 2020 10:28 am
lexor wrote: Sat Mar 07, 2020 10:44 pm
caklim00 wrote: Sat Mar 07, 2020 10:23 pm I still think its odd Vanguard does options but not futures. :annoyed
Do E-Trade and Fido both offer futures? I didn't know Vanguard didn't.
etrade, schwab, ikbr does, no clue about fido. As soon as a brokerage offers a decent interest rate on cash, no monthly fees, and competitive contract rates I'm bouncing from IKBR lite.
Yeah IKBR doesn't seem the most user friendly...and are very aggressive with margin calls, aren't they?
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle
caklim00
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Re: What to pair with NTSX?

Post by caklim00 »

lexor wrote: Sun Mar 08, 2020 10:42 am
caklim00 wrote: Sun Mar 08, 2020 10:28 am
lexor wrote: Sat Mar 07, 2020 10:44 pm
caklim00 wrote: Sat Mar 07, 2020 10:23 pm I still think its odd Vanguard does options but not futures. :annoyed
Do E-Trade and Fido both offer futures? I didn't know Vanguard didn't.
etrade, schwab, ikbr does, no clue about fido. As soon as a brokerage offers a decent interest rate on cash, no monthly fees, and competitive contract rates I'm bouncing from IKBR lite.
Yeah IKBR doesn't seem the most user friendly...and are very aggressive with margin calls, aren't they?
Definitely not user friendly. Although rolling the treasury futures works fine on the mobile app. They will liquidate if you can't cover. I always have plenty (knock on wood)
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siriusblack
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Re: What to pair with NTSX?

Post by siriusblack »

UPDATE:

I moved to 70/20/10 NTSX / Vanguard LT Treasuries / Vanguard Real Estate (in my smallest account, Roth IRA) on 1/31/2020.

Results:
  • Starting value = $22,250 (1/31).
  • Peak value = $23,081 (2/20). Up 3.7% from start. As a comparison, Vanguard Balanced Fund (60/40) was up 3.1% over same time period. S&P 500 was up 4.9% over same time period.
  • Added $4400 on 3/16 (contribution to the Roth).
  • Today's value = $22,035 (3/22) after contributing $4400 on 3/16. Adjusting for the $4400, this is down -23.5% from peak value. Vanguard Balanced is down -21.8% from peak. S&P 500 is down -31.9% from peak.
  • Over the full period (1/31 to 3/22), the NTSX portfolio is down -20.7%. Vanguard Balanced Fund is down -19.3%. S&P 500 is down -28.5%.
So, the drawdown has been a little worse than Balanced Index (60/40) -- which is not unexpected given the REIT component which performed especially poorly in the drawdown.
Register44
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Re: What to pair with NTSX?

Post by Register44 »

:arrow:
Last edited by Register44 on Mon Jan 11, 2021 5:31 pm, edited 1 time in total.
Kbg
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Re: What to pair with NTSX?

Post by Kbg »

you can take the above analysis back to 1992 by using ^GOLD
Register44
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Re: What to pair with NTSX?

Post by Register44 »

:arrow:
Last edited by Register44 on Mon Jan 11, 2021 8:17 pm, edited 1 time in total.
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aj76er
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Re: What to pair with NTSX?

Post by aj76er »

For accumulators:
60% NTSX
30% VXUS
10% EDV

For retirees:
30% NTSX
10% VXUS
25% TAIL
20% TIP
10% STIP
5% VGLT
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GaryA505
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Re: What to pair with NTSX?

Post by GaryA505 »

Just curious, what would happen if you paired NTSX with TAIL (Cambria Tail Risk ETF)?
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siriusblack
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Re: What to pair with NTSX?

Post by siriusblack »

GaryA505 wrote: Thu Jul 30, 2020 2:42 pm Just curious, what would happen if you paired NTSX with TAIL (Cambria Tail Risk ETF)?
That's a really interesting thought-- since Jan 1, 2019 that combination has done pretty amazing:
https://www.portfoliovisualizer.com/bac ... tion2_1=20

Did pretty good in the corona-crash ... did pretty well also throughout 2019 when the market was hotter ... biggest uncertainty would be whether there is a major issue with stagflation (i.e. stocks going sideways-- not enough to trigger those puts, plus inflation going up which would hurt all those bonds). Maybe if there were a stagflation ingredient here you could reach perfection!
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Re: What to pair with NTSX?

Post by GaryA505 »

siriusblack wrote: Thu Jul 30, 2020 7:09 pm
GaryA505 wrote: Thu Jul 30, 2020 2:42 pm Just curious, what would happen if you paired NTSX with TAIL (Cambria Tail Risk ETF)?
That's a really interesting thought-- since Jan 1, 2019 that combination has done pretty amazing:
https://www.portfoliovisualizer.com/bac ... tion2_1=20

Did pretty good in the corona-crash ... did pretty well also throughout 2019 when the market was hotter ... biggest uncertainty would be whether there is a major issue with stagflation (i.e. stocks going sideways-- not enough to trigger those puts, plus inflation going up which would hurt all those bonds). Maybe if there were a stagflation ingredient here you could reach perfection!
Now, if you wanna see something really weird. NTSX and TAIL are almost mirror images of each other.
https://www.portfoliovisualizer.com/bac ... tion2_3=50
ChrisBenn
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Re: What to pair with NTSX?

Post by ChrisBenn »

GaryA505 wrote: Thu Jul 30, 2020 7:27 pm
siriusblack wrote: Thu Jul 30, 2020 7:09 pm
GaryA505 wrote: Thu Jul 30, 2020 2:42 pm Just curious, what would happen if you paired NTSX with TAIL (Cambria Tail Risk ETF)?
That's a really interesting thought-- since Jan 1, 2019 that combination has done pretty amazing:
https://www.portfoliovisualizer.com/bac ... tion2_1=20

Did pretty good in the corona-crash ... did pretty well also throughout 2019 when the market was hotter ... biggest uncertainty would be whether there is a major issue with stagflation (i.e. stocks going sideways-- not enough to trigger those puts, plus inflation going up which would hurt all those bonds). Maybe if there were a stagflation ingredient here you could reach perfection!
Now, if you wanna see something really weird. NTSX and TAIL are almost mirror images of each other.
https://www.portfoliovisualizer.com/bac ... tion2_3=50
The TAIL holding are just protective puts on the portfolio (~10%) and ~10 year treasuries (~90%). If you want the puts you could just buy them directly. No need for the 90% treasuries. I would expect the fund to gown down / loose money most of the time. If the market crashes enough then tail would loose less money than straight equities. Coming in positive/neutral depends on the treasuries delivering more total returns than the options are burning.
bog007
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Re: What to pair with NTSX?

Post by bog007 »

Hendrik Bessembinder> the top performing 4% of listed companies explain the net gain for the entire US stock market since 1926 | The other 96% of stocks collectively did not do better than 90dayT-bills
uberaeth
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Re: What to pair with NTSX?

Post by uberaeth »

I've been playing around with an "all conditions" portfolio, a.k.a. a portfolio that will perform through rising/lowering rates and inflation/deflation. I came up with:

NTSX 55%
FNDC 25%
SCHP 10%
TMF 10%

Any critiques/ideas on why this is good/bad/whatever?
drumboy256
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Re: What to pair with NTSX?

Post by drumboy256 »

Just as aside, I'm placing one of my tIRA rollovers into a 80/20 split of NTSX and VT of which based on most of the back tests, they do pretty well which yes, I know--- historical results don't mean future gains. The main reason for doing this is having leveraged treasuries that I believe will be a fantastic market over the next decade.
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson
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willthrill81
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Re: What to pair with NTSX?

Post by willthrill81 »

uberaeth wrote: Sat Dec 05, 2020 12:51 pm I've been playing around with an "all conditions" portfolio, a.k.a. a portfolio that will perform through rising/lowering rates and inflation/deflation. I came up with:

NTSX 55%
FNDC 25%
SCHP 10%
TMF 10%

Any critiques/ideas on why this is good/bad/whatever?
If you're going to factor tilt, why go with a SC fund like FNDC instead of a SCV fund like AVUV or VBR?

Is the purpose of TMF just to counter-balance the otherwise very stock-heavy exposure?

If you're looking for a sort of 'all conditions' portfolio, then I would suggest that you consider moving 10% from NTSX into a gold ETF like IAU. Also, I would suggest that you consider moving at least 10% from NTSX into an international SCV fund to give you at least some non-U.S. exposure.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
BJJ_GUY
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Re: What to pair with NTSX?

Post by BJJ_GUY »

GaryA505 wrote: Thu Jul 30, 2020 2:42 pm Just curious, what would happen if you paired NTSX with TAIL (Cambria Tail Risk ETF)?
I just took a look at TAIL. With that ticker, and the fact that there is money in the fund, shows that group has figured out a good deal about marketing.

The expected return on that thing starts out at something like -11% per year. To utilize that much budget, I would expect to be getting more convexity than what this offers. That ETF was launched at a really good time, so I'm skeptical that the typical returns won't actually be even worse than what we've seen thus far.

The other problem here is that tail strategies can be theoretically, and even practically, fine/good, but not in the form of an ETF where the balance sheet usage is a killer.
uberaeth
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Re: What to pair with NTSX?

Post by uberaeth »

willthrill81 wrote: Sun Jan 24, 2021 11:23 am
uberaeth wrote: Sat Dec 05, 2020 12:51 pm I've been playing around with an "all conditions" portfolio, a.k.a. a portfolio that will perform through rising/lowering rates and inflation/deflation. I came up with:

NTSX 55%
FNDC 25%
SCHP 10%
TMF 10%

Any critiques/ideas on why this is good/bad/whatever?
If you're going to factor tilt, why go with a SC fund like FNDC instead of a SCV fund like AVUV or VBR?

Is the purpose of TMF just to counter-balance the otherwise very stock-heavy exposure?

If you're looking for a sort of 'all conditions' portfolio, then I would suggest that you consider moving 10% from NTSX into a gold ETF like IAU. Also, I would suggest that you consider moving at least 10% from NTSX into an international SCV fund to give you at least some non-U.S. exposure.
I've since tweaked it a bit more and have arrived at

NTSX 55%
VSS 25%
GLDM 10%
TMF 10%

I figure VSS gives me enough non-US and small cap exposure. And yes, TMF is there to offset the super stock heavy exposure. It's a pretty efficient way to pack a lot of bonds into a little portfolio space.
klaus14
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Re: What to pair with NTSX?

Post by klaus14 »

uberaeth wrote: Sun Jan 24, 2021 3:47 pm I've since tweaked it a bit more and have arrived at
NTSX 55%
VSS 25%
GLDM 10%
TMF 10%

I figure VSS gives me enough non-US and small cap exposure. And yes, TMF is there to offset the super stock heavy exposure. It's a pretty efficient way to pack a lot of bonds into a little portfolio space.
How about:

NTSX 50%
AVDV 15%
AVEM 15%
GLDM 10%
EDV 10%

Closer to global market cap equities, stronger factor loading and emerging is a better diversifier.
And EDV is much cheaper and efficient compared to TMF, it doesn't have the extra volatility drag due to leverage.

if you unpack NTSX, above is equivalent to:
VOO 45%
Cash -5%
EDV 20%
AVDV 15%
AVEM 15%
GLDM 10%
caklim00
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Re: What to pair with NTSX?

Post by caklim00 »

klaus14 wrote: Sun Jan 24, 2021 5:04 pm
uberaeth wrote: Sun Jan 24, 2021 3:47 pm I've since tweaked it a bit more and have arrived at
NTSX 55%
VSS 25%
GLDM 10%
TMF 10%

I figure VSS gives me enough non-US and small cap exposure. And yes, TMF is there to offset the super stock heavy exposure. It's a pretty efficient way to pack a lot of bonds into a little portfolio space.
How about:

NTSX 50%
AVDV 15%
AVEM 15%
GLDM 10%
EDV 10%

Closer to global market cap equities, stronger factor loading and emerging is a better diversifier.
And EDV is much cheaper and efficient compared to TMF, it doesn't have the extra volatility drag due to leverage.

if you unpack NTSX, above is equivalent to:
VOO 45%
Cash -5%
EDV 20%
AVDV 15%
AVEM 15%
GLDM 10%
If you believe in tilting to SCV why wouldn't you just do
AVUV 40%
EDV 20%
AVDV 15%
AVEM 15%
GLDM 10%

why even bother with NTSX?

I hold ZB contract(s) so somewhat similar.
klaus14
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Re: What to pair with NTSX?

Post by klaus14 »

caklim00 wrote: Sun Jan 24, 2021 5:42 pm If you believe in tilting to SCV why wouldn't you just do
AVUV 40%
EDV 20%
AVDV 15%
AVEM 15%
GLDM 10%

why even bother with NTSX?

I hold ZB contract(s) so somewhat similar.
if you are comfortable with futures then obviously no point of NTSX. NTSX is just for convenience. You don't need to roll futures or rebalance.

I believe in tilting to SCV, but not all in SCV. Most of the stock returns come from a handful of stocks so not investing in large portions of the market is a mistake IMHO. In my portfolio I do 50% total market cap and 50% tilt in all regions.
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willthrill81
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Re: What to pair with NTSX?

Post by willthrill81 »

uberaeth wrote: Sun Jan 24, 2021 3:47 pm
willthrill81 wrote: Sun Jan 24, 2021 11:23 am
uberaeth wrote: Sat Dec 05, 2020 12:51 pm I've been playing around with an "all conditions" portfolio, a.k.a. a portfolio that will perform through rising/lowering rates and inflation/deflation. I came up with:

NTSX 55%
FNDC 25%
SCHP 10%
TMF 10%

Any critiques/ideas on why this is good/bad/whatever?
If you're going to factor tilt, why go with a SC fund like FNDC instead of a SCV fund like AVUV or VBR?

Is the purpose of TMF just to counter-balance the otherwise very stock-heavy exposure?

If you're looking for a sort of 'all conditions' portfolio, then I would suggest that you consider moving 10% from NTSX into a gold ETF like IAU. Also, I would suggest that you consider moving at least 10% from NTSX into an international SCV fund to give you at least some non-U.S. exposure.
I've since tweaked it a bit more and have arrived at

NTSX 55%
VSS 25%
GLDM 10%
TMF 10%

I figure VSS gives me enough non-US and small cap exposure. And yes, TMF is there to offset the super stock heavy exposure. It's a pretty efficient way to pack a lot of bonds into a little portfolio space.
VSS is small-caps but not SCV. AVDV is one of the better ex-U.S. SCV funds available right now at least in terms of SCV exposure. It's expense ratio is .36%, which is a little large but not too much for this asset class.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
caklim00
Posts: 2335
Joined: Mon May 26, 2008 10:09 am

Re: What to pair with NTSX?

Post by caklim00 »

klaus14 wrote: Sun Jan 24, 2021 5:49 pm
caklim00 wrote: Sun Jan 24, 2021 5:42 pm If you believe in tilting to SCV why wouldn't you just do
AVUV 40%
EDV 20%
AVDV 15%
AVEM 15%
GLDM 10%

why even bother with NTSX?

I hold ZB contract(s) so somewhat similar.
if you are comfortable with futures then obviously no point of NTSX. NTSX is just for convenience. You don't need to roll futures or rebalance.

I believe in tilting to SCV, but not all in SCV. Most of the stock returns come from a handful of stocks so not investing in large portions of the market is a mistake IMHO. In my portfolio I do 50% total market cap and 50% tilt in all regions.
I guess I don't understand why one would have a SCV only for foreign and no tilt at all for domestic.
klaus14
Posts: 668
Joined: Sun Nov 25, 2018 7:43 pm

Re: What to pair with NTSX?

Post by klaus14 »

caklim00 wrote: Sun Jan 24, 2021 9:33 pm
klaus14 wrote: Sun Jan 24, 2021 5:49 pm
caklim00 wrote: Sun Jan 24, 2021 5:42 pm If you believe in tilting to SCV why wouldn't you just do
AVUV 40%
EDV 20%
AVDV 15%
AVEM 15%
GLDM 10%

why even bother with NTSX?

I hold ZB contract(s) so somewhat similar.
if you are comfortable with futures then obviously no point of NTSX. NTSX is just for convenience. You don't need to roll futures or rebalance.

I believe in tilting to SCV, but not all in SCV. Most of the stock returns come from a handful of stocks so not investing in large portions of the market is a mistake IMHO. In my portfolio I do 50% total market cap and 50% tilt in all regions.
I guess I don't understand why one would have a SCV only for foreign and no tilt at all for domestic.
Yeah I agree that is the problem of using only NTSX for US. But I think it can replace US LG part of any portfolio to access to some cheap/convenient leverage.
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