Mine personally is on the complex side; but I will never retract since I do it to control risk.
Curious how you control risk with complexity?
For example, instead of having merely BND and not defining the acceptable duration or credit risk (it could be too little or too much), I have a few funds to change this risk profile.
Personally, I disagree that stock/bond allocation split is sufficient; bonds have to at least factor in duration, the largest source of risk given the bonds are investment-grade. The quote about 94% of variance of returns being determined by the allocation (or something like that) is not true if you ignore duration; try it out and you will see what I mean. Seeing that, I suggest splitting the world of bonds into cash-like bonds and long-term bonds as a minimum.
The bond 9-square of Morningstar is more important than the 9-square for stocks since one square in the bond 9-square has hardly any movement, and another square can be more volatile than stocks (and that is usually because of duration risk).
Last edited by secondopinion on Wed Apr 21, 2021 11:38 am, edited 1 time in total.
Passive investing: not about making big bucks but making profits. Active investing: not about beating the market but meeting goals. Speculation: not about timing the market but taking profitable risks.
asoka wrote: ↑Mon Apr 19, 2021 2:13 pm
Curious if you've evolved away from your "First 20% of bonds should be LTT" position much in your personal portfolio ? Although superficially looks like they make up >70% of your Fixed Income anyways...
My thinking there hasn't shifted. I hold LTPZ and LQDI for professional reasons mainly. If I didn't do that my position in EDV would be much larger.
Any particular reason you prefer EDV over GOVZ? The latter has a lower yield (ie less taxes), higher duration, and the same expense ratio.
GOVZ is newer I suppose. So it has a shorter track record.
asoka wrote: ↑Mon Apr 19, 2021 2:13 pm
Curious if you've evolved away from your "First 20% of bonds should be LTT" position much in your personal portfolio ? Although superficially looks like they make up >70% of your Fixed Income anyways...
My thinking there hasn't shifted. I hold LTPZ and LQDI for professional reasons mainly. If I didn't do that my position in EDV would be much larger.
Any particular reason you prefer EDV over GOVZ? The latter has a lower yield (ie less taxes), higher duration, and the same expense ratio.
GOVZ is newer I suppose. So it has a shorter track record.
I agree that GOVZ is an excellent choice, and wouldn't let the short track record get in the way of recommending it or using it. I owned EDV since before GOVZ was introduced and haven't felt compelled to switch yet.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
Please don't assume I'm recommending this portfolio to anyone, including you.
The individual stocks are mostly mid/small cap utility stocks (e.g. ATO,EE, HE, NJR, OGE, OGS, WTR) and consumer staples.
The individual bonds are a mix of corporate bonds and taxable municipal bonds (average duration about 9 years, which is dragged down by some bonds that are callable in the next year).
SPDR® S&P 500 ETF (SPY) is actually a proxy for a CIT that's in a 401(k) plan. Virtually all the other assets are in Traditional IRAs.
Do you still hold this portfolio? I thought you did not like high dividend funds! Do you ever invest in REITs?
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Carol88888 wrote: ↑Tue Apr 20, 2021 10:15 pmHas this portfolio outperformed 85% VTI and 15% BND? By how much? Was it really worth the time and trouble to put this together?
Has your portfolio outperformed a 100% BTC portfolio? Was it worth the time and trouble to invest in both VTI and BND?
Yes. It appears this is comes down to "don't confuse strategy with outcome". The soundness of a strategy should not be judged solely on the basis of the outcome.
right
Don’t let anyone else ruin your portfolio. It’s your portfolio. Ruin it yourself!!!
asoka wrote: ↑Mon Apr 19, 2021 2:13 pm
Curious if you've evolved away from your "First 20% of bonds should be LTT" position much in your personal portfolio ? Although superficially looks like they make up >70% of your Fixed Income anyways...
My thinking there hasn't shifted. I hold LTPZ and LQDI for professional reasons mainly. If I didn't do that my position in EDV would be much larger.
Any particular reason you prefer EDV over GOVZ? The latter has a lower yield (ie less taxes), higher duration, and the same expense ratio.
GOVZ is newer I suppose. So it has a shorter track record.
I agree that GOVZ is an excellent choice, and wouldn't let the short track record get in the way of recommending it or using it. I owned EDV since before GOVZ was introduced and haven't felt compelled to switch yet.
Vineviz-
You mentioned upstream that you might contemplate a TIPS LMP ladder later in life. Just curious, if you did this (or purchased a non-marketable security such as an I Bond)…would you consider either of these as part of your portfolio?
My thoughts are no because they have zero volatility (TIPS held to maturity) and do not rebalance well (or at all) with the rest of the portfolio.
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
Please don't assume I'm recommending this portfolio to anyone, including you.
The individual stocks are mostly mid/small cap utility stocks (e.g. ATO,EE, HE, NJR, OGE, OGS, WTR) and consumer staples.
The individual bonds are a mix of corporate bonds and taxable municipal bonds (average duration about 9 years, which is dragged down by some bonds that are callable in the next year).
SPDR® S&P 500 ETF (SPY) is actually a proxy for a CIT that's in a 401(k) plan. Virtually all the other assets are in Traditional IRAs.
Hi Vince -
Is this your present portfolio or have you made adjustments since this time? Havre you found this many asset classes to a lot to manage and balance?
Happy New Year!
Tony
John C. Bogle: “Simplicity is the master key to financial success."
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
Please don't assume I'm recommending this portfolio to anyone, including you.
The individual stocks are mostly mid/small cap utility stocks (e.g. ATO,EE, HE, NJR, OGE, OGS, WTR) and consumer staples.
The individual bonds are a mix of corporate bonds and taxable municipal bonds (average duration about 9 years, which is dragged down by some bonds that are callable in the next year).
SPDR® S&P 500 ETF (SPY) is actually a proxy for a CIT that's in a 401(k) plan. Virtually all the other assets are in Traditional IRAs.
Hi Vince -
Is this your present portfolio or have you made adjustments since this time? Havre you found this many asset classes to a lot to manage and balance?
Happy New Year!
Tony
He updated it in April in this thread.
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
Please don't assume I'm recommending this portfolio to anyone, including you.
The individual stocks are mostly mid/small cap utility stocks (e.g. ATO,EE, HE, NJR, OGE, OGS, WTR) and consumer staples.
The individual bonds are a mix of corporate bonds and taxable municipal bonds (average duration about 9 years, which is dragged down by some bonds that are callable in the next year).
SPDR® S&P 500 ETF (SPY) is actually a proxy for a CIT that's in a 401(k) plan. Virtually all the other assets are in Traditional IRAs.
Hi Vince -
Is this your present portfolio or have you made adjustments since this time? Havre you found this many asset classes to a lot to manage and balance?
Happy New Year!
Tony
He updated it in April in this thread.
Got it. Thanks.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
Please don't assume I'm recommending this portfolio to anyone, including you.
The individual stocks are mostly mid/small cap utility stocks (e.g. ATO,EE, HE, NJR, OGE, OGS, WTR) and consumer staples.
The individual bonds are a mix of corporate bonds and taxable municipal bonds (average duration about 9 years, which is dragged down by some bonds that are callable in the next year).
SPDR® S&P 500 ETF (SPY) is actually a proxy for a CIT that's in a 401(k) plan. Virtually all the other assets are in Traditional IRAs.
Hi Vince -
Circling back to this original post in this very good thread. Do you still have a position with an International High Dividend fund? Do you also hold a position in a US High Dividend fund?
Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
vineviz wrote: ↑Wed Apr 14, 2021 2:04 pm
Thought I'd update this thread so people can see what's under the hood in my current personal portfolio.
US Stocks 40% 13% SPDR S&P 600 Small Cap Value ETF (SLYV)
9% iShares Morningstar Mid-Cap Value ETF (IMCV)
7% T. Rowe Price Equity Index 500 (PREIX)
6% Individual Stocks1
5% T. Rowe Price Extended Equity Market Idx (PEXMX)
Ex-US Stocks 40%
14% SPDR Portfolio Emerging Markets ETF (SPEM)
11% Columbia EM Core ex-China ETF (XCEM)
9% Xtrackers MSCI EAFE High Div Yld Eq ETF (HDEF)
6% Avantis International Small Cap Value ETF (AVDV)
Fixed Income 20%
7% Individual Bonds2
4% iShares Inflation Hedged Corp Bd ETF (LQDI)
3% PIMCO 15+ Year US TIPS ETF (LTPZ)
3% T. Rowe Price US Trs Long-Term Idx I (PRUUX)
3% Vanguard Extended Duration Trs ETF (EDV)
1All of the 6% in individual stocks consists of small-cap and mid-cap utility stocks.
2Most of the 7% in individual bonds consists of long-term TIPS. A minority is in a handful of taxable municipal bonds and long-term corporate bonds.
Also note that the primary reason I own LTPZ and LQDI in my personal portfolio is that I sometimes recommend these to clients who value knowing that I own the same funds they do. Especially when the fund is somewhat uncommonly held. If not for that, more of my fixed income would be in EDV and PRUUX.
Hey vineviz, one year on, any update to your portfolio?
vineviz wrote: ↑Wed Apr 14, 2021 2:04 pm
Thought I'd update this thread so people can see what's under the hood in my current personal portfolio.
US Stocks 40% 13% SPDR S&P 600 Small Cap Value ETF (SLYV)
9% iShares Morningstar Mid-Cap Value ETF (IMCV)
7% T. Rowe Price Equity Index 500 (PREIX)
6% Individual Stocks1
5% T. Rowe Price Extended Equity Market Idx (PEXMX)
Ex-US Stocks 40%
14% SPDR Portfolio Emerging Markets ETF (SPEM)
11% Columbia EM Core ex-China ETF (XCEM)
9% Xtrackers MSCI EAFE High Div Yld Eq ETF (HDEF)
6% Avantis International Small Cap Value ETF (AVDV)
Fixed Income 20%
7% Individual Bonds2
4% iShares Inflation Hedged Corp Bd ETF (LQDI)
3% PIMCO 15+ Year US TIPS ETF (LTPZ)
3% T. Rowe Price US Trs Long-Term Idx I (PRUUX)
3% Vanguard Extended Duration Trs ETF (EDV)
1All of the 6% in individual stocks consists of small-cap and mid-cap utility stocks.
2Most of the 7% in individual bonds consists of long-term TIPS. A minority is in a handful of taxable municipal bonds and long-term corporate bonds.
Also note that the primary reason I own LTPZ and LQDI in my personal portfolio is that I sometimes recommend these to clients who value knowing that I own the same funds they do. Especially when the fund is somewhat uncommonly held. If not for that, more of my fixed income would be in EDV and PRUUX.
Hey vineviz, one year on, any update to your portfolio?
That was my post above as well.
Vince may not have seen the questions.
Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Still waiting to see how this portfolio has actually performed.
Now, I know a one year time frame is paltry but not to give any kind of follow up is a dereliction of duty. And you could give yearly updated performance reports if one year doesn't suit you.
Carol88888 wrote: ↑Sat Dec 31, 2022 3:52 pm
Still waiting to see how this portfolio has actually performed.
Now, I know a one year time frame is paltry but not to give any kind of follow up is a dereliction of duty. And you could give yearly updated performance reports if one year doesn't suit you.
What duty? He posted this because people ask him what his portfolio is.
You can check performance using portfoliovisualizer if you care to. I can understand wanting to know the performance if you hadn't heard of that tool before, though.
bog007 wrote: ↑Sun Jan 29, 2023 2:12 am
Do you ever have Gold ty
If you search his posts you can see 4 pages of his views on Gold.
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
vineviz wrote: ↑Wed Mar 20, 2019 7:52 pm
Every once in a while I get asked for my personal portfolio. It changes a bit over time (I'm a tinkerer), and I've shared it in the past but usually in some other thread. Here it is for reference.
