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I'm not a professional money manager. That is, I'm not paid to manage other people's money. I do however invest my own money. This site reflects my thoughts and ideas about investing with ETFs.
I'm a fan of the passive nature of ETFs. I, like many others, believe that beating the market is nearly impossible even for the professionals. It's even harder if you're trying to hold down a "real" job, enjoy life, and raise a family. So if beating the market is not going to happen, then the next best thing is matching it. And that's where ETFs in general and index ETFs in particular come in.
With index ETFs I target different sectors, assets, and regions. Once purchased, my plan is always to hold on to the ETF. If my portfolio becomes unbalanced, then future purchases are directed to the funds that are below their nominal portfolio share. Here's the breakdown of my portfolio.
| US | 40% |
| Micro Cap (IWC) | 5% |
| Small Cap (IJR) | 10% |
| Mid Cap (IJH) | 10% |
| Large Cap (SPY and IVV) | 15% |
| International | 35% |
| Large Emerging Markets (EEM) | 15% |
| International Large Cap (EFA) | 15% |
| Canada Large Cap (XIU) | 5% |
| Bonds | 10% |
| Broad Investment Grade (AGG) | 5% |
| Corporate (LQD) | 5% |
| Specialty | 15% |
| Commodities (DBC) | 5% |
| REIT (ICF) | 10% |
Entries (RSS)
October 6th, 2008 at 5:04 pm
ETF Guy:
I also have considered purchasing inverse ETF's. I have had the same thought that you did about the fact that in the long term they could end up balancing out my porfolio so that I just break even. However, that thought assumes that one will hold them for the long term, and that one is utilizing them in a down market to sustain no losses. What if instead, you and I used them during a period in which the overall market is trending downwards, and then sold them when the market begins to go back up? In that case, one would use them to reduce losses in a long term down market, and maintain more of your principal, so it could be used in an up market. Also, if you use them to reduce vs. remove risk in your overall porfolio, then you may also gain if the market goes up, even if your inverse ETF goes down. Your porfolio will simply be less volatile.
Some people say you can't time the market, and I would agree with that on a very short term basis. However, I do think it is possible to recognize obvious macro trends, and to respond to long term trends that can impact your porfolio. I bought gold at $500 when lots of people told me not to do so, and now it is close to $900. It helped me avoid some volatility in my porfolio, and helped me to reduce my losses in times when the dollar was weak. I believed the long term trend for the product was up, and I was right.
Right now, I believe that we are in a bear market that could last a couple of years. That said, I am considering investing a portion of my porfolio in an inverse ETF. I am hoping to reduce my losses. It does mean that I would need to watch my porfolio and the markets closer, and be a more active, involved trader.
February 18th, 2008 at 11:03 pm
Difference between and ETF and REIT
Hello,
1) I need help on what is the difference between and ETF and REIT ?
2) And i am looking to buy ETF and REIT that can produce regualr income along with progressive growth.
Can anyone recommend any ??
Thanks you for much
February 3rd, 2008 at 12:09 pm
Nuno,
I'm not giving out the source code.
February 3rd, 2008 at 11:54 am
Hi,
I started using stock-quote-tracker and i find it very useful.
Now i would like to add a similar funcion to get mutual funds prices from bloomberg.
Can you please provide me the source code, so i would need to make some minor adaptations?
Thanks alot!
October 20th, 2007 at 6:40 am
Ron,
As far as I'm concerned, the rule of thumb when dividing ETFs between IRA and taxable accounts is to use the IRA account for high-yielding ETFs. As a buy-and-hold investor it's pretty much guaranteed that I'll be paying the long-term capital gains rate when I sell so high-growth, low-yield ETFs go in to my taxable accounts.