Tag Archives: ETFs

TAA portfolio performance: theory vs reality

One of the biggest challenges in implementing TAA portfolios is coming as close to the theoretical returns as possible. Theoretical returns are based on index returns which are not available in the real world. In this post I’ll explore the major items that keep investors from achieving published theoretical returns of TAA strategies and discuss some ways to minimize the gap between theory and reality. This is definitely an advanced topic but a critical one that I really never seen addressed in the financial blogosphere. First, let’s look at the three big reasons for the gap between theoretical and real returns for TAA … Continue reading

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Tips for trading ETFs in TAA portfolios

I get a lot of questions about the mechanics of buying and selling the ETFs that comprise the tactical asset allocation (TAA) portfolios that I discuss on the blog. In this post I’ll address some common concerns and issues with respect to ETFs and share some tips for trading them in TAA portfolios. When implementing buy and hold portfolios with ETFs the predominant concern is the management fee of the ETF, especially with an infrequent rebalancing approach. For example, with an annual rebalancing methodology at most there would be one trade per ETF per year. Other common trading concerns such … Continue reading

Posted in Portfolio, TAA Investing | Tagged , , , , , , , , | 7 Comments

The value of financial advice

I am a huge believer in do-it yourself investing. I believe that any one can learn to manage their own investments effectively given the time and the inclination. And it has never been easier or cheaper to manage your own investments. But there are many investors who do not have the time, nor the inclination to take on this task on their own. Or for whom the learning curve is too steep too quick. Or, maybe more importantly, need help managing their emotions during trying times. This post is for them. Technology and competition is making it easier and cheaper … Continue reading

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Beware MLP ETFs

ETFs have soared in popularity in the last few years. They are often the best, most efficient way to invest in an asset class. Closed-end funds (CEFs) are also an alternative way to own an asset class that can have advantages. But sometime these types of funds are not so great and in the case of MLPs that is certainly the case. Early in 2011 I posted on why owning individual MLPs is far superior to owning the ETFs, mainly due to taxes and fees. Well, a year and  a half on this argument has only become stronger. Lets take … Continue reading

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