Tag Archives: fees

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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Investing on the cheap with ETFs

In my latest post on investment fees I compared the impact the average fees of active mutual funds vs have on total investment returns. I also compared the active mutual fund fees to those of index funds and to those of individual stock investments. That exercise was a bit theoretical in that I didn’t use a real world portfolio with typical investment allocations across different sectors. After all, 100% of an investor’s funds are not going to be in the lowest cost Vanguard S&P500 index fund. What I wanted to do in this post is see what the fees would … Continue reading

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Fee for your life!

Investment fees are such a detriment to future wealth that literally investors should flee from them like their lives depended on it. I’ve touched on the topic of investment fees before using hypothetical fees and looked at their long term impact. It’s awful. But it looks even worse when fees are compared across different investment vehicles. That’s the subject of this post. I’ll compare the fees of active mutual funds to index funds and to individual stocks and look at their impact over different time periods. The results are sobering. I was recently re-reading the great book, The Investor’s Manifesto, … Continue reading

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