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Crude Oil (WTI Oil) - 34.1%
US Stocks (S&P 500) - 31.5%
US Real Estate (Dow Jones Real Estate Index) - 28.9%
US Small Caps (Russell 2000) - 25.5%
Europe, Australia, and Far East Stocks (MSCI EAFE) - 22.0%
Canadian Stocks (S&P/TSX Composite) - 21.0%
Emerging Market Stocks (MSCI EEM) - 18.0%
Commodities (S&P GSCI) - 17.6%
Gold - 17.4%
US Corporate Bonds (Bloomberg/Barclays Corporate Bonds) - 14.5%
US Bonds (Aggregate) - 8.7%
US Dollar (US Dollar Index) - 0.3%
Note: All indices listed here are using total returns with dividends reinvested.
all that matters is the returns you got ..... we all buy at different times , sell at different times , have different tax structure , rebalance different times and most important pair them up in a portfolio where the asset outcomes are very different than just sitting in isolation .
had you had a 50/50 mix of equities and total bond fund this year vs 50% equities and long term treasuries and gold your outcome from rebalancing would be totally different .
the gold and long term treasuries would have rebalanced in to far more equities than a total bond fund would have and your return would be greater .
plus to recover from last years dip would have taken longer in the 50% equities/ total bond fund because it fell farther the year before .
in fact the last 18 months has seen 25% equities -25% gold-25% long term treasuries , 25% t-bills beat 60% equities and a total market fund
so portfolio construction is key , not asset classes in isolation as far as our own performance goes .
if yours worked out , great for you but i don't think others should be pointed in that direction . that is my opinion when it comes to these overly complex products that count on entrapping people by only showing them the outside of the car and never lifting the hood . the typical mortal can't tell a good deal from a bad one so it is best to stay away .
Last edited by mathjak107; 01-05-2020 at 02:56 AM..
all that matters is the returns you got ..... we all buy at different times , sell at different times , have different tax structure , rebalance different times and most important pair them up in a portfolio where the asset outcomes are very different than just sitting in isolation .
had you had a 50/50 mix of equities and total bond fund this year vs 50% equities and long term treasuries and gold your outcome from rebalancing would be totally different .
the gold and long term treasuries would have rebalanced in to far more equities than a total bond fund would have and your return would be greater .
plus to recover from last years dip would have taken longer in the 50% equities/ total bond fund because it fell farther the year before .
in fact the last 18 months has seen 25% equities -25% gold-25% long term treasuries , 25% t-bills beat 60% equities and a total market fund
so portfolio construction is key , not asset classes in isolation as far as our own performance goes .
if yours worked out , great for you but i don't think others should be pointed in that direction . that is my opinion when it comes to these overly complex products that count on entrapping people by only showing them the outside of the car and never lifting the hood . the typical mortal can't tell a good deal from a bad one so it is best to stay away .
Hmmm. I don’t think an index fund is an overly complex product. Am I understanding you correctly?
You are an active investor. I think the post is an interesting snapshot for more passive investors.
an index fund can become more complicated once you start adding in other investments to create a portfolio .
take an s&p 500 fund and pair it up with a nasdaq fund and you have 20% of the cap weighted s&p index in just fang plus a whopping 35% more of the same exact stuff in nasdaq with just 4 of the fang stocks .
so once we start creating portfolios , things as they relate to each other can become more complicated and you need to know what you are doing or risk becoming a more riskier mix then you think you are getting with crazy dangerous overlap .. now keep in mind vanguard has other mid cap funds with lower overlap but you need to know what i what
many investors pick funds by name rather then what they own or the index they follow . . voo is an s&p 500 index fund , vo is a mid cap fund , vb is a small cap index fund .
vanguard
VOO vs. VO = 229 overlapping constituents (45% of VOO's holdings, 67% of VO's holdings) <-- this is pretty bad
VO vs. VB = 20 overlapping constituents (6% of VO's holdings, 1% of VB's holdings) <-- not to bad
VOO vs. VB = 28 overlapping constituents (6% of VOO's holdings, 2% of VB's holdings)
i shares
IVV vs. IJH = 0 overlapping constituents
IJH vs. IJR = 0 overlapping constituents
IVV vs. IJR = 0 overlapping constituents
Last edited by mathjak107; 01-05-2020 at 08:37 AM..
While I agree with you, this is still more complicated than most make these things. If you don’t find this to be at all interesting, that’s fine.
I find it i trust if I put $100 in and S&P 500 Index find in January 1, 2019, I would have had a $138 at the end of the year, versus $108 if I had bought a treasury bond.
While I agree with you, this is still more complicated than most make these things. If you don’t find this to be at all interesting, that’s fine.
I find it i trust if I put $100 in and S&P 500 Index find in January 1, 2019, I would have had a $138 at the end of the year, versus $108 if I had bought a treasury bond.
it is interesting but the point is assets play very differently with each other in a portfolio then isolation .
in fact look at right now ... if instead of buying a total bond fund a lot of that money went in to gold the last 7 years rebalancing and buying the losing asset nice and cheap that whole load of gold was just lifted to new highs and you would have nice profits right now ...so statically gold sucked for 7 years . in practice all that cheap gold is now going higher and higher
it is interesting but the point is assets play very differently with each other in a portfolio then isolation .
in fact look at right now ... if instead of buying a total bond fund a lot of that money went in to gold the last 7 years rebalancing and buying the losing asset nice and cheap that whole load of gold was just lifted to new highs and you would have nice profits right now ...so statically gold sucked for 7 years . in practice all that cheap gold is now going higher and higher
How did your overall portfolio returns compare to the S&P 500 for the calendar year?
How did your overall portfolio returns compare to the S&P 500 for the calendar year?
i am retired , i don't use 100% equities , a comparison would make no sense ... plus we are spending down 6 figures a year , on top of that i do a lot of day trading and pay estimated taxes on our trades as well which come out of the balances too ..
the only comparison i do is every year , when all is said and done i look at year over year .
so after spending down all we did and paying taxes on a portfolio less then 40% equities we are 16% a head of last years balance
i am retired , i don't use 100% equities , a comparison would make no sense ... plus we are spending down 6 figures a year , on top of that i do a lot of day trading and pay estimated taxes on our trades as well which come out of the balances too ..
the only comparison i do is every year , when all is said and done i look at year over year .
so after spending down all we did and paying taxes on a portfolio less then 40% equities we are 16% a head of last years balance
36.42% return for 2019, America is great again indeed!!!
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