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View Poll Results: Percentage of smallest holding in your overall portfolio?
less than 1% 47 55.95%
over 1%, less than 2% 10 11.90%
over 2%, less than 5% 14 16.67%
over 5%, less than 10% 8 9.52%
over 10% 5 5.95%
Voters: 84. You may not vote on this poll

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Old 07-05-2017, 05:40 PM   #41
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Ignoring cash, because that's completely uninteresting.

0.047% is my smallest holding.
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Old 07-07-2017, 03:20 PM   #42
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I have 3 individual stocks with ~1.5%. They are the ones next in line for sales. Two of them already had a partial sale and the other was a long term hold that just never justified any additions, so will be on the chopping block when I get the next "cash call" from the checking account!
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Old 07-07-2017, 03:57 PM   #43
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As noted in a related thread, we have 13 ETFs plus a cash account in the portfolio. Ignoring cash, about 55% is in 3 ETFs (VTI, AGG, and VNQ). So the remaining 11 are all single-digit percentages. Four of them are international stocks and bonds, with some specific developed/emerging strategies that I shift around from time to time. They also come in handy for tax loss harvesting. The rest are various tilts like high-dividend (VYM and others) on the equity side and corporate (LQD, HYG) on the fixed income side. The lowest is 2% with a few at 3%.
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Old 07-07-2017, 07:44 PM   #44
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3% in VNQI Vanguard Global ex‐US Real Estate. Started at 5%, I didn't loose money in it, it's just that other holdings have done much better lately
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Poll: Percentage of Smallest Holding in Portfolio?
Old 07-15-2017, 01:36 PM   #45
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Poll: Percentage of Smallest Holding in Portfolio?

Quote:
Originally Posted by dallas27 View Post
5% in vwo, which is emerging equity. Technically I hold to boost my overall emerging exposure to a total of 10% because i have much larger index holdings that are partially emerging(veu,vss).


Just finishing up a semester course about emerging markets investing, and have now decided to equal weight my vwo positions with other assets. 6 asset portfolio total, so 1/6 of portfolio is now vwo. About 1/4 in total is in emerging, abother 1/4 in DM, and 1/2 US.
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Old 07-15-2017, 01:42 PM   #46
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I have 0.1% in a Global Bond Fund that has been going sideways for 10 years. I keep meaning to sell it, but somehow never get around to it...
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Old 07-15-2017, 04:21 PM   #47
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I gave $100K to the Schwab robot as test porfolio a year or two ago. The robot likes to take tiny positions. As % of our total portfolio these are ridiculous; as % of the robot's portfolio (shown) they are merely silly.

Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares 1.7%
Schwab U.S. REIT ETF™ 3.6%
Schwab International Small-Cap Equity ETF™ 3.9%
Schwab Emerging Markets Equity ETF™ 3.9%
-Cash- 6.0%
Schwab Fundamental International Small Company Index ETF 6.3%
Schwab U.S. Small-Cap ETF 6.8%
Schwab Fundamental Emerging Markets Large Company Index ETF 7.2%
Schwab International Equity ETF™ 9.3%
Schwab Fundamental U.S. Small Company Index ETF 10.8%
Schwab U.S. Large-Cap ETF 11.2%
Schwab Fundamental International Large Company Index ETF 12.5%
Schwab Fundamental U.S. Large Company Index ETF 16.7%
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Old 07-15-2017, 05:24 PM   #48
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Quote:
Originally Posted by OldShooter View Post
I gave $100K to the Schwab robot as test porfolio a year or two ago. The robot likes to take tiny positions. As % of our total portfolio these are ridiculous; as % of the robot's portfolio (shown) they are merely silly.

Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares 1.7%
Schwab U.S. REIT ETF„ 3.6%
Schwab International Small-Cap Equity ETF„ 3.9%
Schwab Emerging Markets Equity ETF„ 3.9%
-Cash- 6.0%
Schwab Fundamental International Small Company Index ETF 6.3%
Schwab U.S. Small-Cap ETF 6.8%
Schwab Fundamental Emerging Markets Large Company Index ETF 7.2%
Schwab International Equity ETF„ 9.3%
Schwab Fundamental U.S. Small Company Index ETF 10.8%
Schwab U.S. Large-Cap ETF 11.2%
Schwab Fundamental International Large Company Index ETF 12.5%
Schwab Fundamental U.S. Large Company Index ETF 16.7%
Interesting. It's far more funds than I use, but I see the logic to it, I'm not sure I'd say it is silly.

Looks to me like they are diversifying across a number of market segments, which is fine (whether you need to or not is questionable, but it's a reasonable approach).

REITS, Emerging/INTL, small cap, large cap. And for good measure, take a few positions in each. So yes, the divisions get pretty small by the time you divide an asset class a couple times. But I don't think that's a problem, might be a slight advantage to my very simplistic approach. At this point I'm nearly all: BRK to reduce divs in my taxable account while I do ROTH conversions, plus some SPY, IWM; BND (along with some SPY & IWM) and a European Fund in an IRA. Plus a couple 'left-overs' from earlier days. So my simple approach isn't that much simpler, and I have less diversification (whether it is needed or not).

-ERD50
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Old 07-15-2017, 05:50 PM   #49
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... might be a slight advantage to my very simplistic approach. ... So my simple approach isn't that much simpler, and I have less diversification (whether it is needed or not). ...
Well, here's the rest of the story:

In the past few years I have become fond of setting up small ($100K) test portfolios and using them as benchmarks. Playing with real money eliminates the problems of comparing total return to nominal return, quotes from various sites that aren't in agreement, and bogus benchmarks from fund companies. It's hard to argue with real dollars.

So ... my first benchmark was 65% total US market and 35% total international market, started on Jan 1 of 2015. No rebalancing. I call this one my "couch potato" (CP) portfolio.

I started the robot account on April 1 of 2015 and it has never outperformed the CP on a cumulative basis. Cumulative performance of the CP for 9 quarters to the end of 2Q17 is 19.9% and the robot is at 15% for its equity holdings (no drag from the cash it insists on holding). 4Q16 was the only quarter where it outperformed the CP and then by a massive 0.1%! For reference the ACWI All Cap total return was 19.7% for the period.

After looking at a number of professionally managed portfolios it is my suspicion that they are complicated because the professionals want their customers to believe that investing is complicated, not because the complication brings any financial benefits.

For example, though I am too lazy to research the proportionality math, holding large cap international, small cap international, emerging markets, etc. as the robot does just smells to me a lot like a total international fund.

I'll probably close the robot fund next April after it has run for three years. It has not shown me anything impressive over the admittedly mild swings we have seen in the last 9 quarters, so I am thinking that it never will.

Back to our regularly scheduled program: I don't think you need to feel like this complicated robot portfolio offers any significant advantage compared to much simpler approaches.
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Old 07-15-2017, 06:35 PM   #50
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Originally Posted by OldShooter View Post
Well, here's the rest of the story:
...

So ... my first benchmark was 65% total US market and 35% total international market, started on Jan 1 of 2015. No rebalancing. I call this one my "couch potato" (CP) portfolio.

I started the robot account on April 1 of 2015 and it has never outperformed the CP on a cumulative basis. Cumulative performance of the CP for 9 quarters to the end of 2Q17 is 19.9% and the robot is at 15% for its equity holdings (no drag from the cash it insists on holding). ...

....

Back to our regularly scheduled program: I don't think you need to feel like this complicated robot portfolio offers any significant advantage compared to much simpler approaches.
And the 'rest of the story is interesting as well. Though I wonder if over a longer time period, some rebalancing among these sectors might produce some alpha? Big if on that, but I would not rule it out.


Quote:
After looking at a number of professionally managed portfolios it is my suspicion that they are complicated because the professionals want their customers to believe that investing is complicated, not because the complication brings any financial benefits.
I agree. How can you impress someone with something simple? But I won't go so far as to think there is anything outright 'wrong' with their approach, unless it is really increasing costs. Maybe some of those sectors have some high ERs associated with them?

Oh, and after looking at your quoting of my post, I realize my wording was ambiguous.

I said "might be a slight advantage to my very simplistic approach"


I meant "they might have a slight advantage over my very simplistic approach"

Bottom line, I'm not going to defend them, but I'm also not going to be too critical either (unless they charge 1% AUM for this!).

-ERD50
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Old 07-16-2017, 09:09 AM   #51
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... Bottom line, I'm not going to defend them, but I'm also not going to be too critical either (unless they charge 1% AUM for this!).-ERD50
Oh, I'm not trying to be really negative, especially since using the robot is almost free. (The "almost" is that it insists on maintaining a cash position that earns almost nothing at Schwab Bank.)

Re the complex allocation might work out, I doubt that either of us will live long enough to obtain a statistically valid sample that would separate luck from skill. That is really the problem with all this stuff. Any sample series less than ten years is so noisy that it's almost impossible to prise out the signal. In fact, that is a serious criticism of my little $100K test portfolio tests. My only defense is that I think I can learn something useful from the correlations between the portfolios.

In the end, I guess I fall back on my engineering background: Simple machines are more reliable and easier to understand. So I like them. I am starting to think, in fact, that any equity portfolio that is more complex than a single all-world, all-cap fund is a waste of time and energy. And probably counterproductive.

This is really what Fama is saying when he says; "You have to hold the market portfolio." There is a worthwhile half hour to be spent with him here: INVESTORS FROM THE MOON: FAMA | Top1000Funds.com
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