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07-24-2014, 05:57 PM
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#1
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gone traveling
Join Date: Sep 2013
Posts: 1,248
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Forever ETF
Which non-standard ETF would you recommend me to buy. I am mean buy and hold forever.
I am not interested in classic S&P 500, MSCI All Word index, Wilshire 5000.
Those are standard forever holds.
I am interested in something more special For example VIG, MOAT...
Why would you recommend this ETF?
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07-24-2014, 09:01 PM
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#2
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,525
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What's your asset allocation?
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No doubt a continuous prosperity, though spendthrift, is preferable to an economy thriftily moral, though lean. Nevertheless, that prosperity would seem more soundly shored if, by a saving grace, more of us had the grace to save.
Life Magazine editorial, 1956
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07-25-2014, 03:41 AM
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#3
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gone traveling
Join Date: Sep 2013
Posts: 1,248
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Quote:
Originally Posted by Htown Harry
What's your asset allocation?
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Almost 100% equity index funds or equity ETFs with 60/40 balance of domestic/international. I am interested in equity ETF.
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07-25-2014, 05:45 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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I have a bunch of IVW and some standards of QQQ, IVV and IVM.
Anytime you get outside of a norm, you pay more in expenses and might not beat the market. There are health care ETF options and precious metals options too.
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07-25-2014, 05:49 AM
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#5
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,525
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One DIY approach to consider...
Fama and French's research in the 1990's demonstrated the historical benefits of a small and value tilt. The DFA fund family (8th largest +/-) was built around their principles. Swedroe and other serious investors are believers.
Their funds are only available through advisors, though.
This article is one of several I found that suggests the DIY portfolio manager can replicate their approach without the advisor wrap fees.
Replicating a Dimensional Funds Portfolio | Seeking Alpha
Quote:
Once I found the portfolio, I used Morningstar to determine each of the DFA funds holdings and began comparing those with ETFs in the respective asset class. For almost each fund, I was able to find a comparable ETF that had similar holdings, expenses and performance.
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In your case, you might look at DGEIX, a 100% equity fund with a 35% international allocation (including 10% emerging markets). 45% of their holdings are in medium, small or micro stocks.
http://portfolios.morningstar.com/fund/summary?t=DGEIX®ion=usa&culture=en-US
One potential downside to this and similar approaches is that it could result in a stack small-slice, specialized portfolios, which even as ETFs tend to have higher management fees than funds built on more broadly-diversified benchmarks.
__________________
No doubt a continuous prosperity, though spendthrift, is preferable to an economy thriftily moral, though lean. Nevertheless, that prosperity would seem more soundly shored if, by a saving grace, more of us had the grace to save.
Life Magazine editorial, 1956
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07-25-2014, 08:37 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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One could construct a simple ETF portfolio with different percentages of these:
VTI - total US stock market index
VBR - US small-cap value index
VXUS - total int'l stock market index
VSS - foreign small-cap index
BND - total US bond index
VCSH - US short-term corporate bond index
One would really not need any other ETFs.
As for buy-and-hold, that something one should never do. Instead one should buy, hold, and rebalance.
For this thread, I would guess that VBR, VSS, and VCSH might be called non-standard. There are other non-standard ETFs such as VNQ, DGS, or even VWO which I would not recommend unless one was willing to trade them occasionally.
Why? VBR and VSS take advantage of the small-cap and value premiums. Everybody needs to overweight these asset classes. VNQ is REIT which is less correlated to other asset classes. DGS is another small-cap story, but in emerging markets. VWO is large-cap emerging markets. These latter 3 are so volatile that if one doesn't buy low, sell high in rebalancing moves that one would lose all benefits of owning them.
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07-25-2014, 10:38 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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Here's some ETF's I use as permanent portions of my AA:
FRN - frontier markets (FM is an alternative)
DEM - EM value
DGS - EM small cap
DLS - International small value
RWX - international REIT
VNQ - domestic REIT
Part of a full slice and dice portfolio, but they could be used to spice up a simpler portfolio.
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07-26-2014, 05:57 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
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VIG looks interesting for US equities. I own a little. I would have to take a long look before considering it as my one-and-only, though.
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I have outlived most of the people I don't like and I am working on the rest.
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07-26-2014, 06:03 AM
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#9
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gone traveling
Join Date: Sep 2013
Posts: 1,248
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Quote:
Originally Posted by Ed_The_Gypsy
VIG looks interesting for US equities. I own a little. I would have to take a long look before considering it as my one-and-only, though.
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Yes I consider VIG and SCHD in class of not standard ETFs but in class of "Forever ETF".
Fees comparable to cheapest S&P 500.
High Quality Companies kinda Warren Bufett Wide Moat.
In my mind I call them collections of "American Rembrandts" though both indexes contain a bit of junk as well.
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07-26-2014, 09:07 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 2,844
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While the fees may be higher than you desire I am a huge fan of the SDOG ETF. Divides the S&P 500 into 10 industries and takes the 5 highest yielding stocks of each industry group. You end up with in general large value stocks in a diversified index without becoming overly concentrated in one market segment.
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But then what do I really know?
https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
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07-26-2014, 09:38 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2013
Posts: 11,078
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Running man, think we've talked about SDOG before, some of your enthusiasm rubbed off. I have become a fan even with the ER. It's done very well for me. I've also gotten in to IDOG, very happy with dividends ytd. Thanks for bringing SDOG up in prior threads.
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07-26-2014, 10:57 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,113
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I have been revaluating my Oakmark Global Select (OAKWX) residing in a Roth. SDOG, and particularly IDOG, are very interesting. OAKWX has a high % of financials while IDOG holdings are very diversified. Any thoughts folks?
__________________
Duck bjorn.
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07-26-2014, 02:49 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Sep 2012
Posts: 1,570
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Quote:
Originally Posted by eta2020
Yes I consider VIG and SCHD in class of not standard ETFs but in class of "Forever ETF".
Fees comparable to cheapest S&P 500.
High Quality Companies kinda Warren Bufett Wide Moat.
In my mind I call them collections of "American Rembrandts" though both indexes contain a bit of junk as well.
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Both VIG SCHD focus on dividends of large/giant market cap companies, and I think are US only. Historically, the smaller cap value companies have outperformed, and I'd want to include nonUS companies in a forever portfolio.
I've just started following a recently introduced value oriented fund run by Meb Faber of Cambria, GVAL. It's 57% large cap, 32% mid, 12% small, and is invested in 25 different countries. Total expense is 0.69%.
http://www.cambriafunds.com/assets/p...-FactSheet.pdf
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