Radical Guide to Investing: A Core ETF Portfolio

This guide has moved, and is now The ETF Investment Guide at Seeking Alpha.com.

June 1, 2005 | Permalink

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Comments

Gold (GLD) is a nice thing to have, in a diversified portfolio.

Posted by: Jeff Garzik | Jun 15, 2005 5:20:50 PM

Jeff,
Thanks for the comments; I totally agree with the point you make here. This portfolio was put together before GLD was issued, and it's due for an update. I also mentioned in an updated footnote that Vanguard now offers an emerging market ETF that is considerably cheaper than EEM, though there are differences in the holdings.
David

Posted by: David Jackson | Jun 15, 2005 5:28:00 PM

The basic portfolio proposed here is a good start. I took this portfolio and used it as the basis of a white paper study of the use of Monte Carlo models to enhance portfolio allocation. The analysis suggested that this portfolio would be significantly enhanced by adding a couple of low-Beta ETF's and re-balancing. We then looked at the total impact of these re-allocations on long term ability of the portfolio to provide income and the results were substantial. This paper is available at:

http://www.quantext.com/SampleETFPortfolio.pdf

Posted by: Geoff Considine | Dec 29, 2005 6:27:12 PM

Would you please comment on your portfolio a bit more?

What I would like to know:

1. Is your strategy to buy and hold over the term you gave with minor adjustments for performance and rebalancing?

2. How would a timing strategy fit into you model i.e. Rydex leveraged funds (or a better mix of ETFs) used with both a long and short approach based on the markets direction up or down?

3. Between the two strategies of buy and hold versus timing using ETFs with leverage now available do you think one method is superior to the other and why?

I appreciate your help and information,

Best regards,

Dirk

Posted by: Dirk Pitt | Jun 11, 2006 5:25:16 PM

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