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- A 360 View of Returns (July 2008) [view article]
- Percentage of Stocks Over 50-Day Moving Average [view article]
- Primary US Sector ETFs [view article]
- Defining ETF Risk: Does It Pass the "Smell" Test? [view article]
- Exchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
- ETFs with Dividends: Important for Retirees' Portfolios [view article]
- Advisors Discuss Safe Investment Strategies [view article]
- Fee Cuts Solidify Vanguard's Position as the ETF Cost Leader [view article]
- An All-ETF Portfolio With Exposure To Narrow Themes [view article]
- Best Weighted ETF and CEF Omega Measures [view article]
- The Dollar's Impact On Sectors And The Overall Market [view article]
loading ...Recent VOX Articles
- ETF Update: August ETF Numbers, Russian Free Fall, Disconnected Telecoms
- A 360 View of Returns (July 2008)
- Percentage of Stocks Over 50-Day Moving Average
- Will Window-Dressing Reveal Some Top ETFs For Next Quarter?
- Defining ETF Risk: Does It Pass the "Smell" Test?
- ETFs for the Services Side of the Economy
- Managing Sector Funds in Portfolio Design
- ETFs with Dividends: Important for Retirees' Portfolios
- Advisors Discuss Safe Investment Strategies
- Fee Cuts Solidify Vanguard's Position as the ETF Cost Leader
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A 360 View of Returns (July 2008) [view article]
job well done and very easy to follow ReplyA 360 View of Returns (July 2008) [view article]
Finally, a universal overview that gives the reader direction for areas to research for future investment. Great job! ReplyA 360 View of Returns (July 2008) [view article]
Thank you, very helpful. Replying
A 360 View of Returns (July 2008) [view article]
very good job Richard, it gives a sectoral - global view, I learned a lot with the summary! Challenging times ReplyPercentage of Stocks Over 50-Day Moving Average [view article]
Throw a dart. Short the stock. You will win. ReplyPercentage of Stocks Over 50-Day Moving Average [view article]
Learn to buy options. You can make money in all markets and only loose what you put in. Leverage is large. ReplyPercentage of Stocks Over 50-Day Moving Average [view article]
This article is very good for investors. Looks as if we should be in utilities, health care, and food stocks. Give us more like this one. ReplyPercentage of Stocks Over 50-Day Moving Average [view article]
OK, I'll bite. The DOW will go below 10,000 by September. ReplyPercentage of Stocks Over 50-Day Moving Average [view article]
How about below 10,000 in 2008? ReplyTiedeman
Percentage of Stocks Over 50-Day Moving Average [view article]
The DOW is going under 10,000 in 2009. ReplyPrimary US Sector ETFs [view article]
What about iShares DJ US Tech (IYW)? ReplyDefining ETF Risk: Does It Pass the "Smell" Test? [view article]
Matt Hougan wrote about this very thing on June 8th and lists the exact same information plus 'tax risk' and 'counterparty risk' (in the case of commodity and leverage funds). I think you are missing the two most important risks: 'Expected Shortfall risk' and 'volatility risk'.Expected Shortfall is the extra (fat-tail) loss that is ignored using a normal distribution. By converting to a 'Stable' (logarithmic) distribution you can actually see the true risk of a frequency distribution. In other words, it is a Value-at-Risk (VaR) model that better describes the tails of a distribution. With VaR, with may think you stand to lose 3% of the portfolio value on a given day, one percent of the time (at a 99% VaR). With conditional expected shortfall (or conditional VaR) the actual loss 1% of the time may actually be 6%; like what happened this past February.
Volatility Risk is the extra risk you assume by investing in less diversified asset classes. This is a big deal with ETFs. The cause of this problem stems from the sudden interest in ETFs and the need for ETF manufacturers to gobble up their stake in the ETF real-estate game. As the land-grab for ETF shelf space continues so does the increase in volatility. The first ETFs were broad-based market indices, like the S&P 500. The next wave of ETFs was the industry sectors (health care, financials, basic materials, etc.). Because they are less diversified the risk on one industry, in terms of volatility (measured in standard deviation) is 1.3 to 8.6 times the volatility of the S&P 500. Having seized the industry sector space the ETF manufacturers went to the sub-sector frontier to build their niche (such as bio-tech); and henceforth more risk. Not to be out done, competing manufactures launched inverse funds and leveraged funds; again, more risk. Only since June of last year has the risk in new ETF’s subsided with the introduction of fixed income, real estate and some commodity ETF’s. The largest risk in managing a portfolio of ETF’s is in choosing the proper fund universe; then comes the ardent task of fundamental research and asset allocation.
Expected Shortfall is the extra (fat-tail) loss that is ignored using a normal distribution. By converting to a 'Stable' (logrithmic) distribution you can actually see the ture risk of a frequency distribution. In other words, it is a Value-at-Risk (VaR) model that better describes the tails of a distribution. With VaR, with may think you stand to lose 3% of the portfolio value on a given day, one percent of the time (at a 99% VaR). With conditional expected shortfall (or conditional VaR) the actual loss 1% of the time may actually be 6%; like what happened this past February.
Volatility Risk is the extra risk you assume by investing in less diversified asset classes. This is a big deal with ETFs. The cause of this problem stems from the sudden interest in ETFs and the need for ETF manufacturers to gobble up their stake in the ETF real-estate game.
Reply
Exchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
can you please update this list? thanks. ReplyGrowth
Investor
ETFs with Dividends: Important for Retirees' Portfolios [view article]
Great article. Over the long run dividends increase faster than inflation. Thus our retiree is better situated than the retirees who are invested in fixed income..Another thing that's very intriguing is dividend reinvestment. If you put $1000 in VFINX ( S&P 500 mutual fund) in 1976, you would have achieved dividend income of about $600 on your initial investment in 2007. So if you have 30-40 years till retirement, remember this rule of thumb - every dollar that you invest in equities in your twenties would generate one dollar of income in your late 50's and mid 60s. Reply
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General Discussion on VOX
Is this a buy or a sell? Reply