|
News and Articles
-
Intel Corporation -- Leader in Technology -- Leader in Retirement
10/26/2010
Intel Corporation was incorporated in California in 1968 and reincorporated in Delaware in 1989 and is the world's largest semiconductor chip maker, based on revenue. They develop advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. Integrated circuits are semiconductor chips etched with interconnected electronic switches. Intel also develops platforms – defined as integrated suites of digital computing technologies that are designed and configured to work together to provide an optimized user computing solution compared to components that are used separately.
Intel's goal is to be the preeminent provider of semiconductor chips and platforms for the worldwide digital economy. Their 401K plan is certainly in the top tier in terms of returns for participants.
Intel Corporation 401(k) Savings Plan's 401K plan consists of 63 funds. These funds enable participants to gain exposure to 5 major assets: US Equity , Foreign Equity , Emerging Market Equity , REITs , Fixed Income .
The list of minor asset classes covered:
Conservative Allocation: AOK
Convertibles: CWB
Diversified Emerging Mkts: EEM , GMM , PXH , DEM , SCHE
Emerging Markets Bond: PCY
Equity Precious Metals: DBP
Foreign Large Blend: EFA , VEU , GWL , PFA
Foreign Large Value: EFV , PID , DWM
Foreign Small/mid Value: SCZ
High Yield Bond: HYG , JNK , PHB
Inflation-protected Bond: TIP
Intermediate-term Bond: AGG , CIU , BIV , BND
Large Blend: IVV , IYY , IWV , VTI , VV , SPY , DLN , RSP , SCHX
Large Growth: IVW , IWZ , JKE , VUG , ELG , QQQQ , RPG , SCHG
Large Value: IVE , IWW , JKF , VTV , ELV , PWV , RPV , SCHV
Long Government: TLT , TLH , IEF , EDV , VGLT , TLO , PLW
Long-short:
Long-term Bond: CLY , LQD , BLV , VCLT
Mid-cap Blend: IJH , IWR , JKG , VO , MDY , EMM , PJG , DON , EZM , MVV
Mid-cap Growth: IJK , IWP , VOT , EMG , PWJ , RFG , UKW
Mid-cap Value: IJJ , IWS , JKI , VOE , EMV , PWP , RFV , UVU
Moderate Allocation: AOM
Multisector Bond: AGG , GBF , BND , LAG
Real Estate: IYR , ICF , VNQ
Small Blend: IJR , IWM , JKJ , VB , DSC , PJM , DES , SAA , UWM , SCHA
Small Growth: IJT , IWO , JKK , VBK , DSG , PWT , RZG , UKK
Small Value: IJS , IWN , JKL , VBR , DSV , PWY , RZV , UVT
Us Equity: IVV , IYY , IWV , VTI , VV , SPY , DLN , RSP , SCHX
World Allocation: AOR , AOA
World Bond: IGOV , BWX , WIP
World Stock: IOO , VT
As of Oct 25, 2010, this plan investment choice is rated as above average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as great (99%)
Fund Quality -- Rated as below average (32%)
Portfolio Building -- Rated as above average (82%)
Overall Rating: above average (72%)
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies ( SAA and TAA , both provided by MyPlanIQ). For comparison purpose, we also include the moderate model portfolios of a typical 5 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:
US Equity :( SPY or VTI )
Foreign Equity :( EFA or VEU )
REITs :( IYR or VNQ or ICF )
Emerging Market Equity :( EEM or VWO )
Fixed Income :( AGG or BND )
Performance chart (as of Oct 25, 2010)
Performance table (as of Oct 25, 2010)
Currently, asset classes in Emerging Market Equity (EEM, VWO) ,REITs (IYR, VNQ, ICF) and Fixed Income (AGG, BND ) are doing relatively well. These asset classes are available to Intel Corporation 401(k) Savings Plan participants.
Having a large number of funds and five asset classes enable both strategic and tactical asset allocation to perform to optimal levels. Note that even in the strategic asset allocation there will be some styles rotation to slightly improve returns.
To summarize, the Intel Corporation 401(k) Savings Plan plan gives participantsthe ability to build a solid portfolio to achieve good investment returns using asset allocation strategies that are tailored to their risk profiles.
Currently, the tactical asset allocation strategy indicates overweighing on Emerging Market Equity , REITs and Fixed Income funds.
labels:investment,Symbols,SPY,VTI,EFA,VEU,EEM,VWO,IYR,VNQ,ICF,AGG,BND,IVV,IYY,IWV,VV,DLN,RSP,SCHX,HYG,JNK,PHB,AOM,AOK,CIU,BIV,AOR,AOA,GWL,PFA,IVE,IWW,JKF,VTV,ELV,PWV,RPV,SCHV,SCZ,EFV,PID,DWM,IGOV,BWX,WIP,IOO,VT,TLT,TLH,IEF,EDV,VGLT,TLO,PLW,IVW,IWZ,JKE,VUG,ELG,QQQQ,RPG,SCHG,IJJ,IWS,
comments(1)
-
Top Tier ETF Broker Playoffs II
10/26/2010
ETF’s continue to broaden their appeal both in terms of flexibility and low cost. With commission free ETF’s, more money stays in the investors pocket rather than disappearing in fees. We have completed the first analysis of TD Ameritrade and Schwab, we now proceed to examine Vanguard and Fidelity – two long term ETF providers.
Vanguard is one of the largest index fund and ETF providers offering commission-free trading to its brokerage clients that use its lineups of 62 proprietary ETFs. Commission free ETF's are also offered by Fidelity and Schwab but Vanguard has the highest number of proprietary funds available.
These funds enable participants to gain exposure to 5 major assets: Us Equity , Foreign Equity , Emerging Market Equity , Reits , Fixed Income .
The list of minor asset classes covered:
Communications: IXP , PTE , DGG , LTL
Consumer Discretionary: RXI , VCR
Consumer Staples: KXI , VDC , PSL , DPN , RHS
Diversified Emerging Mkts: EEM , GMM , PXH , DEM , SCHE
Diversified Pacific/asia: EPP , VPL , GMF , PAF
Equity Energy: ITE , IXC , IPW , DBE , RYE , DKA
Europe Stock: IEV , VGK , PEF , DEB
Financial: IYF , VFH , IPF , PFI , DRF , RYF
Foreign Large Blend: EFA , VEU , GWL , PFA
Foreign Small/mid Growth: IFSM , VSS , SCHC
Health: IYH , IXJ , VHT , XBI , PBE , DBR , RYH
High Yield Bond: HYG , JNK , PHB
Industrials: IYJ , EXI , VIS
Intermediate Government: IEI , VGIT , ITE
Intermediate-term Bond: AGG , CIU , BIV , BND
Large Blend: IVV , IYY , IWV , VTI , VV , SPY , DLN , RSP , SCHX
Large Growth: IVW , IWZ , JKE , VUG , ELG , QQQQ , RPG , SCHG
Large Value: IVE , IWW , JKF , VTV , ELV , PWV , RPV , SCHV
Long Government: TLT , TLH , IEF , EDV , VGLT , TLO , PLW
Long-term Bond: CLY , LQD , BLV , VCLT
Mid-cap Blend: IJH , IWR , JKG , VO , MDY , EMM , PJG , DON , EZM , MVV
Mid-cap Growth: IJK , IWP , VOT , EMG , PWJ , RFG , UKW
Mid-cap Value: IJJ , IWS , JKI , VOE , EMV , PWP , RFV , UVU
Natural Resources: IYM , IGE , VAW , XLB , XME , PYZ , DBN , RTM , UYM
Real Estate: IYR , ICF , VNQ
Short Government: SHY , SHV , VGSH , PLK , USY
Short-term Bond: CSJ , BSV , VCSH
Small Blend: IJR , IWM , JKJ , VB , DSC , PJM , DES , SAA , UWM , SCHA
Small Growth: IJT , IWO , JKK , VBK , DSG , PWT , RZG , UKK
Small Value: IJS , IWN , JKL , VBR , DSV , PWY , RZV , UVT
Technology: MTK , PTF , DBT , RYT , ROM
Utilities: GII , PUI , DBU , RYU , UPW
World Stock: IOO , VT
As of Oct 22, 2010, this plan investment choice is rated as based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as average (57%)
Fund Quality -- Rated as average (60%)
Portfolio Building -- Rated as average (39%)
Overall Rating: average (50%)
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies ( SAA and TAA , both provided by MyPlanIQ). For comparison purpose, we also include the moderate model portfolios of a typical 5 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent: Us Equity:( SPY or VTI ) Foreign Equity:( EFA or VEU ) Emerging Market Equity:( EEM or VWO ) Reits:( IYR or VNQ or ICF ) Fixed Income:( AGG or BND ) Performance chart (as of Oct 22, 2010)  Performance table (as of Oct 22, 2010)
|
Portfolio Name
|
1Yr AR
|
1Yr Sharpe
|
3Yr AR
|
3Yr Sharpe
|
5Yr AR
|
5Yr Sharpe
|
|
|
13%
|
83%
|
6%
|
35%
|
13%
|
81%
|
|
|
15%
|
116%
|
2%
|
6%
|
8%
|
42%
|
|
|
11%
|
72%
|
7%
|
54%
|
15%
|
105%
|
|
|
14%
|
103%
|
3%
|
13%
|
9%
|
41%
|
Currently, asset classes in Emerging Market Equity( EEM , VWO ) , Reits( IYR , VNQ , ICF ) and Fixed Income( AGG , BND ) are doing relatively well. These asset classes are available to Vanguard 62 participants.
Fidelity now makes trading 25 iShares ETFs for free. These ETFs cover complete US equity sizes and styles (large/mid/small caps and growth/blend/value styles). It covers international equity markets well too. In additon, it has good fixed income ETFs. The missing major asset classes are REITs and commodities. We hope those will be made free too. A plan called Fidelity Commission Efficient ETFs extends this plan by including several addtional ETFs (which cost $7.95 flat commission per trade).
Fidelity 25 Commission Free ETFs's 401K plan consists of 25 funds. These funds enable participants to gain exposure to 4 major assets: Us Equity , Foreign Equity , Emerging Market Equity , Fixed Income . The list of minor asset classes covered:
Diversified Emerging Mkts: EEM , GMM , PXH , DEM , SCHE
Emerging Markets Bond: PCY
Foreign Large Blend: EFA , VEU , GWL , PFA
Foreign Small/mid Value: SCZ
Inflation-protected Bond: TIP
Intermediate-term Bond: AGG , CIU , BIV , BND
Large Blend: IVV , IYY , IWV , VTI , VV , SPY , DLN , RSP , SCHX
Large Growth: IVW , IWZ , JKE , VUG , ELG , QQQQ , RPG , SCHG
Large Value: IVE , IWW , JKF , VTV , ELV , PWV , RPV , SCHV
Long-term Bond: CLY , LQD , BLV , VCLT
Mid-cap Blend: IJH , IWR , JKG , VO , MDY , EMM , PJG , DON , EZM , MVV
Mid-cap Growth: IJK , IWP , VOT , EMG , PWJ , RFG , UKW
Mid-cap Value: IJJ , IWS , JKI , VOE , EMV , PWP , RFV , UVU
Muni National Long: MUB , TFI , PZA , MLN
Small Blend: IJR , IWM , JKJ , VB , DSC , PJM , DES , SAA , UWM , SCHA
Small Growth: IJT , IWO , JKK , VBK , DSG , PWT , RZG , UKK
Small Value: IJS , IWN , JKL , VBR , DSV , PWY , RZV , UVT
World Stock: IOO , VT
As of Oct 22, 2010, this plan investment choice is rated as based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are .
It has the following detailed ratings: Diversification -- Rated as average (63%)
Fund Quality -- Rated as poor (9%)
Portfolio Building -- Rated as below average (14%)
Overall Rating: below average (27%)
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies ( SAA and TAA , both provided by MyPlanIQ). For comparison purpose, we also include the moderate model portfolios of a typical 4 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent: Us Equity:( SPY or VTI ) Foreign Equity:( EFA or VEU ) Emerging Market Equity:( EEM or VWO ) Fixed Income:( AGG or BND ) Performance chart (as of Oct 22, 2010) 
Performance table (as of Oct 22, 2010)
|
Portfolio Name
|
1Yr AR
|
1Yr Sharpe
|
3Yr AR
|
3Yr Sharpe
|
5Yr AR
|
5Yr Sharpe
|
|
|
3%
|
24%
|
3%
|
19%
|
11%
|
71%
|
|
|
10%
|
68%
|
-0%
|
-3%
|
7%
|
28%
|
|
|
2%
|
14%
|
6%
|
47%
|
14%
|
90%
|
|
|
10%
|
75%
|
2%
|
5%
|
8%
|
37%
|
Currently, asset classes in Foreign Equity( EFA , VEU ) , Emerging Market Equity( EEM , VWO ) and Fixed Income( AGG , BND ) are doing relatively well. These asset classes are available to Fidelity 25 Commission Free ETFs participants.
To summarize:
- Vanguard 62 Commission Free ETFs plan participants have seen returns in the 8-13% range for a moderate portfolio with strategic and tactical asset allocation based on having a five asset class portfolio.
- Fidelity 25 Commission Free ETFs plan participants have seen returns in the 7-11% range for a moderate portfolio with strategic and tactical asset allocation based on having a five asset class portfolio.
Given the greater number and greater diversification, the Vanguard plan would be the one most likely to continue to deliver better risk adjusted returns and so is declared the winner and moves on to the final round
labels:investment,
Symbols:AGG,BIV,BLV,BND,BSV,CIU,CLY,CSJ,DBE,DBN,DBR,DBT,DBU,DEB,DEM,DES,DGG,DKA,DLN,DON,DPN,DRF,DSC,DSG,DSV,EDV,EEM,EFA,ELG,ELV,EMG,EMM,EMV,EPP,EXI,EZM,GII,GMF,GMM,GWL,HYG,ICF,IEF,IEI,IEV,IFSM,IGE,IJH,IJJ,IJK,IJR,IJS,IJT,IOO,IPF,IPW,ITE,IVE,IVV,IVW,IWM,IWN,IWO,IW,
comments(1)
-
Ford Motor Company 401K Plan: Diversified and High Quality
10/24/2010
In this article, we will discuss Ford Motor 401K .
Ford Motor Company (Ticker: F) designs, develops, manufactures, and services cars and trucks worldwide. It operates in two sectors, Automotive and Financial Services. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan. Ford is one of the pioneers in automobile industry.
Ford Motor 401K's 401K plan consists of 24 funds. These funds enable participants to gain exposure to 4 major assets: Us Equity , Foreign Equity ,REITs, Fixed Income . The list of minor asset classes covered:
Foreign Large Blend: EFA , VEU , GWL , PFA
Foreign Small/mid Growth: IFSM , VSS , SCHC
Global Real Estate: IFGL , RWX
Inflation-protected Bond: TIP
Intermediate-term Bond: AGG , CIU , BIV , BND
Large Blend: IVV , IYY , IWV , VTI , VV , SPY , DLN , RSP , SCHX
Large Growth: IVW , IWZ , JKE , VUG , ELG , QQQQ , RPG , SCHG
Mid-cap Blend: IJH , IWR , JKG , VO , MDY , EMM , PJG , DON , EZM , MVV
Retirement Income:
Small Blend: IJR , IWM , JKJ , VB , DSC , PJM , DES , SAA , UWM , SCHA
Target Date 2016-2020: TZG
Target Date 2026-2030: TZL
Target Date 2036-2040: TZV
Target Date 2050+:
World Stock: IOO , VT
As of Oct 22, 2010, this plan investment choice is rated as Above Average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as above average (76%)
Fund Quality -- Rated as above average (69%)
Portfolio Building -- Rated as above average (71%)
Overall Rating: above average (72%)
The Fund Quality ranking is very reasonable. Its selection includes Fidelity Contrafund, Neuberger Berman Genesis Instl and Royce funds.
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies ( SAA and TAA , both provided by MyPlanIQ). For comparison purpose, we also include the moderate model portfolios of a typical 4 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:
Us Equity:( SPY or VTI )
Foreign Equity:( EFA or VEU )
Reits:( IYR or VNQ or ICF )
Fixed Income:( AGG or BND )
Performance chart (as of Oct 22, 2010)
Performance table (as of Oct 22, 2010)
Currently, asset classes in Us Equity( SPY , VTI ) , Foreign Equity( EFA , VEU ) , REITs ( IYR , VNQ , ICF ) and Fixed Income( AGG , BND ) are doing relatively well. These asset classes are available to Ford Motor 401K participants.
To summarize, Ford Motor 401K plan provides above average choices to its plan participants. As one of the major automobile manufacturers, Ford employees can benefit from such a plan to support their retirement needs.
labels:investment,
Symbols:F,SPY,VTI,EFA,VEU,IYR,VNQ,ICF,AGG,BND,CIU,BIV,GWL,PFA,IFGL,RWX,TZG,TZL,TZV,IVV,IYY,IWV,VV,DLN,RSP,SCHX,IOO,VT,IVW,IWZ,JKE,VUG,ELG,QQQQ,RPG,SCHG,IJH,IWR,JKG,VO,MDY,EMM,PJG,DON,EZM,MVV,IFSM,VSS,SCHC,IJR,IWM,JKJ,VB,DSC,PJM,DES,SAA,UWM,SCHA,TIP,ETF,Portfolio,Building,401K,
comments(1)
-
Bank of America 401K Plan: Well Designed for Its Employees
10/24/2010
Americans rely on more and more retirement accounts such as 401K and IRAs to fund their future retirement. Financial professionals are helping company plan sponsors and participants in retirement investing. It is thus interesting to look at some of 401k plans in these financial institutions and see how well they serve their employees. In this article, we will discuss The Bank of America 401(k) Plan.
Bank of America Corporation (BAC), a financial holding company, provides banking and nonbanking financial services and products to individual consumers, small- and middle-market businesses, large corporations, and governments in the United States and internationally. Bank of America acquired Merill Lynch in 2008.
The Bank of America 401(k) Plan's 401K plan consists of 55 funds. These funds enable participants to gain exposure to 4 major assets: Fixed Income , US Equity , Foreign Equity , Emerging Market Equity . The list of minor asset classes covered:
Conservative Allocation: AOK
DIVERSIFIED PACIFIC/ASIA: EPP , VPL , GMF , PAF
EQUITY: VTI,VT
Equity Energy: ITE,IXC , IPW , DBE , RYE , DKA
Foreign Large Blend: EFA , VEU , GWL , PFA
Foreign Large Growth: EFG
High Yield Bond: HYG , JNK , PHB
Intermediate Government: IEI , VGIT , ITE
Intermediate-Term Bond: AGG,CIU , BIV,BND
LARGE BLEND: IVV,IYY,IWV , VTI,VV , SPY , DLN , RSP , SCHX
LARGE GROWTH: IVW,IWZ,JKE , VUG , ELG , QQQQ , RPG , SCHG
LARGE VALUE: IVE,IWW,JKF , VTV , ELV , PWV , RPV , SCHV
MID-CAP BLEND: IJH,IWR,JKG , VO , MDY,EMM , PJG , DON,EZM , MVV
Mid-Cap Growth: IJK,IWP , VOT , EMG , PWJ , RFG , UKW
MID-CAP VALUE: IJJ,IWS,JKI , VOE , EMV , PWP , RFV , UVU
Moderate Allocation: AOM
Multisector Bond: AGG,GBF , BND , LAG
PACIFIC/ASIA EX-JAPAN STK: EPP,AAXJ , GMF , PAF , DND
Retirement Income:
Short-Term Bond: CSJ , BSV,VCSH
SMALL BLEND: IJR,IWM,JKJ , VB , DSC , PJM , DES , SAA,UWM , SCHA
Target Date Funds
It is interesting to see that the Real Estate Investment Trusts (REITs) funds are missing in the offering even though the bank handles millions of commercial and residential mortgages.
As of Oct 15, 2010, this plan investment choice is rated as above average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as above average (80%)
Fund Quality -- Rated as below average (24%)
Portfolio Building -- Rated as great (85%)
Overall Rating: above average (65%)
It is worth noting that funds in the plan are not impressive at all. This is clearly reflected in the following performance chart and table.
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies ( SAA and TAA , both provided by MyPlanIQ). For comparison purpose, we also include the moderate model portfolios of a typical five asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:
Fixed Income:( AGG or BND )
Foreign Equity:( EFA or VEU )
Emerging Market Equity:( EEM or VWO )
US Equity:( SPY or VTI )
Performance chart (as of Oct 15, 2010)
Performance table (as of Oct 15, 2010)
Clearly, employees in Bank of America can be better served with higher quality fun d picking and more diversification -- adding Real Estate Investment Trusts (REITs) is one option. We would hope financial professionals can utilize their know how to better serve themselves.
comments(0)
-
Qualcomm Modern Company with Old Style Retirement Plan
10/19/2010
Retirement investing is an integral part of American personal finance. With $8.9 trillion in over 800 thousand retirement plans, millions of Americans rely on their 401K for their retirement. This article is part of a series of case studies we are conducting for various 401K plans. In this article, we will discuss how participants in Qualcomm 401(k) Plan can achieve reasonable investment results using asset allocation strategies. We will also discuss how those portfolios are positioned in today’s market environment.
Qualcomm is a 2009 FORTUNE 500® company delivering digital wireless communications products and services based on CDMA and other technologies. Qualcomm serves the global wireless industry enabling the convergence of mobile communications and consumer electronics, making next-generation wireless devices and services more personal, affordable and accessible to people everywhere.
Qualcomm 401(k) Plan's 401K plan consists of 13 funds. These funds enable participants to gain exposure to 3 major assets: US Equity , Fixed Income , Foreign Equity .
For a modern company, three asset classes is rather old style. As we have seen in a previous article five and six asset classes outperform three asset class portfolios. Having said that, each class has a good set of alternatives allowing smart fund selection to maximize the returns of the portfolio.
The list of minor asset classes covered:
Foreign Large Blend: EFA , VEU , GWL , PFA
Intermediate Government: IEI , VGIT , ITE
Intermediate-Term Bond: AGG,CIU , BIV,BND
LARGE BLEND: IVV,IYY,IWV , VTI,VV , SPY , DLN , RSP , SCHX
LARGE GROWTH: IVW,IWZ,JKE , VUG , ELG , QQQQ , RPG , SCHG
LARGE VALUE: IVE,IWW,JKF , VTV , ELV , PWV , RPV , SCHV
MID-CAP BLEND: IJH,IWR,JKG , VO , MDY,EMM , PJG , DON,EZM , MVV
Retirement Income:
Small Growth: IJT,IWO,JKK , VBK , DSG , PWT , RZG , UKK
SMALL VALUE: IJS,IWN,JKL , VBR , DSV , PWY , RZV , UVT
WORLD STOCK: IOO , VT
As of Oct 15, 2010, this plan investment choice is rated as above average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as below average (31%)
Fund Quality -- Rated as great (87%)
Portfolio Building -- Rated as great (91%)
Overall Rating: above average (72%)
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies ( SAA andTAA , both provided by MyPlanIQ). For comparison purpose, we also include the moderate model portfolios of a typical five asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:
Fixed Income:( AGG or BND )
Foreign Equity:( EFA or VEU )
US Equity:( SPY or VTI )
Performance chart (as of Oct 15, 2010)
Performance table (as of Oct 15, 2010)
It is unusual for a strategic asset allocation strategy to beat a tactical asset allocation strategy. In this case, the QCOM strategic asset allocation has better returns thatthe three core SIB tactical asset allocation.
This shows the benefit of having multiple funds in a single class as this allows the participant to rotate in sub classes that are performing well. Currently, asset classes in Fixed Income( AGG , BND ) , Foreign Equity( EFA , VEU ) and US Equity( SPY , VTI ) are doing relatively well. These asset classes are available to Qualcomm 401(k) Plan participants.
To summarize, Qualcomm 401(k) Plan plan participants can achieve reasonable investment returns by adopting asset allocation strategies that are tailored to their risk profiles. Currently, the tactical asset allocation strategy indicates overweighing on fixed income , us equity and foreign equity funds.
If Qualcomm were to add another two asset classes, they would have a very strong retirement plan.
labels:investment,Symbols,EFA,VEU,GWL,PFA,IEI,VGIT,CIU,BIV,BND,IVV,IYY,IWV,VTI,VV,SPY,DLN,RSP,SCHX,IVW,IWZ,JKE,VUG,ELG,QQQQ,RPG,SCHG,IVE,IWW,JKF,VTV,ELV,PWV,RPV,SCHV,IJH,IWR,JKG,VO,MDY,EMM,PJG,DON,EZM,MVV,IJT,IWO,JKK,VBK,DSG,PWT,RZG,UKK,IJS,IWN,JKL,VBR,DSV,PWY,RZV,UVT,IOO,VT,
comments(0)
-
TD Ameritrade Commission Free ETFs: Comprehensive Portfolio Building Blocks
10/19/2010
-
Bank of America 401K Plan: Well Designed for Its Employees
10/19/2010
-
Top Tier ETF Providers Playoffs II
10/19/2010
-
Top Tier ETF Provider Playoffs
10/19/2010
-
TD Ameritrade Commission Free ETF’s Empowers Both Strategic and Tactical Asset Allocation
10/19/2010
-
Apple 401K: A Great Company with an Average Retirement Plan
10/19/2010
-
Lazy Portfolios -- The Finals
10/19/2010
-
Core Satellite – A Way to Step Into Tactical Asset Allocation
10/19/2010
-
Lazy Portfolios -- The Playoffs II
10/19/2010
-
Lazy Portfolios -- The Playoffs
10/19/2010
-
The Market Timing Myth
10/15/2010
-
Diversification In Pictures
10/14/2010
-
Case Study: Hewlett Packard's 401K Plan
10/09/2010
-
Dow Theory Revisited, Reviewed, Compared
10/08/2010
-
Shiller's Long Term Timing Indicator Put Under Short Term Scrutiny
10/08/2010
First
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Last
|
