12/30/2010

The AT&T Long Term Savings and Security Plan (Plan) is a defined contribution plan established by AT&T Corp. (ATTC) to provide a convenient way for eligible non-management employees of participating ATTC companies to save on a regular and long-term basis.

We now analyze the AT&T Long Term Savings and Security Plan We will discuss the investment choices and present the plan rating by MyPlanIQ. AT&T and Wal-Mart have similar plans that are restricted in terms of asset classes but we will compare the two as they both Fortune top ten companies.

The ATT 401K plan consists of 25 funds. These funds enable participants to gain exposure to 3 major assets: US Equity, Foreign Equity, Fixed Income.

The list of minor asset classes covered:
Foreign Large Blend: EFA, VEU, GWL, PFA
High Yield Bond: HYG, JNK, PHB
Hybrid Assets:
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
Moderate Allocation: AOM
Small Blend: IJR, IWM, JKJ, VB, DSC, PJM, DES, SAA, UWM, SCHA
World Allocation: AOR, AOA

We note that the plans are similar in nature with the main difference being in more choices in US and balanced funds. 

As of Dec 23, 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 (77%)
Fund Quality -- Rated as average (50%)
Portfolio Building -- Rated as above average (79%)
Overall Rating: above average (70%)

Portfolio Discussions

The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies. For comparison purpose, we also include the moderate model portfolios of a typical 3 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
Fixed Income: AGG or BND

Performance table (as of Dec 23, 2010)

Currently Commodities, US Equity and Emerging Market are doing well. Only US Equity is available to AT&T Long Term Savings and Security Plan participants.

This plan beats the three asset benchmark by virtue of the US asset class choices. If would be a stronger plan with more fixed income choices and an additional asset class.

We now compare the ATT and Wal-Mart plans.

 Performance table (as of Dec 23, 2010)

As anticipated, the additional fund choices in the asset classes allow the ATT plan to squeeze out an extra point in the TAA although it's too close to call with SAA.

To summarize, both AT&T and Wal-Mart would benefit their employees by adding an extra asset class such as emerging markets or real estate. They both have similar performance but ATT just wins out by virtue of more fund choices.

 labels:investment,

Symbols:T,SPY,VTI,EFA,VEU,AGG,BND,HYG,JNK,PHB,AOM,CIU,BIV,AOR,AOA,GWL,PFA,IVE,IWW,JKF,VTV,PWV,RPV,SCHV,IVV,IYY,IWV,VV,DLN,RSP,SCHX,IVW,IWZ,JKE,VUG,QQQQ,RPG,SCHG,IJH,IWR,JKG,VO,MDY,EMM,PJG,DON,EZM,MVV,IJR,IWM,JKJ,VB,PJM,DES,SAA,UWM,SCHA,IJK,IWP,VOT,PWJ,RFG,UKW,

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12/09/2010

Walmart (WMT) serves customers and members more than 200 million times per week at more than 8,692 retail units under 55 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Walmart employs 2.1 million associates worldwide.

Walmart operates retail stores located in all 50 states of the United States, wholly−owned subsidiaries in Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, majority−owned subsidiaries in Central America, Chile and Mexico and joint ventures in India and China.

Wal-Mart Profit Sharing and 401(k) Plan's 401K plan consists of 18 funds. These funds enable participants to gain exposure to 3 major assets: US Equity, Foreign Equity, Fixed Income.

They have 8 US funds (including the company's stock), 4 international funds, 5 fixed income funds and one balanced fund.

The list of minor asset classes covered:

Foreign Large Blend: EFA, VEU, GWL, PFA
Foreign Large Value: EFV, PID, DWM
Foreign Small/mid Growth: IFSM, VSS, SCHC
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 Growth: IJK, IWP, VOT, EMG, PWJ, RFG, UKW
Moderate Allocation: AOM
Short Government: SHY, SHV, VGSH, PLK, USY
Small Blend: IJR, IWM, JKJ, VB, DSC, PJM, DES, SAA, UWM, SCHA
Us Equity: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
World Allocation: AOR, AOA

As of Dec 7, 2010, this plan investment choice is rated as average based on MyPlanIQ Plan Rating methodology that measures the effectiveness of a plan's available investment funds. It has the following detailed ratings:

Diversification -- Rated as average (62%)
Fund Quality -- Rated as below average (29%)
Portfolio Building -- Rated as average (65%)
Overall Rating: average (53%)

We would like to see a review of the funds in each asset class and an additional asset class -- real estate or emerging markets to increase returns for the participants. 

Current Economic and Market Conditions

We have experienced an uncertain 2010: plenty of worries on whether the US economy will climb out of the great recession and recover. Walmart continues to thrive even in this economy and it is important that this is reflected in the retirement benefits of those helping to make the company successful.

Americans continue to face high unemployment, large federal and local government debts and global trade imbalance. With such an economic backdrop, the stock and debt markets are going to be volatile. Despite this, the markets have been resilient.

It is even more critical to properly diversify and respond market changes. MyPlanIQ offers two asset allocation strategies: strategic and tactical asset allocation strategies (SAA and TAA for participants in Wal-Mart Profit Sharing and 401(k) Plan).

Strategic Asset Allocation is based on the well proven modern portfolio theory and its key features include: diversification, proper fund selection and periodically re-balancing.

Tactical Asset Allocation works on a diversified array of assets provided by funds in a plan and adjusts asset mixes based on market conditions such as asset price momentum utilized by TAA.

Portfolio Discussion

The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies. For comparison purpose, we also include the moderate model portfolios of a typical 3 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)
Fixed Income: (AGG or BND)

Performance chart (as of Dec 7, 2010)

Performance table (as of Dec 7, 2010)

We see that the plan outperforms our three asset class benchmark but would underperform our four asset class benchmark.

Currently, asset classes in US Equity, emerging markets and real estate are doing well. Participants in this plan are only able to gain benefit from US equity.

The conclusion is that while Walmart is a world leader, it's retirement plan could be improved.

labels:investment,

Symbols:WMT,SPY,VTI,EFA,VEU,AGG,BND,IVV,IYY,IWV,VV,DLN,RSP,SCHX,AOM,CIU,BIV,AOR,AOA,GWL,PFA,EFV,PID,DWM,SHY,SHV,VGSH,PLK,USY,IVW,IWZ,JKE,VUG,ELG,QQQQ,RPG,SCHG,IFSM,VSS,SCHC,IJR,IWM,JKJ,VB,DSC,PJM,DES,SAA,UWM,SCHA,IJK,IWP,VOT,EMG,PWJ,RFG,UKW,TIP, ,

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10/19/2010

TD Ameritrade (Ticker: AMTD) just announced that it offers 100+ commission free ETFs for its clients.The 100+ (a precise number is 101) ETFs were selected by Morningstar that include ETFs from iShares, Vanguard, State Street, PowerShares, and others. In comparison, Schwab's free ETFs include only 11 of its own funds. Similarly, Vanguard offers 47 Vanguard ETFs for free. Fidelity was the first one that offers 25 iShares ETFs for free. See the official TD Ameritrade offering for more details.

MyPlanIQ views this is a very significant step for small investors (well we are not sure whether TD Ameritrade would still offer such a deal to very large accounts). We have constructed an investment plan TD Ameritrade Commission Free ETFs to take advantage of these ETFs. Though for the trades of these ETFs to be eligible for commission free, TD Ameritrade's customers have to hold these ETFs for more than 30 days, such a restriction is not significant for our plan since the plan only rebalances at most once per month. In this plan, the minimum holding period for each fund is set to be 1 month, which is equivalent to 30 days.

TD Ameritrade Commission Free ETFs's 401K plan consists of 101 funds. These funds enable participants to gain exposure to 6 major assets: Emerging Market Equity , Foreign Equity , Fixed Income , US Equity , Commodity , REITs . We view this is the most comprehensive coverage of major asset classes. 

The list of minor asset classes covered are: 

COMMODITIES BROAD BASKET: GSG , DBC 
Conservative Allocation: AOK 
DIVERSIFIED EMERGING MKTS: EEM , GMM , PXH , DEM , SCHE 
Emerging Markets Bond: PCY 
EQUITY: VTI,VT 
EUROPE STOCK: IEV , VGK , PEF , DEB 
Foreign Large Blend: EFA , VEU , GWL , PFA 
Foreign Large Growth: EFG 
Foreign Large Value: EFV , PID , DWM 
FOREIGN SMALL/MID GROWTH: IFSM , VSS , SCHC 
Foreign Small/Mid Value: SCZ 
Global Real Estate: IFGL , RWX 
High Yield Bond: HYG , JNK , PHB 
Inflation-Protected Bond: TIP 
Intermediate Government: IEI , VGIT , ITE 
Intermediate-Term Bond: AGG,CIU , BIV,BND 
JAPAN STOCK: EWJ , JPP , PJO , DXJ 
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 
Latin America Stock: ILF , GML 
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 
Moderate Allocation: AOM 
Multisector Bond: AGG,GBF , BND , LAG 
Muni National Interm: ITM 
Muni National Long: MUB , TFI , PZA , MLN 
Muni National Short: SUB , SHM , PVI , SMB 
PACIFIC/ASIA EX-JAPAN STK: EPP,AAXJ , GMF , PAF , DND 
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 
SPECIALTY-REAL ESTATE: RWR , PSR , URE 
World Allocation: AOR , AOA 
WORLD BOND: IGOV , BWX,WIP 
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 great (97%) 
Fund Quality -- Rated as below average (29%) 
Portfolio Building -- Rated as great (90%) 
Overall Rating: above average (74%)

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:

REITs:( IYR or VNQ or ICF ) 
Fixed Income:( AGG or BND ) 
Commodity:(DBC) 
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)

To summarize, TD Ameritrade Commission Free ETFs plan is very comprehensive and allows investors to achieve significant performance with reasonable risk. With now all of the top discount brokers (Fidelity, Schwab and TD Ameritrade) offering such commission free ETFs, investors are now free from trading cost and focus on portfolio building in terms of better asset allocation strategies. 

labels:investment,

Symbols:SUB,SHM,PVI,SMB,EPP,AAXJ,GMF,PAF,DND,SHY,SHV,VGSH,PLK,USY,CSJ,BSV,VCSH,AOR,AOA,IGOV,BWX,WIP,IOO,VT,RWR,PSR,URE,IJS,IWN,JKL,VBR,DSV,PWY,RZV,UVT,IJT,IWO,JKK,VBK,DSG,PWT,RZG,UKK,IJR,IWM,JKJ,VB,DSC,PJM,DES,SAA,UWM,SCHA,ITM,MUB,TFI,PZA,MLN,AGG,GBF,BND,LAG,IJJ,ETFs,Portfolio,Building,Asset,Allocation,Commission,Free,

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10/19/2010

Vanguard ETFs's 401K plan consists of 43 funds. These funds enable participants to gain exposure to 5 major assets: Emerging Market Equity , Foreign Equity , Fixed Income , US Equity , REITs . 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 
Industrials: IYJ,EXI , VIS 
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 15, 2010, this plan investment choice is rated as averagebased 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 (74%) 
Fund Quality -- Rated as below average (33%) 
Portfolio Building -- Rated as average (37%) 
Overall Rating: average (47%)

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:

REITs:( IYR or VNQ or ICF ) 
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)

Currently, asset classes in REITs( IYR , VNQ , ICF ) , Fixed Income( AGG , BND ) and Emerging Market Equity( EEM , VWO ) are doing relatively well. These asset classes are available to Vanguard ETFs participants.

To summarize, Vanguard ETFs 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 reits , emerging market equity and fixed income funds.

labels:investment,

Symbols:SUB,SHM,PVI,SMB,EPP,AAXJ,GMF,PAF,DND,SHY,SHV,VGSH,PLK,USY,CSJ,BSV,VCSH,AOR,AOA,IGOV,BWX,WIP,IOO,VT,RWR,PSR,URE,IJS,IWN,JKL,VBR,DSV,PWY,RZV,UVT,IJT,IWO,JKK,VBK,DSG,PWT,RZG,UKK,IJR,IWM,JKJ,VB,DSC,PJM,DES,SAA,UWM,SCHA,ITM,MUB,TFI,PZA,MLN,AGG,GBF,BND,LAG,IJJ,ETFs,Portfolio,Building,Asset,Allocation,Commission,Free,

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10/19/2010

• The expense ratios are low
• There are four asset classes with a good choice of funds
• We would have liked to have seen more choices with other providers
• We would have liked to have seen funds with a longer history
• We would expect real estate to be added before long
• We would expect more choices in the international and emerging market segments before long

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)

• A large number of ETF’s in six asset classes to allow the construction of high performance portfolios
• Providing ETF’s with history from industry leading suppliers

labels:investment,

Symbols:SUB,SHM,PVI,SMB,EPP,AAXJ,GMF,PAF,DND,SHY,SHV,VGSH,PLK,USY,CSJ,BSV,VCSH,AOR,AOA,IGOV,BWX,WIP,IOO,VT,RWR,PSR,URE,IJS,IWN,JKL,VBR,DSV,PWY,RZV,UVT,IJT,IWO,JKK,VBK,DSG,PWT,RZG,UKK,IJR,IWM,JKJ,VB,DSC,PJM,DES,SAA,UWM,SCHA,ITM,MUB,TFI,PZA,MLN,AGG,GBF,BND,LAG,IJJ,ETFs,Portfolio,Building,Asset,Allocation,Commission,Free,

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12/07/2010

Retirement investing is an integral part of American personal finance. With $8.9 trillion parked in over 800 thousand retirement plans such as 401K, millions of Americans will increasingly rely on their 401K accounts to fund their future retirement needs. 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 TD Ameritrade Commission Free ETFs can achieve reasonable investment results using asset allocation strategies. We will also discuss how those portfolios are positioned in today’s market environment.

TD Ameritrade (Ticker: AMTD) offers 100+ commission free ETFs for its clients. The main restriction is that customers have to hold these ETFs for more than 30 days to make such trades eligible for commission free.

In this plan, the minimum holding period for each fund is set to be 1 month, which is equivalent to 30 days.

See the official TD Ameritrade offering for more details.

TD Ameritrade Commission Free ETFs's 401K plan consists of 101 funds. These funds enable participants to gain exposure to 6 major assets: US Equity , Foreign Equity , Commodity , Emerging Market Equity , REITs , Fixed Income . The list of minor asset classes covered:

Commodities Broad Basket: GSG , DBC
Conservative Allocation: AOK
Diversified Emerging Mkts: EEM , GMM , PXH , DEM , SCHE
Emerging Markets Bond: PCY
Equity: VTI , VT
Europe Stock: IEV , VGK , PEF , DEB
Foreign Large Blend: EFA , VEU , GWL , PFA
Foreign Large Growth: EFG
Foreign Large Value: EFV , PID , DWM
Foreign Small/mid Growth: IFSM , VSS , SCHC
Foreign Small/mid Value: SCZ
Global Real Estate: IFGL , RWX
High Yield Bond: HYG , JNK , PHB
Inflation-protected Bond: TIP
Intermediate Government: IEI , VGIT , ITE
Intermediate-term Bond: AGG , CIU , BIV , BND
Japan Stock: EWJ , JPP , PJO , DXJ
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
Latin America Stock: ILF , GML
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
Moderate Allocation: AOM
Multisector Bond: AGG , GBF , BND , LAG
Muni National Interm: ITM
Muni National Long: MUB , TFI , PZA , MLN
Muni National Short: SUB , SHM , PVI , SMB
Pacific/asia Ex-japan Stk: EPP , AAXJ , GMF , PAF , DND
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
Specialty-real Estate: RWR , PSR , URE
World Allocation: AOR , AOA
World Bond: IGOV , BWX , WIP
World Stock: IOO , VT

As of Dec 3, 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 (97%)
Fund Quality -- Rated as below average (21%)
Portfolio Building -- Rated as great (87%)
Overall Rating: above average (70%)

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 6 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 )
Commodity :( DBC )
Emerging Market Equity :( EEM or VWO )
REITs :( IYR or VNQ or ICF )
Fixed Income :( AGG or BND )

Performance chart (as of Dec 3, 2010)

Performance table (as of Dec 3, 2010)

Currently, asset classes in US Equity ( SPY , VTI ) and Emerging Market Equity ( EEM , VWO ) are doing relatively well. These asset classes are available to TD Ameritrade Commission Free ETFs participants.

To summarize, TD Ameritrade Commission Free ETFs 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 US Equity and Emerging Market Equity funds.


Disclosure:

Symbols: , SPY , VTI , EFA , VEU , EEM , VWO , IYR , VNQ , ICF , AGG , BND , DBC , VT , HYG , JNK , PHB , AOM , AOK , CIU , BIV , ITM , SUB , SHM , PVI , SMB , AOR , AOA , MUB , TFI , PZA , MLN , EFG , GWL , PFA , IVE , IWW , JKF , VTV , ELV , PWV , RPV , SCHV , SCZ , EFV , PID , DWM , IFGL , RWX , IGOV , BWX , WIP , RWR , PSR , URE , IVV , IYY , IWV , VV , DLN , RSP , SCHX , IOO , SHY , SHV , VGSH , PLK , USY , TLT , TLH , IEF , EDV , VGLT , TLO , PLW , IEV , VGK , PEF , DEB , IVW , IWZ , JKE , VUG , ELG , QQQQ , RPG , SCHG , IJJ , IWS , JKI , VOE , EMV , PWP , RFV , UVU , IJH , IWR , JKG , VO , MDY , EMM , PJG , DON , EZM , MVV , IFSM , VSS , SCHC , IJS , IWN , JKL , VBR , DSV , PWY , RZV , UVT , IJR , IWM , JKJ , VB , DSC , PJM , DES , SAA , UWM , SCHA , GMM , PXH , DEM , SCHE , CLY , LQD , BLV , VCLT , GBF , LAG , PCY , CSJ , BSV , VCSH , IEI , VGIT , ITE , IJK , IWP , VOT , EMG , PWJ , RFG , UKW , ILF , GML , IJT , IWO , JKK , VBK , DSG , PWT , RZG , UKK , TIP , EPP , AAXJ , GMF , PAF , DND , EWJ , JPP , PJO , DXJ , GSG