Top Plans for Brokerages
Vanguard ETF: 7.4%*
Diversified Core: 8.1%*
Six Core Asset ETFs: 7.3%*
*:5 Yr Annualized Return of TAA Moderate Portfolio

...More Plans...

Articles on PLW

  • Schwab Select ETF Plan Has Bright Prospects

    04/06/2011

    Schwab ETF Plan Has Good Pedigree and Bright Prospects Retirement is now a "hair on fire" problem. There is much talk of working longer, downsizing, living on less. However, there is something you can do to help improve your risk adjusted returns. Look at your portfolios and plans to build a diversified portfolio with a systematic investment strategy.

    This is not as hard as you might think -- to highlight this point, we feature a plan created by a non professional that matches up well with any of the other plans. Kevin Carr. is an individual investor who employs a long term strategy. He manages an individual common stock portfolio as well as many plans on MyPlan IQ.  If you have any questions regarding this plan please contact him.

    This plan provides you with Schwab's experts’ top picks of low-cost ETFs representing approximately 50 ETFs, based on rigorous criteria including expenses, tracking error, trading volume, and more.  Schwab ETFs trade commission free.  There are no redemption periods so you can start today and not worry about holding periods.

    We report on this Schwab ETF Select List which consists of 49 funds. These funds give exposure to 6 major assets: US Equity, Commodity, Foreign Equity, REITs, Emerging Market Equity, Fixed Income.

     

    Asset Class Ticker Name
    LARGE BLEND SCHX Schwab U.S. Large-Cap ETF
    LARGE GROWTH SCHG Schwab U.S. Large-Cap Growth ETF
    LARGE VALUE SCHV Schwab U.S. Large-Cap Value ETF
    MID-CAP BLEND VO Vanguard Mid-Cap ETF
    Mid-Cap Growth VOT Vanguard Mid-Cap Growth ETF
    MID-CAP VALUE VOE Vanguard Mid-Cap Value ETF
    SMALL BLEND SCHA Schwab U.S. Small-Cap ETF
    Small Growth VBK Vanguard Small Cap Growth ETF
    SMALL VALUE VBR Vanguard Small Cap Value ETF
    LARGE BLEND SCHB Schwab U.S. Broad Market ETF
    LARGE VALUE VYM Vanguard High Dividend Yield Indx ETF
    Foreign Large Blend SCHF Schwab International Equity ETF
    Foreign Large Growth EFG iShares MSCI EAFE Growth Index
    Foreign Large Value EFV iShares MSCI EAFE Value Index
    FOREIGN SMALL/MID GROWTH SCHC Schwab International Small-Cap Eq ETF
    DIVERSIFIED EMERGING MKTS SCHE Schwab Emerging Markets Equity ETF
    Foreign Large Blend VEU Vanguard FTSE All-World ex-US ETF
    WORLD STOCK VT Vanguard Total World Stock Index ETF
    EUROPE STOCK VGK Vanguard European ETF
    DIVERSIFIED PACIFIC/ASIA VPL Vanguard Pacific Stock ETF
    JAPAN STOCK EWJ iShares MSCI Japan Index
    China Region GXC SPDR S&P China
    Intermediate-Term Bond BND Vanguard Total Bond Market ETF
    SHORT GOVERNMENT SCHO Schwab Short-Term U.S. Treasury ETF
    Intermediate Government SCHR Schwab Intermediate-Term U.S. Trsy ETF
    LONG GOVERNMENT TLH iShares Barclays 10-20 Year Treasury Bd
    Inflation-Protected Bond SCHP Schwab U.S. TIPS ETF
    Intermediate-Term Bond CIU iShares Barclays Intermediate Credit Bd
    High Yield Bond JNK SPDR Barclays Capital High Yield Bond
    WORLD BOND BWX SPDR Barclays Capital Intl Treasury Bond
    Muni National Long MUB iShares S&P National AMT-Free Muni Bd
    Consumer Discretionary XLY Consumer Discret Select Sector SPDR
    Consumer Staples XLP Consumer Staples Select Sector SPDR
    Equity Energy XLE Energy Select Sector SPDR
    Financial XLF Financial Select Sector SPDR
    Health XLV Health Care Select Sector SPDR
    Industrials XLI Industrial Select Sector SPDR
    Natural Resources XLB Materials Select Sector SPDR
    Technology XLK Technology Select Sector SPDR
    Communications IYZ iShares Dow Jones US Telecom
    Utilities XLU Utilities Select Sector SPDR
    COMMODITIES BROAD BASKET DBC PowerShares DB Commodity Index Tracking
    Commodities Agriculture DBA PowerShares DB Agriculture
    Commodities Precious Metals IAU iShares Gold Trust
    Commodities Industrial Metals DBB PowerShares DB Base Metals
    Commodities Energy USL United States 12 Month Oil
    MISCELLANEOUS SECTOR PFF iShares S&P U.S. Preferred Stock Index
    REAL ESTATE VNQ Vanguard REIT Index ETF


     

    Asset Class Number of funds
    Balanced Fund 0
    REITs 1
    Fixed Income 9
    Commodity 5
    Sector Fund 11
    Foreign Equity 8
    Emerging Market Equity 3
    US Equity 11
    Other 1
    Total 49

    Many are looking for access to a well rounded ETF plan through Schwab. This fills this hole and as Schwab makes more of their own funds available, it will be possible to move them into the plan. On this review, the only comment would be to add another REIT choice. The other asset classes have a good number of selections without being overwhelming.

    As of Apr 4, 2011, 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 average (47%)
    Portfolio Building -- Rated as average (56%)
    Overall Rating: above average (66%)

    Thehigh diversification score means that all the major and minor asset classes have been ticked. Fund quality is lower because some of the ETF's don't have a long history but that shouldn't impede the ability for the future.

    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 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
    Commodity: DBC
    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 Apr 4, 2011)

    Performance table (as of Apr 4, 2011)

    Portfolio Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
    Schwab ETF Select List Tactical Asset Allocation Moderate 9% 82% 8% 72% 12% 89%
    Schwab ETF Select List Strategic Asset Allocation Moderate 14% 118% 3% 15% 4% 20%
    Six Core Asset ETF Benchmark Tactical Asset Allocation Moderate 9% 81% 10% 82% 13% 89%
    Six Core Asset ETF Benchmark Strategic Asset Allocation Moderate 14% 121% 4% 20% 7% 34%


    This portfolio performs well against the six asset ETF benchmark

    • SAA provides lower volatility while albeit delivering lower historical returns but as more of the newer funds are applied to the portfolio, there will be more opportunity for closing the gap
    • The TAA portfolios run neck and neck over the five year period

    In a future article, we will review performance over the last three months to see how the plan has performed in the light of recent events.

    Kay Takeaways

    • Building a plan of funds is not the preserve of the few -- anybody who has the interest and application to research can provide well constructed plans
    • It is possible to benefit from those individuals while still having transparency and not being captive to any particular broker

    Symbols: SPY, VTI, EFA, VEU, EEM, VWO, IYR, VNQ, ICF, AGG, BND, DBC, HYG, JNK, PHB, CIU, BIV, MUB, TFI, PZA, MLN, GII, PUI, DBU, RYU, UPW, IYH, IXJ, VHT, XBI, PBE, DBR, RYH, EFG, IXP, PTE, DGG, LTL, IYM, IGE, VAW, XLB, XME, PYZ, DBN, RTM, UYM, MTK, PTF, DBT, RYT, ROM, GWL, PFA, IVE, IWW, JKF, VTV, ELV, PWV, RPV, SCHV, EFV, PID, DWM, IYF, VFH, IPF, PFI, DRF, RYF, KXI, VDC, PSL, DPN, RHS, RXI, VCR, IYJ, EXI, VIS, IGOV, BWX, WIP, IVV, IYY, IWV, VV, DLN, RSP, SCHX, IOO, VT, 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, ITE, IXC, IPW, DBE, RYE, DKA, IEI, VGIT, IJK, IWP, VOT, EMG, PWJ, RFG, UKW, IJT, IWO, JKK, VBK, DSG, PWT, RZG, UKK, TIP, EPP, VPL, GMF, PAF, EWJ, JPP, PJO, DXJ, GSG

    Disclosure:

    MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.

    comments(1)  Share/Bookmark

  • E-Trade ETF Plan Hits Most of the High Notes

    02/16/2011

    ETrade All-Star ETF plan has recently been announced as no/low cost ETF plans become increasingly widespread. The company has attempted to make their selection on criteria such as low expense ratio, tracking error, liquidity, style purity, underlying holdings, and how well the ETF represents the index it seeks to replicate. In addition, ETFs chosen are passively managed, have at least 6-months trading history and are sponsored by a well balanced investment firm.

    The growth in number of ETFs are such that many of them are still new. In our analysis, we ignore ETF's that have less than one year's history which may negatively impact returns in the short term but, over time, they will come on-line and provide greater diversification.

    The plan consists of 40 funds giving exposure to 5 major assets: US Equity, Foreign Equity, REITs, Emerging Market Equity, Fixed Income.

     

    Asset Class Ticker Name
    LARGE BLEND RSP Rydex S&P Equal Weight
    LARGE BLEND SPY SPDR S&P 500
    LARGE GROWTH IWF iShares Russell 1000 Growth Index
    LARGE GROWTH MGK Vanguard Mega Cap 300 Gr Index ETF
    LARGE VALUE IWD iShares Russell 1000 Value Index
    LARGE VALUE DIA SPDR Dow Jones Industrial Average
    LARGE VALUE VYM Vanguard High Dividend Yield Indx ETF
    LARGE VALUE MGV Vanguard Mega Cap 300 Value Index ETF
    MID-CAP BLEND VO Vanguard Mid-Cap ETF
    Mid-Cap Growth VOT Vanguard Mid-Cap Growth ETF
    MID-CAP VALUE VOE Vanguard Mid-Cap Value ETF
    SMALL BLEND IWM iShares Russell 2000 Index
    Small Growth IWO iShares Russell 2000 Growth Index
    SMALL VALUE IWN iShares Russell 2000 Value Index
    Emerging Markets Bond EMB iShares JPMorgan USD Emerg Markets Bond
    Emerging Markets Bond PCY PowerShares Emerging Mkts Sovereign Debt
    High Yield Bond HYG iShares iBoxx $ High Yield Corporate Bd
    High Yield Bond JNK SPDR Barclays Capital High Yield Bond
    Inflation-Protected Bond TIP iShares Barclays TIPS Bond
    Intermediate Government IEI iShares Barclays 3-7 Year Treasury Bond
    Intermediate Government AGZ iShares Barclays Agency Bond
    Intermediate Government ITE SPDR Barclays Capital Interm Term Trs
    Intermediate-Term Bond AGG iShares Barclays Aggregate Bond
    Intermediate-Term Bond CFT iShares Barclays Credit Bond
    Intermediate-Term Bond BIV Vanguard Intermediate-Term Bond ETF
    Intermediate-Term Bond BND Vanguard Total Bond Market ETF
    LONG GOVERNMENT TLH iShares Barclays 10-20 Year Treasury Bd
    Long-Term Bond BLV Vanguard Long-Term Bond Index ETF
    SHORT GOVERNMENT SHY iShares Barclays 1-3 Year Treasury Bond
    Short-Term Bond BSV Vanguard Short-Term Bond ETF
    WORLD BOND BWX SPDR Barclays Capital Intl Treasury Bond
    WORLD BOND BWZ SPDR Barclays Cap S/T Intl Treasury Bond
    WORLD BOND WIP SPDR DB Intl Govt Infl-Protected Bond
    DIVERSIFIED EMERGING MKTS BIK SPDR S&P BRIC 40
    DIVERSIFIED EMERGING MKTS VWO Vanguard Emerging Markets Stock ETF
    Foreign Large Blend EFA iShares MSCI EAFE Index
    Foreign Large Value IDV iShares Dow Jones Intl Select Div Idx
    Foreign Small/Mid Value SCZ iShares MSCI EAFE Small Cap Index
    Global Real Estate RWO SPDR Dow Jones Global Real Estate
    REAL ESTATE RWR SPDR Dow Jones REIT

     

    This is a good selection of funds which hit the main notes -- good choices in fixed income and the US and choices for international and domestic real estate as well as multiple selections in Foreign and emerging market classes.

    The US selections have one in the top ten performance ranking and so US there is room for improvement there.

    TKR
    Name
    Rank
     5 Yr AR%
    3yr AR%
    1yr AR%
    MPIQ Score
    IWO
    iShares Russell 2000 Growth 
    5
    3.73%
    5.45%
    39.77%
    55.4%
    VO
    Vanguard Mid-Cap ETF
    12
    3.60%
    3.05%
    36.00%
    47.8%
    VOT
    Vanguard Mid-Cap Growth ETF
    13
    0.00%
    3.26%
    42.68%
    47.6%
    IWN
    iShares Russell 2000 Value Index
    18
    1.61%
    3.65%
    32.80%
    41.5%
    RSP
    Rydex S&P Equal Weight
    19
    3.45%
    3.58%
    27.38%
    39.7%
    IWM
    iShares Russell 2000 Index
    20
    2.26%
    3.50%
    29.63%
    39.4%
    VOE
    Vanguard Mid-Cap Value ETF
    22
    0.00%
    2.95%
    29.26%
    33.7%
    DIA
    SPDR DJ  Industrial Average
    27
    4.35%
    0.33%
    19.15%
    28.3%
    IWF
    iShares Russell 1000 Growth Index
    29
    3%
    2.21%
    17.76%
    26.4%
    SPY
    SPDR S&P 500
    30
    2.07%
    -0.11%
    21.68%
    25.7%
    IWD
    iShares Russell 1000 Value Index
    36
    1.14%
    -2.81%
    18.67%
    16.7%
    MGK
    Vanguard Mega Cap 300 Growth
    NRV
    MGV
    Vanguard Mega Cap 300 Value
    NRV
    VYM
    Vanguard High Dividend Yield Indx 
    NRV


    NRV means not ranked because the trading volume was below our cutoff

    There is no commodity alternative. This may have been less important in the past, but with inflation almost inevitable, a commodities option such as DBC would make sense.

     

    As of Feb 15, 2011, this plan investment choice is rated as average based on MyPlanIQ's 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 (89%)

    Fund Quality -- Rated as below average (17%)
    Portfolio Building -- Rated as average (42%)
    Overall Rating: average (49%)

    It is important to note that the fund quality rating is lower because of the lack of history -- as time marches on and the ETFs create more of a trail, we expect that rating to increase.

    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 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 Feb 15, 2011)

    Performance table (as of Feb 15, 2011)

    Portfolio Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
    Etrade All Star ETFs Tactical Asset Allocation Moderate 14% 117% 9% 69% 11% 71%
    Etrade All Star ETFs Strategic Asset Allocation Moderate 16% 146% 2% 12% 5% 19%
    Five Core Asset ETF Benchmark Tactical Asset Allocation Moderate 14% 124% 8% 65% 11% 72%
    Five Core Asset ETF Benchmark Strategic Asset Allocation Moderate 19% 157% 4% 18% 6% 24%

    Currently Real Estate, US Equity and Commodities are doing well. US Equity and Real Estate available to Etrade All Star ETFs participants.

    The plan runs neck and neck with the benchmark but we would expect it to pull away as more of the funds establish history and can be used in the portfolio.

    To summarize, Etrade All Star ETF plan ticks most of the boxes but would be strengthened by adding commodity choices.

    Disclosure:

    MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.

     

    Symbols:SPY,VTI,EFA,VEU,EEM,VWO,IYR,VNQ,ICF,AGG,BND,HYG,JNK,PHB,CIU,BIV,GWL,PFA,IVE,IWW,JKF,VTV,ELV,PWV,RPV,SCHV,SCZ,EFV,PID,DWM,IFGL,RWX,IGOV,BWX,WIP,IVV,IYY,IWV,VV,DLN,RSP,SCHX,SHY,SHV,VGSH,PLK,USY,TLT,TLH,IEF,EDV,VGLT,TLO,PLW,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,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,PCY,CSJ,BSV,VCSH,IEI,VGIT,ITE,IJK,IWP,VOT,EMG,PWJ,RFG,UKW,IJT,IWO,JKK,VBK,DSG,PWT,RZG,UKK,TIP,DBC

    labels:IRA,Retirement,Investment,ETF,Portfolio,construction, 

    comments(0)  Share/Bookmark

  • Allegheny Ludlum Corporation 401K Plan Is Rated As Above Average

    12/06/2010

    This report reviews Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan. We will discuss the investment choices and present the plan rating by MyPlanIQ. Current economic and market conditions are discussed in the context of the investment portfolios in the plan. We will then show how participants in Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan can achieve reasonable investment results using asset allocation strategies.

     

    Plan Review and Rating

    Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan's 401K plan consists of 55 funds. These funds enable participants to gain exposure to 5 major assets: US Equity, Foreign Equity, Commodity, Emerging Market Equity, 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
    Diversified Pacific/asia: EPP, VPL, GMF, PAF
    Equity Energy: ITE, IXC, IPW, DBE, RYE, DKA
    Europe Stock: IEV, VGK, PEF, DEB
    Foreign Large Blend: EFA, VEU, GWL, PFA
    Foreign Small/mid Growth: IFSM, VSS, SCHC
    Health: IYH, IXJ, VHT, XBI, PBE, DBR, RYH
    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
    Latin America Stock: ILF, GML
    Long Government: TLT, TLH, IEF, EDV, VGLT, TLO, PLW
    Mid-cap Value: IJJ, IWS, JKI, VOE, EMV, PWP, RFV, UVU
    Multisector Bond: AGG, GBF, BND, LAG
    Natural Resources: IYM, IGE, VAW, XLB, XME, PYZ, DBN, RTM, UYM
    Pacific/asia Ex-japan Stk: EPP, AAXJ, GMF, PAF, DND
    Short Government: SHY, SHV, VGSH, PLK, USY
    Short-term Bond: CSJ, BSV, VCSH
    Small Growth: IJT, IWO, JKK, VBK, DSG, PWT, RZG, UKK
    Technology: MTK, PTF, DBT, RYT, ROM

    As of Dec 2, 2010, this plan investment choice is rated as 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 (91%)
    Fund Quality -- Rated as (48%)
    Portfolio Building -- Rated as (84%)
    Overall Rating: (75%)

     

    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.

    • The Federal Reserve embarked on Quantitative Easing II (QE2) to stimulate the economy.
    • The housing market is still at its low but largely stabilized.
    • The unemployment rate is stuck at 9%.

     

    Americans continue to face an uncertain future, given (among others) the high unemployment rate, 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, markets have been resilient and appear positioned to rebound.

    In this market 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 Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan).

    Strategic Asset Allocation is based on well known 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 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 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 Dec 2, 2010)

    Performance table (as of Dec 2, 2010)

    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 Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan participants.

    To summarize, Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan plan participants can achieve reasonable investment returns by adopting asset allocation strategies that are tailored to their risk profiles. 

     

    labels:investment,

    Symbols:ATI,SPY,VTI,EFA,VEU,EEM,VWO,AGG,BND,DBC,AOK,CIU,BIV,IYH,IXJ,VHT,XBI,PBE,DBR,RYH,IYM,IGE,VAW,XLB,XME,PYZ,DBN,RTM,UYM,MTK,PTF,DBT,RYT,ROM,GWL,PFA,IVE,IWW,JKF,VTV,ELV,PWV,RPV,SCHV,IVV,IYY,IWV,VV,DLN,RSP,SCHX,SHY,SHV,VGSH,PLK,USY,TLT,TLH,IEF,EDV,VGLT,TLO,PLW,

     

    comments(0)  Share/Bookmark

First   1   Last  

  • Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan Report On 12/03/2010

    12/03/2010

    This report reviews Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan plan. We will discuss the investment choices and present the plan rating by MyPlanIQ. Current economic and market conditions are discussed in the context of the investment portfolios in the plan. We will then show how participants in Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan can achieve reasonable investment results using asset allocation strategies.

    Plan Review and Rating

    --

    Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan's 401K plan consists of 55 funds. These funds enable participants to gain exposure to 5 major assets: US Equity, Foreign Equity, Commodity, Emerging Market Equity, 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
    Diversified Pacific/asia: EPP, VPL, GMF, PAF
    Equity Energy: ITE, IXC, IPW, DBE, RYE, DKA
    Europe Stock: IEV, VGK, PEF, DEB
    Foreign Large Blend: EFA, VEU, GWL, PFA
    Foreign Small/mid Growth: IFSM, VSS, SCHC
    Health: IYH, IXJ, VHT, XBI, PBE, DBR, RYH
    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
    Latin America Stock: ILF, GML
    Long Government: TLT, TLH, IEF, EDV, VGLT, TLO, PLW
    Mid-cap Value: IJJ, IWS, JKI, VOE, EMV, PWP, RFV, UVU
    Multisector Bond: AGG, GBF, BND, LAG
    Natural Resources: IYM, IGE, VAW, XLB, XME, PYZ, DBN, RTM, UYM
    Pacific/asia Ex-japan Stk: EPP, AAXJ, GMF, PAF, DND
    Short Government: SHY, SHV, VGSH, PLK, USY
    Short-term Bond: CSJ, BSV, VCSH
    Small Growth: IJT, IWO, JKK, VBK, DSG, PWT, RZG, UKK
    Technology: MTK, PTF, DBT, RYT, ROM

    As of Dec 2, 2010, this plan investment choice is rated as 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 (91%)
    Fund Quality -- Rated as (48%)
    Portfolio Building -- Rated as (84%)
    Overall Rating: (75%)

    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.

    • The Federal Reserve embarked on Quantitative Easing II (QE2) to stimulate the economy.
    • The housing market is still at its low but largely stabilized.
    • The unemployment rate is stuck at 9%.

    Americans continue to face an uncertain future, given (among others) the high unemployment rate, 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, markets have been resilient and appear positioned to rebound.

    In this market 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 Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan).

    Strategic Asset Allocation is based on well known 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 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 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 Dec 2, 2010)

    Performance table (as of Dec 2, 2010)

    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 Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan participants.

    To summarize, Allegheny Ludlum Corporation Personal Retirement and 401(k) Savings Account Plan plan participants can achieve reasonable investment returns by adopting asset allocation strategies that are tailored to their risk profiles.

    Symbols: ATI , SPY , VTI , EFA , VEU , EEM , VWO , AGG , BND , DBC , AOK , CIU , BIV , IYH , IXJ , VHT , XBI , PBE , DBR , RYH , IYM , IGE , VAW , XLB , XME , PYZ , DBN , RTM , UYM , MTK , PTF , DBT , RYT , ROM , GWL , PFA , IVE , IWW , JKF , VTV , ELV , PWV , RPV , SCHV , IVV , IYY , IWV , VV , DLN , RSP , SCHX , 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 , IFSM , VSS , SCHC , GMM , PXH , DEM , SCHE , GBF , LAG , CSJ , BSV , VCSH , ITE , IXC , IPW , DBE , RYE , DKA , ILF , GML , IJT , IWO , JKK , VBK , DSG , PWT , RZG , UKK , TIP , EPP , VPL , GMF , PAF , AAXJ , DND , GSG

  • Peabody Investments Corp.Employee Retirement Account Report On 12/03/2010

    12/03/2010

  • TD Ameritrade Commission Free ETFs Report On 12/07/2010

    12/07/2010

Members enjoy Free features

  • Customize and follow a diversified strategic allocation portfolio for your 401k, IRA and brokerage investments within minutes
  • Receive monthly or quarterly re-balance emails
  • Enter funds and percentages in your portfolio, see its historical performance and receive ongoing rebalance emails
  • Real time fund ranking and selection for your plans
  • Quality retirement investing newsletter emails
  • Fund ranking and selection for your plans

Tens of thousands of users have signed up!

Join Now (Free)
No Credit Card Required

User names can only consist of alphabetic and
numeric characters.(eg: 0-9a-zA-Z)
I agree to the Terms of use

Login With Facebook:

Get Started Now. It's Free!

Get portfolio suggestions for your
401k plan or brokerage accounts

Powered by MyPlanIQ
You have created an account on MyPlanIQ.com by using this email "", please login MyPlanIQ account or reset your password.