 |
Vanguard ETF: |  |
7.4%* |
|
Diversified Core: | |
8.1%* |
|
Six Core Asset ETFs: | |
7.3%* |
Articles on VGT
- Initiating Tracking of US Subclasses
02/22/2011
We are initiating weekly tracking of the nine different styles or subclasses in the US Equity asset class. We use ETFs to represent each sub-class. We track returns over 1, 4, 13, 26, and 52 weeks and aggregate them to get a trend score. We then track the trend score to see the direction of each representative ETF in the subclass. By using an ETF from the same provider, we are attempting to normalize out performance of the ETF over the performance of the subclass.
Assets Class
Symbols
02/18
Trend
Score02/11
Trend
ScoreDirection
Russell Smallcap Growth
IWO
20.85%
19.88%
^
Russell Smallcap Index
IWM
18.7%
17.58%
^
Russell Midcap Growth
IWP
18.3%
18.8%
v
Russell Smallcap Value
IWN
17.28%
16.08%
^
Russell Midcap Index
IWR
16.68%
16.74%
v
Russell Midcap Value
IWS
15.91%
15.66%
^
Russell Largecap Growth
IWF
14.31%
14.08%
^
Russell Largecap Index
IWB
13.44%
13.04%
^
Russell Largecap Value
IWD
13.27%
12.67%
^
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
We note that most of the of the sub-classes are positive as the US bull market continues. We also note that Midcap is dropping in comparison to Smallcap - Midcap has been at the top of the list but is starting to be replaced by Smallcap. Finally we note that the order within a sub-class is Growth, Index (Blend), Value.
Although the entire top three dropped compared to the prior week, the smalcaps dropped less than the midcap stock. The continuing bull market is moving investors away from the relative safety of large cap to the small cap stocks. The midcap, which had been a nice midway point, is being supplanted by the smallcap options as investors seek to maximize returns.
The large cap stocks are solidly at the bottom of the table as investors look for higher returns. We note that the Largecap Value has the best performance in the short term even though it has had the poorest return over the longer time horizon.
We would expect to see this picture to remain for some time unless the unrest in the Middle East and North Africa causes investors to look for safer US equities.
Symbols:VCR,VDC,VIG,VWO,VDE,VEA,VGK,EDV,VFH,VEU,VSS,VUG,VHT,VYM,VIS,VGT,BIV,VCIT,BLV,VCLT,VGLT,VAW,MGC,MGK,MGV,VO,VOT,VOE,VMBS,VPL,VNQ,BSV,VGSH,VB,VBK,VBR,VOX,BND,VTI,VT,VPU,VTV,IJK,VBK,QQQQ,MDY,IWO,IJT,IJH,VB,VXF,IWP,IJR,VO,VOT,IWR,IJJ,VBR,IJS,IWN,RSP,IWM,IWS,VOE,VTV,IWC,SCHA,VTI,DIA,VUG,IWF,SPY,IWB,SDY,IVW,VIG,IVV,IWD,OEF,IVE,DVY,
Disclosure:
MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
- Apple 401K Report On 06/01/2011
06/01/2011
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 Apple 401K can achieve reasonable investment results using asset allocation strategies. We will also discuss how those portfolios are positioned in today’s market environment.
Apple Inc., (Ticker: AAPL) together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells various third-party Macintosh, iPhone, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of September 26, 2009, it had 273 retail stores, including 217 stores in the United States and 56 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Apple offers generous benefits to its employees. It was the first high tech company in Bay Area that offered free day care for employees' children.
Apple 401K's 401K plan consists of 14 funds. These funds enable participants to gain exposure to 4 major assets: US Equity, Foreign Equity, REITs, Fixed Income. Four Core Asset Index Funds REITs's 401K plan consists of 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 by Apple 401K The list of minor asset classes covered by Four Core Asset Index Funds REITs Asset Class Apple 401K Four Core Asset Index Funds REITs Total 14
As of May 27, 2011, Apple 401K investment choice is rated as average and Four Core Asset Index Funds REITs 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:
Attribute Apple 401K Four Core Asset Index Funds REITs Diversification above average (85%) Fund Quality below average (15%) No Rating Portfolio Building average (59%) No Rating Overall Rating average (54%) No Rating
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 May 27, 2011)Performance table (as of May 27, 2011)
Portfolio Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe Apple 401K Tactical Asset Allocation Moderate 12% 159% 9% 122% 9% 99% Apple 401K Strategic Asset Allocation Moderate 14% 225% 4% 27% 5% 32% Four Core Asset Index Funds REITs Tactical Asset Allocation Moderate 10% 88% 8% 81% 10% 85% Four Core Asset Index Funds REITs Strategic Asset Allocation Moderate 17% 158% 4% 19% 6% 24% Currently are doing well. But these asset classes are not available to Apple 401K participants.
To summarize, Apple 401K 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 Foreign Equity, REITs and Fixed Income funds.
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.
Symbols:AAPL, CASH, VBMFX, LHYZX, FBAKX, FGRIX, FMGKX, VITPX, VITSX, NAESX, FCNTX, RGRYX, VGTSX, VDMIX, TAREX, VTSMX, VGSIX
Exchange Tickers: (AAPL), (CASH), (VBMFX), (LHYZX), (FBAKX), (FGRIX), (FMGKX), (VITPX), (VITSX), (NAESX), (FCNTX), (RGRYX), (VGTSX), (VDMIX), (TAREX), (VTSMX), (VGSIX) - Ford Motor 401K Report On 06/01/2011
06/01/2011