|
MyPlanIQ Investment Advisor Newsletter
February 2011
|
Archive |
This is a biweekly newsletter with quantitative data from thousands of plans.
We believe that good asset allocation brings the best returns.
Portfolio and Plan Focus
After reporting on the Morningstar 401K plan, we have started the process of cloning the plan with ETFs. The original
cloning article can be found here. The ETF clone underperforms the original. As a part of the process, we are ranking ETFs
in each of the sub asset classes. We will be reporting this on SeekingAlpha. Here are the links to the large cap equities
that we have already completed.
In the next Newsletter we will report on Small and Mid Cap ETFs.
February Asset Class Ratings
As we move into February, we have reviewed the major asset class ratings and we have published the following rankings.
| Assets
Class |
Symbols |
02/04
Trend
Score |
01/28
Trend
Score |
Direction |
| Commodities |
DBC |
13.51% |
12.1% |
^ |
| US
Stocks |
VTI |
12.28% |
10.47% |
^ |
| US
Equity REITs |
VNQ |
10.81% |
10.96% |
v |
| International
REITs |
RWX |
9.54% |
8.32% |
^ |
| International
Developed Stks |
EFA |
8.6% |
5.98% |
^ |
| Emerging
Market Stks |
VWO |
7.75% |
5.61% |
^ |
| Gold |
GLD |
6.73% |
5.47% |
^ |
| US
High Yield Bonds |
JNK |
5.55% |
4.06% |
^ |
| Frontier
Market Stks |
FRN |
2.8% |
1.53% |
^ |
| International
Treasury Bonds |
BWX |
1.77% |
1.25% |
^ |
| Treasury
Bills |
SHV |
0.0% |
0.02% |
v |
| Emerging
Mkt Bonds |
PCY |
-0.05% |
0.12% |
v |
| US
Credit Bonds |
CFT |
-0.75% |
0.92% |
v |
| Total
US Bonds |
BND |
-1.35% |
-0.07% |
v |
| Mortgage
Back Bonds |
MBB |
-2.57% |
-1.09% |
v |
| Intermediate
Treasuries |
IEF |
-2.78% |
0.26% |
v |
| Municipal
Bonds |
MUB |
-3.11% |
-1.98% |
v |
The
trend score is defined as the average of 1,4,13,26 and 52 week total
returns (including dividend reinvested).
Notice that Commodities, US Stocks and Real Estate have overtaken
emerging markets. As a result, our typical, moderate TAA portfolio will have the following composition.
| CASH |
39.31% |
| REAL ESTATE |
15.00% |
| REAL ESTATE |
15.09% |
| COMMODITIES |
14.90% |
| COMMODITIES |
15.70% |
Notes
-
The portfolio moved out of US Equities into real estate
- Cash is still preferred over fixed income
- Next time we will look at the subclass preferences in a buy and hold portfolio
Articles of the week
Disclaimer:
Any investment in securities including mutual funds,
ETFs, closed end funds, stocks and any other securities could lose
money over any period of time. All investments involve risk. Losses may
exceed the principal invested. Past performance is not an indicator of
future performance. There is no guarantee for future results in your
investment and any other actions based on the information provided on
the website including, but not limited to, strategies, portfolios,
articles, performance data and results of any tools.
All rights are reserved and enforced. By accessing
the website, you agree not to copy and redistribute the information
provided herein without the explicit consent from MyPlanIQ.
|
![[XML]](http://www.myplaniq.com/jforum/templates/default/images/xml_button.gif)