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  • Building Your Core Portfolio With Vanguard ETFs: Domestic Bonds [View article]
    ARTICLE FOLLOW-UP:

    This article may be of interest given the market turmoil over the past week and specifically with what's been going on in emerging markets, particularly China.

    http://tinyurl.com/nw2...

    With respect to this ETF specifically, I found the following quote very interesting:

    "Analysts and investors say while there could be a short-term influence from China selling, what matters more to the bond market is the growth and inflation outlook. China’s move to weaken the yuan has added to the selling pressure in commodities and emerging-market currencies, creating deflationary pressure globally. Inflation is the main threat to long-term bonds’ value, so with inflation concerns on the back burner, investors are comfortable buying long-term bonds."
    Aug 28, 2015. 05:15 PM | Likes Like |Link to Comment
  • The ETF Monkey Vanguard Core Portfolio: Weathering The Storm And A Rebalance [View article]
    User305,

    On my personal blog, I actually built a variant of this portfolio where I took an arbitrary 2.5% from each asset class in this portfolio and added a 7.5% weighting of VNQ.

    http://tinyurl.com/pqx...

    I took a snapshot of that one as well, as of the 8/24/15 close. That variant was down 7.35% compared to the 7.79% for this portfolio. Clearly, in addition to bonds, this points to the fact that REITs held up well.

    The main point of this effort, though, was to show that any investor can build a simple, diversified, low-cost portfolio. Unfortunately, the market hit a pretty rough stretch immediately following the inception of this portfolio so we're off to a rough start. We'll revisit as time moves forward to see how it does.
    Aug 28, 2015. 12:21 PM | Likes Like |Link to Comment
  • The ETF Monkey Vanguard Core Portfolio: Weathering The Storm And A Rebalance [View article]
    Mr AT,

    Thanks for reading. As mentioned in the article, I did this simply so my work could be tracked.

    But you actually got me thinking about it. I could implement what you describe and still have it be traceable. On Google Finance, I can clearly see that the low for VEU on 8/24/15 was $41.61. So I could "buy" at any point above that and have it documented. I'm shooting myself in the foot as far as possibly beating the benchmark S&P index by not taking full advantage of that.

    On the other hand, the main thrust of my articles is for educational purposes, and I have historically made it very clear that intra-day trading is one advantage of ETFs over mutual funds. Also, I guess my dilemma is that, should I use the day's low point, someone would say "Yeah, right, like you would consistently be lucky enough to catch the low point of the day."
    Aug 28, 2015. 12:10 PM | Likes Like |Link to Comment
  • It's August 13, 2015 - Do You Know What's In Your International ETF? [View article]
    ARTICLE FOLLOW-UP:

    I wrote the following article to track the performance of the ETF Monkey Vanguard Core Portfolio from its inception on 6/30/15 through 8/24/15, the day the Dow opened down over 1,000 points and all 3 major U.S. averages closed in correction territory.

    http://seekingalpha.co...

    In connection with this effort, I decided to go back and examine how the 4 ETFs discussed in this article fared during that turbulent period. Here are the results:

    VEA
    6/30/15 Close: $39.65
    8/24/15 Close: $35.91
    Decrease: 9.43%

    VEU
    6/30/15 Close: $48.55
    8/24/15 Close: $42.71
    Decrease: 12.03%

    VXUS
    6/30/15 Close: $50.33
    8/24/15 Close: $44.34
    Decrease: 11.90%

    VWO
    6/30/15 Close: $40.88
    8/24/15 Close: $32.17
    Decrease: 21.31%
    Aug 27, 2015. 11:59 AM | Likes Like |Link to Comment
  • 2 ETFs To Hold For The Next 25 Years [View article]
    I have some DIA in my portfolio. I like the monthly distributions. I suspect for many retirees this is an important consideration, perhaps in combination with some bond ETFs that also pay monthly.

    However, I might consider something like VIG as an alternative. Currently, it contains 181 stocks, as opposed to 30. Further, the fund's index doesn't allow for more than a 4% weighting in any one stock, as opposed to an index where GS is almost 8% and GE is less than 1%. Add in the fact that 10 consecutive years of regular dividend increases is the price of admission to VIG's index, coupled with a low .10% expense ratio, and you have, for me, a preferred long-term holding.
    Aug 23, 2015. 01:00 PM | 1 Like Like |Link to Comment
  • VDC: If You Can Trade It For Free, It Belongs In Your Portfolio [View article]
    I used to have VDC in my portfolio, basically because I agree with so much that you wrote here. Later, though, in the process of simplifying my portfolio, I moved my VDC allocation into a combination (as I recall) of VIG and VYM, both of which I already owned. Between the once per year dividend, the slightly higher expense ratio (.12 vs .10) and my feeling that, overall, the combination of VYM and VIG gave me a fairly similar risk/reward profile together with quarterly income, I made the move.

    For those interested in reading, I wrote a recent article for SA on VIG. http://seekingalpha.co...
    Aug 22, 2015. 11:48 AM | Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    26697213,

    I was intrigued by the difference of view between yourself and Matthew Sauer, so I looked into it. I did not quickly respond as I wanted to give Matthew the chance to speak for himself. It appears, though, that he may have moved on to other matters.

    However, I believe the data you supplied may actually support his assertions. The key is to determine the period in question. Here are some clues from Matthew's article, bearing in mind that it was written on August 28, 2014.

    Clue #1

    "Based on the closing price on June 1, 2006 and the future 12-month dividend payout (through June 2007), VIG had the lowest yield at 1.69 percent."

    Clue #2

    "In the seven years since then, . . . SPY saw . . . cumulative growth of 44.47 percent. VIG saw superior growth of 110.14 percent.

    It would appear, then, that Matthew is referring to a 7-year period from approximately 6/2007 - 6/2014. Given that, here are the numbers.

    SPY Dividend
    6/15/07 - .6556
    6/20/14 - .93669
    Increase - 42.87%

    VIG Dividend
    6/25/07 - .191
    6/23/14 - .408
    Increase - 113.61%

    Now, my numbers are slightly off, possibly because Matthew picked a slightly different starting and ending point than I theorize here. Basically, however, they appear to agree with the assertion he made.
    Aug 21, 2015. 12:16 PM | Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    POST-ARTICLE NOTE:

    In my article, I theorized that VIG might hold up well in the case of a downturn. Ironically, we experienced a sharp drop in the market today, the very next day. The Dow was down 2.06%, S&P 500 2.11%, and NASDAQ 2.82%. Certainly, one day does not a pattern make. But the results were interesting nonetheless.

    VTI, which tracks the total market, dropped 2.17%. Sounds pretty reasonable.

    VIG? Down 1.51%, roughly 70% of VTI.
    Aug 20, 2015. 06:37 PM | 4 Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    Keltus,

    Re: VYM vs. VIG, see my quick notes in reply to Witikind below.
    Aug 20, 2015. 03:34 PM | Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    Witikind,

    I actually have both in my portfolio, although my weighting in VIG is approximately 1.5x my weighting in VYM.

    Some writers suggest that holding both is appropriate if one is interested in dividends. True, there is some overlap. However, to quickly expose some differences:

    * The combined sectors of Oil & Gas, Telecommunications and Utilities comprise 23.7% of VYM but only 3.4% of VIG.

    * In VIG, the difference is mainly made up in Consumer Goods and Services, which together comprise 39.6% of VIG but only 21.1% in VYM.

    VYM gets you a little higher current income, VIG prospects for greater growth over time. Both sport the same low .10% expense ratio.
    Aug 20, 2015. 03:33 PM | 1 Like Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    Bprice,

    I have been lucky enough to also count a modest weighting in VHT in my portfolio for the past couple of years (I'd have to look up the exact date I bought it). I am smiling right along with you.
    Aug 20, 2015. 03:11 PM | Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    Thank you for those very specific comments. I just want to convey how sincerely I appreciate that last sentence. I hope this proves true for every reader, regardless of whether they agree with my conclusions or viewpoint.
    Aug 20, 2015. 01:24 PM | 2 Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    HFullerton,

    Thanks for reading, and your comments. I appreciate your viewpoint and perspective.

    FWIW, you sound like exactly the type of investor I hope for my work to reach. I wasn't explicit in this but there was an implication in my opening story re: looking for my 10 "forever" stocks that a lot of time and effort would have had to go into that selection were I to hope to achieve the desired goal. Not everyone either has such time, or desires to spend it in this manner. It's one of those cases of "to each his (or her) own."

    As an aside, as of this morning VIG comprises 5.83% of my portfolio. I haven't decided on a personal "max" for this ETF but the 8% you propose certainly sounds reasonable.
    Aug 20, 2015. 12:05 PM | Likes Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    Matthew,

    Thanks for the link to your article, and the additional information you provided. It certainly offers more food for thought.

    All my best.
    Aug 20, 2015. 11:54 AM | 1 Like Like |Link to Comment
  • An ETF That Is A Dividend Growth Investor's Best Friend [View article]
    The Money Madam,

    Interesting point you make about dividend stocks getting hit of late. I actually posted a related action alert for VIG on my personal blog a little over a month ago.

    http://bit.ly/1NM8F0y

    I added a small amount in my own portfolio right around the same time I posted that alert.
    Aug 19, 2015. 08:48 PM | Likes Like |Link to Comment
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