Country / Region ETFs Most Exposed To A Correction [View article]
YPA: that is true, but it takes a prolonged period of the price being away from the average to move it much, whereas the price can revert much more easily and quickly
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
SDS,
Your point about small-caps is particularly important about the nature of actively managed mutual funds with large assets under management. The larger the asset base, the bigger the "bite size" they must take to keep the number of securities to some limit. Therefore they tend to gravitate up the market-cap scale as they grow.
Individual investors generally have much lower bite size and can work in the small and micro space if they believe they have found good opportunities.
On the other hand, the balance between seasoned long-term dividend payers (generally large companies) and up and coming dividend payers with a potentially faster dividend growth path (often mid-cap or small-cap companies, but seldom micro-cap companies) tends to favor larger companies for those investors who seek dividend cash flow reliability.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
BlueOkie
First, there is no suggestion that you rebalance at all, let alone do it monthly. This simply shows you the impact of doing so, as that is what the software we used has as its only option -- and by the way it is what is practiced by some large accounts.
Second, "silly" is a judgement that may make sense to you but not to others. In a tax free or tax deferred account there is no tax drag from rebalancing, and for large accounts commissions are inconsequential as a percentage of assets. For small accounts commissions are important.
With commissions in the $10 or less range, and with trades of $1,000 the commission is 1%. For trades of $10,000 the commission is 0.1%. For trades of $100,000 the commission is 0.01%.
I contend that a 0.01% trading cost is likely to be no problem, and that 0.1% may often work if the security had a large enough price change, and that a 1% trading cost would most often be too much to be worthwhile, except in cases of very large price changes in the position.
If the commission is too high relative to the amount to be rebalanced, you don't do it; but if the commission is not too high then rebalancing can make sense. It is all a matter of the size of the portfolio, as well as the level of attention and work you are will to apply.
It is important not to judge the discussion of a method that is not tailored to your personal situation as "silly", but rather to simply decide that it is not for you. You would have been better to say, that you don't have enough money to make the approach economically practical.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
richjoy403
The higher valuation is probably the result of yield chasing, and the lower operating results are characteristics of both large-cap and above average dividend companies generally. It's not just this batch, but it seems from our research that any batch selected on a similar set of criteria (high quality financials, above average yield, a long history of dividend payment and a pattern of dividend growth) show lower ROE and ROA than the S&P 500. That is not so say that special filtering could not do better than that, but generally that differential is the case.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
Siestadreamer
Because of monthly rebalancing, the dividends were constantly reinvested, but rather than being reinvested in the stocks from which they came, they were reinvested within the overall rebalancing process.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
WIESJE
All data is through 2013. No data ends at an earlier date.
The tables showing the best and worst 3 months, 1 year and 3 years have dates next to the returns to show when those period occurred.
The 3 month and 1 year total return detail in the first image should be sufficient to understand short-term performance of the stocks individually, and at the top as a portfolio versus the S&P 500.
In this case this batch outperformed the S&P 500 over the the short and long term and shown in the first image.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
wiesje
Each image provides a comparison to the S&P 500 (refered to as Benchmark or or Bmark) and referenced in the text.
Foreign companies or any other company not included in the list is because the managements of those funds based on their judgements and their mandate did not find them sufficiently attractive to be in their top holdings. Some companies of interest to you may well be in their portfolios, but they are not in the cross referenced widely held securities.
Remember, this is a data mining report on the decision made by leading fund managers, so we have no control over what shows up as their choices.
To be clear there was no comparison being made between gold and Apple. There was an observation that when something becomes so popular that is it #1 or biggest, it has a likelihood to precede a significant fall
Yes, Apple can buy its way out of its hole with increased dividends, but gold in inert and can do anything in and of itself to change its course. Apple is organic and can influence its own future. Gold is inorganic and can only be influenced by the market.
Country / Region ETFs Most Exposed To A Correction [View article]
That is a typo that I will have promptly changed. Sorry and thank you.
Richard
Country / Region ETFs Most Exposed To A Correction [View article]
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
Your point about small-caps is particularly important about the nature of actively managed mutual funds with large assets under management. The larger the asset base, the bigger the "bite size" they must take to keep the number of securities to some limit. Therefore they tend to gravitate up the market-cap scale as they grow.
Individual investors generally have much lower bite size and can work in the small and micro space if they believe they have found good opportunities.
On the other hand, the balance between seasoned long-term dividend payers (generally large companies) and up and coming dividend payers with a potentially faster dividend growth path (often mid-cap or small-cap companies, but seldom micro-cap companies) tends to favor larger companies for those investors who seek dividend cash flow reliability.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
None were owned by all 6 but some were owned by 5:
XOM
CVX
MRK
PFE
PG
JNJ
T
MSFT
UPS
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
First, there is no suggestion that you rebalance at all, let alone do it monthly. This simply shows you the impact of doing so, as that is what the software we used has as its only option -- and by the way it is what is practiced by some large accounts.
Second, "silly" is a judgement that may make sense to you but not to others. In a tax free or tax deferred account there is no tax drag from rebalancing, and for large accounts commissions are inconsequential as a percentage of assets. For small accounts commissions are important.
With commissions in the $10 or less range, and with trades of $1,000 the commission is 1%. For trades of $10,000 the commission is 0.1%. For trades of $100,000 the commission is 0.01%.
I contend that a 0.01% trading cost is likely to be no problem, and that 0.1% may often work if the security had a large enough price change, and that a 1% trading cost would most often be too much to be worthwhile, except in cases of very large price changes in the position.
If the commission is too high relative to the amount to be rebalanced, you don't do it; but if the commission is not too high then rebalancing can make sense. It is all a matter of the size of the portfolio, as well as the level of attention and work you are will to apply.
It is important not to judge the discussion of a method that is not tailored to your personal situation as "silly", but rather to simply decide that it is not for you. You would have been better to say, that you don't have enough money to make the approach economically practical.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
The higher valuation is probably the result of yield chasing, and the lower operating results are characteristics of both large-cap and above average dividend companies generally. It's not just this batch, but it seems from our research that any batch selected on a similar set of criteria (high quality financials, above average yield, a long history of dividend payment and a pattern of dividend growth) show lower ROE and ROA than the S&P 500. That is not so say that special filtering could not do better than that, but generally that differential is the case.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
Because of monthly rebalancing, the dividends were constantly reinvested, but rather than being reinvested in the stocks from which they came, they were reinvested within the overall rebalancing process.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
All data is through 2013. No data ends at an earlier date.
The tables showing the best and worst 3 months, 1 year and 3 years have dates next to the returns to show when those period occurred.
The 3 month and 1 year total return detail in the first image should be sufficient to understand short-term performance of the stocks individually, and at the top as a portfolio versus the S&P 500.
In this case this batch outperformed the S&P 500 over the the short and long term and shown in the first image.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
Why no MLPs or REITs or domestic housing sector? See reply to WIESJE above.
As stated in the text, the holding of the funds are as of the most recent portfolio disclosures; and all other data is as of February 28, 2013.
33 Favorite Equity Income Stocks Of 6 Top Actively Managed Rated Equity Income Funds [View article]
Each image provides a comparison to the S&P 500 (refered to as Benchmark or or Bmark) and referenced in the text.
Foreign companies or any other company not included in the list is because the managements of those funds based on their judgements and their mandate did not find them sufficiently attractive to be in their top holdings. Some companies of interest to you may well be in their portfolios, but they are not in the cross referenced widely held securities.
Remember, this is a data mining report on the decision made by leading fund managers, so we have no control over what shows up as their choices.
ETFs With Best Price Chart Condition: Yield And Low Volatility Prevail [View article]
The Curse Of Being No. 1 [View article]
The Curse Of Being No. 1 [View article]
Market Conditions For Gold [View article]