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More On All-ETF Portfolios

Aug. 23, 2005 8:47 AM ET2 Comments
Roger Nusbaum profile picture
Roger Nusbaum

After my original article on all-ETF porfolios, writes Roger Nusbaum, Herb Morgan from Efficient Market Portfolios responded, and I then responded to his comment. This whole thing is a perfect example of what I mean when I write take a little from me and little from other people and create your own process. Herb and I do things differently, much differently. Is one better than the other?

You decide for yourself.

Herb has some performance numbers on his site that are a little difficult to read. The all ETF portfolios on Herb site were started some time in 2004. Most of the returns published are hypothetical. I don't know if his portfolios have a year in existance yet. Looking at the twenty year portfolio, Herb's YTD return, as of 6/30, for the conservative portfolio was +1.9%, for the moderate portfolio his one year return was +2.0% and the aggressive portfolio was up +1.3%. During that time the S+P 500 went from 1211 down up to 1191 which is a 1.65% loss. Herb does not disclose whether his numbers are net of fees. Clearly Herb is adding some value.

ETF Portfolio

This image is a screen shot for a small account I manage for someone in his mid 30's. I think it is a close apples to apples comparison to Herb's 20 year portfolio. According to Joe at Schwab this account was worth $78,941 at year end. If you can't see the amount now (as of 8/22) it is $83,629. The gain for this account this year is 5.9%. The client pays fees outside the account, since I am not the point of contact I do not know how much the client pays. I charge my clients 1% annually so net of fees year to date would be 5.4%.

Again the SPX

This article was written by

Roger Nusbaum profile picture
Roger Nusbaum is the ETF Strategist for AdvisorShares. This Arizona-based professional has over 25 years of industry experience. He is also a well-known financial commentator covering ETFs, retirement planning and portfolio management for AlphaBaskets.com and at TheStreet.com. We think Roger is particularly insightful on exchange-traded funds, risk management and investing in international markets. Visit Roger's work at TheMaven (https://www.themaven.net/etf/) and AlphaBaskets (http://alphabaskets.com)

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Comments (2)

Roger Nusbaum profile picture
As I said, clearly Herb is adding value. I would still urge anyone reading this to try to learn from as many people as possible to formulate their process.
While past performance is no guarantee of future results and investors may lose money, and our accounts ar not guaranteed or FDIC insured......here is what I have for actual net of fees and expenses performance for this year:

6-10 Year Portfolio Composite +2.78% through 7/31/2005
11-19 Year Portfolio composite +7.07% through 7/31/2005
20 + Year Portfolio Composite +7.19% through 7/31/2005

Thanks for asking.

Warmest Regards,

Herb Morgan
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