Tuesday, December 11, 2012 1:36:47 PM
Hi Toof, Re: Diversification by "Style".......................
My retirement account is a 'style diversified' portfolio along the lines of what you are suggesting. I've had all the components in place since late in 2007 but not properly balanced until around the beginning of 2009. The idea of the portfolio initially came from the "Ultimate Buy/Hold Strategy" suggested here. I modified it slightly, but generally kept to the guidelines shown.
Here's what the last three years of this portfolio's activity look like in composite form:
This portfolio was completely tapped out of cash for a while in late 2008 and early 2009, but as you see here, it is now sporting a healthy reserve of about 25% of total value.
Just today we sold 5% of the International Small Cap Dividend component (DLS from Wisdomtree). Those shares had been purchased in the buying frenzy of November, 2011. The LIFO return on the round trip was in excess of 18% net. Not bad in a generally flat year!
Also recently I sold some Pacific Rim, ex-Japan (I-Shares - EPP) for a similar gain in another portfolio. So, in spite of what we've been seeing on CNBC, there are some areas for profitable ETF trading even as the "bad news" continues to inundate viewers.
Thanks for getting some activity started here again.
Best regards,
My retirement account is a 'style diversified' portfolio along the lines of what you are suggesting. I've had all the components in place since late in 2007 but not properly balanced until around the beginning of 2009. The idea of the portfolio initially came from the "Ultimate Buy/Hold Strategy" suggested here. I modified it slightly, but generally kept to the guidelines shown.
Here's what the last three years of this portfolio's activity look like in composite form:
This portfolio was completely tapped out of cash for a while in late 2008 and early 2009, but as you see here, it is now sporting a healthy reserve of about 25% of total value.
Just today we sold 5% of the International Small Cap Dividend component (DLS from Wisdomtree). Those shares had been purchased in the buying frenzy of November, 2011. The LIFO return on the round trip was in excess of 18% net. Not bad in a generally flat year!
Also recently I sold some Pacific Rim, ex-Japan (I-Shares - EPP) for a similar gain in another portfolio. So, in spite of what we've been seeing on CNBC, there are some areas for profitable ETF trading even as the "bad news" continues to inundate viewers.
Thanks for getting some activity started here again.
Best regards,
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