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Conversely, keep in mind that by investing in an actively-managed fund you have absolutely no guarantee that the past performance will be repeated. As a matter of fact, many studies (incl. one from M* about its own * system) show how past "winners" …
Yeah, there is marginal difference for the reason you mentioned, but it still doesn't make sense to attempt to replicate 1 index fund with 8 ETFS when you can basically get the same thing in singular ETF form. Your point about getting a detailed br…
You folks think I have a lot of mutual funds now ... Wonder how many etf's it would take replicate my 47 mutual funds positions. I don't believe I'll be taking a look see into this anytime soon.
I'd say you should. That's because with that many co…
I get the concept. Just messed around with an index fund in the tool... VTSAX.
Over the 5-year period ended July 31, 2016, it shot out a reference portfolio of:
51.16% SPY
17.08% VXF
15.97% IWB
5.33% IVW
3.55% VTV
3.40% MGC
2.61% MGV
0.90% IWO
Not…
@JoJo26 That's your term, not mine, which is why I used it in quotes. The existence of such areas is largely a myth concocted by managers who claim to add value, but in reality, do not do so when their product is properly adjusted for exposures and …
@JoJo26 The "some backtest" you are referring to actually tracks the very product of the "fundamental manager in an inefficient area of the market." In many instances, new ideas from such active managers turn out to be worse than the old ones. In ot…
I'd maybe have some confidence in this if there was some track record of an actual live portfolio replicating certain funds. Hindsight is 20/20.
By definition, running a rolling calculation is 1-month forward-looking, not a hindsight.
Conversely, yo…
11 funds right now in my self managed hold portfolio.
PRWCX 20%
PTIAX 15
DSENX 15
ICMBX 10
FMIJX 8
SFGIX 7
GPGOX 6
SGENX 6
VMRXX 5
ACITX 5
GTLOX 3
[...]
@MikeM I do not know for how long you owned this portfolio, so I analyzed it from December 2013 …
@MFO Members: The Linkster believes in KISS !
Regards,
Ted
1. SPY
2. QQQ
3. PRHSX
4. PFF
5. CSCIX
@Ted CSCIX is effectively a combination of SCHH and VNQ: over the 3 years through July 2016, these two accounted for ~90% of an ETF replicating p…
@JoJo26 The replicating ETF portfolio does not have to be static (just as the fund's composition changes over time). You can run the calculation periodically and adjust the portfolio. One variant of the methodology does this monthly based on a rolli…
From that list, MAPOX: over the 3 years through July 2016, underperformed a simple ETF portfolio of ~29% CORP, 26% SDY, 22% VIG, 8% KBWB, and a few smaller positions, by a cumulative 2.2% and at similar volatility. Where are the "superior risk-adjus…
@Mulder420 asked for thoughts on FISMX, so I provided an alternative. No shenanigans, pure math. If you do not care about strict replication accuracy, use fewer ETFs. Sure, FISMX performance may divert from that of the ETF portfolio over time. Never…
Over the 3 years through Jul 2016, JNVSX could have been substituted by a fixed portfolio of ETFs (~22% FXR, 19% TDIV, 17% SPHQ, 11% XRT, 9% IHF, 8% VIG, and a couple of smaller positions) that had a ~4.4% higher cumulative return at a comparable vo…
Another way to substitute DFSVX, published a year earlier than this article -- see goo.gl/7RzdsC
For the 5 years through Aug 2016, DFSVX could also have been substituted by a fixed portfolio of ETFs (~41% IWN, 14% RZV, 10% PSCT, 9% XRT, 8% PRN, 8% K…
Since Aug 2015, FISMX could have been substituted by a fixed portfolio of ETFs (~20% DFE, 19% SCHC, 17% PGF, 10% WPS, 6% FM, 6% DFJ, 5% BRF, and several smaller positions) that had a ~1% higher cumulative return at a comparable volatility. See goo.g…
Since Aug 2011, SCMFX could have been substituted with a fixed portfolio of ETFs: ~47% IJJ, 20% XLB, 8% XRT, 7% IGN, 7% PJP, 7% UUP, 5% FXL. Through Jul 2016, the ETF portfolio produced a ~23% higher cumulative return with a slightly lower volatilit…
From Aug 2013 onwards, you could have substituted MSCFX with a fixed portfolio of ETFs: ~34% IJR, 15% PSCT, 13% KRE, 7% SLY, 7% FXR, 7% VPU, and a few smaller positions, of comparable return and smaller volatility. See goo.gl/2Z3V5Q
