In Plus episode 261 for the week of July 27, 2019, we explore smart beta and factor investing, such as value, momentum, yield, and quality. How did factor investing come about, how has it performed, why does it work, and what are the challenges of implementing factor investing in portfolios. We also explore how capitalization-based indexing has a momentum aspect to it, and why David in his personal portfolio and the Money For the Rest of Us Plus model portfolios use both … [Read more...]
MNY111 Plus: Equal Weighted Stock Portfolios and Regional Specific ETFs
This week on Money For the Rest of Us Plus we review the performance of equal weighted stock portfolios using ETFs as well as Personal Capital's use of individual stocks to implement the strategy. I also answer a member question as to why there are not regional equity specific ETF recommendations on the Hub. Finally, I address some follow up issues on Canadian investors and counter-cyclical indexing. The episode length is 29 minutes. … [Read more...]
MNY107 Plus: Timing Smart Beta, Lending Club Woes and the National Debt Size
This week on Money For the Rest of Us Plus we review a new academic paper on whether it is possible to time exposure to smart beta factors. I also discuss the departure of Lending Club's CEO and whether that should change our opinions on peer-to-peer lending. Finally, we look at different measures of U.S. national debt size and look at Brazilian economy to see why it is experiencing inflation and high interest rates even though it controls its own currency and is in a recession. The … [Read more...]
MNY097 Plus: Asset Allocation and Frontier Markets
This week on Money For the Rest of Us Plus I discuss smart beta in the context of adjusting portfolio allocations based on market conditions. I also provide a profile of frontier markets with an emphasis on Vietnam. The episode length is 13 minutes. … [Read more...]
MNY091 Plus: Money Creation, Smart Beta, Howard Marks and Bitcoin
This week on Money For the Rest of Us Plus I review an academic paper on how money is created out of thin air. I also answer some questions on smart beta and how smart beta value ETFs differs from traditional value managers. We look at how investors' emotions drive markets as explained by Howard Marks. Finally, I share why I sold some of my Bitcoin and the current crisis facing the cryptocurrency. The episode length is 34 minutes. MNY091 Plus View and Listen To Other Plus … [Read more...]
MNY089 Plus: Smart Beta and Asset Allocation Assumptions
This week on Money For the Rest of Us Plus I discuss whether smart beta is the same as active management. I also share why rebalancing is an active investment strategy. Finally, I review a recent paper by Jack Bogle with evidence supporting the validity of the asset allocation assumption methodologies on the Hub. The episode length is 19 minutes. … [Read more...]
89: How To Outperform The Market Without Predicting The Future
Why and how smart beta factor investing and timing economic regime changes can lead to market outperformance. In this episode you'll learn: What is the market.What is tracking error.What are risk premiums.What factors are rewarded by the market over the long-term.How growth investing differs from momentum investing.Why growth investing underperforms value investing.What has been the excess return for investing in smart beta factors.What has been the excess return for … [Read more...]
23: Smart Beta – What Is It and Should You Use It?
What is the difference between beta, smart beta and alpha when investing. Plus why it's easier to be a successful investor by focusing on things that won't change rather than trying to predict what will. Photo by nevelo In this podcast, you'll learn: What is asset-liability matching.What are key elements of Jeffrey Bezos' strategy at Amazon.What is the difference between beta and alpha.What are index funds and why have they traditionally been capitalization … [Read more...]
