97% of Mutual Funds Underperform
Twice a year the S&P publishes a report called SPIVA, which is a scorecard to see how mutual funds, aka active portfolio managers, are faring versus their passive index funds. SPOILER ALER: Active management is getting killed. The SPIVA report even controls for other variables such as style drift, survivorship bias, and avoids double counting different share classes of the same fund. This makes SPIVA the most accurate and reliable performance data available in the Active vs. Passive debate.
How To Diversify An Equity Portfolio
"Help! I need to diversify my equity exposure!" Fortunately, we have lots of data and research to show which asset classes are helpful in adding diversification to a stock portfolio. Here are a few asset classes you may want to look into, and two that are wrongfully assumed to add diversification.
The Core 4 Portfolio
The Core 4 Portfolio, developed by Rick Ferri, is one of my favorite model portfolios for young accumulators & DIY investors due to its simplicity, diversification, and low cost.
I Thought The 60/40 Portfolio Was Dead??
I Thought The 60/40 Portfolio Was Dead?? At least that’s what the financial media was saying in 2022 when the 60/40 was having its worst year in past 50 years, returning -17.8%.
The Case For Muni Bonds
How about a 6.40% yield* for a AA rated school district? Sounds interesting, right? If you are a small business owner in California, looking for passive income, and tired of being gouged by taxes, consider California Municipal Bonds
An Update on I-Bonds
Remember when I-bonds were all the rage?? If you purchased I-bonds in August of 2022 when a popular investing website article declared "Run, Don't Walk, for I-Bonds," your investment would be yielding 2.96% right now.
Passive Income Vol. 4: Bond Ladders
Bond ladders are a series of fixed income investments with different maturity dates. Over time you will receive interest payments, usually semi-annually, as well as your initial investment at maturity.