ETF Investment Portfolios October 2014

Here are our favorite Exchange Traded Fund – ETF Investment Portfolios for October 2014.

ETF / Fund Name  Allocation% ReturnAllocation
ETF Investing PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Money Market FundMM2%0.00.12%
iShares Barclays 1-3 Year Credit BondCSJSTB8%(0.2)1.08%
PIMCO Total Return ETFBONDITB6%0.44.76%
PIMCO 1-5 Year US TIPS Index ETFSTPZIPB8%(1.6)(0.1)8%
iShares Core Total US Bond Market ETFAGGITB6%0.34.16%
SPDR Barclays High Yield BondJNKHYB3%(2.4)6.83%
SPDR Barclays International Corporate BondIBNDGB4%(6.1)(0.2)4%
PowerShares Emerging Markets Sovereign DebtPCYEB3%(1.3)8.93%
PowerShares Nasdaq 100QQQLCG3%5.527.13%
SPDR S&P DividendSDYLCV3%(1.6)13.23%
SPDR S&P MidCap 400MDYMCC3%(4.1)11.43%
WisdomTree MidCap EarningsEZMMCC3%(5.0)12.33%
iShares Core S&P Small-Cap ETFIJRSCC3%(6.7)5.83%
WisdomTree SmallCap EarningsEESSCC3%(7.7)3.93%
iShares Russell Microcap IndexIWCMIC2%(8.2)2.72%
iShares MSCI ACWI ex US IndexACWXIntl4%(5.3)4.74%
SPDR S&P International Small CapGWXIntl4%(7.3)3.04%
iShares MSCI Emerging Mkt Min Vol IndexEEMVEE4%(0.5)4.54%
WisdomTree Emerging Mkts Small Cap DivDGSEE2%(2.5)2.02%
iShares Dow Jones US Real EstateIYRRE6%(2.7)12.76%
ProShares RAFI Long/ShortRALSL/S8%(0.5)2.78%
Cambria Global Tactical ETFGTAAHdg4%(3.5)4.44%
Barclays S&P 500 Dynamic Veqtor ETNVQTHdg4%1.18.24%
GreenHaven Continuous Commodity IndexGCCCom4%(11.4)(6.2)4%
Portfolio Return / Value100%(2.5)5.1100%
ETF and Mutual Fund PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Money Market FundMM0.00.1
BlackRock Low Duration Bond **BLDAXSTB4%(0.2)2.24%
Managers Intermediate Duration GovtMGIDXIGB4%0.24.64%
iShares Barclays 0-5 Year TIPS BondSTIPIPB4%(1.4)0.14%
iShares Barclays Intermediate Credit BondCIUITB4%(0.2)3.94%
Metropolitan West Total Return BondMWTRXITB6%0.34.86%
Metropolitan West High Yield BondMWHYXHYB4%(2.2)5.04%
Loomis Sayles Global BondLSGLXGB6%(3.2)1.46%
SEIX Floating Rate High Income **SAMBXFRB4%(0.6)3.44%
Payden Emerging Markets BondPYEWXEB4%(0.4)9.04%
Dreyfus AppreciationDGAGXLCC2%(1.0)15.42%
PowerShares Nasdaq 100QQQLCG2%5.527.12%
RidgeWorth Large Cap Value EquitySTVTXLCV2%(1.0)16.12%
WisdomTree MidCap EarningsEZMMCC2%(5.0)12.32%
Scout Mid CapUMBMXMCC2%(2.6)12.52%
WisdomTree MidCap DividendDONMCV2%(3.5)15.42%
WisdomTree SmallCap EarningsEESSCC2%(7.7)3.92%
iShares S&P SmallCap 600 GrowthIJTSCG2%(6.7)4.72%
ASTON/Silvercrest Small CapASCTXSCV2%(8.2)3.32%
Westcore Micro Cap OpportunityWTMIXMIC2%(7.8)2.62%
Scout InternationalUMBWXIntl4%(5.4)1.04%
Harding Loevner Intl Small CompanyHLMSXIntl4%(7.2)5.54%
iShares MSCI Emerging Mkt Min Vol IndexEEMVEE4%(0.5)4.54%
WisdomTree Emerging Mkts Small Cap DivDGSEE2%(2.5)2.02%
iShares Dow Jones US Real EstateIYRRE6%(2.7)12.76%
Merger FundMERFXHdg5%(0.9)3.45%
Diamond Hill Long-Short **DIAMXL/S5%(1.4)10.85%
Wasatch Long/ShortFMLSXL/S5%(3.8)5.25%
AQR Managed Futures StrategyAQMNXMF5%5.37.15%
Portfolio Return / Value100%(1.9)6.3100%
Easy ETF PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Money Market FundMM2%0.00.12%
iShares Barclays 1-3 Year Credit BondCSJSTB12%(0.2)1.012%
iShares Barclays 0-5 Year TIPS BondSTIPIPB10%(1.4)0.110%
iShares Barclays Intermediate Credit BondCIUITB16%(0.2)3.916%
SPDR S&P DividendSDYLC6%(1.6)13.26%
PowerShares Nasdaq 100QQQLC6%5.527.16%
WisdomTree MidCap EarningsEZMMC10%(5.0)12.310%
WisdomTree SmallCap EarningsEESSC10%(7.7)3.910%
PowerShares Intl Dividend AchieversPIDIntl10%(3.5)10.910%
iShares MSCI Emerging Mkt Min Vol IndexEEMVEE6%(0.5)4.56%
iShares Dow Jones US Real EstateIYRRE6%(2.7)12.76%
GreenHaven Continuous Commodity IndexGCCMF6%(11.4)(6.2)6%
Portfolio Return / Value100%(2.5)6.5100%

Mutual Fund Portfolios October 2014

Here are our favorite Mutual Funds Investment Portfolios for October 2014.

Fund Name  Allocation% ReturnAllocation
No Load Mutual Fund PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Money Market FundMM2%0.00.12%
BlackRock Low Duration Bond **BLDAXSTB4%(0.2)2.24%
Managers Intermediate Duration GovtMGIDXIGB4%0.24.64%
American Century Short Dur Infl Prot BondAPOIXIPB4%(1.4)(0.2)4%
Metropolitan West Total Return BondMWTRXITB4%0.34.84%
Metropolitan West High Yield BondMWHYXHYB4%(2.2)5.04%
SEIX Floating Rate High Income **SAMBXFRB4%(0.6)3.44%
Dreyfus International Bond **DIBAXGB6%(1.0)4.66%
Ashmore Emerging Markets Corp Debt **ECDAXEB4%(3.4)4.24%
BlackRock Global Long/Short Credit **BGCAXL/S B4%(1.1)3.04%
FMI Large Cap*FMIHXLCC3%(1.8)15.83%
RidgeWorth Large Cap Value EquitySTVTXLCV3%(1.0)16.13%
Scout Mid CapUMBMXMCC3%(2.6)12.53%
Artisan Mid Cap Value *ARTQXMCV3%(4.4)7.23%
Hodges Small CapHDPSXSCG3%(4.7)15.13%
ASTON/Silvercrest Small CapASCTXSCV3%(8.2)3.33%
Westcore Micro Cap OpportunityWTMIXMIC2%(7.8)2.62%
Scout InternationalUMBWXIntl4%(5.4)1.04%
Harding Loevner Intl Small CompanyHLMSXIntl4%(7.2)5.54%
Driehaus Emerging Markets GrowthDREGXEE4%(3.8)3.54%
Wasatch Frontier Emerging Small CountriesWAFMXEE2%0.912.02%
Neuberger Berman Real EstateNBRFXRE6%(2.8)11.86%
Invesco Balanced-Risk Allocation**ABRZXHdg4%(2.7)4.04%
Merger FundMERFXHdg4%(0.9)3.44%
Diamond Hill Long-Short **DIAMXL/S E4%(1.4)10.84%
Wasatch Long/ShortFMLSXL/S E4%(3.8)5.24%
AQR Managed Futures StrategyAQMNXMF4%5.37.14%
Portfolio Return / Value100%(2.2)6.1100%
Fidelity Investments PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Cash ReservesFDRXXMM2%0.00.12%
Limited Term BondFJRLXSTB6%(0.3)0.06%
Intermediate GovernmentFSTGXIGB6%(0.1)1.56%
Strategic Real ReturnFSRRXIPB6%(4.0)2.26%
Total BondFTBFXITB6%(0.1)4.86%
High IncomeSPHIXHYB6%(2.1)5.76%
Floating Rate High IncomeFFRHXFRB6%(0.6)2.96%
New Markets IncomeFNMIXEMB6%(2.3)8.46%
Mega Cap StockFGRTXLCG6%1.219.16%
ContrafundFCNTXLCG6%1.817.46%
Low Priced StockFLPSXMCC10%(1.5)11.510%
Small Cap Discovery*FSCRXSCC10%(7.0)4.810%
International GrowthFIGFXIntl8%(4.5)4.48%
International Small CapFISMXISC8%(6.9)1.58%
Real Estate IncomeFRIFXRE8%(1.2)9.28%
Portfolio Return / Value100%(2.2)6.6100%
Easy Mutual Fund PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Money Market FundMM2%(2.5)0.12%
Baird Short-Term BondBSBSXSTB10%(0.1)1.610%
American Century Short Dur Infl Prot BondAPOIXIPB6%(1.4)(0.2)6%
Metropolitan West Total Return BondMWTRXITB10%0.34.810%
Loomis Sayles Global BondLSGLXGB10%(3.2)1.410%
ASTON/Montag & Caldwell GrowthMCGFXLC10%(0.5)13.710%
Scout Mid CapUMBMXMC10%(2.6)12.510%
ASTON/Silvercrest Small CapASCTXSC10%(8.2)3.310%
Scout InternationalUMBWXIntl10%(5.4)1.010%
Harding Loevner Emerging MarketsHLEMXEE6%(4.8)7.06%
Neuberger Berman Real EstateNBRFXRE6%(2.8)11.86%
Wasatch Long/ShortFMLSXL/S10%(3.8)5.210%
Portfolio Return / Value100%(2.9)5.5100%
Fidelity NTF Mutual Fund PortfolioTickerClass7/1/20143 Mo1 Yr10/1/2014
Money Market Fund (Cash Reserves)FDRXXMM2%0.04,9072%
BlackRock Low Duration Bond **BLDAXSTB4%(0.2)8,3684%
Fidelity Intermediate Government IncFSTGXIGB4%(0.1)8,5544%
American Century Short Dur Infl Prot BondAPOIXIPB4%(1.4)7,9834%
Metropolitan West Total Return BondMWTRXITB4%0.38,3854%
Metropolitan West High Yield BondMWHYXHYB4%(2.2)9,6054%
Fidelity Floating Rate High IncomeFFRHXFRB4%(0.6)9,0124%
Dreyfus International Bond **DIBAXGB6%(1.0)11,7636%
Fidelity New Markets IncomeFNMIXEB4%(2.3)10,3124%
BlackRock Global Long/Short Credit **BGCAXL/S B4%(1.1)8,2214%
FMI Large Cap*FMIHXLCC2%(1.8)6,0842%
Fidelity ContrafundFCNTXLCG2%1.86,3422%
RidgeWorth Large Cap Value EquitySTVTXLCV2%(1.0)5,6202%
Scout Mid CapUMBMXMCC2%(2.6)6,0602%
Baird MidCap InvBMDSXMCG2%(1.9)4,9972%
Artisan Mid Cap Value *ARTQXMCV2%(4.4)5,9182%
Fidelity Small Cap Discovery *FSCRXSCC2%(7.0)6,1812%
Rice Hall James Small CapRHJMXSCG2%(6.0)5,5302%
ASTON/Silvercrest Small CapASCTXSCV2%(8.2)4,6742%
Westcore Micro Cap OpportunityWTMIXMIC2%(7.8)5,6742%
Scout InternationalUMBWXIntl4%(5.4)9,2874%
Harding Loevner Intl Small CompanyHLMSXIntl4%(7.2)11,4614%
Driehaus Emerging Markets GrowthDREGXEE4%(3.8)8,0694%
Wasatch Frontier Emerging Small CountriesWAFMXEE2%0.94,7072%
Neuberger Berman Real EstateNBRFXRE6%(2.8)13,5376%
Merger FundMERFXHdg4%(0.9)7,3024%
Diamond Hill Long-Short **DIAMXL/S E6%(1.4)15,3656%
Wasatch Long/ShortFMLSXL/S E6%(3.8)15,1566%
AQR Managed Futures StrategyAQMNXMF4%5.37,7674%
Portfolio Return / Value100%(2.1)236,842100%
* Funds Closed to New Investors. If you do not already own this fund, you may choose another fund in the same category for your portfolio.
** Loaded funds that are available from some brokers, usually Schwab and sometimes Fidelity, without a load fee.

 

Asset Allocation for 4th Quarter 2014

There are no changes to our Insightful Asset Allocation targets or Model Portfolios for the 4th quarter of 2014.

Asset Allocation October 2014

The next post of the Insightful Investing Newsletter will not be until January of 2015 unless some financial market event dictates the need for portfolio changes before then. Given the long term nature of our approach, our frequency of publication will be quarterly in the future, with additional updates once or twice a year if we feel more timely portfolio changes would be beneficial to long term performance results. In the mean time, we will be working on a more concise presentation of our thoughts on Insightful Investing.

Mutual Fund, ETF, and Financial Markets Update October 2014

Stocks were down (2.1%) in September to end the 3rd Quarter of 2014 flat. Size mattered this time around with Large Cap Stocks up 1.1% while small cap stocks lost (7.4%). A strong dollar and a weak economy in Europe did not help international stocks either as they fell (5.3%). There was no place to hide this month as bonds were down (0.7%) to finish the quarter up only 0.2%.

Investment Returns as of September 2014

Investment Returns as of September 2014

Our patience with Managed Futures looks like it is finally starting to pay off as it appears this category bottomed out back in August. Aspen Managed Futures Strategy (MFBPX) was our top fund the third quarter with a gain of 7.4%. Next in line was PIMCO Foreign Bond (USD-Hedged) (PFODX) which gained 2.5%. This fund performed well because it is hedged against the dollar so it does not fall when the dollar rises. While bond funds did not do much this quarter, most actively managed funds lost a little ground. Two that bucked the trend were Metropolitan West Total Return Bond (MWTRX) and Metropolitan West Unconstrained Bond (MWCRX) which both ticked up 0.3%.

Fidelity Contrafund (FCNTX) was one of only a few equity funds to turn in positive results with a gain of 1.8% while Wasatch Frontier Emerging Small Countries (WAFMX) added 0.9%. This least of the losers in the equity category were American Century Mid Cap Value (ACMVX) with a loss of (0.9%), Matthews Asia Dividend (MAPIX) which fell (2.1%) and Hodges Small Cap (HDPSX) which lost (4.7%).

As signs of a weak global economy circulated in the news, gains from a strong US dollar were captured by the PowerShares DB US Dollar Index Bullish (UUP) which picked up 7.6% this quarter. This bad news for commodities, in particular precious metals and energy, was reflected in PowerShares DB Commodity Index Tracking (DBC) which fell 12.6%. The falling stock market was good for iShares Barclays 20+ Year Treasury Bond (TLT) which rose 3.2% this quarter. Technology stocks continued to outperform the rest of the stock market as PowerShares Nasdaq 100 (QQQ) bucked the trend with a gain of 5.5% while iShares Russell 2000 Growth Index (IWO) lost (6.0%). PowerShares DWA Technical Leaders (PDP) rose 0.9% to finish in the middle of the pack.A move towards more defensive stocks pushed Health Care Select Sector SPDR (XLV) up 5.4%.

With emerging markets outperforming developed markets this quarter, iShares FTSE China 25 Index Fund (FXI) was up 3.4%. On the other hand, avoided Europe as iShares MSCI Germany Index (EWG) dropped (11.5%), leaving iShares MSCI Japan Index (EWJ) which fell only (2.2%) as least risky foreign country to invest in.

Our Favorite Mutual Funds, Favorite ETFs, Mutual Fund Portfolios, ETF Investment Portfolios, and Favorite Fidelity Funds have been updated through September 2014.