Gyroscopic Investing

whatchamacallit wrote: ↑Thu Aug 11, 2022 4:21 pm That makes it easier having only one value fund option.


I became more discouraged as I reviewed value funds. They all have their own little way to try to market time.

I decided I don't like the stress of picking the best fund. I sympathize with ochotona on RSP but would rather just use FZROX with 0 expense ratio.

boglerdude wrote: ↑Thu Aug 11, 2022 7:03 pm > I became more discouraged as I reviewed value funds. They all have their own little way to try to market time.

And can be front run, as they are forced to sell by rigid metrics. Paying Vanguard active managers to take a holistic look at a company, and decide if it's "value" isnt a crazy idea. Vanguard rather than a hedge fund celeb/guru because Vanguard is under heavy public scrutiny

Smith1776 wrote: ↑Thu Aug 11, 2022 4:41 pm

whatchamacallit wrote: ↑Thu Aug 11, 2022 4:21 pm
That makes it easier having only one value fund option.


I became more discouraged as I reviewed value funds. They all have their own little way to try to market time.

I decided I don't like the stress of picking the best fund. I sympathize with ochotona on RSP but would rather just use FZROX with 0 expense ratio.

I feel you. I remember once reading that one of the secret's of Costco's success was to avoid subjecting shoppers with the paradox of choice. Too many choices leads people to not make a decision at all. Sales improved when choices became more limited. People don't want to go through the cognitive work of comparing umpteen different options, so they just throw their hands up instead. At least, that's how the theory goes.

Have you considered the SCV funds offered by Avantis? They seem to be the bleeding edge option for U.S. investors right now.

vnatale wrote: ↑Fri Aug 12, 2022 9:06 am

Smith1776 wrote: ↑Thu Aug 11, 2022 4:41 pm

whatchamacallit wrote: ↑Thu Aug 11, 2022 4:21 pm That makes it easier having only one value fund option.


I became more discouraged as I reviewed value funds. They all have their own little way to try to market time.

I decided I don't like the stress of picking the best fund. I sympathize with ochotona on RSP but would rather just use FZROX with 0 expense ratio.

I feel you. I remember once reading that one of the secret's of Costco's success was to avoid subjecting shoppers with the paradox of choice. Too many choices leads people to not make a decision at all. Sales improved when choices became more limited. People don't want to go through the cognitive work of comparing umpteen different options, so they just throw their hands up instead. At least, that's how the theory goes.

Have you considered the SCV funds offered by Avantis? They seem to be the bleeding edge option for U.S. investors right now.

It is more than a theory. I have read of this many times. The usual example is that people buy more when presented with only five choices of jellies than when confronted with 24 choices of jellies.

Smith1776 wrote: ↑Fri Aug 12, 2022 4:07 pm

vnatale wrote: ↑Fri Aug 12, 2022 9:06 am

Smith1776 wrote: ↑Thu Aug 11, 2022 4:41 pm

whatchamacallit wrote: ↑Thu Aug 11, 2022 4:21 pm
That makes it easier having only one value fund option.


I became more discouraged as I reviewed value funds. They all have their own little way to try to market time.

I decided I don't like the stress of picking the best fund. I sympathize with ochotona on RSP but would rather just use FZROX with 0 expense ratio.

I feel you. I remember once reading that one of the secret's of Costco's success was to avoid subjecting shoppers with the paradox of choice. Too many choices leads people to not make a decision at all. Sales improved when choices became more limited. People don't want to go through the cognitive work of comparing umpteen different options, so they just throw their hands up instead. At least, that's how the theory goes.

Have you considered the SCV funds offered by Avantis? They seem to be the bleeding edge option for U.S. investors right now.

It is more than a theory. I have read of this many times. The usual example is that people buy more when presented with only five choices of jellies than when confronted with 24 choices of jellies.

I think my favourite is three types of pizza rather than ten.

vnatale wrote: ↑Sat Aug 13, 2022 9:36 am

As a vegetarian (when eating outside of home) and I am choosing pizza by the slice I'm happy for many, many choices as I'm first automatically excluding any that have meat on them. So I'm happy to have more than one choice of just cheese pizza.

Tyler wrote: ↑Sat Jun 06, 2020 9:19 pmFor reference, the thing that eventually pushed me over the top on my own SCV vs SCB debate (I settled on SCV) was when I realized just how different the sector makeup is for SCV vs LCB. Large caps are dominated by tech and healthcare, while small cap value is heavily weighted towards financials and industrials (SCB is a lot more similar to LCB in sector makeup than you'd think). Balance them equally and you get a nice amount of sector diversification on top of the other economic diversification in the portfolio.

Smith1776 wrote: ↑Thu Aug 11, 2022 2:42 pm The more and more I reflect on it, the more I'm inclined to say that the GB is the best "default" portfolio out there.

TomWexler wrote: ↑Sat Jan 21, 2023 6:12 am To any holders of the GB, or anyone really, what is your review of its performance in 2022, and how do you see it going forwards? How did it do vs the PP?

TomWexler wrote: ↑Sat Jan 21, 2023 6:12 am To any holders of the GB, or anyone really, what is your review of its performance in 2022, and how do you see it going forwards? How did it do vs the PP?

senecaaa wrote: ↑Sun Jan 22, 2023 9:37 am I live in the EU and my gold fund is 4GLD. Real gold backed, you can actually request conversion to actual physical gold.

seajay wrote: ↑Mon Jan 23, 2023 9:04 am

senecaaa wrote: ↑Sun Jan 22, 2023 9:37 am I live in the EU and my gold fund is 4GLD. Real gold backed, you can actually request conversion to actual physical gold.

Are you really sure about that? I know nada about 4GLD however many that claim to be backed by physical and that permit conversion often have criteria/conditions, such as certain sized/amounts only and/or only by certain entities. Push come to shove in a gold-rush and you might be towards the back of the queue only to find none remained by the time it was your turn. Opps sorry, no gold left, we're bankrupt, the queue to sue us is over there. Such that the greatest time to have held (physical) gold was lost to you.

Circumstances during the early phases of a disconnect between physical and paper gold could make it very appealing for funds to lend more of the physical gold they held than usual, leaving less actually available should that progress into a gold-run (high demand for delivery of physical gold ... and subsequent failures to fulfil the demand).

d) No Rights or Beneficial Ownership in the Gold

Purchasers of the Notes will only acquire the rights securitised by the Notes. Purchasers of the Notes will not acquire any title to, or security interests or beneficial ownership in, the physical Gold held in custody on behalf of the Issuer. An investment in the Notes does not constitute a purchase or other acquisition of Gold.

In the event of insolvency of the Issuer, the physical Gold is therefore generally deemed to be part of the insolvency estate. This means that if the Issuer becomes unable to pay or insolvent the claims of the holders of the Notes in respect of the Gold held in custody are not adequately secured (see also risk note "2.1.1.a) Insolvency Risk due to the Limited Assets of the Issuer"). In the event of the Issuer's inability to pay or insolvency, this may even lead to the loss of the entire capital invested by the holders of the Notes when purchasing the Notes.

Lucho Jr wrote: ↑Sun Jan 22, 2023 8:40 am Has any non-US investor here implemented a GB portfolio? What ETFs do you use?

I'm currently thining about using the following:

20% Global stocks: SSAC - iShares MSCI ACWI UCITS ETF (Acc) - TER: 0.20%
20% Small Cap Value: USSC (USD ver. of ZPRV) - SPDR MSCI USA Small Cap Value Weighted UCITS ETF (Acc) - TER: 0.30%
20% Long Term Bonds: DTLA - iShares USD Treasury Bond 20+yr UCITS ETF USD (Acc) - TER: 0.07%
20% Short Term Bonds: IB01 - iShares USD Treasury Bond 0-1yr UCITS ETF (Acc) - TER: 0.07%
20% Gold: ZGLDUS - ZKB Gold ETF A (USD) - TER: 0.40%

Looking at how International SCV performed in the past compared to US SCV, I think the international version would change the profile of the GB too much. But for the TSM part, SSAC seems like an ok alternative?
I am not too keen to go full "US-only".

Also, what does everyone use for Gold outside the US? I tend towards the ETF mentioned because it is a real ETF (not ETC), but the fact that the TER is high and it cannot be bought in fractional shares makes it a bit difficult to buy/rebalance to the exactly the necessary amount.