Gyroscopic Investing

Schwab has an impressive array of commission-free ETFs that make it amenable to factor tilting wthout transanction costs eating you alive.  I spent a couple of hours today going through the list to see how well the global market portfolio with factor tilts could be implemented.  Here are my results:

7.14% ACIM Global Large Blend
1.43% SYV US Large Value
0.36% RZV US Small Value
1.43% DWX Intl Large Value
0.36% FNDC Intl Small Value
0.71% FNDE Emerg Large Value
1.43% SYG US Large Growth
0.36% RZG US Small Growth
0.36% WMCR US Micro Blend
1.72% IHDG Intl Large Growth
0.43% SCHC Intl Small Blend
0.57% DGRE Emerg Large Growth
0.14% EWX Emerg Small Blend
2.86% SPLV US Large LowVol
2.86% IDLV Intl Large LowVol
1.43% EELV Emerg Large LowVol
1.43% FRN Frontier Blend
25.00%

Unfortunately, there were no momentum funds so I had to substitute Growth (or Blend) which is a poor man's momentum but style tracks momentum funds closely.  Global Value, Emerg Small Value, Intl Micro Momo, Emerg Small Momo, US Small LowVol, Intl Small LowVol and Emerg Small LowVol were not available (either for free or as an ETF).

As far as the T-Bonds and T-Bills/CD's go, it seems vastly superior to buy the paper directly at the exact maturities rather than paying management fees to have subpar performance in an ETF.  What's the catch to doing that, PS?

MachineGhost wrote: As far as the T-Bonds and T-Bills/CD's go, it seems vastly superior to buy the paper directly at the exact maturities rather than paying management fees to have subpar performance in an ETF.  What's the catch to doing that, PS?

The catch is that Schwab nickel-and-dimes you for selling. While buying is free, there's a $75 fee per bond sold. And you can't do it online; you have to call up a "fixed income specialist." Ugh.

Pointedstick wrote: While buying is free, there's a $75 fee per bond sold.

Wait, is that really true? Did you mean $7.50? Even that is really bad!

$75 it is.

Pointedstick wrote: $75 it is.

Wow, does that include CD's or T-Bills?