iShares Russell 3000 ETF (ARCA:IWV), Trade Ideas

iShares Russell 3000 ETF

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Jobs Data Foreshadows Gains For These ETFs

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State Street Corporation Launches New Risk-Aware ETF

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Top 10 U.S. Large &amp; All Cap Sector ETFs

INTELLIGENT WAVE INC by Intelligent Wave Inc.

Intelligent Wave Inc

MYFW

First Western Financial, Inc. to Be Added to Russell 3000 and Russell 2000 Indexes

<p>
	U.S. stocks have not reacted to the data, at least not in positive fashion, but when the U.S. unemployment rate drops below five percent, historical data indicate the results are often positive for stocks.</p>
<p>"With the US recently reaching a milestone 4.9% unemployment rate, and many market participants anticipating that the UK may report a similar milestone in the near future, FTSE Russell examined how indexes tracking US and UK markets fared during the rare extended periods of sub-5% unemployment in the last 20 years in these two markets,&rdquo; said FTSE Russell in a recent note.</p>
<p>The index provider examined the Russell 3000 Index during periods of sub-five percent unemployment. That benchmark can be accessed via the $5.68 billion <b>iShares Russell 3000 ETF</b> (NYSE: <a class="ticker" href="/stock/iwv#NYSE">IWV</a>), among other exchange traded funds.</p>
<p>"The US unemployment rate hit 4.9% in July 1997, staying below 5% until September 2001. During this time, the Russell 3000 Index, measuring the US equity market, rose by 7.5%. During the next extended period of sub-5% unemployment for the US, from December 2005 through November 2007, the Index rose by 12.3%,&rdquo; said FTSE Russell.</p>
<p>Since IWV is home to 3,000 stocks, it is reasonable to expect that this and other Russell 3000 tracking ETFs offer returns that do not mirror the S&amp;P 500. For the six-year period ending 2015, IWV outpaced S&amp;P 500 tracking ETFs in three years while lagging during three others.</p>
<p>IWV&#39;s sector lineup is comparable to what is found with S&amp;P 500 ETFs, but with different weights. Technology is the largest sector weight in IWV at 19.5 percent while financial services are next at 17.2 percent. Healthcare and consumer discretionary occupy the next two spots at a combined 27.5 percent of the ETF&#39;s weight.</p>
<p>As a cap-weighted ETF, IWV&#39;s top 10 lineup features the same stocks that dominate other broad market ETFs that follow the same weighting methodology. For example, <b>Apple Inc.</b> (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), <b>Microsoft Corporation</b> (NYSE: <a class="ticker" href="/stock/msft#NYSE">MSFT</a>) and <b>Exxon Mobil Corp.</b> (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) are IWV&#39;s top three holdings. </p>
<p>"Historical analysis demonstrates that, while past performance is no guarantee of future results and periods of extended sub-5% unemployment rates in the UK and the US are rare, US &amp; UK market indexes have experienced positive returns during these periods in the last 20 years. This is just an additional point of information which may prove interesting to market participants as they analyse the current market environment,&rdquo; said FTSE Russell Senior Director Gareth Parker.</p>


<p>
	On Wednesday, <strong>State Street Corporation </strong>(NYSE: <a class="ticker" href="/stock/stt#NYSE">STT</a>) launched a new actively managed ETF designed to shift its holdings in response to sophisticated risk analysis.&nbsp;</p>
<p>
	The <strong>SPDR SSGA Risk Aware ETF </strong>(NYSE: RORO) is managed by State Street Global Advisors Quantitative Equity Group using a proprietary model for measuring market signals.</p>
<p>
	This ETF will charge an expense ratio of 0.50 percent and will strive to outperform its stated benchmark in the <strong>iShares Russell 3000 ETF</strong> (NYSE: <a class="ticker" href="/stock/iwv#NYSE">IWV</a>). The quantitative analysis employed by the management team will dynamically allocate to a subset of stocks that align with the current risk profile of the market.</p>
<p>
	As conditions change over time, the model will shift in response to more or less risky securities.&nbsp; The fund manager is allowed to select any stock within the Russell 3000 index that they feel offers the best characteristics to suit the current environment.&nbsp; Factors that will be evaluated include: beta, size, style, credit risk, implied volatility and more.</p>
<p>
	<bzrelatedlink><em>Related Link: <a href="http://www.benzinga.com/etfs/currency-etfs/14/09/4840621/currency-hedged-etfs-are-back-in-play">Currency Hedged ETFs Are Back In Play</a></em></bzrelatedlink></p>
<p>
	As noted in the <a href="http://www.marketwatch.com/story/state-street-global-advisors-introduces-actively-managed-spdr-etf-to-help-investors-manage-risk-on-and-risk-off-market-cycles-2014-09-10">press release</a>, &ldquo;The SPDR SSGA Risk Aware ETF is targeted at providing investors an innovative solution for capitalizing on risk-on and risk-off fluctuations in the US equity market,&rdquo; said Scott Ebner, senior managing director and global head of product development and research at State Street Global Advisors.</p>
<p>
	The concept behind lowering risk is not new to the ETF realm, as several active and passive funds have had successful launches in the pursuit of this theme. The <strong>PowerShares S&amp;P 500 Low Volatility Portfolio </strong>(NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) is one example of a passive index that seeks to lower risk through its security selection methodology.</p>
<p>
	However, RORO may find itself with an edge in the pursuit of alpha as this portfolio has the ability to shift between low volatility and high growth areas.&nbsp; If implemented correctly, this new ETF may experience periods of strong outperformance under favorable conditions.</p>
<p>
	In addition, the expense ratio of 0.50 percent is reasonable when compared to many actively managed ETF competitors that are charging closer to 1.00 percent annually.&nbsp;</p>


Top 10 U.S. Large & All Cap Sector ETFs

<p><em>By Howard Simons, <a href="http://www.minyanville.com">Minyanville</a></em></p>

<p>Has the chaperone ever been the hero in popular culture? No, and if discussion of the relatively strong prospects by default for the US dollar could focus on the self-trashing by Japan and Switzerland and the foibles of the eurozone, Canada has to be excluded from consideration. The consequences for US investors in Canadian equities are negative as evidenced by the 4.3% return year-to-date for the iShares MSCI Canada Fund (<a class="ticker" href="/stock/ewc#">EWC</a>) as compared to a 12.1% gain for the Russell 3000 (<a class="ticker" href="/stock/iwv#">IWV</a>).
 
Higher Interest Rates Matter</p>

<p>Canada prides itself, rightfully, on dodging the brunt of the 2008-2009 financial crisis because it never went as overboard on a residential real estate bubble as did the US and others. As an aside, Federal Reserve Chairman Ben Bernanke does not think the US residential real estate bubble was a consequence of a deliberate attempt by his predecessor to create a real estate bubble, and celebrates homeowners' “extraction” of equity from their houses. Any institution wishing to study the principle of infallibility should pay a visit to Constitution Avenue.
 
Canadian short-term interest rates have been higher than their US counterparts since QE1, often stunningly so. There are many ways to illustrate this spread; let's use the rate gap between six-month Canadian dollar (CAD) and US dollar (<a class="ticker" href="/stock/usd#">USD</a>) LIBOR divided by six-month USD LIBOR interest rate. This rate gap between two economies with so many trade and financial links has keep the Canadian dollar bid over the period and has led to downward pressures on the Canadian share of US external trade.</p>

<p><img src="/files/images/2012/April/11/hs455.jpg" width="550" height="380" alt="hs455.jpg" /></p>

<p>Weakening Commodity Connection</p>

<p>The Canadian dollar and the relative performance of the Canadian stock market had been driven by the price of physical commodities for most of the past decade; it was in fact correct to call the Canadian dollar a “commodity currency.”  That relationship is deteriorating; not only is the CAD becoming much more of a straight interest rate arbitrage play, but the relative performance of the Canadian market has been declining as a function of the Dow Jones-UBS index. As I note in the chart below, what had been a linear relationship between the two markets prior to the July 2008 commodity peak has turned into something far less deterministic.</p>

<p><img src="/files/images/2012/April/11/hs456.jpg" width="550" height="371" alt="hs456.jpg" /></p>

<p>If we go back to the October 2011 global market low, the Basic Materials Select SPDR (<a class="ticker" href="/stock/xlb#">XLB</a>) has outperformed the Canadian resource sector rather handily. Of course, the area of greatest US outperformance has been in the technology sector thanks to the struggles of Research In Motion (<a class="ticker" href="/stock/rimm#">RIMM</a>).
 
As long as Canada keeps its short-term interest rates normal in an abnormal world, its financial markets will suffer from the chaperone complex: Everyone else is having a better time or at least pretending to. </p>

<p><strong>More from Minyanville:</strong><br /><a href="http://www.minyanville.com/special-features/random-thoughts/articles/todd-harrison-todd-harrison-minyanville-todd/4/11/2012/id/40361">Random Thoughts: What Would Ron Burgandy Do?</a><br /><a href="http://www.minyanville.com/business-news/markets/articles/SPY-aapl-rl-cmg-S2526P-500/4/11/2012/id/40364">Is the S&amp;P Ready to Rock or Heading to 800? The Spiral Chart May Hold the Key</a><br /><a href="http://www.minyanville.com/business-news/markets/articles/Covered-call-RIMM-collar-spread-research/4/11/2012/id/40291">Four Steps to Solving Covered Call Risk</a><br /></p>

Personal Finance

RIMM

The Sobering Effect of Canada's 'Normal' Interest Rates

<p>Some investors focus exclusively on large caps. Others prefer the risk and volatility associated with small caps. Still others enjoy the anonymity afforded by the hidden gem atmosphere of the mid-cap universe. And there are those that just need to have all three cap spectrums in their portfolios at all times.</p>

<p>For the indecisive among us, there are all cap ETFs, funds that are intended to give investors the best of all three cap worlds. On the surface, it might appear as though all cap ETFs aren't much different than total market ETFs, but some all cap plays serve specific niches that make them compelling in their own right.</p>

<p>Here are five all cap plays your broker probably forgot to tell you about.</p>

<p>First Trust Multi Cap Value AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fab#NYSE">FAB</a>):
The First Trust Multi Cap Value AlphaDEX Fund sure doesn't get much press for an ETF that is over four years-old and has almost $39 million in assets under management, but FAB has been fabulous this month, surging more than 20%. Home to almost 600 stocks, FAB gives double-digit sector allocations to five industry groups – technology, industrials, financials, consumer discretionary and energy. FAB is a buy above $29, the ETF's 200-day moving average.</p>

<p>Guggenheim China All Cap ETF (NYSE: <a class="ticker" href="/stock/yao#NYSE">YAO</a>):
Admittedly, the Guggenheim China All Cap ETF makes the list more because of title than actual all cap representation. YAO is home to over 190 stocks and $57.4 million in AUM, but the ETF's top-10 holdings are dominated by Chinese large-caps. That group accounts for roughly 44% of YAO's weight. It's not that mid caps and small caps are absent from YAO. They're not. Just know that you're getting more of large-cap fund than the title implies. YAO's chart looks strong and a run back to $26 could be in the cards.</p>

<p>iShares Russell 3000 Index Fund (NYSE: <a class="ticker" href="/stock/iwv#NYSE">IWV</a>):
OK, so the iShares Russell 3000 Index Fund doesn't hold 3,000 stocks. It holds 2,958 and a robust $3.1 billion in AUM. A very reasonable 0.2% expense ratio is another point in the ETF's favor. Technology, financials, consumer discretionary, health care, producer durables and energy all get double-digit allocations. Trading around $74, IWV could 8%-10% upside in the near-term.</p>

<p>First Trust Multi Cap Growth AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fad#NYSE">FAD</a>):
FAB has a growth counterpart in the form of the First Trust Multi Cap Growth AlphaDEX Fund. Both have expense ratios of 0.7%, but FAD is smaller with 531 stocks and $29.4 million in AUM. Even though this is a growth fund, the usual growth sectors don't weigh as heavily here as consumer discretionary and staples which combine for over 36% of FAD's weight. No stock receives an allocation of more than 0.54%.</p>

<p>Schwab U.S. Broad Market ETF (NYSE: <a class="ticker" href="/stock/schb#NYSE">SCHB</a>):
Just a few days shy of its second birthday, SCHB has accomplished a lot in that time as the ETF is home to almost $672 million in AUM. Even more impressive is an expense ratio of just 0.06%, which undercuts comparable funds from all rival firms. SCHB tracks an index that is home to 2,500 stocks, but the ETF itself currently holds 1,499 securities. Remember, SCHB is commission-free if you're a Schwab client.</p>

Short Ideas

Specialty ETFs

Emerging Market ETFs

Technicals

Intraday Update

First Trust Multi Cap Value AlphaDEX Fund

First Trust Multi Cap Growth AlphaDEX Fund

SCHB

Five All Cap ETFs Your Broker Forgot to Mention

PowerShares DBmmodity Index Optimum Yield Diversified Fund

PowerShares Dynamic Developed International Opportunities Portfolio

PowerShares Exchange-Traded Fund Trust II PowerShares FTSE RAFI Emerging Markets Portfolio

SCHX

Japan Disaster -- Prevention is Better Than Cure -- How Does that Apply to Investing?

WisdomTree Trust WisdomTree SmallCap Dividend

DODGX

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

FCNTX

iShares S&P SmallCap 600 Growth Index Fund

iShares Trust Russell Midcap Growth Index Fund

iShares Trust Russell MidCap Value Index Fund

iShare Morningstar Large Growth Index Fund

iShares Morningstar Large Value Index Fund

iShares Morningstar Small Growth Index Fund

PowerShares ETF Trust International Dividend Achievers Portfolio

PowerShares Exchange Traded Fund Dynamic Mid Cap Portfolio

PowerShares Exchange Traded Fund Dynamic Small Cap Portfolio

PowerShares Exchange Traded Fund Trust Dynamic Mid Cap Value Portfolio

PowerShares Exchange Traded Fund Trust Dynamic Small Cap Growth Portfolio

PowerShares Exchange Traded Fund Trust Dynamic Large Cap Value Portfolio

QQQQ

Rydex ETF Trust S&P Midcap 400 Pure Growth ETF

Rydex ETF Trust S&P Midcap 400 Pure Value ETF

Rydex ETF Trust S&P Smallcap 600 Pure Growth ETF

SCHA

SCHV

National Semiconductor Provides Good Funds in Their Retirement Plan

<div class="entry" style="margin: 0px; padding: 0px; overflow: hidden;">
<div class="posttitle" style="margin: 0px; padding: 0px;"><span class="bodyline"><a href="http://portfolioist.com/2011/03/28/relax-arguments-for-doing-less-with-your-investments/">Doing Less With Your Investments</a> March 28, 2011 by <a href="http://portfolioist.com/author/nanettebyrnes/">Nanette Byrnes</a></span></div>
<div class="entry" style="margin: 0px; padding: 0px; overflow: hidden;">
<p> </p>
<p>In his latest<a href="http://www.behaviorgap.com/"> Behavior Gap</a> Newsletter, Carl Richards nails that feeling of confusion that comes when we learn first hand that “past performance is not a guarantee of future results.”</p>
<p><a href="http://smarterinvesting.files.wordpress.com/2011/03/carlrichards-hot-funds1-591x456.jpg"><img src="http://smarterinvesting.files.wordpress.com/2011/03/carlrichards-hot-funds1-591x456.jpg?w=500&amp;h=385" alt="" /></a></p>
<p>Investing isn't like hiring a basketball coach, Richards argues, but rather like planting an oak tree:“You never plant a tree and then pull it out every time the wind blows just to check the roots.”</p>
<p>He also quotes this gem from Warren Buffett: “Benign neglect, bordering on sloth, remains the hallmark of our investment process.”</p>
<h3 style="margin: 2em 0px 0px; padding: 0px; font-family: Helvetica,Verdana,Arial,sans-serif; font-size: 1.2em; font-weight: bold; color: #333333;">Why We Should Do Less With our Investments</h3>
<p>In his book <a href="http://www.amazon.com/Investing-Simpler-Second-Focus-Investor/dp/0976657457">Wise Investing Made Simpler</a> Larry Swedroe makes a similar point using a study conducted by a trio of academics. Edwin J. Elton and Martin J. Gruber of New York University, and Christopher R. Blake of Fordham University, examined 43 401(k) plans from 1994 through 1999.</p>
<p>Over those five years, the 401(k) plans added 215 new fund options for participants and dropped 45 funds from their plans. The funds added had a strong track record. Those that were dropped had poor recent performance.</p>
<p>The professors soon discovered that the new funds promptly underperformed those that had been given the heave-ho.</p>
<p>That brought the overall quality of the offerings down. Making matters worse, participants in the plans constantly chased performance by shifting money into last quarter's top performers, the study notes.</p>
<h3 style="margin: 2em 0px 0px; padding: 0px; font-family: Helvetica,Verdana,Arial,sans-serif; font-size: 1.2em; font-weight: bold; color: #333333;">Give Your Money A Chance To Grow</h3>
<p>The argument Richards, Swedroe, and others make is simple. Having put thought and effort into setting up their investments, investors need to give them a chance to grow. That doesn't mean you can't appreciate their beauty and even check in on their performance now and again, but successful long-term investing requires patience.</p>
<p>If you have ideas for setting the right balance between enlightened remove and dangerous neglect, <a href="http://portfolioist.com/2011/03/28/relax-arguments-for-doing-less-with-your-investments/">chime in</a>.</p>
<p> </p>
<p> </p>
<p>Symbols:<a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol= SPY&amp;count=001'> SPY</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VTI&amp;count=0099'>VTI</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IYR&amp;count=00107'>IYR</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VNQ&amp;count=00104'>VNQ</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=ICF&amp;count=0088'>ICF</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=AGG&amp;count=00141'>AGG</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=BND&amp;count=00151'>BND</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=DBC&amp;count=0098'>DBC</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IVV&amp;count=0048'>IVV</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IYY&amp;count=0040'>IYY</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWV&amp;count=0045'>IWV</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VV&amp;count=0040'>VV</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=DLN&amp;count=0042'>DLN</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=RSP&amp;count=0044'>RSP</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=SCHX&amp;count=0040'>SCHX</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=CLY&amp;count=006'>CLY</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=LQD&amp;count=0067'>LQD</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=BLV&amp;count=0010'>BLV</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VCLT&amp;count=008'>VCLT</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol= DGL&amp;count=001'> DGL</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IAU&amp;count=004'>IAU</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=DBG&amp;count=003'>DBG</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=AGOL&amp;count=003'>AGOL</a></p>
<div class="sidebar_box_content">(SPY), (VTI), (IYR), (VNQ), (ICF), (AGG), (BND), (DBC), (IVV), (IYY), (IWV), (VV), (DLN), (RSP), (SCHX), (CLY), (LQD), (BLV), (VCLT),  (DGL), (IAU), (DBG), (AGOL)</div>
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AGOL

iShares Trusthen & Steers Realty Majors Index Fund

iShares Trust Dow Jones US Real Estate Fund Index

VCLT

Relax: Doing Less With Your Investments

<p><a href="http://portfolioist.com/2011/03/25/will-harry-brownes-permanent-portfolio-continue-to-work/">Portfolioist Article<br /></a>March 25, 2011 by<span class="Apple-converted-space"> </span><a href="http://portfolioist.com/author/geoffc1/">Geoff Considine</a></p>
<div class="entry" style="margin: 0px; padding: 0px; overflow: hidden;">
<p>I just published an article over at Advisor Perspectives that is titled <a href="http://www.advisorperspectives.com/newsletters11/What_Investors_Should_Fear_in_the_Permanent_Portfolio.php">“What Investors Should Fear in The Permanent Portfolio”</a> that looks at a very simple model portfolio proposed by Harry Browne.  This portfolio contains equal allocations to four elements: stocks, gold, long-term government bonds and cash.  Back in 1998 when Browne first proposed this portfolio in his book, <a href="http://www.amazon.com/Fail-Safe-Investing-Lifelong-Financial-Security/dp/031226321X/ref=sr_1_1">Fail Safe Investing</a>, it was decidedly harder to create your own version of this allocation model.  Today, you can easily implement this portfolio at fairly low cost using four ETFs. </p>
<p>Harry Browne's <a href="http://portfolioist.com/2010/08/27/bernstein-bogleheads-and-the-permanent-portfolio/">Permanent Portfolio</a> has gotten a great deal of attention–and many new advocates–due to its solid performance in recent years when more traditional asset allocations suffered substantial losses.  However, the question that investors need to ask is whether this will be a successful way to invest in the future. </p>
<p>I am not going to go through all of the analysis–but I will present three brief highlights here:<br /> 1) There is no question that the simple asset allocation in the Permanent Portfolio has done very well in the last decade and more.</p>
<p>2) The reliance on long-term bonds and gold has led to great performance but yields on long bonds are near historic lows and gold is near historic highs.</p>
<p>3) The Permanent Portfolio is not likely to fare well in a rising interest rate environment.</p>
<p>Ultimately, my conclusion is quite similar to that reached by William Bernstein, when he looked at this deceptively simple asset allocation.  The statistics suggest that the Permanent Portfolio does indeed capture elements that will do well in a wide variety of market conditions.  The danger for investors is piling into this strategy after a period that has been almost optimal for this approach vs. more conventional asset allocations.  For many of the latecomers to the Permanent Portfolio, there is a substantial risk that they are chasing performance and are thus setting themselves up for much lower future returns.</p>
<p><span class="Apple-style-span" style="border-collapse: separate; color: #000000; font-family: 'Times New Roman'; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; font-size: medium;"><span class="Apple-style-span" style="color: #333333; font-family: helvetica,verdana,arial,sans-serif; font-size: 12px; line-height: 19px; text-align: left;"></span></span></p>
<p style="margin: 0.8em 0px; padding: 0px; line-height: 1.7em; text-align: left;"><strong style="padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; color: #1e2d3b;">Symbols:<a href ='../../../../LTISystem/f401k_symbols.action?symbol= SPY&amp;count=001'> SPY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTI&amp;count=0096'>VTI</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IYR&amp;count=00105'>IYR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VNQ&amp;count=00102'>VNQ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ICF&amp;count=0086'>ICF</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AGG&amp;count=00139'>AGG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BND&amp;count=00149'>BND</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DBC&amp;count=0096'>DBC</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVV&amp;count=0046'>IVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IYY&amp;count=0038'>IYY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWV&amp;count=0043'>IWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VV&amp;count=0038'>VV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DLN&amp;count=0040'>DLN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RSP&amp;count=0042'>RSP</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHX&amp;count=0038'>SCHX</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=CLY&amp;count=004'>CLY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=LQD&amp;count=0065'>LQD</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BLV&amp;count=008'>BLV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VCLT&amp;count=006'>VCLT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol= DGL&amp;count=001'> DGL</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IAU&amp;count=002'>IAU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DBG&amp;count=001'>DBG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AGOL&amp;count=001'>AGOL</a>,</strong></p>
<p style="margin: 0.8em 0px; padding: 0px; line-height: 1.7em; text-align: left;"><span class="Apple-style-span" style="border-collapse: separate; color: #000000; font-family: 'Times New Roman'; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; font-size: medium;"><span class="Apple-style-span" style="color: #333333; font-family: helvetica,verdana,arial,sans-serif; font-size: 12px; line-height: 19px; text-align: left;">Exchange Symbols:</span></span><span class="Apple-style-span" style="border-collapse: separate; color: #000000; font-family: 'Times New Roman'; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; font-size: medium;"><span class="Apple-style-span" style="font-family: Arial,Verdana,sans-serif; font-size: 14px;"></span></span></p>
<div class="sidebar_box_content">(NYSE: SPY), (NYSE: VTI), (NYSE: IYR), (NYSE: VNQ), (NYSE: ICF), (NYSE: AGG), (NYSE: BND), (NYSE: DBC), (NYSE: IVV), (NYSE: IYY), (NYSE: IWV), (NYSE: VV), (NYSE: DLN), (NYSE: RSP), (NYSE: SCHX), (NYSE: CLY), (NYSE: LQD), (NYSE: BLV), (NYSE:VCLT), <span class="Apple-style-span" style="line-height: 19px;"> </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">DGL), </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">IAU), </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">DBG), </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">AGOL)</span></div>
<p></p>
<p></p>
</div>
<p><br /><br /><br />
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Will Harry Browne's Permanent Portfolio Continue To Work?

<p>Caterpillar Inc. (CAT) manufactures and sells construction and mining   equipment, diesel and natural gas engines, and industrial gas turbines   worldwide. The company was formerly known as Caterpillar Tractor Co. and  changed  its name to Caterpillar Inc. in 1986. Caterpillar was founded  in 1925  and is headquartered in Peoria, Illinois.</p>
<p>In this article, w report on <a rel="nofollow" >Caterpillar Inc Investment Trust</a> which is the master trust for Caterpillar's 401k plan.</p>
<p>The investment trust consists of 10 funds. These funds enable participants to    gain exposure to 3 major assets:            US Equity,            Foreign Equity,            Fixed Income.</p>
<p>The following table lists the asset classes those funds cover:</p>
<table style="width: 50%;" border="0">
<thead>
<tr>
<th align="left">Asset Class</th>
<th align="left">Name</th>
</tr>
</thead>
<tbody>
<tr>
<td width="40%">MID-CAP BLEND</td>
<td width="40%">SPDR S&amp;P MidCap 400</td>
</tr>
<tr>
<td width="40%">LARGE BLEND</td>
<td width="40%">iShares Russell 1000 Index</td>
</tr>
<tr>
<td width="40%">LARGE GROWTH</td>
<td width="40%">iShares Russell 1000 Growth Index</td>
</tr>
<tr>
<td width="40%">LARGE VALUE</td>
<td width="40%">iShares Russell 1000 Value Index</td>
</tr>
<tr>
<td width="40%">SMALL BLEND</td>
<td width="40%">iShares Russell 2000 Index</td>
</tr>
<tr>
<td width="40%">LARGE BLEND</td>
<td width="40%">iShares Russell 3000 Index</td>
</tr>
<tr>
<td width="40%">High Yield Bond</td>
<td width="40%">JPMorgan High Yield Bond R5</td>
</tr>
<tr>
<td width="40%">Emerging Markets Bond</td>
<td width="40%">JPMorgan Emerging Mkts Debt R5</td>
</tr>
<tr>
<td width="40%">Intermediate Bond</td>
<td width="40%">JPMorgan Bond Instl</td>
</tr>
<tr>
<td width="40%">Foreign Large Blend</td>
<td width="40%">Vanguard Total Intl Stock Index Inv</td>
</tr>
</tbody>
</table>
<p> </p>
<table border="0">
<thead>
<tr>
<th align="left">Asset Class</th>
<th>Number of funds</th>
</tr>
</thead>
<tbody>
<tr>
<td>REITs</td>
<td>0</td>
</tr>
<tr>
<td>Balanced Fund</td>
<td>0</td>
</tr>
<tr>
<td>Fixed Income</td>
<td>2</td>
</tr>
<tr>
<td>Commodity</td>
<td>0</td>
</tr>
<tr>
<td>Sector Fund</td>
<td>0</td>
</tr>
<tr>
<td>Foreign Equity</td>
<td>1</td>
</tr>
<tr>
<td>Emerging Market Equity</td>
<td>0</td>
</tr>
<tr>
<td>US Equity</td>
<td>6</td>
</tr>
<tr>
<td>Other</td>
<td>1</td>
</tr>
<tr>
<td>Total</td>
<td>10</td>
</tr>
</tbody>
</table>
<p>As of Mar 25, 2011,    this plan investment choice is rated as    <strong> average </strong> based on MyPlanIQ <a rel="nofollow" href="http://www.myplaniq.com/LTISystem/f401k_showplanscorelist.action">Plan Rating methodology </a> that was designed to measure how effective a plan's available investment funds are <strong>. </strong> It has the following detailed ratings:</p>
<p><span style="font-size: small;"><strong>Diversification</strong> -- Rated as <strong> below average (14%)</strong> </span> <br /> <span style="font-size: small;"><strong>Fund Quality</strong> -- Rated as <strong> average (61%)</strong> </span> <br /> <span style="font-size: small;"><strong>Portfolio Building</strong> -- Rated as <strong> average (60%)</strong> </span> <br /> <span style="font-size: small;"><strong>Overall Rating: 		average (46%)</strong></span></p>
<h2>Discussions</h2>
<p>The trust presents an interesting lineup of investment choices: in the U.S. equities, it covers large, mid-cap and small cap stocks. In large cap stocks, it further gives choices in growth and value styles. But it decides to give only mid-cap blend and small blend stock styles to the participants. For international equity, it has only one choice.</p>
<p>On the fixed income side, it is getting more interesting: in addition to a broad base bond index fund (JPMorgan Bond Instl), it gives a high yield (junk) bond fund and an emerging market bond fund, both are at the end of the highest risk spectrum among fixed income (bond) funds.</p>
<p>A natural question to ask is why only those two fixed income funds? How about fixed income funds in other categories such as investment grade corporate bond, long treasury bonds or international bonds. Maybe the reason behind this is that the bond index fund covers most of the short, intermediate term government and corporate bonds. Offering two highest risk bond funds would allow participants to increase their risk premiums.</p>
<h2>Portfolio Discussions</h2>
<p>The chart and table below show the historical performance of moderate  model portfolios employing strategic and tactical asset allocation  strategies.    For comparison purpose, we also include the moderate model portfolios  of a typical 3     asset <a rel="nofollow" >SIB (Simpler Is Better) plan </a>.     This SIB plan has the following candidate index funds and their ETFs equivalent:</p>
<p>US Equity: SPY or VTI            <br /> Foreign Equity: EFA or VEU            <br /> Fixed Income: AGG or BND            <br /> Performance chart (as of  Mar 25, 2011)</p>
<p>The following portfolios are constructed using  two typical asset allocation strategies: <a >Strategic Asset Allocation</a> and <a >Tactical Asset Allocation</a>.</p>
<p>Strategic Asset Allocation is based on well known modern portfolio  theory and its key features include: diversification, proper fund  selection and periodically re-balancing.</p>
<p>Tactical Asset Allocation works on a diversified array of assets  provided by funds in a plan and adjusts asset mixes based on market  conditions such as asset price momentum utilized by TAA.</p>
<p><a rel="lightbox" href="http://www.myplaniq.com/LTISystem/article_viewchart.action?portfolioID=27556,27559,31628,31631"> <img src="http://www.myplaniq.com/LTISystem/article_viewchart.action?portfolioID=27556,27559,31628,31631" /> </a></p>
<p>Performance table (as of  Mar 25, 2011)</p>
<div id="show_Port_div" style="display:block">
<table id="comparetablePort" class="tablesorter" style="width: 100%;" border="0" cellspacing="1" cellpadding="0">
<thead>
<tr>
<th class="header" width="40%">Portfolio Name</th>
<th class="header" width="10%">1Yr AR</th>
<th class="header" width="10%">1Yr Sharpe</th>
<th class="header" width="10%">3Yr AR</th>
<th class="header" width="10%">3Yr Sharpe</th>
<th class="header" width="10%">5Yr AR</th>
<th class="header" width="10%">5Yr Sharpe</th>
</tr>
</thead>
<tbody>
<tr>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=27,556"> Caterpillar Inc Investment Trust Tactical Asset Allocation Moderate</a></td>
<td>4%</td>
<td>34%</td>
<td>9%</td>
<td>110%</td>
<td>9%</td>
<td>91%</td>
</tr>
<tr>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=27,559"> Caterpillar Inc Investment Trust Strategic Asset Allocation Moderate</a></td>
<td>12%</td>
<td>131%</td>
<td>3%</td>
<td>25%</td>
<td>4%</td>
<td>26%</td>
</tr>
<tr>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=31,628"> Three Core Asset ETF Benchmark Tactical Asset Allocation Moderate</a></td>
<td>-1%</td>
<td>-9%</td>
<td>2%</td>
<td>23%</td>
<td>4%</td>
<td>32%</td>
</tr>
<tr>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=31,631"> Three Core Asset ETF Benchmark Strategic Asset Allocation Moderate</a></td>
<td>12%</td>
<td>89%</td>
<td>3%</td>
<td>15%</td>
<td>4%</td>
<td>16%</td>
</tr>
</tbody>
</table>
</div>
<p>This plan's Strategic Asset Allocaton moderate portfolio matches the three asset benchmark's one in terms of returns. However, it does have higher Sharpe ratio, indicating the virtue of the US asset  class choices and the extra fixed income funds.</p>
<p>The Tactical Asset Allocation moderate portfolio beats its three asset counterpart by a big margin. This again is due to more fund choices in US stocks and fixed income bonds.</p>
<p>Currently      Commodities,       US Equity          and       Real Estate     are doing well.          Only            US Equity             is   available to Caterpillar Inc Investment Trust participants.</p>
<p>To summarize, Caterpillar Inc Investment Trust presents some reasonable investment choices. Some of major asset classes such as REITs and emerging market stocks are missing from the plan. Adding funds to allow exposure to these major assets would allow more diversification and more opportunities to enhance return while reducing risk.</p>
<p><strong>Symbols:<a href ='../../../../LTISystem/f401k_symbols.action?symbol=CAT&amp;count=001'>CAT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SPY&amp;count=00132'>SPY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTI&amp;count=0095'>VTI</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EFA&amp;count=00146'>EFA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VEU&amp;count=00127'>VEU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AGG&amp;count=00138'>AGG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BND&amp;count=00148'>BND</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=HYG&amp;count=0097'>HYG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JNK&amp;count=0090'>JNK</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PHB&amp;count=0085'>PHB</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=CIU&amp;count=00106'>CIU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BIV&amp;count=0046'>BIV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=GWL&amp;count=0039'>GWL</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PFA&amp;count=0036'>PFA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVE&amp;count=0036'>IVE</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWW&amp;count=0033'>IWW</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKF&amp;count=0026'>JKF</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTV&amp;count=0038'>VTV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ELV&amp;count=0025'>ELV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWV&amp;count=0026'>PWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RPV&amp;count=0026'>RPV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHV&amp;count=0028'>SCHV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVV&amp;count=0045'>IVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IYY&amp;count=0037'>IYY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWV&amp;count=0042'>IWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VV&amp;count=0037'>VV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DLN&amp;count=0039'>DLN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RSP&amp;count=0041'>RSP</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHX&amp;count=0037'>SCHX</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVW&amp;count=0041'>IVW</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWZ&amp;count=0033'>IWZ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKE&amp;count=0030'>JKE</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VUG&amp;count=0042'>VUG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ELG&amp;count=0029'>ELG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=QQQQ&amp;count=0082'>QQQQ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RPG&amp;count=0030'>RPG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHG&amp;count=0032'>SCHG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJH&amp;count=0026'>IJH</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWR&amp;count=0026'>IWR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKG&amp;count=0017'>JKG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VO&amp;count=0026'>VO</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=MDY&amp;count=0072'>MDY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EMM&amp;count=0020'>EMM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PJG&amp;count=0017'>PJG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DON&amp;count=0020'>DON</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EZM&amp;count=0020'>EZM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=MVV&amp;count=0016'>MVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJR&amp;count=0033'>IJR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWM&amp;count=00101'>IWM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKJ&amp;count=0022'>JKJ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VB&amp;count=0030'>VB</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DSC&amp;count=0022'>DSC</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PJM&amp;count=0019'>PJM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DES&amp;count=0022'>DES</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SAA&amp;count=0019'>SAA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=UWM&amp;count=0019'>UWM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHA&amp;count=0025'>SCHA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PCY&amp;count=0032'>PCY</a>,</strong></p>
<p>Exchange Tickers: (CAT),(SPY),(VTI),(EFA),(VEU),(AGG),(BND),(HYG),(JNK),(PHB),(MDY),(IWM),(IWV),(IWW)</p>
<p><strong>Disclosure:</strong></p>
<p>MyPlanIQ does not have any business relationship with the company or  companies mentioned in this article. It does not set up their retirement  plans. The performance data of portfolios mentioned above are obtained  through historical simulation and  are hypothetical.</p>
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PowerShares Fundamental High Yieldorate Bond Portfolio

Caterpillar's 401K Retirement Plan: Reasonable Investment Choices But Could Be More Systematic

streetTRACKS Dow Jones U.S. Small Cap Value Index Fund

iShares S&P SmallCap 600 Value Index Fund

iShares Morningstar Small Value Index Fund

LSVEX

PTTRX

PowerShares Exchange Traded Fund Trust Dynamic Small Cap Value Portfolio

Rydex ETF Trust S&P Smallcap 600 Pure Value ETF

Accenture 401K Retirement Plan: High Quality and Low Cost Funds with Proper Diversification

<p>Amazon.com (Ticker: AMZN) is the largest online book and goods seller. It was founded in 1994 and is headquartered in Seattle, Washington. It pioneered in online ecommerce and has been very successful in its aggressive business expansion. When it comes to its retirement plan investment choices, however, it provides a somewhat U.S. centric and old style plan.</p>
<p>The <a rel="nofollow">Amazon.com 401K Plan</a> consists of 12 funds. These funds enable participants to    gain exposure to 3 major assets:            US Equity,            Foreign Equity,            Fixed Income. This is a very conventional retirement plan that has been clearly U.S. and developed countries centric.</p>
<table style="width: 50%;" border="0">
<thead>
<tr>
<th align="left">Asset Class</th>
<th align="left">Ticker</th>
<th align="left">Name</th>
</tr>
</thead>
<tbody>
<tr>
<td width="40%">LARGE GROWTH</td>
<td width="20%">RGAEX</td>
<td width="40%">American Funds Growth Fund of Amer R4</td>
</tr>
<tr>
<td width="40%">LARGE BLEND</td>
<td width="20%">VFINX</td>
<td width="40%">Vanguard 500 Index Investor</td>
</tr>
<tr>
<td width="40%">LARGE GROWTH</td>
<td width="20%">VFTSX</td>
<td width="40%">Vanguard FTSE Social Index Inv</td>
</tr>
<tr>
<td width="40%">LARGE VALUE</td>
<td width="20%">VWNFX</td>
<td width="40%">Vanguard Windsor II</td>
</tr>
<tr>
<td width="40%">MID-CAP BLEND</td>
<td width="20%">VSEQX</td>
<td width="40%">Vanguard Strategic Equity</td>
</tr>
<tr>
<td width="40%">SMALL VALUE</td>
<td width="20%">AVPAX</td>
<td width="40%">American Beacon Small Cp Val Plan</td>
</tr>
<tr>
<td width="40%">Small Growth</td>
<td width="20%">VEXPX</td>
<td width="40%">Vanguard Explorer</td>
</tr>
<tr>
<td width="40%">Foreign Large Blend</td>
<td width="20%">JIEIX</td>
<td width="40%">Artio International Equity I</td>
</tr>
<tr>
<td width="40%">Intermediate-Term Bond</td>
<td width="20%">PTTRX</td>
<td width="40%">PIMCO Total Return Instl</td>
</tr>
<tr>
<td width="40%">Retirement Income</td>
<td width="20%">VTINX</td>
<td width="40%">Vanguard Target Retirement Income</td>
</tr>
<tr>
<td width="40%">US EQUITY</td>
<td width="20%">AMZN</td>
<td width="40%">Amazoncom  Inc</td>
</tr>
<tr>
<td width="40%">Money Market</td>
<td width="20%"></td>
<td width="40%"> </td>
</tr>
</tbody>
</table>
<p> </p>
<p>The list of minor asset classes covered:   <br /> Foreign Large Blend:            EFA,                   VEU,                   GWL,                   PFA           <br /> Intermediate-term Bond:            AGG,                   CIU,                   BIV,                   BND           <br /> Large Blend:            IVV,                   IYY,                   IWV,                   VTI,                   VV,                   SPY,                   DLN,                   RSP,                   SCHX           <br /> Large Growth:            IVW,                   IWZ,                   JKE,                   VUG,                   ELG,                   QQQQ,                   RPG,                   SCHG           <br /> Large Value:            IVE,                   IWW,                   JKF,                   VTV,                   ELV,                   PWV,                   RPV,                   SCHV           <br /> Mid-cap Blend:            IJH,                   IWR,                   JKG,                   VO,                   MDY,                   EMM,                   PJG,                   DON,                   EZM,                   MVV           <br /> Retirement Income:             <br /> Small Growth:            IJT,                   IWO,                   JKK,                   VBK,                   DSG,                   PWT,                   RZG,                   UKK           <br /> Small Value:            IJS,                   IWN,                   JKL,                   VBR,                   DSV,                   PWY,                   RZV,                   UVT           <br /> Us Equity:            IVV,                   IYY,                   IWV,                   VTI,                   VV,                   SPY,                   DLN,                   RSP,                   SCHX</p>
<table border="0">
<thead>
<tr>
<th align="left">Asset Class</th>
<th>Number of funds</th>
</tr>
</thead>
<tbody>
<tr>
<td>REITs</td>
<td>0</td>
</tr>
<tr>
<td>Balanced Fund</td>
<td>1</td>
</tr>
<tr>
<td>Fixed Income</td>
<td>1</td>
</tr>
<tr>
<td>Commodity</td>
<td>0</td>
</tr>
<tr>
<td>Sector Fund</td>
<td>0</td>
</tr>
<tr>
<td>Foreign Equity</td>
<td>1</td>
</tr>
<tr>
<td>Emerging Market Equity</td>
<td>0</td>
</tr>
<tr>
<td>US Equity</td>
<td>8</td>
</tr>
<tr>
<td>Other</td>
<td>9</td>
</tr>
<tr>
<td>Total</td>
<td>12</td>
</tr>
</tbody>
</table>
<p>As of Mar 21, 2011,    this plan investment choice is rated as    <strong> below average </strong> based on MyPlanIQ <a rel="nofollow">Plan Rating methodology </a> that was designed to measure how effective a plan's available investment funds are <strong>. </strong> It has the following detailed ratings:</p>
<p><span style="font-size: small;"><strong>Diversification</strong> -- Rated as <strong> average (43%)</strong> </span> <br /><span style="font-size: small;"><strong>Fund Quality</strong> -- Rated as <strong> below average (19%)</strong> </span> <br /><span style="font-size: small;"><strong>Portfolio Building</strong> -- Rated as <strong> average (38%)</strong> </span> <br /><span style="font-size: small;"><strong>Overall Rating: 		below average (34%)</strong></span></p>
<p>Since Amazon.com was founded in 1994, the world has gone through dramatic changes. Globalization has enabled countries like China, India and Brazil to emerge as strong economic powers in the world, partly due to the rapid development in internet and communication. Ironically, Amazon.com, while being aggressive to pursue its cutting edge business practice and technology, has provided its employees a very traditional retirement plan that lacks of other major asset exposure including emerging market stocks and real estate investments (REITs). This is reflected in the performance of the following model portfolios that adopt asset allocation strategies: strategic and tactical asset allocation strategies    (<a rel="nofollow">SAA </a>and <a rel="nofollow">TAA </a>for participants in Amazon.com 401K Plan).</p>
<p>Strategic Asset Allocation is based on well known modern portfolio  theory and its key features include: diversification, proper fund  selection and periodically re-balancing.</p>
<p>Tactical Asset Allocation works on a diversified array of assets  provided by funds in a plan and adjusts asset mixes based on market  conditions such as asset price momentum utilized by TAA.</p>
<p>The chart and table below show the historical performance of moderate  model portfolios employing strategic and tactical asset allocation  strategies.    For comparison purpose, we also include the moderate model portfolios  of a typical 3     asset <a rel="nofollow">SIB (Simpler Is Better) plan </a>.     This SIB plan has the following candidate index funds and their ETFs equivalent:</p>
<p>US Equity: SPY or VTI            <br /> Foreign Equity: EFA or VEU            <br /> Fixed Income: AGG or BND            <br /> Performance chart (as of  Mar 21, 2011)</p>
<p><a rel="lightbox"> </a></p>
<p><a rel="lightbox" href="../LTISystem/article_viewchart.action?portfolioID=17111,17117,31628,31631"> <img style="margin: 6px;" title="chart" src="http://www.myplaniq.com/LTISystem/article_viewchart.action?portfolioID=17111,17117,31628,31631" alt="chart" /></a><a rel="lightbox" href="../LTISystem/article_viewchart.action?portfolioID=17111,17117,31628,31631"> </a></p>
<p>Performance table (as of  Mar 21, 2011)</p>
<div id="show_Port_div" style="display: block;">
<table id="comparetablePort" class="tablesorter" style="width: 100%;" border="0" cellspacing="1" cellpadding="0">
<thead>
<tr>
<th class="header" width="40%">Portfolio Name</th>
<th class="header" width="10%">1Yr AR</th>
<th class="header" width="10%">1Yr Sharpe</th>
<th class="header" width="10%">3Yr AR</th>
<th class="header" width="10%">3Yr Sharpe</th>
<th class="header" width="10%">5Yr AR </th>
<th class="header" width="10%">5Yr Sharpe</th>
</tr>
</thead>
<tbody>
<tr>
<td><a> Amazon.com 401K Plan Tactical Asset Allocation Moderate</a></td>
<td>4%</td>
<td>32%</td>
<td>7%</td>
<td>70%</td>
<td>8%</td>
<td>70%</td>
</tr>
<tr>
<td><a> Amazon.com 401K Plan Strategic Asset Allocation Moderate</a></td>
<td>7%</td>
<td>60%</td>
<td>4%</td>
<td>26%</td>
<td>5%</td>
<td>30%</td>
</tr>
<tr>
<td><a> Three Core Asset ETF Benchmark Tactical Asset Allocation Moderate</a></td>
<td>-2%</td>
<td>-32%</td>
<td>2%</td>
<td>16%</td>
<td>4%</td>
<td>28%</td>
</tr>
<tr>
<td><a> Three Core Asset ETF Benchmark Strategic Asset Allocation Moderate</a></td>
<td>11%</td>
<td>69%</td>
<td>4%</td>
<td>13%</td>
<td>4%</td>
<td>14%</td>
</tr>
</tbody>
</table>
</div>
<p>Currently      Commodities,       Real Estate          and       US Equity     are doing well.          Only            US Equity             is   available to Amazon.com 401K Plan participants.</p>
<p>This plan beats the three asset benchmark by virtue of the US asset  class choices. If would be a stronger plan with more fixed income  choices and an additional asset class.</p>
<p>To summarize, Amazon.com 401K Plan would do well by their employees to consider  reviewing their existing funds and adding additional asset classes such as REITs and emerging market stocks.</p>
<p>Symbols:<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AMZN&amp;count=002'>AMZN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SPY&amp;count=00127'>SPY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTI&amp;count=0091'>VTI</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EFA&amp;count=00142'>EFA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VEU&amp;count=00124'>VEU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AGG&amp;count=00134'>AGG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BND&amp;count=00144'>BND</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVV&amp;count=0044'>IVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IYY&amp;count=0036'>IYY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWV&amp;count=0041'>IWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VV&amp;count=0036'>VV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DLN&amp;count=0038'>DLN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RSP&amp;count=0040'>RSP</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHX&amp;count=0036'>SCHX</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=CIU&amp;count=00104'>CIU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BIV&amp;count=0045'>BIV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=GWL&amp;count=0038'>GWL</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PFA&amp;count=0035'>PFA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVE&amp;count=0035'>IVE</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWW&amp;count=0032'>IWW</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKF&amp;count=0025'>JKF</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTV&amp;count=0037'>VTV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ELV&amp;count=0024'>ELV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWV&amp;count=0025'>PWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RPV&amp;count=0025'>RPV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHV&amp;count=0027'>SCHV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVW&amp;count=0040'>IVW</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWZ&amp;count=0032'>IWZ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKE&amp;count=0029'>JKE</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VUG&amp;count=0041'>VUG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ELG&amp;count=0028'>ELG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=QQQQ&amp;count=0081'>QQQQ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RPG&amp;count=0029'>RPG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHG&amp;count=0031'>SCHG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJH&amp;count=0026'>IJH</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWR&amp;count=0026'>IWR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKG&amp;count=0017'>JKG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VO&amp;count=0026'>VO</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=MDY&amp;count=0072'>MDY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EMM&amp;count=0020'>EMM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PJG&amp;count=0017'>PJG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DON&amp;count=0020'>DON</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EZM&amp;count=0020'>EZM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=MVV&amp;count=0016'>MVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJS&amp;count=0022'>IJS</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWN&amp;count=0022'>IWN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKL&amp;count=0013'>JKL</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VBR&amp;count=0021'>VBR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DSV&amp;count=0014'>DSV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWY&amp;count=0013'>PWY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RZV&amp;count=0013'>RZV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=UVT&amp;count=0013'>UVT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJT&amp;count=0019'>IJT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWO&amp;count=0020'>IWO</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKK&amp;count=0013'>JKK</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VBK&amp;count=0024'>VBK</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DSG&amp;count=0013'>DSG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWT&amp;count=0011'>PWT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RZG&amp;count=0010'>RZG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=UKK&amp;count=0010'>UKK</a>,</p>
<p>Exchange Tickers:(AMZN),(SPY),(VTI),(EFA),(VEU),(AGG),(BND),(IVV),(IYY),(IWV),(VV),(DLN),(RSP),(SCHX),(CIU),(BIV),(GWL),(PFA),(IVE),(IWW),(JKF),(VTV),(ELV),(PWV),(RPV),(SCHV),(IVW),(IWZ),(JKE),(VUG),(ELG),(QQQQ),(RPG),(SCHG),(IJH),(IWR),(JKG),(VO),(MDY),(EMM),(PJG),(DON),(EZM),(MVV),(IJS),(IWN),(JKL),(VBR),(DSV),(PWY),(RZV),(UVT),(IJT),(IWO),(JKK),(VBK),(DSG),(PWT),(RZG),(UKK)</p>
<p>Disclosure:</p>
<p>MyPlanIQ does not have any business relationship with the company or  companies mentioned in this article. It does not set up their retirement  plans. The performance data of portfolios mentioned above are obtained  through historical simulation and  are hypothetical.</p>
<p><br /><br /><br />
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AMZN

Online Pioneer Amazon.com Can Expand Its 401K Plan for More Diversification

<p>Aging boomers highlight the major retirement crisis as they come to the end of their working careers. They don't have enough money.<span style="font-family: Symbol;"><span><span style="font: 7pt "Times New Roman";"> </span></span></span>There is no money to bail out retirement – it's already been spent on salvaging the economy for the working. This is one of the first generations for whom their retirement is based on what they have with little assistance from Social Security. Henceforth, the bleak reality is that this will apply to everybody.</p>
<p> It is going to be up to the individual to make the most of what they have. We will have to accept less or work longer or achieve better returns from their investments.</p>
<p> We are exploring a range of different portfolios looking for ideas to help improve returns for retirement investors.<span style="font-family: Symbol;"><span><span style="font: 7pt "Times New Roman";"> </span></span></span>We believe that it is vital for the individual to be more involved with their retirement investing to see better results. These articles are intended to help build the foundational understanding that will enable better returns, lower risk and less angst in our lives.</p>
<p> The Harry Browne Permanent Portfolio has defied conventional thinking with a lazy portfolio of four assets, Cash, Gold, US Equities and Long term treasury bonds. This is a three asset class portfolio with two fixed income assets (50%) of the portfolio with US Equities and Gold -- being a specialized type of commodity.</p>
<ul>
<li>25% in U.S. stocks, to provide a strong return during times of prosperity. For this portion of the portfolio, Browne recommends a basic S&amp;P 500 index fund such as <a href="http://www.google.com/finance?client=ob&amp;q=MUTF:VFINX">VFINX</a> or <a href="http://www.google.com/finance?q=MUTF%3AFSMKX">FSKMX</a>.(VTI, SPY) </li>
<li>25% in long-term U.S. Treasury bonds, which do well during prosperity and during deflation (but which do poorly during other economic cycles).(LQD)</li>
<li>25% in cash in order to hedge against periods of “tight money” or recession. In this case, “cash” means a <a href="http://www.money-rates.com/BasicGuides/MoneyMarket/MMA_versus_MoneyMarketFunds.htm">money-market fund</a>. (Note that our current recession is abnormal because money actually isn't tight — interest rates are very low.)</li>
<li>25% in precious metals (gold, specifically) in order to provide protection during periods of inflation. Browne recommends gold bullion coins.(GLD) </li>
</ul>
<div class="sidebar_box_noPadding roundHeadingBlue"></div>
<div class="sidebar_box_noPadding roundHeadingBlue">Annualized Return</div>
<div class="sidebar_box_noPadding roundHeadingBlue">
<div class="sidebar_box_noPadding roundHeadingBlue">
<div class="sidebar_box_content">
<table style="background-color: #ffffff; width: 50%;" border="0" cellspacing="1" cellpadding="0">
<tbody>
<tr bgcolor="#ffffff">
<td style="text-align: center;">
<h3>Name</h3>
</td>
<td width="90" align="center">
<h3>Last 1 Year</h3>
</td>
<td width="90" align="center">
<h3>Last 3 Years</h3>
</td>
<td width="90" align="center">
<h3>Last 5 Years</h3>
</td>
</tr>
<tr class="vf_even">
<td height="30"><a href="../LTISystem/jsp/portfolio/ViewPortfolio.action?ID=17551&amp;type=4" target="_blank">Harry Browne Permanent Portfolio</a></td>
<td style="text-align: center;" height="30">11%</td>
<td style="text-align: center;" height="30">6%</td>
<td style="text-align: center;" height="30">8%</td>
</tr>
<tr class="vf_odd">
<td height="30"><a href="../LTISystem/jsp/fundcenter/View.action?symbol=vfinx&amp;type=4" target="_blank">VFINX (Vanguard (S&amp;P 500) Index)</a></td>
<td style="text-align: center;" height="30">13%</td>
<td style="text-align: center;" height="30">0%</td>
<td style="text-align: center;" height="30">0%</td>
</tr>
<tr class="vf_even">
<td height="30"><a href="../LTISystem/jsp/fundcenter/View.action?symbol=vbinx&amp;type=4" target="_blank">VBINX (Vanguard Balance (60% stocks/40% bonds)</a></td>
<td style="text-align: center;" height="30">10%</td>
<td style="text-align: center;" height="30">2%</td>
<td style="text-align: center;" height="30">2%</td>
</tr>
</tbody>
</table>
</div>
</div>
<p></p></div>
<div class="sidebar_box_noPadding roundHeadingBlue">
<div class="sidebar_box_content"></div>
</div>
<div class="sidebar_box_noPadding roundHeadingBlue">
<div class="sidebar_box_heading_white"> Historical Portfolio Chart</div>
<div class="sidebar_box_content"><img src="http://www.myplaniq.com/LTISystem/article_viewchart.action?portfolioID=17551&amp;securityID=1144,91&amp;width=680&amp;height=500&amp;Type=0" alt="" width="595" height="437" /> 
<p> The first thing to note is that the portfolio is very stable. It has similar properties to a tactical asset allocation in the sense that it resists taking losses very well. Just about every lazy portfolio has the same unpleasant V in the 2009 timeframe and the Browne permanent is about the only one that avoids this. The combination of gold, cash, long term treasury and US equities turned out to be the perfect hedge against the downturn. </p>
<p> And even after the downturn, gold and US equities have performed very well even until today where Gold and US are second and third on the rank of major asset classes.</p>
<p> We now compare the returns of the original portfolio compared with the same funds being deployed with strategic and tactical asset allocation strateties. </p>
<ul>
<li>SAA keeps all the funds in the portfolio but moves assets between cash and treasury bonds -- so that the fixed income may all be treasury bonds or equally split with cash or all cash.</li>
<li>TAA will do the same as SAA but can also move all the risk assets into cash or bonds</li>
</ul>
<p></p>
<div id="show_Port_div" style="display: block;">
<h3>Portfolio Performance Comparison</h3>
<table id="comparetablePort" class="tablesorter" style="width: 100%;" border="0" cellspacing="1" cellpadding="0">
<colgroup><col style="width: 359px;" /><col style="width: 82px;" /><col style="width: 82px;" /><col style="width: 82px;" /><col style="width: 82px;" /><col style="width: 82px;" /><col style="width: 82px;" /></colgroup>
<thead>
<tr>
<th class="header" width="40%">Portfolio Name</th>
<th class="header" width="10%">1Yr AR</th>
<th class="header" width="10%">1Yr Sharpe</th>
<th class="header" width="10%">3Yr AR</th>
<th class="header" width="10%">3Yr Sharpe</th>
<th class="header" width="10%">5Yr AR </th>
<th class="header" width="10%">5Yr Sharpe</th>
</tr>
</thead>
<tbody>
<tr class="even">
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=17551">Harry Browne Permanent Portfolio</a></td>
<td>11%</td>
<td>168%</td>
<td>6%</td>
<td>61%</td>
<td>8%</td>
<td>81%</td>
</tr>
<tr class="odd">
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=17707">Harry Browne Permanent Portfolio Plan Strategic Asset Allocation Moderate</a></td>
<td>12%</td>
<td>164%</td>
<td>7%</td>
<td>56%</td>
<td>9%</td>
<td>76%</td>
</tr>
<tr class="even">
<td><a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/ViewPortfolio.action?ID=17701">Harry Browne Permanent Portfolio Plan Tactical Asset Allocation Moderate</a></td>
<td>10%</td>
<td>140%</td>
<td>2%</td>
<td>20%</td>
<td>5%</td>
<td>50%</td>
</tr>
</tbody>
</table>
</div>
<p> We would expect the Tactical Asset Allocation strategy to struggle. With only three asset classes, there is nowhere to hide in terms of hedging and doesn't do well until the last couple of months when it catches up with the original. Both the SAA and TAA portfolios only have 40% in fixed income as opposed to the original that has 50% so the SAA and TAA are more aggressively positioned in risk equities.</p>
<p> In the middle of 2010 when US equities corrected, the SAA dropped significantly while the TAA and Browne original plans use different approaches to minimize downside. As we entered 2011, the fixed long term treasuries weighed on the Browne Original where TAA and SAA rotated them out into cash and let the risk assets pull them up.</p>
<p> Despite this, the Browne portfolio charts an uncannily even path through volatile waters and delivers reasonable returns with little effort and volatility. We can see benefits from being able to rotate subclasses in but at the cost of some volatility and extra trading that some would think unwelcome.</p>
<p> In a future article we will add consider adding an extra asset class to see if that would enable us to get better returns without sacrificing volatilty.</p>
<p> <span class="Apple-style-span" style="border-collapse: separate; color: #000000; font-family: 'Times New Roman'; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; font-size: medium;"><span class="Apple-style-span" style="border-collapse: collapse; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 13px; line-height: 16px;"></span></span></p>
<p><strong style="padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; color: #1e2d3b;">Disclosure:</strong></p>
<p>MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.</p>
<p><strong>Symbols </strong>(NYSE: SPY), (NYSE: VTI), (NYSE: IYR), (NYSE: VNQ), (NYSE: ICF), (NYSE: AGG), (NYSE: BND), (NYSE: DBC), (NYSE: IVV), (NYSE: IYY), (NYSE: IWV), (NYSE: VV), (NYSE: DLN), (NYSE: RSP), (NYSE: SCHX), (NYSE: CLY), (NYSE: LQD), (NYSE: BLV), (NYSE:VCLT), <span class="Apple-style-span" style="line-height: 19px;"> </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">DGL), </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">IAU), </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">DBG), </span>(NYSE: <span class="Apple-style-span" style="line-height: 18px;">AGOL)</span><strong style="padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; color: #1e2d3b;"><strong style="padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; color: #1e2d3b;"></strong></strong></p>
<p> <a href="http://www.myplaniq.com/LTISystem/jsp/portfolio/FullChart.action?ID=17,551&amp;name=Harry%20Browne%20Permanent%20Portfolio&amp;includeHeader=false" target="_blank"></a> </p></div>
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Gold, US Equities, Long Term Treasuries and Cash Make For an Uncanny Portfolio

<p>For the second time in as many weeks, Vanguard has launched a wave of broad market style-box ETFs aimed at unseating its largest rivals.  <a href="http://investwithanedge.com/vanguard-declares-war-in-fight-for-broad-market-etf-supremacy" target="_blank">Vanguard declared war in its fight for ETF supremacy</a> two weeks ago by targeting both SPDRs and iShares with the launch of nine ETFs covering the S&amp;P index style boxes.  Today's (9/22/10) announcement consists of seven new ETFs squarely aimed at the Russell-indexed ETFs from BlackRock's iShares that have been on the market for more than ten years.</p>
<p>Once again, Vanguard has chosen not to try to differentiate its products based on unique investment strategies, new indexes, or being first to market.  Instead, it is challenging the competition head-on and differentiating its offerings by price and brand name.  Vanguard has wisely chosen to draw the battle lines where it has an advantage.</p>
<p><strong>Vanguard Russell 1000 ETF (VONE)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VONE" target="_blank">VONE snapshot</a>) has an expense ratio of 0.12% and will directly compete with iShares Russell 1000 (<a class="ticker" href="/stock/iwb#">IWB</a>), which has a 0.15% expense ratio and is currently the third largest ETF in the large cap blend category behind SPDR S&amp;P 500 (<a class="ticker" href="/stock/spy#">SPY</a>) and iShares S&amp;P 500 (<a class="ticker" href="/stock/ivv#">IVV</a>).</p>
<p><strong>Vanguard Russell 1000 Growth ETF (VONG)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VONG" target="_blank">VONG snapshot</a>) has an expense ratio of 0.15% and will directly compete with iShares Russell 1000 Growth (<a class="ticker" href="/stock/iwf#">IWF</a>), which has a 0.20% expense ratio and is currently the second largest ETF in the large cap growth category behind PowerShares QQQ (<a class="ticker" href="/stock/qqqq#">QQQQ</a>).</p>
<p><strong>Vanguard Russell 1000 Value ETF (VONV)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VONV" target="_blank">VONV snapshot</a>) has an expense ratio of 0.15% and will directly compete with iShares Russell 1000 Value (<a class="ticker" href="/stock/iwd#">IWD</a>), which has a 0.20% expense ratio and is the current asset leader in the large cap value category.</p>
<p><strong>Vanguard Russell 2000 ETF (VTWO)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VTWO" target="_blank">VTWO snapshot</a>) has an expense ratio of 0.15% and will directly compete with iShares Russell 2000 (<a class="ticker" href="/stock/iwm#">IWM</a>), which has a 0.20% expense ratio and is the current asset leader in the small cap blend category.</p>
<p><strong>Vanguard Russell 2000 Growth ETF (VTWG)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VTWG" target="_blank">VTWG snapshot</a>) has an expense ratio of 0.20% and will directly compete with iShares Russell 2000 Growth (<a class="ticker" href="/stock/iwo#">IWO</a>), which has a 0.25% expense ratio and is the current asset leader in the small cap growth category.</p>
<p><strong>Vanguard Russell 2000 Value ETF (VTWV)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VTWV" target="_blank">VTWV snapshot</a>) has an expense ratio of 0.20% and will directly compete with iShares Russell 2000 Value (<a class="ticker" href="/stock/iwn#">IWN</a>), which has a 0.25% expense ratio and is the current asset leader in the small cap value category.</p>
<p><strong>Vanguard Russell 3000 ETF (VTHR)</strong> (<a href="https://personal.vanguard.com/us/funds/stocks/snapshot?Ticker=VTHR" target="_blank">VTHR snapshot</a>) has an expense ratio of 0.15% and will directly compete with iShares Russell 3000 (<a class="ticker" href="/stock/iwv#">IWV</a>), which has a 0.20% expense ratio and is currently the second largest ETF in the total U.S. market category behind Vanguard Total Stock Market ETF (<a class="ticker" href="/stock/vti#">VTI</a>).</p>
<p>Russell style-box indexes tend to be favored over similar indexes from S&amp;P by ETF investors seeking to control style-box allocations within their portfolios.  As a result, the existing iShares Russell ETFs are the asset leaders in most of these categories, with combined assets for the seven ETFs currently around $45 billion.</p>
<p>Vanguard chose to not bring the all-cap Russell 3000 Growth and Russell 3000 Value ETFs to market.  Their reasoning was not declared, but I would suspect the relatively low assets of less than $300 million each in iShares Russell 3000 Growth (<a class="ticker" href="/stock/iwz#">IWZ</a>) and iShares Russell 3000 Value (<a class="ticker" href="/stock/iww#">IWW</a>) is the primary factor.</p>
<p><em>Photo credit:  Norm Ringuette from mock cannon battles at Holland Point, Victoria British Columbia</em></p>
<p><em>Disclosure covering writer, editor, and publisher:  Long IVV.   No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.</em></p>
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Vanguard Launches Second Assault on iShares

<p>iShares launched three new single-country ETFs last Friday, May 7, 2010:  iShares MSCI Ireland Capped Investable Market Index Fund (EIRL), iShares MSCI Indonesia Investable Market Index Fund (EIDO), and iShares MSCI USA Index Fund (EUSA).  EIRL is the only Ireland-focused ETF currently available to US investors.  These three pushed the number of current ETF and ETN listings to <a href="../today-you-can-buy-1000-etfs" target="_blank">more than 1,000 for the first time ever</a>.</p>
<p><strong>iShares MSCI Ireland Capped Investable Market Index Fund (EIRL)</strong> (<a href="http://us.ishares.com/product_info/fund/overview/EIRL.htm?qt=EIRL" target="_blank">overview page</a>) is designed to track the MSCI Ireland Investable Market 25/50 Index, a free-float adjusted market capitalization weighted index representing the top 99% of equities by market capitalization listed on stock exchanges in Ireland.  The fund will have an expense ratio of 0.55%.</p>
<p>According to the <a href="http://us.ishares.com/content/stream.jsp?url=/content/repository/material/fact_sheet/eirl.pdf&amp;mimeType=application/pdf" target="_blank">EIRL fact sheet</a> (pdf), the underlying index had 21 holdings as of 3/31/10, with the largest being CRH 21.8%, Kerry Group 10.7%, Elan Corp 9.3%, Bank of Ireland 5.6%, and C&amp;C Group 4.9%.  Sector representation is Materials 25.3%, Consumer Staples 23.3%, Industrials 17.5%, Financials 14.5%, and Health Care 12.6%.  The other four major sectors (Energy, Telecommunications, Consumer Discretionary, and Technology) have no current allocation.</p>
<p>EIRL does not currently have any ETF competition in the U.S.  The only other ETF to focus on Ireland, the <a href="http://investwithanedge.com/first-wave-of-etf-closures-for-2009" target="_blank">NETS ISEQ 20 Index</a> (former ticker IQE), was closed in January 2009.</p>
<p><strong>iShares MSCI Indonesia Investable Market Index Fund (EIDO</strong>) (<a href="http://us.ishares.com/product_info/fund/overview/EIDO.htm" target="_blank">overview page)</a> is designed to track a free-float adjusted market capitalization weighted index from MSCI representing the top 99% of equities by market capitalization listed on stock exchanges in Indonesia.  The fund will have an expense ratio of 0.65%.</p>
<p>According to the <a href="http://us.ishares.com/content/stream.jsp?url=/content/repository/material/fact_sheet/eido.pdf&amp;mimeType=application/pdf" target="_blank">EIDO fact sheet</a> (pdf), the underlying index had 46 holdings as of 3/31/10, with the largest being Astra International 12.4%, Telekomunikasi 11.9%, Bank Central Asia 9.9%, Perusahaan Gas Negara 6.8%, and Bank Rakyat Indonesia 6.6%.  The top sectors were Financials 28.7%, Energy 13.4%, Telecommunications 13.3%, Consumer Discretionary 12.4%, and Materials 10.1%.</p>
<p>EIDO will face competition from the <a href="http://www.vaneck.com/funds/IDX.aspx" target="_blank">Market Vectors Indonesia Index ETF</a> (IDX).  IDX was launched about 16 months ago, has assets of $386 million, and has expenses capped at 0.68%.</p>
<p><strong>iShares MSCI USA Index Fund (EUSA)</strong> (<a href="http://us.ishares.com/product_info/fund/overview/EUSA.htm?qt=EUSA" target="_blank">overview page</a>) is designed to track an MSCI capitalization-weighted index representing the top 85% of equities by market capitalization listed on stock exchanges in the United States.  The fund will have an expense ratio of 0.15%.</p>
<p>According to the <a href="http://us.ishares.com/content/stream.jsp?url=/content/repository/material/fact_sheet/eusa.pdf&amp;mimeType=application/pdf" target="_blank">EUSA fact sheet</a> (pdf), the underlying index had 595 constituents as of 3/31/10, with the largest being Exxon Mobil (XOM) 2.9%, Microsoft (MSFT) 2.1%, Apple (APPL) 1.9%, General Electric (GE) 1.8%, and Procter &amp; Gamble (PG) 1.7%.  The top sectors were Technology 19.2%, Financials 15.7%, Health Care 12.4%, Energy 11.3%, and Consumer Staples 11.0%.</p>
<p>Most US investors associate only international indexes with the MSCI moniker.  However, MSCI has history on its USA index starting on 12/31/1969.  The iShares literature classifies EUSA as a broad market fund and groups it with iShares Russell 3000 (IWV).  However, with only 595 constituents and 85% of the US market being represented, I believe it is better classified as a large cap fund.  As such, it faces stiff competition from numerous US large cap ETFs, including iShares S&amp;P 500 (IVV) and iShares Russell 1000 (IWB).</p>
<p><em>Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.</em></p>
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APPL

Ireland, Indonesia, and USA ETFs Launched by iShares

<p>The longer I study <a href="http://investwithanedge.com/fidelity-shoots-back-in-etf-brokerage-price-war" target="_blank">Fidelity’s commission-free ETF announcement</a> of last week (2/2/10), the more impressed I become.  This is not a hap-hazard list of ETFs that Fidelity and BlackRock threw together.  It is a solid lineup assembled from what many would consider the best iShares core offerings in domestic equities, international equities, and fixed income ETFs.</p>
<p>The domestic equity lineup includes both the S&amp;P style index offerings familiar to retail investors as well as the Russell stock funds that institutional investors often prefer.  The S&amp;P-based funds include the popular <a href="http://investwithanedge.com/ivv-buying-the-sp-500-without-commissions" target="_blank">iShares S&amp;P 500 Index Fund (IVV)</a>.  The Russell-based funds do not include the mid-cap offerings, but the Russell 3000 whole-market ETF is included.</p>
<p>The international lineup has the two grand-daddies of international ETF investing (EFA and EEM) as well as a small cap international and a whole world fund.  The fixed income lineup has a solid representative from each of five major bond sectors.  Last, but not least, is Fidelity’s own Nasdaq Composite ETF (ONEQ).</p>
<p>Below is the complete list of the 26 commission-free ETFs at Fidelity along with their current expense ratio and a link to their overview page with top holdings and other important details:</p>
<h4>Russell Style Box ETFs</h4>
<ul>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWV.htm" target="_blank">iShares Russell 3000 Index (IWV)</a> 0.21%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWD.htm" target="_blank">iShares Russell 1000 Value Index (IWD)</a> 0.20%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWB.htm" target="_blank">iShares Russell 1000 Index (IWB)</a> 0.15%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWF.htm" target="_blank">iShares Russell 1000 Growth Index (IWF)</a> 0.20%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWN.htm" target="_blank">iShares Russell 2000 Value Index(IWN)</a> 0.33%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWM.htm" target="_blank">iShares Russell 2000 Index (IWM)</a> 0.24%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IWO.htm" target="_blank">iShares Russell 2000 Growth Index (IWO)</a> 0.25%</li>
</ul>
<h4>S&amp;P Style Box ETFs</h4>
<ul>
<li><a href="http://us.ishares.com/product_info/fund/overview/IVE.htm" target="_blank">iShares S&amp;P 500 Value Index (IVE)</a> 0.18%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IVV.htm" target="_blank">iShares S&amp;P 500 Index (IVV)</a> 0.09%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IVW.htm" target="_blank">iShares S&amp;P 500 Growth Index (IVW)</a> 0.18%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IJJ.htm" target="_blank">iShares S&amp;P Mid Cap 400 Value Index (IJJ)</a> 0.28%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IJH.htm" target="_blank">iShares S&amp;P Mid Cap 400 Index (IJH)</a> 0.21%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IJK.htm" target="_blank">iShares S&amp;P Mid Cap 400 Growth Index (IJK)</a> 0.25%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IJS.htm" target="_blank">iShares S&amp;P Small Cap 600 Value Index (IJS)</a> 0.25%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IJR.htm" target="_blank">iShares S&amp;P Small Cap 600 Index (IJR)</a> 0.20%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/IJT.htm" target="_blank">iShares S&amp;P Small Cap 600 Growth Index (IJT)</a> 0.25%</li>
</ul>
<h4>International and Global Equity ETFs</h4>
<ul>
<li><a href="http://us.ishares.com/product_info/fund/overview/EFA.htm" target="_blank">iShares MSCI EAFE Index (EFA)</a> 0.35%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/EEM.htm" target="_blank">iShares MSCI Emerging Markets Index (EEM)</a> 0.72%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/SCZ.htm" target="_blank">iShares MSCI EAFE Small Cap Index (SCZ)</a> 0.40%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/ACWI.htm" target="_blank">iShares MSCI ACWI Index (ACWI)</a> 0.35%</li>
</ul>
<h4>Fixed Income ETFs</h4>
<ul>
<li><a href="http://us.ishares.com/product_info/fund/overview/AGG.htm" target="_blank">iShares Barclays Aggregate Bond Fund (AGG)</a> 0.24%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/TIP.htm" target="_blank">iShares Barclays TIPS Bond Fund (TIP)</a> 0.20%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/LQD.htm" target="_blank">iShares iBoxx $ Investment Grade Corporate Bond Fund (LQD)</a> 0.15%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/EMB.htm" target="_blank">iShares JPMorgan USD Emerging Markets Bond Fund (EMB)</a> 0.60%</li>
<li><a href="http://us.ishares.com/product_info/fund/overview/MUB.htm" target="_blank">iShares S&amp;P National AMT-Free Municipal Bond Fund (MUB)</a> 0.25%</li>
</ul>
<h4>Fidelity ETFs</h4>
<ul>
<li><a href="http://content.members.fidelity.com/etf/frame/0,,315912808,00.html?refpr=zwycbetf007" target="_blank">Fidelity Nasdaq Composite Index Tracking Stock (ONEQ)</a> 0.30%</li>
</ul>
<p>Fidelity also <a href="http://personal.fidelity.com/products/trading/index_content.shtml.cvsr" target="_blank">reduced commissions</a> for other ETFs, stocks, and options.</p>
<p><em>Disclosure covering writer, editor, publisher, and affiliates: Long some positions in this list. No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.  Our affiliate, </em><a href="http://www.ccam.com/"><em>Capital Cities Asset Management</em></a><em>, </em><em>uses Fidelity Brokerage Services and Ameritrade Institutional as custodians and brokerage for client accounts.</em></p>
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ACWI

iShares JPMorgan USD Emerging Markets Bond Fund

iShares S&P National AMT-Free Municipal Bond Fund

Fidelity NASDAQmposite Index Fund ETF-Tracking NASDAQmposite Index

ONEQ

The 26 Commission-Free ETFs at Fidelity

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The long-run performance estimate for the Global Market Index ticked up again in March.