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Vanguard, the second-largest U.S. issuer of exchange traded funds, is again wielding its low-cost sword.
On April 26, <a href="https://www.benzinga.com/money/vanguard-review/">Vanguard</a> said it&#39;s lowering fees on 21 of its ETFs, including its two largest funds, the Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>) and the Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vti#NYSE">VTI</a>).
<h3>What Happened</h3>
VTI and VOO are the third- and fourth-largest U.S.-listed ETFs, respectively, and are <a href="https://etfdb.com/compare/market-cap/">two of the four</a> ETFs with more than $100 billion in assets under management. The $114.79 billion VTI is now charging 0.03 percent year, or $3 on a $10,000 investment, down from 0.04 percent. The $112.94 billion VOO also saw its annual fee reduced to 0.03 percent from 0.04 percent.
Including VOO and VTI, Vanguard announced lower fees on <a href="https://investornews.vanguard/lower-expense-ratios-on-21-vanguard-etfs-means-more-savings-for-you/">eight domestic ETFs</a>. The following ETFs saw their fees reduced to 0.04 percent from 0.05 percent: The Vanguard Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vug#NYSE">VUG</a>), the Vanguard Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vtv#NYSE">VTV</a>), the Vanguard Large-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vv#NYSE">VV</a>) and the Vanguard Mid-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vo#NYSE">VO</a>).
The Vanguard Extended Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vxf#NYSE">VXF</a>) saw its annual fee pared to 0.07 percent from 0.08 percent while the Vanguard High Dividend Yield ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vym#NYSE">VYM</a>) is charging 0.06 percent, down from 0.08 percent.
<h3>Why It&#39;s Important</h3>
As issuers have reduced fees across product lineups, international funds have steadily gotten cheaper. Nine international equity ETFs are part of the latest round of Vanguard fee reductions.
The following funds are now charging 0.09 percent, down from 0.10 percent: the Vanguard Total World Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vt#NYSE">VT</a>), the Vanguard FTSE Europe ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vgk#NYSE">VGK</a>) and the Vanguard FTSE Pacific ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vpl#NYSE">VPL</a>).
The Vanguard Total International Stock ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vxus#NASDAQ">VXUS</a>) and the Vanguard FTSE All-World ex-US ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/veu#NYSE">VEU</a>) are now charging 0.09 percent, down from 0.11 percent.
The $72.16 billion Vanguard FTSE Developed Markets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vea#NYSE">VEA</a>), the sixth-largest U.S.-listed ETF, saw its fee reduced to 0.05 percent from 0.07 percent,&nbsp;while the Vanguard FTSE All-World ex-US Small-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vss#NYSE">VSS</a>) saw a modest fee reduction of one basis point to 0.12 percent.
The Vanguard FTSE Emerging Markets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vwo#NYSE">VWO</a>) and the Vanguard Global ex-U.S. Real Estate ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vnqi#NASDAQ">VNQI</a>) both now charge 0.12 percent annually, down from 0.14 percent. Home to $65.35 billion in assets under management, VWO is the world&#39;s largest emerging markets ETF.
<h3>What&#39;s Next</h3>
Vanguard also lowered the fees on four fixed income ETFs. The Vanguard Emerging Markets Government Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vwob#NASDAQ">VWOB</a>) now charges 0.30 percent, down from 0.32 percent. The Vanguard Total International Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bndx#NASDAQ">BNDX</a>) also a fee cut of two basis points to 0.09 percent.
The Vanguard Total Bond Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bnd#NYSE">BND</a>) and the Vanguard Tax-Exempt Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vteb#NASDAQ">VTEB</a>), Vanguard&#39;s first municipal bond ETF, both lowered fees by one basis point.
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Dear Messrs. Hall and Taxin: 

We write to follow-up on our earlier correspondence concerning the "Stockholder Notice of Intent to Present Proposals and Nominate Persons for Election as Directors at an Annual Meeting of Shareholders of ValueVision Media, Inc." (the "Notice Letter") sent to ValueVision Media, Inc. (the "Company") by Clinton Relational Opportunity Master Fund, L.P. (together with its affiliates, "Clinton") on February 24, 2014, in which Clinton notified the Company of its intent to nominate six people for election to the Company's Board of Directors and to present certain proposals to amend the Company's By-laws (the "By-laws") at the Company's upcoming 2014 Annual Meeting of Shareholders (the "Annual Meeting"). As you know, the Company raised no objections to the Notice Letter based on the information available to us at the time. 

Today, we write because it appears that Clinton may not have supplemented certain material information that it is required to provide to the Company under the By-laws. In this letter, we offer a path that will allow Clinton to supplement its Notice Letter in order to ensure that the Company and its shareholders have materially complete information in advance of the Annual Meeting while remaining compliant with the Company's By-laws. 

Sections 3.2(d) and 4.3(d) of the Company's By-laws, which have been in place since 2010, required Clinton to deliver notice of any updates or supplements necessary to make the Notice Letter true and correct as of the May 2, 2014, record date for the Annual Meeting to the Company's Secretary no later than the fifth business day after such record date, which was May 9, 2014. The Company received no such notice. Based on our review of the proxy solicitation materials that Clinton recently filed with the Securities and Exchange Commission (the "SEC") and posted to its proxy campaign website, together with other publicly available information, it appears that certain of the information included in the Notice Letter -- information that could be material to our shareholders -- may need to be updated or supplemented. 

Among other purposes, the Company's By-laws provide for full, correct and complete disclosure of relevant information by shareholders that intend to nominate directors at, or bring proposals before, a meeting of the Company's shareholders. We believe updated information from Clinton may be material to a shareholder's consideration of Clinton's nominations and proposals at the Annual Meeting, but we have no way of confirming this because the required updates and supplements have not been provided to the Company, as required by the By-laws. 

Although the deadline for delivering the updated information required by Sections 3.2(d) and 4.3(d) of our By-laws has already passed and the By-laws now expressly require the Company to declare Clinton's nominations and proposals invalid "[w]ithout qualification," the Company's Board of Directors is prepared to work with Clinton to explore legally permissible avenues for Clinton to present its nominations and proposals at the Annual Meeting (including amending the By-laws to retroactively extend the deadline for Clinton's delivery of the requisite updated information), but only if (i) Clinton promptly delivers any updates or supplements required under Sections 3.2(d) and 4.3(d) of our By-laws no later than 5:00 p.m. Eastern Time on Thursday, May 22, 2014, (ii) Clinton timely provides any further updates or supplements required under Sections 3.2(d) and 4.3(d) of our By-laws, and (iii) Clinton continues to comply in all other respects with the requirements of our By-laws pertaining to the Annual Meeting. 

Set forth below is a list of information that, based on our review of Clinton's proxy solicitation materials filed with the SEC and posted to its proxy campaign website, appears Clinton may need to update or supplement so that the Notice Letter shall be true and correct as of the May 2, 2014 record date for the Annual Meeting, as required by our By-laws: 

Any "Synthetic Equity Interests" or "Short Interests" (including any interests in ValueVision options or other derivatives) pursuant to Sections 3.2(c)(ii) and 4.3(c)(ii) of the By-laws. In its definitive proxy statement, Clinton generically states that it has entered into options contracts with expiration dates as late as June 21, 2014, but only discloses a range of strike prices and a range of the number of open options contracts at different times throughout the year. No options with June 2014 expiration dates were disclosed to the Company in the Notice Letter. In addition, our By-laws require disclosure to the Company of more meaningful information about Clinton's "Synthetic Equity Interests" and "Short Interests," so that the Company and its shareholders can understand and assess the net impact of these arrangements on Clinton's economic interest in the Company. 


Any investment relationships (or any other material arrangements) among Clinton and its nominees pursuant to Sections 3.2(c)(iii)(C) and 4.3(c)(iii)(C) of the By-laws. On its campaign website, Clinton states that its nominees "are not affiliated in any way" with Clinton. However, the Notice Letter, as well as Clinton's prior SEC filings, disclosed various limited partnership, capital contribution and feeder fund arrangements among Clinton and two of its director nominees, Mr. Bozek and Mr. Beers. It is unclear to us whether these arrangements are still in place. By omitting any reference to these arrangements, Clinton's definitive proxy statement and campaign website certainly leave the impression that they no longer exist; however, the Notice Letter has not been appropriately updated if this is the case. 


Beneficial ownership information pursuant to Sections 3.2(c)(i) and 4.3(c)(i) of the By-laws. Clinton's beneficial ownership of shares in the Company included in the Notice Letter (2,261,445 shares as of February 21, 2014), as well as the beneficial ownership information included in Clinton's letter to the Company dated May 1, 2014 demanding access to certain books and records (2,447,629 shares as of May 1, 2014), was significantly greater than Clinton's beneficial ownership disclosed in its recent preliminary and definitive proxy statement filings with the SEC (most recently, 1,976,090 shares as of May 9, 2014). Also, none of Clinton's proxy statement filings with the SEC disclose beneficial ownership information as of the record date for the Annual Meeting, as required by the By-laws.


Only Clinton is in a position to determine whether the list above is exhaustive. However, as before, we are happy to make our counsel available to discuss this situation with you in more detail at your convenience. We are willing to work with you quickly in order to communicate any material or otherwise pertinent information to our shareholders well in advance of the Annual Meeting while ensuring Clinton's complete compliance with the Company's By-laws. In the event of any further non-compliance by Clinton with our By-laws, or in the event that Clinton does not timely provide all required information, the Company and its Board of Directors reserve the right to take any actions and to carry out their obligations under the By-laws, including declaring Clinton's nominations and proposals not properly brought before the Annual Meeting. 

Sincerely, 

/s/ Teresa Dery 

Teresa Dery
Senior Vice President, General Counsel and Corporate Secretary
ValueVision Media, Inc. 

cc: Board of Directors, ValueVision Media, Inc. 

Advisors
Jefferies LLC is acting as financial advisor and Simpson Thacher &amp; Bartlett LLP and Barnes &amp; Thornburg LLP are acting as legal advisors to ValueVision. 

Your Vote Is Important, No Matter How Many Or How Few Shares You Own 

If you have questions about how to vote your shares, or need additional assistance,
please contact the firm assisting us in the solicitation of proxies: 

INNISFREE M&amp;A INCORPORATED
Shareholders Call Toll-Free: (888) 750-5834
Banks and Brokers May Call Collect: (212) 750-5833 

REMEMBER:
We urge you NOT to sign any Gold proxy card sent to you by Clinton. If you have already done so, you have every right to change your vote by signing, dating and returning the enclosed WHITE proxy card TODAY in the postage-paid envelope provided. If you hold your shares in Street-name, your custodian may also enable voting by telephone or by Internet -- please follow the simple instructions provided on your WHITE proxy card. 

About ValueVision Media 

ValueVision Media, Inc. is a multichannel retailer that enables customers to shop and interact via TV, phone, Internet and mobile in the merchandise categories of Home &amp; Consumer Electronics, Beauty, Health &amp; Fitness, Fashion &amp; Accessories, and Jewelry &amp; Watches. ValueVision transitioned its consumer brand to ShopHQ from ShopNBC in fiscal 2013. ValueVision's television network reaches over 86 million cable and satellite homes and is also available nationwide via live streaming at www.shophq.com. Please visit www.shophq.com/ir for more investor information. 

Forward-Looking Information 

This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): consumer preferences, spending and debt levels; the general economic and credit environment; interest rates; seasonal variations in consumer purchasing activities; the ability to achieve the most effective product category mixes to maximize sales and margin objectives; competitive pressures on sales; pricing and gross sales margins; the level of cable and satellite distribution for our programming and the associated fees; our ability to establish and maintain acceptable commercial terms with third-party vendors and other third parties with whom we have contractual relationships, and to successfully manage key vendor relationships; our ability to manage our operating expenses successfully and our working capital levels; our ability to remain compliant with our long-term credit facility covenants; our ability to successfully transition our brand name; the market demand for television station sales; our management and information systems infrastructure; challenges to our data and information security; changes in governmental or regulatory requirements; litigation or governmental proceedings affecting our operations; significant public events that are difficult to predict, or other significant television-covering events causing an interruption of television coverage or that directly compete with the viewership of our programming; and our ability to obtain and retain key executives and employees. More detailed information about those factors is set forth in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise. 

Important Information 

This release may be deemed to be solicitation material in respect of the solicitation of proxies from shareholders in connection with one or more meetings of the Company's shareholders, including the Company's 2014 Annual Meeting of Shareholders. On May 9, 2014, the Company filed with the Securities and Exchange Commission ("SEC") a proxy statement and a WHITE proxy card in connection with the Company's 2014 Annual Meeting of Shareholders. The Company, its directors and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies from shareholders in connection with the Company's 2014 Annual Meeting of Shareholders. Information concerning the interests of these directors and executive officers in connection with the matters to be voted on at the Company's 2014 Annual Meeting of Shareholders is included in the proxy statement filed by the Company with the SEC in connection with such meeting. In addition, the Company files annual, quarterly and special reports, proxy and information statements, and other information with the SEC. The proxy statement for the 2014 Annual Meeting of Shareholders is available, and any other relevant documents and any other material filed with the SEC concerning the Company will be, when filed, available, free of charge at the SEC website at <a href="http://www.sec.gov.">http://www.sec.gov.</a> SHAREHOLDERS ARE URGED TO READ CAREFULLY THE PROXY STATEMENT FILED BY THE COMPANY AND ANY OTHER RELEVANT DOCUMENTS FILED WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING INFORMATION WITH RESPECT TO PARTICIPANTS.

Management

VVTV

ValueVision Sneds Letter to Clinton Group, Urges Group To Follow Guidlines

Leon Cooperman of Omega Partners has long been considered one of the finest investors on Wall Street.

	He founded Omega Partners after heading up the asset management unit of Goldman Sachs (NYSE: <a class="ticker" href="/stock/gs#NYSE">GS</a>). Speaking at the recent "Invest for Kids" conference in Chicago, he was bullish about Monetise (OTC: <a class="ticker" href="/stock/monif#OTC">MONIF</a>), a small cap with big name clients such as IBM (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>) and Visa (NYSE: <a class="ticker" href="/stock/v#NYSE">V</a>).

	Monetise is a mobile wallet company, based in the United Kingdom.

	It has a huge competitive advantage in that Visa Europe is an investor. That has allowed for Monetise to increase its users from seven million to 24 million in the last year. Over that time period, transactions have tripled. Goldman Sachs and the Gartner Group, a high-tech research firm, project that growth should triple again for Monetise.

	Earlier this month, Monitise was in the Deloitte Technology Fast 50 for third year in a row. Overall, Monitise was named the sixth-fastest growing technology company in the United Kingdom. This is the third year in a row that Monetise has been in the top 15. In 2012, it was third. Monetise came in twelfth in 2011.

	The potential for the mobile wallet market is huge.

	So is the competition. Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) has Google Wallet. Passbook is the entry from Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NYSE">AAPL</a>). Isis has backing from AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>).

	That IBM and Visa have invested in Monetise in so many different ways is a strong indication of support for a small cap company. That is especially so with such formidable competitors.

	With Leon Cooperman bullish on Monetise, investors should take notice of the long term potential of the high tech small cap.

Less than four years after the debut of its first exchange traded fund, discount broker Charles Schwab (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>) announced Thursday that its suite of 15 equity-based and bond ETFs has reached a combined $10.02 billion in assets under management. That number pertains to the firm's ETF AUM total as of February 8.

Schwab's first ETFs debuted in November 2009 and were immediately made available to the firm's clients on a commission-free basis. Since that time, California-based Schwab has leveraged the combination of commission-free trading and paltry expense ratios to become one of the fastest-growing U.S. ETF sponsors.

With $10.2 billion in ETF assets, Schwab is the tenth-largest U.S. ETF sponsor, just behind PIMCO, which has $10.3 billion in ETF assets. Three Schwab ETFs – the Schwab U.S. Broad Market ETF (NYSE: <a class="ticker" href="/stock/schb#NYSE">SCHB</a>) Schwab U.S. Large-Cap ETF (NYSE: <a class="ticker" href="/stock/schx#NYSE">SCHX</a>) and the Schwab International Equity ETF (NYSE: <a class="ticker" href="/stock/schf#NYSE">SCHF</a>) – combine for about 38 percent of the firm's ETF assets.

SCHX, which competes with the Vanguard Large Cap ETF (NYSE: <a class="ticker" href="/stock/vv#NYSE">VV</a>) among other funds, has $1.2 billion in AUM, <a href="https://www.schwabetfs.com/summary.asp?symbol=SCHX">according to Schwab data</a>. SCHF, which competes with the massive iShares MSCI EAFE Index Fund (NYSE: <a class="ticker" href="/stock/efa#NYSE">EFA</a>), has $1.1 billion in AUM. SCHB is Schwab's largest ETF with $1.6 billion in assets.

Schwab's largest bond ETF is the Schwab U.S. TIPS ETF (NYSE: <a class="ticker" href="/stock/schp#NYSE">SCHP</a>) with $602.4 million in AUM. All 15 of the firm's ETFs have over $100 million in asssets.

Earlier this month, Schwab unveiled its Schwab ETF OneSource platform, which allows its clients to buy and sell 105 ETFs with $0 online trade commissions. In additional Schwab ETFs, OneSource allows the firm's clients to trade ETFs from State Street Global Advisors, PowerShares, Guggenheim, ETF Securities and United States Commodity Funds commission-free.

For more on Schwab ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3314763/schwab-unveils-massive-additions-to-commission-free-etf-lineu">here</a>.

In case investors needed more convincing that ETFs <a href="http://www.benzinga.com/news/12/04/2520180/etf-opinion-dont-be-impressed-by-falling-mutual-fund-fees">trounce mutual funds when it comes to costs</a> the evidence has arrived and it comes courtesy of Vanguard. Yes, that Vanguard. The one that's one of the largest U.S. mutual fund companies and also the third-largest U.S. ETF sponsor.

Vanguard <a href="https://personal.vanguard.com/us/insights/article/expense-ratio-changes-042012?z_rl=T9057">announced fee cuts for 13 of its ETFs</a> with the expense ratios on many of these products heading from paltry to almost non-existent levels. Some of the reductions went into effect today, while the others took effect on Wednesday.

Here's what in store regarding lower fees for Vanguard investors:
The Vanguard Total Bond Market Index Fund (NYSE: <a class="ticker" href="/stock/bnd#NYSE">BND</a>), one of the largest U.S. bond funds, goes to 0.1% from 0.11%.

The Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/voo#NYSE">VOO</a>) will now charge 0.05% down from 0.06%. That compares to 0.09% for the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).

The Vanguard Extended Market Index Fund (NYSE: <a class="ticker" href="/stock/vxf#NYSE">VXF</a>) goes to 0.14% from 0.16%. 

The Vanguard Growth Index Fund (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>) pares its fees to 0.1% from 0.12%.

The Vanguard Large-Cap Index Fund (NYSE: <a class="ticker" href="/stock/vv#NYSE">VV</a>) lowers its fees to 0.1% from 0.12% as do the Vanguard Mid-Cap Growth Index Fund (NYSE: <a class="ticker" href="/stock/vot#NYSE">VOT</a>), the Vanguard Mid-Cap Value Index Fund (NYSE: <a class="ticker" href="/stock/voe#NYSE">VOE</a>), the Vanguard Mid-Cap Index Fund (NYSE: <a class="ticker" href="/stock/ivoo#NYSE">IVOO</a>) and the Vanguard Value Fund (NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>).

The Vanguard Small-Cap Index Fund (NYSE: <a class="ticker" href="/stock/vb#NYSE">VB</a>) shrinks its fees to 0.16% from 0.17%.

The Vanguard Small-Cap Value Index Fund (NYSE: VIOV) goes to 0.21% from 0.23%. 

The Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="/stock/vti#NYSE">VTI</a>) now charges 0.06% down from 0.07%.

Vanguard's move to slash expense ratios follows a similar move by rival State Street Global Advisors, which pared expenses on the Select Sector SPDRs earlier this year, and indicates some of the large ETF providers are willing to resort to bare-bones fees in an effort to attract and keep investors' assets. 

At the end of March, SSgA and Vanguard controlled about $504 billion of the roughly $1.2 trillion in U.S. exchange-traded products assets and the rivalry between the two firms for second place on the AUM list behind BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares is seen as intensifying. iShares had almost $500 billion in AUM at the end of March, so the current ETF AUM battle really is for second place and it appears investors are the real winners as Vanguard attempts to take the silver medal from SSgA.

Sector ETFs

Short Ideas

IVOO

Vanguard Ups The Ante In ETF Fee War

Large Cap Blend ETFs provide access to both growth and value stocks, looking for high returns while hedging that risk with more stable securities. Large Cap ETFs invest across the entire spectrum of the US market. Stocks in the top 70% of the capitalization of the US equity market are defined as large cap.
Despite strong returns, US Large Cap Blend ETFs, including the Russell Large Cap Index (IWB), have underperformed mid cap and small cap ETFs. With a one-year trend score of 8.52%, the Russell Large Cap Index falls towards the bottom of the US Style Return Table as seen below.
<h2>US Equity Style Return</h2>
<h3>4/29/2011</h3>
 
<table border="2">
</table>
<table border="0" cellspacing="12">
<tbody>
<tr>
<th align="left">Assets Class</th>
<th>Symbols</th>
<th>04/27 Trend Score</th>
<th>04/20 Trend Score</th>
<th>Direction</th>
</tr>
<tr>
<td>Russell Smallcap Growth</td>
<td>IWO</td>
<td>14.01%</td>
<td>13.06%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Midcap Growth</td>
<td>IWP</td>
<td>12.57%</td>
<td>11.91%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Smallcap Index</td>
<td>IWM</td>
<td>11.05%</td>
<td>9.92%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Midcap Indedx</td>
<td>IWR</td>
<td>10.9%</td>
<td>10.15%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Midcap Value</td>
<td>IWS</td>
<td>9.84%</td>
<td>9.03%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Largecap Growth</td>
<td>IWF</td>
<td>9.25%</td>
<td>8.24%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Smallcap Value</td>
<td>IWN</td>
<td>8.56%</td>
<td>7.26%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Largecap Index</td>
<td>IWB</td>
<td>8.52%</td>
<td>7.38%</td>
<td>^</td>
</tr>
<tr>
<td>Russell Largecap Value</td>
<td>IWD</td>
<td>8.15%</td>
<td>6.96%</td>
<td>^</td>
</tr>
</tbody>
</table>
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
<a rel="lightbox" href="http://www.myplaniq.com/LTISystem/article_toptablechart.action?tableName=USStyleReturnTableWed"> <img src="http://www.myplaniq.com/LTISystem/article_toptablechart.action?tableName=USStyleReturnTableWed" width='600' height='400' /> </a>
<a rel="lightbox" href="http://www.myplaniq.com/LTISystem/article_lowtablechart.action?tableName=USStyleReturnTableWed"> <img src="http://www.myplaniq.com/LTISystem/article_lowtablechart.action?tableName=USStyleReturnTableWed" width='600' height='400' /> </a>
<h2>US Large Cap Blend</h2>
<h3>4/29/2011</h3>
<table id="USLargeCapBlend" class="tablesorter" border="1" cellspacing="1" cellpadding="2">
<thead>
<tr>
<th > Description </th>
<th > Symbol </th>
<th > 1 Yr </th>
<th > 3 Yr </th>
<th > 5 Yr </th>
<th > Avg. Volume(K) </th>
<th > 1 Yr Sharpe </th>
</tr>
</thead>
<tbody>
<tr class="even">
<td>SPDR S&amp;P 500</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=SPY&amp;type=1&amp;includeHeader=true" target="_blank">SPY</a></td>
<td>15.13%</td>
<td>1.42%</td>
<td>2.64%</td>
<td>169,849</td>
<td>83.79%</td>
</tr>
<tr class="odd">
<td>iShares S&amp;P 500 Index</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=IVV&amp;type=1&amp;includeHeader=true" target="_blank">IVV</a></td>
<td>14.66%</td>
<td>2.18%</td>
<td>2.45%</td>
<td>2,992</td>
<td>79.99%</td>
</tr>
<tr class="even">
<td>Vanguard Total Stock Market</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=VTI&amp;type=1&amp;includeHeader=true" target="_blank">VTI</a></td>
<td>17.54%</td>
<td>3.35%</td>
<td>3.48%</td>
<td>1,833</td>
<td>92.09%</td>
</tr>
<tr class="odd">
<td>iShares Russell 1000</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=IWB&amp;type=1&amp;includeHeader=true" target="_blank">IWB</a></td>
<td>15.83%</td>
<td>2.66%</td>
<td>2.84%</td>
<td>886</td>
<td>86.04%</td>
</tr>
<tr class="even">
<td>Rydex S&amp;P Equal Weight</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=RSP&amp;type=1&amp;includeHeader=true" target="_blank">RSP</a></td>
<td>18.18%</td>
<td>5.79%</td>
<td>4.44%</td>
<td>1,115</td>
<td>94.46%</td>
</tr>
<tr class="odd">
<td>iShares S&amp;P 100</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=OEF&amp;type=1&amp;includeHeader=true" target="_blank">OEF</a></td>
<td>12.47%</td>
<td>0.94%</td>
<td>2.15%</td>
<td>883</td>
<td>67.2%</td>
</tr>
<tr class="even">
<td>Vanguard Large Cap</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=VV&amp;type=1&amp;includeHeader=true" target="_blank">VV</a></td>
<td>15.8%</td>
<td>2.78%</td>
<td>3.54%</td>
<td>223</td>
<td>85.55%</td>
</tr>
<tr class="odd">
<td>Schwab U.S. Large Cap</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=SCHX&amp;type=1&amp;includeHeader=true" target="_blank">SCHX</a></td>
<td>15.95%</td>
<td>NA</td>
<td>NA</td>
<td>297</td>
<td>87.97%</td>
</tr>
<tr class="even">
<td>Vanguard S&amp;P 500</td>
<td><a href="http://www.myplaniq.com/LTISystem/jsp/fundcenter/View.action?symbol=VOO&amp;type=1&amp;includeHeader=true" target="_blank">VOO</a></td>
<td>NA</td>
<td>NA</td>
<td>NA</td>
<td>311</td>
<td>NA</td>
</tr>
</tbody>
</table>
 
Among US Large Cap Blend ETFs the Ryder S&amp;P Equal Weight ETF (RSP) and the Vanguard Total Stock Market ETF (VTI) have performed the strongest, offering one-year returns of 18.18% and 17.54% respectively. The ETF in the sector with the highest level of average volume, the SPDR S&amp;P 500 Index, returned 15.13% in the past year, near the middle of the pack.
While US Large Cap Blend ETFs have provided investors with strong returns in recent periods, many in the market believe that the sector is due for a retraction based on overheated valuations. For the time being, investors will likely find better returns elsewhere.
Symbols: <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=SPY&amp;count=00149'>SPY</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IVV&amp;count=0054'>IVV</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VTI&amp;count=00113'>VTI</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWB&amp;count=008'>IWB</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=RSP&amp;count=0050'>RSP</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=OEF&amp;count=004'>OEF</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VV&amp;count=0046'>VV</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=SCHX&amp;count=0046'>SCHX</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VOO&amp;count=001'>VOO</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWO&amp;count=0024'>IWO</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWP&amp;count=0020'>IWP</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWM&amp;count=00108'>IWM</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWR&amp;count=0030'>IWR</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWS&amp;count=0023'>IWS</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWF&amp;count=0011'>IWF</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWN&amp;count=0025'>IWN</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWB&amp;count=008'>IWB</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IWD&amp;count=0013'>IWD</a>
 Tickers: (NYSE: SPY) (NYSE: IVV) (NYSE: VTI) (NYSE: IWB)(NYSE: RSP)(NYSE: OEF)(NYSE: VV)(NYSE: SCHX)(NYSE: VOO) (NYSE: IWO) (NYSE: IWP) (NYSE: IWM) (NYSE: IWR) (NYSE: IWS) (NYSE: IWF) (NYSE: IWN) (NYSE: IWB) (NYSE: IWD)
 
Disclosure: 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.
 
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iShares Trust Russell Midcap Growth Index Fund

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US Large Cap Blend ETFs Return Can Be Beaten As Equity Markets Continue Ascent

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PowerShares Exchange Traded Fund Dynamic Small Cap Portfolio

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<div class="entry" style="margin: 0px; padding: 0px; overflow: hidden;">
<div class="posttitle" style="margin: 0px; padding: 0px;"><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></div>
<div class="entry" style="margin: 0px; padding: 0px; overflow: hidden;">
 
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.”
<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>
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.”
He also quotes this gem from Warren Buffett: “Benign neglect, bordering on sloth, remains the hallmark of our investment process.”
<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>
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.
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.
The professors soon discovered that the new funds promptly underperformed those that had been given the heave-ho.
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.
<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>
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.
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>.
 
 
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>
<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>
 
 
</div>
 
</div>
 
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AGOL

iShares Trusthen & Steers Realty Majors Index Fund

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VCLT

Relax: Doing Less With Your Investments

<a href="http://portfolioist.com/2011/03/25/will-harry-brownes-permanent-portfolio-continue-to-work/">Portfolioist Article </a>March 25, 2011 by <a href="http://portfolioist.com/author/geoffc1/">Geoff Considine</a>
<div class="entry" style="margin: 0px; padding: 0px; overflow: hidden;">
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. 
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. 
I am not going to go through all of the analysis–but I will present three brief highlights here: 1) There is no question that the simple asset allocation in the Permanent Portfolio has done very well in the last decade and more.
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.
3) The Permanent Portfolio is not likely to fare well in a rising interest rate environment.
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.
<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;">
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>,
<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;">Exchange Symbols:<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;">
<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),  (NYSE: DGL), (NYSE: IAU), (NYSE: DBG), (NYSE: AGOL)</div>


</div>
 
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Will Harry Browne's Permanent Portfolio Continue To Work?

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

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

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.
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.
<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>
 
The list of minor asset classes covered: Foreign Large Blend: EFA, VEU, GWL, PFA Intermediate-term Bond: AGG, CIU, BIV, BND Large Blend: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX Large Growth: IVW, IWZ, JKE, VUG, ELG, QQQQ, RPG, SCHG Large Value: IVE, IWW, JKF, VTV, ELV, PWV, RPV, SCHV Mid-cap Blend: IJH, IWR, JKG, VO, MDY, EMM, PJG, DON, EZM, MVV Retirement Income: Small Growth: IJT, IWO, JKK, VBK, DSG, PWT, RZG, UKK Small Value: IJS, IWN, JKL, VBR, DSV, PWY, RZV, UVT Us Equity: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
<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>
As of Mar 21, 2011, this plan investment choice is rated as below average based on MyPlanIQ <a rel="nofollow">Plan Rating methodology </a> that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as average (43%) Fund Quality -- Rated as below average (19%) Portfolio Building -- Rated as average (38%) Overall Rating: 		below average (34%)
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).
Strategic Asset Allocation is based on well known modern portfolio theory and its key features include: diversification, proper fund selection and periodically re-balancing.
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.
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:
US Equity: SPY or VTI Foreign Equity: EFA or VEU Fixed Income: AGG or BND Performance chart (as of Mar 21, 2011)
<a rel="lightbox"> </a>
<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>
Performance table (as of Mar 21, 2011)
<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>
Currently Commodities, Real Estate and US Equity are doing well. Only US Equity is available to Amazon.com 401K Plan participants.
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.
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.
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>,
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)
Disclosure:
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.
 
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AMZN

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

Aging boomers highlight the major retirement crisis as they come to the end of their working careers. They don't have enough money. 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.
 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.
 We are exploring a range of different portfolios looking for ideas to help improve returns for retirement investors. 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.
 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.
<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>
</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" /> 
 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. 
 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.
 We now compare the returns of the original portfolio compared with the same funds being deployed with strategic and tactical asset allocation strateties. 
<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>

<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>
 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.
 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.
 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.
 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.
 <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;">
Disclosure:
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.
Symbols (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),  (NYSE: DGL), (NYSE: IAU), (NYSE: DBG), (NYSE: AGOL)
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Gold, US Equities, Long Term Treasuries and Cash Make For an Uncanny Portfolio

U.S. One, Inc., a new ETF sponsor and fund manager, today (5/11/10) launched its first ETF product:  One Fund ETF (ONEF).  ONEF intends to provide pure asset class exposure to equities through a diversified portfolio covering 95% of global equity markets. Its holdings will represent more than 5,000 companies worldwide, including large, mid and small capitalization stocks, by investing in other ETFs.
In other words, ONEF is an all-world actively-managed ETF of ETFs with an expense ratio of 0.51%.  It will have to compete with industry giants that have size, cost, distribution, brand, and track history advantages.  This space is currently owned by passive index ETFs such as <a href="http://investwithanedge.com/acwi-or-vt-which-the-best-world-etf" target="_blank">Vanguard Total World Stock</a> (VT) with an expense ratio of 0.30% and <a href="http://investwithanedge.com/own-322-trillion-in-market-cap-today">iShares MSCI ACWI</a> (ACWI) with an expense ratio of 0.35%.
The <a href="http://www.onefund.com/facts/One_Fund_Prospectus.pdf" target="_blank">ONEF prospectus</a> assumes the acquired ETF fees (the expense ratio of the ETFs it will buy) are 0.16%.  ONEF will add its 0.35% management fee on top of that for a combined 0.51% expense ratio.
The fund’s objective is to produce a diversified blend of U.S. and international stock market exposure with returns between the S&amp;P 500 Index and the MSCI All Country World Index (ACWI).  The initial allocations indicate a 70% weighting to the US. 
ONEF’s <a href="http://www.onefund.com/facts/holdings.asp" target="_blank">holdings page</a> shows holdings of Vanguard MSCI US Prime Market 750 Index (VV) 49.7%, Vanguard MSCI US Small Cap 1750 Index (VB) 20.2%, Vanguard MSCI EAFE Index (VEA) 20.0%, Vanguard MSCI Emerging Markets Index (VWO) 5.1%, and iShares MSCI EAFE Small Cap Index (SCZ) 5.0%.
One Fund’s <a href="http://www.onefund.com/facts/one_fund_fact_sheet.pdf" target="_blank">fact sheet</a> states that its investment approach is based on its three beliefs that 1) stocks outperform, 2) market timing does not work, and 3) stock selection does not work.   This sounds like something a passive indexed product would say, but ONEF will be actively managed and not track an index.
The Advisor has no prior experience managing, or administering, an investment company.  One Fund also has no prior experience with assets under management and no track record. The portfolio manager currently does not manage any other accounts.  When buying an actively managed fund, most investors base part of their decision on the manager’s experience.  In the case of ONEF, there does not appear to be any.
A month ago, I stated that Old Mutual would have a tough time competing in this space when they introduced <a href="http://investwithanedge.com/three-new-etf-clones-from-old-mutual-globalshares" target="_blank">GlobalShares FTSE All-World Fund</a> (GSW) on April 6, 2010.  Old Mutual probably now realizes I was right: after five weeks GSW has had zero trades.
ONEF has huge obstacles to overcome. The sponsor has entered an extremely competitive ring, yet appears unprepared for the battle ahead.  I predict ONEF will be near the top of my <a href="http://investwithanedge.com/category/etf-deathwatch" target="_blank">ETF Deathwatch</a> when it becomes eligible in December 2010.
Disclosure covering writer, editor, and publisher: Long VT and ACWI. 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.
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