9/7/08

ETF Portfolio Underweighting US Update

Since being started in mid August, my lazy ETF portfolio is down 4.46%. The S&P 500 is down 3.07% over the same period.

There are a couple of reasons the portfolio is trailing the S&P 500. First, the dollar has rallied against other currencies.

Second, the world economy is slowing down. Both these factors helped to push the portfolio down. While the broad US stock market ETF lost 3.2% (a little worse than the S&P 500), the all world ex-US and emerging markets ETFs lost 6.7% and 9.37% respectively.



International bonds were affected also. International treasuries lost 2.42% and international TIPs lost 4.91%. Commodities plunged too, as did real estate and infrastructure.

The only holdings that managed positive returns were US bonds and TIPs.

As planned, a fresh $500 has been added to the portfolio (and the S&P 500) at prices as of market close on 9/5/08, along with any dividends received.

Dividends received and reinvested:

BND $0.288 * 6.62 shares = $1.90656 dividend reinvested @ 76.46 for .024935391 more shares .

BWX $0.177 * 16.694 shares = $2.955 dividend reinvested @ 52.4 for .056393 more shares .

IPE $0.546 * 14.72 shares = $8.0371 dividend reinvested @ 50.72 for .15846 more shares .

WIP $0.394 * 12.762 shares = $5.028 dividend reinvested @ 55.35 for .09084 more shares.


Fresh $500 invested:

VTI $54.58 total .871 shares at 62.63 avg purchase price = 1554.56/24.026 shares = $64.70

VEU $112.75 total 2.48 shares at 45.38 1612.76/33.155 = $48.64

VWO $128.15 total 3.38 shares at 37.90 13.28.14/31.762 = $41.82

BND $6.49 total .085 shares at 76.46 506.4/6.73 = $75.25

BWX $25.17 total .48 shares at 52.40 925.2/17.23 = $53.70

RWO $27.23 total .646 shares at 42.16 827.2/19.036 = $43.45

RJI $80.70 total 7.45 shares at 10.83 1080.36/92.629 = $11.66

IGF $30.06 total .788 shares at 38.15 530.02/13.148 = $40.31

IPE $0 total 0 shares at 50.72

WIP $40.99 total .741 shares at 55.35 791.29/13.5938 = $58.21

FRN $7.99 total .39 shares at 20.47 108/4.905 = $22.02

Cash -$13.99


SPY $500 total 4.02 shares at 124.42 10500/81.7973 = $128.366 avg cost basis.

I'm going to add a chart on the sidebar to make it easier to track the portfolio.

Although I try to be careful mistakes are almost inevitable. If you see something that looks wrong, please let me know.