Getting into Hedge Funds

[jeff2]

I believe Robo Advisor will simply adjust your portfilio every day to match your risk

IE if you want your porfolio to be safe with 50% in bonds then as the market changes
it will change your portfolio at the end of the day to match your risk tolerance which you have set

Yeah, they would look at the risk tolerance. Much cheaper than a regular advisor.

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[Zoot Allures]

Yes, I was looking at the long term returns of Dimensional but could not see any Alpha. But again, that was years ago.
In some countries I believe an advisor must be a fiduciary. Not in Canada.

Factor funds, some created by Dimensional but not exclusive to Dimensional, are created by observing past performance and what factors led some stocks to do better hence the name factor fund.

Nobel Prizes have been awarded in those studies so they are legit but they are not guaranteed to beat or even match an index and their long term Alpha is expected to be only a point or two

To guarantee you will match an index you need index funds.

I am sure Dimensional funds will tell you that they expect their factor funds to outperform in the long term but offer no guarantee .

IMHO, stick with index funds

 

[pepecash]

just stick with an index fund that tracks the s&p500 like vanguard... ticker symbol VFV. put your money in and forget about it you'll do well

 

[Zoot Allures]

just stick with an index fund that tracks the s&p500 like vanguard... ticker symbol VFV. put your money in and forget about it you'll do well

When do you pull money out? Gradually or all at once?
If you pull money out only when need it could very well be on a dip

 

[pepecash]

When do you pull money out? Gradually or all at once?
If you pull money out only when need it could very well be on a dip

s&p500 has averaged over 10% return over the last 100 years... id just leave it in and buy even more on the dips

 

[Zoot Allures]

s&p500 has averaged over 10% return over the last 100 years... id just leave it in and buy even more on the dips

market timing IE buying on the dips does not work as you cannot tell if the dip is going down or back up
and the ups and downs are too quick to get in on


I wish it was that easy as buy on the dip and sell on a peak but market timing does not work
so you buy and hold but you get out at some point but when do you get out?

 

[jeff2]

I think we can all agree that the broad U.S. large cap market(especially tech) is not cheap.
Does not mean much if anything regarding the short term.

 

[Zoot Allures]

I think we can all agree that the broad U.S. large cap market(especially tech) is not cheap.
Does not mean much if anything regarding the short term.

If you may need your monies in short term you buy safe
IE bonds , GICs, T Bills or high interest savings account

 

[jeff2]

If you may need your monies in short term you buy safe
IE bonds , GICs, T Bills or high interest savings account

Yes, that would be a good idea. There are issues with these indicators. Nonetheless, it is good to keep an eye on them.

 

[craig_hoxton]

I think I read in TGAM in the last few weeks that ETF's that give exposure to hedge funds are set to debut, or are already on sale on exchanges.

My first thought was that was precisely the last thing the average retial investior needed, so I did not make more notice of it.

GURU is a US ETF that follows hedge funds from Global X.

 

[Zoot Allures]

GURU is a US ETF that follows hedge funds from Global X.

Go take a look at it

results are less than spectacular

ETF MER of .75 added to the 2% and 20% of the hedge funds

it does not beat large cap usa funds by a very large amount