Premium Essay

Financial Planning

In: Business and Management

Submitted By jim0206
Words 785
Pages 4
11/14
Financial planning project

VSPGX: 343 stocks, mostly invested in tech. incorporation such as MS, Apple, Google, etc.

Reason we pick Vanguard S&P 500 GR Index for large: we want be active fund when market is passive and opposite way. Since market is doing good, we would use passive fund. When market is bad we would not stay on passive fund and go out for active which has good sense in stock picking and beat the market. Currently US market S&P 500 is in good shape(Figure X), S&P value fund portfolio since economy is in good shape. -> since this fund is ETF there is no restriction in minimal payment(just like stock) and use expense ratio on website because that 0.08% is for listed minimal payment($5M)

Standard deviation 1Y Weekly = 11.23
Standard deviation 1Y monthly = 8.92

VSPVX: 337 stocks, mostly invested in Exon mobile/GE/AT&T = utility companies, resource(gas) companies and banks -> they don’t ear/lose too much so they are less volatile

Standard deviation 1Y Weekly = 10.18
Standard deviation 1Y monthly = 8.29

Mid-cap -> active fund

Hartford midcap Fund-A HFMCX
: sharpe ratio was 1.22 which determines the absolute sharpe ratio, manager started on last date of 1997, fund turnover is 38% which is pretty low yet still actively managed.

Small-cap -> active fund

Alphamark Small Cap Growth: AMSCX, has 0.25% 12b 1

*big question to answer! Why we use absolute Sharpe ratio with annual term instead of shorter term(1Y-M) sharpe ratio? How to find bounce debt?

11/16
5,6. International
Why difference in numbers on Bloomberg data and company’s fund website? * Bloomberg(more analytical perspective, objective) uses absolute return while company’s website presents pretty numbers to impress investors, not necessarily saying all numbers on online are wrong yet after all they are sellers of products. That’s…...

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