Thu12182014

News

Council seeks more options for community center

Council seeks more options for community center


Town Crier File Photo
The Los Altos City Council approved an appropriation to examine options for a new community center to replace the aging Hillview facility.

The Los Altos City Council last week voted narrowly in favor of examining further opti...

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Schools

Local schools participate in  national Hour of Code activities

Local schools participate in national Hour of Code activities


Ellie Van HOutte/Town Crier
Himan Shu Raj, a volunteer from Microsoft, advises Los Altos High ninth-graders, from left, Serhat Suzer, Jamie Bennett and Chris Yang as they participate in the school’s Hour of Code Showcase.

Local schools participa...

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Community

Rotary marks 25th anniversary of AIDS project

Rotary marks 25th anniversary of AIDS project


John Hammerschmidt/Special to the Town Crier
Celebrating the anniversary of the Los Altos Rotary AIDS Project are, from left, front row: Greg Hoblit, Dude Angius, Mary Prochnow and Robin Young. Back: Greg Betts, Joe Renati, Roy Lave, Bob Berka, Dic...

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Sports

Pinewood poised for another title run

Pinewood poised for another title run


Ellie Van Houtte/Town Crier
Pinewood’s girls basketball team is receiving contributions from several new players, including freshman Stella Kailahi, above.

Complacency shouldn’t be a problem for the defending Division V state champion Pinewood S...

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Comment

Letters to the Editor

Ticket motorists for U-turns on Main Street

As I was walking downtown on Main Street recently, something came to me out of the blue. The town of Los Altos is missing out on a huge revenue stream. I realized that if all the cars – there were th...

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Special Sections

Looking Ahead

Looking Ahead


s in line to be mayor of Mountain View in 2015.

Mountain View anticipates the following changes in 2015:

• Beginning Jan. 1, Mountain View City Councilmembers will receive a raise to $1,000 per month as a result of the passage of Measure A in...

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Business

Your 2015 stock market game plan

It’s been a maddening month because of oil and gas, especially in stocks and bonds. Then, consumer spending pushed stocks higher Thursday, easing investors’ jitters about the global economy and prompting them to consider how to invest in ...

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Books

Gawande's

Gawande's "Being Mortal" proves an important book on aging


Books about death and dying are usually not on my list of “must reads.”

I couldn’t resist, however, the best-selling “Being Mortal: Medicine and What Matters in the End” (Metropolitan Books, 2014) by Atul Gawande.

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People

SANGEETA SACHDEVA

SANGEETA SACHDEVA

Sangeeta Sachdeva, 55, wife of Subhash Sachdeva and mother to Natasha and Tanya, died at 8:54pm, Sunday, December 7, 2014 from respiratory failure.

Sangeeta was born on October 18, 1959 in Delhi, India. She was born to Moti Sagar and Raj Kapoor an...

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Travel

South Tahoe renovations enhance off-mountain seasonal fun

As any enthusiast knows well, there is more to the enjoyment of winter sports than skiing or snowboarding.

While many winter resorts make minor upgrades each season, the off-mountain attractions and amenities can be as enticing as the activities on ...

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Stepping Out

Aurora Singers to emit 'Musical Glow' Friday

Aurora Singers to emit 'Musical Glow' Friday


courtesy of Aurora Singers
The Aurora Singers are scheduled to perform a seasonal concert Friday night in Palo Alto.

The Aurora Singers’ “Winter’s Musical Glow” holiday concert is set for 7 p.m. Friday at the Unitarian Universalist Church of Pal...

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Spiritual Life

Enter the superhero: Finding the God who loves you

In my life-coaching practice, I see a lot of pain. Much of it stems from fear and guilt, often expressed as low self-esteem, anxiety, a lack of forgiveness both for oneself and others, anger – and so on.

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Magazine

Christmas At Our House home tour celebrates 26 years

Christmas At Our House home tour celebrates 26 years


Courtesy of Christopher Stark
Homes on the St. Francis High School Women’s Club’s Christmas at Our House Holiday Home Tour showcase a variety of architectural styles.

The days grow short on sunshine but long on nostalgia as the holidays approach...

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The choice between mutual funds and ETFs


Following is the second in a two-part series on mutual and exchange-traded funds.

In part one of my series, I explained the difference between mutual funds and exchange-traded funds (ETFs). The question remains: Which makes a better investment?

Craig Israelsen, associate professor at Utah Valley University, recently attempted to quantify the performance difference between mutual funds and ETFs by creating two portfolios: one using only ETFs, the other containing only mutual funds.

Each portfolio comprised 12 asset classes: large-cap U.S. stocks, mid-cap U.S. stocks, small-cap value U.S. stocks, non-U.S. developed market stocks, non-U.S. emerging market stocks, real estate, natural resources, commodities, U.S. bonds, U.S. inflation-protected bonds, non-U.S. bonds and cash.

Each asset class was weighted equally at 8.33 percent of the total portfolio, and each portfolio was rebalanced at the end of each year over a three-year period.

To make the comparison as objective as possible, Israelsen selected the largest ETF and the largest fund (in terms of total assets) to represent each of the above asset classes in the two portfolios. He did not attempt to identify the best-performing ETF or mutual fund. The returns as measured were net of expense ratios, and there was no attempt to take into account taxes, trading costs or inflation. All data came from Lipper Mutual Fund information.

The results appear on the accompanying chart. Although the ETF portfolio reported slightly higher tax efficiency and a considerably lower aggregate expense ratio (0.22 percent versus 0.63 percent), the two portfolios produced nearly identical returns in the three years from 2010 through 2012 (8.13 percent average annual return for the ETF portfolio and 8.23 percent for the mutual fund portfolio).

Of course, this analysis only covered a three-year period, a very small sample from which to infer longer-term investment performance. And there was a pretty big disparity in some of the individual asset classes, in particular international fixed income, where the mutual funds trounced the ETFs, and in natural resources, where the reverse occurred.

Nonetheless, my conclusion from this analysis is that it’s more important to focus on building a well-diversified portfolio than trying to find the “best” mutual fund or ETF. Other studies have borne this out as well.

Israelsen also discovered that the performance spread among ETFs within each asset class tended to be smaller than that of the mutual funds. This, of course, can be attributed to the fact that most ETFs are index trackers, whereas many mutual funds are actively managed and have much more flexibility.

As to which is better, mutual funds or ETFs, the answer would appear to be neither, as long as you use a sufficient number of asset classes and an appropriate asset allocation model for your investment portfolio.

Los Altos resident Artie Green is a Certified Financial Planner and principal at Cognizant Wealth Advisors. For more information, call 209-4062 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

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