Thu10302014

News

Police stress need for low speed in school zones

Police stress need for low speed in school zones


Town Crier File Photo
After two recent accidents involving cyclists and motorists, police urge caution – on both sides.

After two recent incidents of vehicles striking student bicyclists, Los Altos Police urge residents to exercise caution whe...

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Schools

Gardner Bullis School debuts new Grizzly Student Center

Gardner Bullis School debuts new Grizzly Student Center


Photo by Ellie Van Houtte/Town Crier
Students line up to check books out of the library in the new Grizzly Student Center at Gardner Bullis School.

Gardner Bullis School opened its new Grizzly Student Center earlier this month, introducing a lea...

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Community

Home improvement workshop scheduled Wednesday (Oct. 29)

The County of Santa Clara is hosting a free informational workshop on 6:30 p.m. Wednesday at Los Altos Hills Town Hall, 26379 Fremont Road.

The workshop will offer ways single-family homeowners can increase their homes’ energy efficiency. Eligible i...

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Comment

Off the fence: TC recommends 'yes' on N

The Town Crier initially offered no position on the controversial $150 million Measure N bond on Tuesday’s ballot. But some of the reasons we gave in our Oct. 15 editorial were, on reflection, overly critical and based on inaccurate information.

We ...

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Special Sections

Long-term solutions emerge as water conservation goes mainstream

Long-term solutions emerge as water conservation goes mainstream


Ellie Van Houtte/Town Crier
Forrest Linebarger, right, installed greywater and rainwater harvesting systems at his Los Altos Hills home.

With more brown than green visible in her Los Altos backyard, Kacey Fitzpatrick admits that she’s a little e...

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Business

Local realtors scare up money for charity

Local realtors scare up money for charity


Photo courtesy of SILVAR
Realtors Gary Campi and Jordan Legge, from left, joined Nancy Domich, SILVAR President Dave Tonna and Joe Brown to raise funds for the Silicon Valley Realtors Charitable Foundation.

Los Altos and Mountain View realtors raise...

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Books

Helping kids catch a few Zs: Local dental hygienist pens meditative bedtime book

Helping kids catch a few Zs: Local dental hygienist pens meditative bedtime book


Ellie Van Houtte/Town Crier
Mimi Sommers, who works at a Los Altos dentist’s office, recently wrote a children’s book.

A local dental hygienist recently published a book that aims to ease parents and children during a sometimes anxious e...

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People

DAVID S. NIVISON

DAVID S. NIVISON

David S. Nivison, 91 years old, and a resident of Los Altos, California since 1952, died Oct. 16, 2014 at home.  His neighbors had recently honored him as the “Mayor of Russell Ave., in recognition of 62 years of distinguished living” on that ...

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Travel

Falling leaves: Four places in California to see autumn colors

Falling leaves: Four places in California to see autumn colors


Courtesy of Castello di Amorosa
Castello di Amorosa in Calistoga, above, boasts a beautiful setting for viewing fall’s colors – and sampling the vineyard’s wines.

Yes, Virginia, there is fall in California.

The colors pop out in...

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Stepping Out

ECYS opens season Sunday

ECYS opens season Sunday


Ramya Krishna/Special to the Town Crier
The El Camino Youth Symphony rehearses for Sunday’s concert, above.

The El Camino Youth Symphony – under new conductor Jindong Cai – is scheduled to perform its season-opening concert 4 p.m....

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Spiritual Life

Christian Science Reading Room hosts webinar on prayer and healing

Christian Science practitioner and teacher Evan Mehlenbacher is scheduled to present a live Internet webinar lecture, “Prayer That Heals,” 7:30 p.m. Nov. 14 in the Christian Science Reading Room, 60 Main St., Los Altos.

Those interested ...

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Magazine

Local events add color to autumn calendar

Local events add color to autumn calendar


Van Houtte/town crier Visitors make their way through the Children’s Alley.

As Los Altos’ signature Chinese Pistache trees exchange their summer green for vibrant hues of yellow, orange and red in the fall, an abundance of local events also ad...

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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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