Sun03292015

News

Safeway escalator elicits safety concerns from customers

Safeway escalator elicits safety concerns from customers


MEGAN V. WINSLOW/Town Crier
The escalator at the Safeway on First Street poses a safety hazard, some customers allege.

A Safeway shopper who accidentally placed his cart last month on the customer escalator instead of the shopping cart track next to...

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Schools

Los Altos High hosts 30th Writers Week

Los Altos High hosts 30th Writers Week


Above Photo by Traci Newell/Town Crier;
Author Jack Andraka shares his story with fellow high school seniors during Los Altos High School’s Writers Week last week.

Los Altos High School students learned firsthand last week how professionals ...

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Community

Service dogs bring smiles, comfort to veterans at Foothill College center

Service dogs bring smiles, comfort to veterans at Foothill College center


Photos by Megan V. Winslow/Town Crier
Charles Viajar, student and U.S. Navy veteran, brings his four-legged companion Bruno to the Veterans Resource Center at Foothill College. Bruno, a 2-year-old Imperial Shih Tzu, is trained to assist Viajar with...

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Sports

Improbable run to NorCal semis saves season for St. Francis girls

Improbable run to NorCal semis saves season for St. Francis girls


Megan V. Winslow/Town Crier
St. Francis High’s Daisha Abdelkader goes on a fast break in the CCS Division II final. The senior point guard scored eight points in the Lancers’ NorCal semifinal loss to Dublin last week.

Senior Daisha Abdel...

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Comment

We'll buy it; what is it? Editorial

Would you buy a device on the condition that you are kept in the dark about how it works? Would you feel good about purchasing such a device when the contract even calls for nondisclosure of the nondisclosure form that keeps the device top secret?

T...

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Special Sections

Tuscany meets Waikiki: Los Altos Hills couple build their dream house

Tuscany meets Waikiki: Los Altos Hills couple build their dream house


Megan V. Winslow/Town Crier
Sara Weber and Victor Martina’s Los Altos Hills home features brick from a 100-year-old building in San Jose artistically combined with stucco to evoke a centuries-old feel. The lanai in the backyard adds a touch o...

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Business

Vintage Bath changes hands as new owners add twist to classic offerings

Vintage Bath changes hands as new owners add twist to classic offerings


Alicia Castro/Town Crier
Vintage Bath, the downtown Los Altos showroom, is under new leadership. Taking over are, from left, co-owners Jerry Rudick and Deena Castello and marketing and visual director Alissa McDonald.

Deena Castello – the new cu...

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Books

'Pope Joan' Book weaves tale around legend of female pontiff

'Pope Joan' Book weaves tale around legend of female pontiff


The idea that there may have a female pope at one time in history has generated much speculation throughout the centuries. “Pope Joan” (Crown, 1996) by Donna Woolfolk Cross, does not answer the question; rather, the author has created a detai...

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People

BEVERLEY JEANE (DORSEY) MCCHESNEY

BEVERLEY JEANE (DORSEY) MCCHESNEY

1944-2014

Beverley McChesney passed away at El Camino Hospital in Mountain View, CA on Sunday, Nov. 16. She had been fighting cancer for about 23 years until it went into her lungs.

She is survived by her husband David, of Cloverdale; her sisters...

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Travel

Eat, hike, soak: Cavallo Point Lodge offers Marin experience

Eat, hike, soak: Cavallo Point Lodge offers Marin experience


Eren Göknar/ Town Crier
Cavallo Point Lodge comprises former U.S. Army buildings, like the Mission Blue Chapel, repurposed for guests seeking a luxurious getaway.

It used to be a place where batteries of soldiers lived, with officers’ quarter...

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Stepping Out

Cal Pops performs Sunday at Foothill

Cal Pops performs Sunday at Foothill


Courtesy of Cal Pops
The Cal Pops trumpet section includes Dean Boysen, from left, Bob Runnels and Noel Weidkamp.

The California Pops Orchestra is scheduled to perform “Swing Time!” – a musical tour of Big Band hits from the 1930...

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Spiritual Life

Silicon Valley Prayer breakfast speakers send strong messages about God's calling

Silicon Valley Prayer breakfast speakers send strong messages about God's calling



Kirk Perry, Google Inc. president of brand solutions, discusses his faith at the March 13 Silicon Valley Prayer Breakfast. Alicia Castro/Town Crier

When God calls, you have to listen to reap the benefits.

That was the moral of the story for t...

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Magazine

Food for thought: Hidden Villa programs offer teens training in sustainability on the farm

Food for thought: Hidden Villa programs offer teens training in sustainability on the farm


/Town Crier It’s not all cute and cuddly for teens participating in the eight-week Animal Husbandry Apprenticeship program at Hidden Villa in Los Altos Hills. Mia Mosing of Palo Alto, left, and Sophia Jackson of Los Altos clean the pigpens – one of...

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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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