Sat04192014

News

City chips in $7,000 for SFMOMA installation

City chips in $7,000 for SFMOMA installation


Town Crier File Photo
The Los Altos City Council earmarked $7,000 for the purchase of Chris Johanson’s artwork.

The city of Los Altos will contribute $7,000 toward the purchase of a $28,000 art installation featured in the San Francisco Museum...

Read more:

Loading...

Schools

LASD students celebrate service learning

LASD students celebrate service learning


Courtesy of Sandra McGonagle
We Day, held March 26 at Oracle Arena in Oakland, exhorts students in the Los Altos School District to effect positive change.

More than 150 Los Altos School District student leaders joined 16,000 Bay Area students to ce...

Read more:

Loading...

Community

Film career launches with Cannes screening

Film career launches with Cannes screening


Courtesy of Zachary Ready
Los Altos native Zachary Ready, front left, and co-director Andrew Cathey, right, celebrate their Campus MovieFest awards.

After learning the art of filmmaking as a child in the front yard of his family’s Los Altos home...

Read more:

Loading...

Sports

Sports on the Side

Pathways Run/Walk slated May 10 in Hills

The 13th annual Pathways Run/Walk is scheduled 9 a.m. May 10 at Westwind Community Barn, 27210 Altamont Road, Los Altos Hills. The course wends through Byrne Preserve and onto the Los Altos Hills Pathways sys...

Read more:

Loading...

Comment

Now is the time to expand parking: Editorial

Just a few short years ago, vacancies dotted downtown Los Altos. Property owners had a hard time attracting businesses because there was a shortage of customers. That is no longer true. Now, the cry is: Where are my customers going to park?

The city...

Read more:

Loading...

Special Sections

Epicurean's Mary Clark Bartlett: Serving sustainability

Epicurean's Mary Clark Bartlett: Serving sustainability


Courtesy of Michael McTighe
Mary Clark Bartlett is founder and CEO of Los Altos-based Epicurean Group.

Labels such as “healthy,” “organic” and “green” are rarely used to describe the meals served in most corporate cafes in Silicon Valley. But on...

Read more:

Loading...

Business

Local realtor honored for volunteer efforts

Local realtor honored for volunteer efforts


Ellie Van Houtte/Town Crier
Coldwell Banker recently recognized realtor Kim Copher, right, for her philanthropic efforts. Copher and colleague Alan Russell, left, volunteer at Reach Potential Movement, where they collect books for its Bookshelf in ...

Read more:

Loading...

Books

Local Author Spotlight

In an effort to support authors from Los Altos, Los Altos Hills and Mountain View, many self-published, Book Buzz periodically spotlights their books and offers information on where to purchase them. Local authors are encouraged to submit brief summa...

Read more:

Loading...

People

Noteworthy

RotaCare honors local volunteer

RotaCare Bay Area honored Jim Cochran of the RotaCare Mountain View Free Medical Clinic with the Outstanding Clinic Volunteer Award April 10 for his commitment to RotaCare’s mission of providing free medical care to t...

Read more:

Loading...

Travel

Sausalito: Explore the historical city with world-class views

Sausalito: Explore the historical city with world-class views


Eren Göknar/ Special to the Town Crier
Sausalito offers panoramic views of the San Francisco Bay. A number of companies schedule boat tours that sail past Angel Island and Alcatraz.

On a clear day, Sausalito offers spectacular views of the San Franc...

Read more:

Loading...

Stepping Out

Western Ballet performs this weekend  at Smithwick Theatre in Los Altos Hills

Western Ballet performs this weekend at Smithwick Theatre in Los Altos Hills


Courtesy of Alexi Zubiria
Western Ballet’s “La Fille Mal Gardée” features Alison Share and Maykel Solas. The production runs Friday and Saturday at Foothill College

Western Ballet is slated to perform “La Fille Mal GardéeR...

Read more:

Loading...

Spiritual Life

Magazine

A yoga class a day keeps the stress away

A yoga class a day keeps the stress away


Van Houtte/Town Crier Yoga of Los Altos hosts a variety of classes, including Strong Flow Vinyasa, above, taught by Doron Hanoch. Yin Yoga instructor Janya Wongsopa guides a student in the practice, below.

It’s nearly 9 a.m. on a Monday mornin...

Read more:

Loading...

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. .

Schools »

Schools
Read More

Sports »

sports
Read More

People »

people
Read More

Special Sections »

Special Sections
Read More

Photos of Los Altos

photoshelter
Browse and buy photos