About the Editor
Samuel Lee is an ETF strategist for Morningstar and editor of Morningstar ETFInvestor, a monthly investment newsletter. Prior to becoming editor, Lee was a fund analyst on Morningstar's passive funds research team, where he covered alternative, dividend, and actively managed ETFs and performed quantitative modeling of ETF strategies.

Lee joined Morningstar in 2008 as a data analyst, where he evaluated ways to measure and improve the firm's data quality.

Lee holds a bachelor's degree in economics, with honors, from Grinnell College.


Investment Strategy
Morningstar ETFInvestor scans the globe for value and improving fundamentals across virtually all asset classes. Editor Samuel Lee draws upon academic and practitioner research — including Morningstar's sizeable bench of stock, bond and fund analysts — to find reliable drivers of outperformance.

Morningstar ETFInvestor features two real-money portfolios.

The ETF Income Portfolio assembles a high-quality collection of income-generating ETFs with the goal of earning 5% in excess of the 30-day T-bill rate over a full business cycle. The portfolio adheres to a benchmark-agnostic strategy in its search for absolute returns.

The ETF Global Asset Allocation Portfolio, on the other hand, is more benchmark sensitive. It seeks undervalued asset classes with improving fundamentals. The strategy seeks to beat the 60/40 MSCI ACWI/Barclays US Aggregate benchmark over a full business cycle, with the least risk possible.

 
 
Mar 30, 2015
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About Editor Editor's Photo
Samuel Lee,
Editor, Morningstar ETFInvestor
Samuel Lee is an ETF strategist for Morningstar and editor of Morningstar ETFInvestor, a monthly investment newsletter. Prior to becoming editor, Lee was a fund analyst on Morningstar's
Featured Posts
Added to PIMCO Dynamic Credit Income
In the March ETFInvestor, which came out last week, the names and categories of the Income Portfolio’s holdings (page 5) were duplicated in the names and holdings of the Asset Allocation portfolio (page 7). The error has been corrected. Other data were not affected. Download the corrected version here.

Today I bought 310 shares of PIMCO Dynamic Credit Income PCI for the Income Portfolio, raising the portfolio’s stake to around 15% from 11%. This trade can largely be viewed as a reinvestment of the dividends we’ve received from our Dynamic Duo (PIMCO Dynamic Income PDI being the other fund).

At a price of $20.47 a share, including commission, we’re adding Dynamic Credit at a 10% discount to current net asset value and 11% below our average cost. Much, but not all, of the net asset value erosion we’ve experienced while holding the fund has been recouped by distributions. While Dynamic Credit has been a disappointment so far, its fundamentals are sound. Its earnings yield is in the low teens, and the managers, Dan Ivascyn and Alfred Murata, did not suddenly lose their talents in the past year, after years of stunning success.

Income Portfolio Trade Summary
Bought 310 shares of PIMCO Dynamic Credit Income PCI for $20.47 each, raising it to 15% of the portfolio from 11%.

Best regards,
Samuel Lee
Strategist
Editor, Morningstar ETFInvestor

Disclosure: I own all the funds in the Income and Asset-Allocation Portfolios. I will be adding to PIMCO Dynamic Credit Income in my personal portfolio within a few days.

Portfolio Holdings
Income Portfolio
ETF
YTD Ret %
Price $
2.7
110.1
CASH$
N/A
1.0
4.2
59.0
8.6
67.0
0.2
11.5
-1.2
20.4
-5.5
29.0
-0.4
39.7
-1.8
24.3
Global Asset Allocation Portfolio
ETF
YTD Ret %
Price $
2.7
110.1
CASH$
N/A
1.0
4.2
59.0
-1.2
20.4
-5.5
29.0
-0.4
39.7
6.7
40.4
0.1
81.2
-1.8
24.3
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