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Post by chang on Dec 27, 2021 4:36:53 GMT
Well, forget "buy". I am more interested in whether to hang onto it, or sell (some of it), in order to explore more unconventional, lower-duration FI. (For example PDO, RCTIX, …). TIA.
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Post by Chahta on Dec 27, 2021 14:37:34 GMT
Isn't that diversification for ballast against equities? I say hold if you have a low-cost basis against today's price. Sure the NAV may decline a bit this year once rates start up but reinvested distributions will help build a good income producer down the road. I have become weary of trying to figure out where to be with bonds. I am thinking RCTIX and OSTIX for me as well. With PDO the NAV could decline much more than DODIX.
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Post by Birdman96 on Dec 27, 2021 15:14:45 GMT
Hello chang For an intermediate-core-plus bond fund with a duration of 5.10 and an “A” credit quality it seems to be more conservative than other funds in this category. I have not owned this fund but have had other interm-term and core-plus bond positions and have slowly exchanged them into Short and Ultra short bond funds going into 2022. I’ve reached a fatigue level of watching the interm’s slowly drain my investments. It may take more patience than I have to re-enter dedicated interm funds, but I still hold a full position in VWIAX to compensate for now.
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Post by Chahta on Dec 27, 2021 16:10:51 GMT
Hello chang For an intermediate-core-plus bond fund with a duration of 5.10 and an “A” credit quality it seems to be more conservative than other funds in this category. I have not owned this fund but have had other interm-term and core-plus bond positions and have slowly exchanged them into Short and Ultra short bond funds going into 2022. I’ve reached a fatigue level of watching the interm’s slowly drain my investments. It may take more patience than I have to re-enter dedicated interm funds, but I still hold a full position in VWIAX to compensate for now.I am doing the same, but when I do it will be at an advantaged price level and will stay in long term. I sold BAGIX at a nice profit last year and probably should not have since it was at a low-cost basis, which is my thinking in owning any bond fund these days.
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Post by acksurf on Dec 27, 2021 22:24:57 GMT
As a reminder I am not retired, but I also don't have an intermediate bond fund at the moment. I have NHMAX (High Yield), VWALX (Muni Long); and RPHIX. I do hold a fair amount cash as well as some iBonds purchased in 2000-2001. Like many here I am tinkering with a small allocation to PDI, PTY, PDO in a health savings account mostly. I have a decent allocation to Vanguard Tax Managed Balanced Fund. Though I am not retired I have the conundrum of how to allocate money for a potential house purchase in 1-3 years (but that isn't a definite). It's agonizing watching house prices go up 18% (or whatever) with cash earning nothing.
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Post by Fearchar on Dec 27, 2021 23:17:19 GMT
I think you'd be better off with a combination of PIMIX and VCSH.
You can easily mix those and get better risk adjusted returns over most time periods & market conditions.
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Post by Birdman96 on Dec 27, 2021 23:33:22 GMT
I think you'd be better off with a combination of PIMIX and VCSH. You can easily mix those and get better risk adjusted returns over most time periods & market conditions. I’m with you Fearchar - we have PIMIX, VSCSX, VBIRX, and VTIP in DW’s T-IRA.
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Post by chang on Jan 4, 2022 1:24:57 GMT
DODIX volatility is getting to be a bit much. And when I say "volatility" I mean when it's sinking like a rock.
I have to think hard this week whether to let this go and move into UST stuff (VUSFX, RPHIX), which I did 2 years ago with PIGIX and VBILX, which was the right thing to do.
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Post by Chahta on Jan 4, 2022 1:59:32 GMT
10 year rate had a big move up today and hurt IT bond funds. UST and ST funds are no better. I got rid of UST and ST tired of the slow decay. I bought into RCTIX. It had a nice move up in the face of rising rates today. RPHIX may be your best bet.
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Post by chang on Jan 4, 2022 2:03:17 GMT
Yeah even VUSFX was down an uncharacteristically 2 cents. I am OK holding this. But DODIX may get chopped after its next dead cat bounce.
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Post by Chahta on Jan 4, 2022 2:11:34 GMT
I talked to River Canyon a while back. I was told they set RCTIX up to do well in rising rates.
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Post by chang on Jan 4, 2022 2:28:11 GMT
I talked to River Canyon a while back. I was told they set RCTIX up to do well in rising rates. I bought $200,000 RCTIX on 7/6/21. Current value is $202,335, which works out to around 2.3% yield. Hence, I am somewhat underwhelmed. Maybe it’s a good time to add?
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Post by Chahta on Jan 4, 2022 3:25:36 GMT
Well I don’t think that is too bad. My plan is to reinvest and drive my cost down. Then I will take income in a few years. As long as Portfolio Manager shows me a “positive unrealized gain” I don’t mind taking the income.
2.3% in 6 months is 4.6% on a year. Not a bad starting point to start taking the income.
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Post by roi2020 on Jan 4, 2022 3:59:46 GMT
I exchanged DODIX for the Stable Value Fund in my 401(k) on 12/31. The Fed will cease QE and probably raise short-term rates two or three times this year. The Stable Value Fund may perform a little better than DODIX in 2022. DODIX is a good intermediate core-plus fund and I plan to reestablish a position at a later date.
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Post by chang on Jan 4, 2022 4:51:51 GMT
I talked to River Canyon a while back. I was told they set RCTIX up to do well in rising rates. I bought $200,000 RCTIX on 7/6/21. Current value is $202,335, which works out to around 2.3% yield. Hence, I am somewhat underwhelmed. Maybe it’s a good time to add? 2.3% is the annual yield. 202,335/200,000 = 1.012% for 6 months = 2.023% for 12 months. My mistake -- the yield is not 2.3% but only 2.023%. Underwhelming!
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Post by Chahta on Jan 4, 2022 13:19:17 GMT
I see. Only focused on 2.3 without doing the mental math. I don’t look at bond OEFs as a TR investment, other than HY muni trades. From my point your RCTIX investment is a success as long as the cost has dropped so divs can be taken without eating into your capital. My goal is to have bond OEF yield supply a big chunk of RMDs without selling shares.
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Post by yogibearbull on Jan 4, 2022 13:37:09 GMT
roi2020, stable-value (SV) fund in 401k/403b is good so long as its guaranteed rate exceeds the 30-day SEC yield of the available bond funds.
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Post by Chahta on Jan 4, 2022 14:04:26 GMT
The only time I used a SV fund was when I was draining my 401k. I had no control of when the investments were sold so wanted to avoid a loss before the sale. I’m not sure I would hold a SV fund if I had several years to retirement. I never wanted dead money in a 401k.
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Post by yogibearbull on Jan 4, 2022 14:34:34 GMT
Chahta , many here may have access to good SV funds that are surely not dead money. See LINK.
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Post by Chahta on Jan 4, 2022 15:49:57 GMT
Whoops...I was looking back on my old choice of only 2%. How do they get such high yields? Must be equities involved.
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Post by yogibearbull on Jan 4, 2022 16:32:59 GMT
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Post by anovice on Jan 5, 2022 19:56:23 GMT
Whoops...I was looking back on my old choice of only 2%. How do they get such high yields? Must be equities involved. Here is one for you. "The Fixed Return Fund offers a guaranteed rate of return set by the New York State Legislature in accordance with applicable laws. The current annual rate is 7% for members who are serving in (or resigned/retired from) titles represented by the United Federation of Teachers (UFT) and 8.25% for other members" trsnyc.org/memberportal/Investments/FixedReturnFund
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Post by yogibearbull on Jan 5, 2022 20:28:02 GMT
Whoops...I was looking back on my old choice of only 2%. How do they get such high yields? Must be equities involved. Here is one for you. "The Fixed Return Fund offers a guaranteed rate of return set by the New York State Legislature in accordance with applicable laws. The current annual rate is 7% for members who are serving in (or resigned/retired from) titles represented by the United Federation of Teachers (UFT) and 8.25% for other members" trsnyc.org/memberportal/Investments/FixedReturnFundThis isn't a typical stable value (SV) type fund. For mandatory retirement plans, there are 3 interest rates - crediting rate, annuitization rate, discount rate (to convert liabilities to present value). Many plans use the same rate for all 3 but some plan now use slight variations. This is only fair as participants or plan/employer benefits by these different rates. So, for example, the employer is not allowed to tilt things in its favor and screw the participants. Note that these mandatory accumulation funds are locked up and not accessible until retirement, resignation or firing. On the other hand, while SV funds have restrictions, one can do things with them now (buy, sell, exchange). They vary a lot - Fed TSP G Fund is currently paying 1.625%, TIAA is currently paying around 3%.
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Post by Deleted on Jan 6, 2022 4:54:52 GMT
DODIX: -0.91 in 2021 and -0.71 YTD is barely any loss. So I am bit confused why such reaction?
(Note: I do not own any bond funds or bonds other than 30% bonds in wellington.)
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Post by alvinthechipmunk on Jan 6, 2022 8:41:45 GMT
DODIX possesses a sparkling reputation over a LONG time. If you are looking strictly at YIELD, there are others who can deliver better. DODIX is great ballast, I think. www.morningstar.com/funds/xnas/dodix/quote
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Post by chang on Jan 6, 2022 8:45:50 GMT
DODIX: -0.91 in 2021 and -0.71 YTD is barely any loss. So I am bit confused why such reaction? (Note: I do not own any bond funds or bonds other than 30% bonds in wellington.) I think you are responding to a post that I deleted, and moved to the BSW thread, which was more appropriate: big-bang-investors.proboards.com/post/14163/threadI suppose -0.91% isn't the end of the world. But it is the fund's poorest annual return that I can see, and not something to be proud of for an actively managed fund that can do anything, including shorting (which they have done before with 10Y USTs).
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Post by Chahta on Jan 6, 2022 15:02:49 GMT
I think it will be a bloody year for vanilla funds. I can see a case for holding or selling.
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Post by FD1000 on Jan 7, 2022 2:08:12 GMT
I don't comment on most bond posts anymore since nobody pay attention anyway But, why would you hold a fund like DODIX when rates are clearly going up. What do you usually hold when rate rise? BL, FFRHX. Disclaimer: I'm not going to tell you when to sell.
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Post by chang on Jan 7, 2022 2:10:46 GMT
I don't comment on most bond posts anymore since nobody pay attention anyway But, why would you hold a fund like DODIX when rates are clearly going up. What do you usually hold when rate rise? BL, FFRHX. Disclaimer: I'm not going to tell you when to sell. I sold half my DODIX today, and put the proceeds into FFRHX, RCTIX and RPHIX. I might repeat soon.
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Post by chang on Jan 7, 2022 5:31:07 GMT
I bought $200,000 RCTIX on 7/6/21. Current value is $202,335, which works out to around 2.3% yield. Hence, I am somewhat underwhelmed. Maybe it’s a good time to add? 2.3% is the annual yield. 202,335/200,000 = 1.012% for 6 months = 2.023% for 12 months. My mistake -- the yield is not 2.3% but only 2.023%. Underwhelming!Oops, I should have said 2.023% was the annualized RETURN, not yield. I expect that the NAV fell, and the yield was higher than 2%. (I haven’t checked the actual numbers.)
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