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SCHY
Jun 19, 2021 9:14:54 GMT
Post by chang on Jun 19, 2021 9:14:54 GMT
Starting a new thread rather than a potential digression in the BSW thread. R48 asked: To: rythym and Chang et al...any threads or other articles/analysis discussing SCHY?? TIA R48 Nothing revealing from me. I explained my involvement here: You guys are tempting me with SCHY to replace VEU or partially replace it. But VEU has growth since it's a blend. I've owned SCHD since 2017 so I am onboard with Schwab's method of div/value ETFs. Not trying to tempt you to do anything .... it just happened to cross my radar. Background: about two years ago I was looking for a good FLV fund for my taxable account. As a fan of SCHD, I thought there might be a good foreign counterpart. My search picked up VIGI, VYMI, IGRO and PID, and nothing else. None of these grabbed me, for one reason or another. I ended up using VGWAX, and built it up to my biggest holding. Fast forward to last week .... I was perusing the CS site and happened to see that DJ launched a foreign version of their US Dividend 100 index (which SCHD tracks) and CS simultaneously launched SCHY. So without a whole lot of thought I bought a piece (actually rhythmmethod beat me to it). I'm sending some cash to my Fido acct today, and next week I plan to buy some more. It's yielding around 4%. It may or may not prove to be as successful as SCHD (note of caution: VIGI/VYMI don't look as good as VIG/VYM!) but I'm taking a flyer on it. And now you know . . . . the rest of the story. Good day! and don't have anything new to add. I like the ETF construction, the 15% EM, and dividend, and the record of SCHD. (And the low expense ratio.) I want to quickly get this position into six figures and then slowly add on dips. What would be so bad growing old with a portfolio of 25% SCHD, 25% SCHY and 50% miscellaneous bonds?
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Post by rhythmmethod on Jun 19, 2021 13:51:15 GMT
Adding to chang , post which is a good summary of my reasoning as well: 1. I was way overweight LCG and decided to make the alteration via my international holdings. I decided to let go of MATFX (after a very nice profit). Because I wanted to let VWILX decide how much China growth to hold. 2. Chang had put the SCHY on my radar and I was looking to increase my foreign LCV holdings. 3. I like the idea that it is a relatively new offering. That combined with my satisfaction with SCHD peaked my interest even more. 4. A quick perusal of SCHY's holdings reveals many M* 4-5 star holdings. I crossed-referenced this with Barron's analysis. 5. I could raise my % in SCHY by 70% and feel like I have a holding I can use for the long term. 6. Am I right?? - No idea!
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Post by retiredat48 on Jun 20, 2021 6:32:25 GMT
Thanks guys...First cut review: I like SCHY. Will investigate further in depth.
Chang closed with this: "What would be so bad growing old with a portfolio of 25% SCHD, 25% SCHY and 50% miscellaneous bonds?"
--------------------------------------------
Answer...50% miscellaneous bonds!...bad!
I don't know of anybody, even those with large portfolios that want to just "preserve everything", who should be 50% bonds in today's FI world.
Negative real returns most likely. Actual inflation way under-reported. Gvts want to fleece wealth; bondholders easy prey...and so on.
R48
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Post by FD1000 on Jun 20, 2021 13:35:16 GMT
Thanks guys...First cut review: I like SCHY. Will investigate further in depth. Chang closed with this: "What would be so bad growing old with a portfolio of 25% SCHD, 25% SCHY and 50% miscellaneous bonds?"-------------------------------------------- Answer...50% miscellaneous bonds!...bad! I don't know of anybody, even those with large portfolios that want to just "preserve everything", who should be 50% bonds in today's FI world.Negative real returns most likely. Actual inflation way under-reported. Gvts want to fleece wealth; bondholders easy prey...and so on. R48 I'm in 99% bonds and doing just fine and already passed my required yearly performance. Are all bonds treasuries? definitely not. YTD...MAYHX 7.15...RSIIX 7.9%
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SCHY
Jun 20, 2021 13:57:22 GMT
Post by Deleted on Jun 20, 2021 13:57:22 GMT
25% SCHY - INTL performance at least in USD terms has not been that good for a while now. It could be my recency bias.
Also SCHY is only 1% china, and we have many china bulls in this forum.
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SCHY
Jun 20, 2021 14:37:29 GMT
Post by richardsok on Jun 20, 2021 14:37:29 GMT
25% SCHY - INTL performance at least in USD terms has not been that good for a while now. It could be my recency bias. Also SCHY is only 1% china, and we have many china bulls in this forum. Agree. Technical signals, which may be described as "recency bias codified", show little reason to go anywhere near SCHY. What surprised me is FD's diversified bonds. Since March charts for AGG appear counter-intuitive. Very.
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Post by anitya on Jun 20, 2021 18:44:21 GMT
25% SCHY - INTL performance at least in USD terms has not been that good for a while now. It could be my recency bias. Also SCHY is only 1% china, and we have many china bulls in this forum. @waffle, FYI only - The forum’s so called China bulls are neutral at best - based on recent posts. Some have sold out of and others have decreased China specific investments. If the topic is of interest, pl review the relevant threads. A
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Post by chang on Jun 21, 2021 0:41:19 GMT
25% SCHY - INTL performance at least in USD terms has not been that good for a while now. It could be my recency bias. Also SCHY is only 1% china, and we have many china bulls in this forum. Agree. Technical signals, which may be described as "recency bias codified", show little reason to go anywhere near SCHY. Well, there are two points of view. One is T/A-momentum, the other is contrarian. Both occasionally succeed and occasionally fail. I have been more successful with the latter. I understand T/A but frankly think it's 95% BS. I believe it has certain useful disciplinary purposes, but almost zero predictive power. Everybody knows Buffett's "be greedy - be fearful" saying. Me, I think that's one of the best principles of investing. When everyone hates something, that's the time to buy.
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Post by chang on Jun 21, 2021 1:18:31 GMT
25% SCHY - INTL performance at least in USD terms has not been that good for a while now. It could be my recency bias. Also SCHY is only 1% china, and we have many china bulls in this forum. The country weights are indeed kind of interesting: More concentration in Saudi Arabia and Finland than China or Spain. But this is just a consequence of the index construction. Strikes me as a good complement/diversifier to many other foreign funds.
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SCHY
Jun 21, 2021 14:34:42 GMT
Post by Deleted on Jun 21, 2021 14:34:42 GMT
with WSJ article this weekend, not so positive about EM going forward, having a Non EM INTL fund in portfolio makes sense. May be I should consider reducing my exposure to EM.
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Post by xray on Jun 21, 2021 15:49:33 GMT
@waffle,
My 2cents [for what it is worth]....
My current data shows Intl performance as "NEUTRAL" currently with a report card grade of 74....
Live Long and Prosper....
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Post by chang on Jun 21, 2021 22:50:55 GMT
I decided to let go of MATFX (after a very nice profit). Because I wanted to let VWILX decide how much China growth to hold. Off topic, but quick note to RM: you might be interested in MPACX/MIAPX, which is all-Asia and not just AxJ. It has a fine record. I hold MIAPX and MITEX in a 2:1 ratio. Have owned MPACX/MIAPX for a long time (and under the same proven manager).
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SCHY
Jun 22, 2021 12:38:54 GMT
Post by rhythmmethod on Jun 22, 2021 12:38:54 GMT
I decided to let go of MATFX (after a very nice profit). Because I wanted to let VWILX decide how much China growth to hold. Off topic, but quick note to RM: you might be interested in MPACX/MIAPX, which is all-Asia and not just AxJ. It has a fine record. I hold MIAPX and MITEX in a 2:1 ratio. Have owned MPACX/MIAPX for a long time (and under the same proven manager). Thanks, I’ll check it out!
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Post by yogibearbull on Jun 22, 2021 12:53:46 GMT
I am a long time holder of Asia growth MPACX and Asia dividend MAPIX. As I mentioned elsewhere, foreign dividend funds can have lumpy/uneven distributions due to PFIC considerations if they hold real estate, etc.
US PFIC rules require funds to flow some unrealized G/L through fund income and that may affect their distributions in the short-term. It may not matter in the long-term.
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SCHY
Jun 22, 2021 16:12:36 GMT
Post by Chahta on Jun 22, 2021 16:12:36 GMT
admin\chang: "What would be so bad growing old with a portfolio of 25% SCHD, 25% SCHY and 50% miscellaneous bonds?"
Trying to wrap my head around that one. Similar to me now but I do have some hard core growth too.
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SCHY
Jun 22, 2021 18:10:49 GMT
chang likes this
Post by rhythmmethod on Jun 22, 2021 18:10:49 GMT
admin\chang: "What would be so bad growing old with a portfolio of 25% SCHD, 25% SCHY and 50% miscellaneous bonds?" Trying to wrap my head around that one. Similar to me now but I do have some hard core growth too.Here's my take -- 15% SCHD, 10% QQQ (or TRBCX), 15% SCHY, 10% VWILX, 50% misc. FI. Or accomplish with some balanced funds in the mix. Edit to add - I was just being hypothetical to the original mention by chang and Chahta. I'd probably overweight US equity
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Post by Deleted on Jun 22, 2021 18:23:09 GMT
In a USD denominated portfolio, why would you give equal weight to US and International stock allocations?
I would generally go 70% US and 30% INTL or if you think intl will outperform US because US is relatively overvalued- 60% US and 40% INTL.
Another thing I noticed in 2008 if recession comes, everyone in world rushes to US Treasuries. Making USD go up (or may be all other currencies went down relative to US) and Intl stock returns even worse. I do no think that behavior will change in next 20 years.
(I started investing 2008 at age of 40, so that is pretty much only recession I have seen as an investor. I did lose my job in 2001 crash. 1991 recession did not impact me.)
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Post by chang on Jun 22, 2021 21:32:19 GMT
admin\chang: "What would be so bad growing old with a portfolio of 25% SCHD, 25% SCHY and 50% miscellaneous bonds?" Trying to wrap my head around that one. Similar to me now but I do have some hard core growth too.My 25-25-50 comment is probably attracting more attention than it deserves. It was just an offhand remark, comparable to the often heard "I could own 100% Wellesley when I retire." It presupposes an overriding desire for dividend income (like a Wellesley owner). But unlike 100% Wellesley, it doesn't put all its equity into one country. Also unlike Wellesley, though, it doesn't rebalance automatically. Thinking a little more on this, I could have noted that Global Wellesley (or Global Wellington, which I own) would be reasonable options as well.
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SCHY
Jun 22, 2021 21:54:44 GMT
Post by Deleted on Jun 22, 2021 21:54:44 GMT
One thing, and I was surprised at work when I first learned it, that if you are a senior person or a leader, you cannot make offhand remarks or just casual remarks or remark jokingly.
People take everything you say very seriously, not question it and will go ahead and implement it without you even knowing.
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SCHY
Jun 22, 2021 22:07:01 GMT
via mobile
Post by chang on Jun 22, 2021 22:07:01 GMT
@waffle Sorry to go OT but when I was a manager I loathed yes-men. I promoted into senior positions only people who would challenge and question me (constructively and tactfully) and were not afraid to push back. I learned nothing from people who agreed with me, but a lot from people who didn't.
Having said that, it might make sense to go 100% CGMFX. Heebner's on a roll!
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SCHY
Nov 4, 2021 15:21:46 GMT
chang likes this
Post by rhythmmethod on Nov 4, 2021 15:21:46 GMT
BUMP * - Hmmm, So SCHY in theory seems like a no-brainer. 4% yield, mostly undervalued holdings and int. diversity. In practice, however, it's been underwhelming. I'm down a few bucks but not much. I don't have conviction to add. So what to do? I could hold and re-evaluate in a few months. If I were to sell I'd redistribute to VGWAX, FMSDX (maybe a little SCHD) - all core holdings - and throw the rest into a CEF, where there is some real yield. What do you think?
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Post by richardsok on Nov 4, 2021 16:43:45 GMT
BUMP * - Hmmm, So SCHY in theory seems like a no-brainer. 4% yield, mostly undervalued holdings and int. diversity. In practice, however, it's been underwhelming. I'm down a few bucks but not much. I don't have conviction to add. So what to do? I could hold and re-evaluate in a few months. If I were to sell I'd redistribute to VGWAX, FMSDX (maybe a little SCHD) - all core holdings - and throw the rest into a CEF, where there is some real yield. What do you think? It wouldn't be something I would buy, but now that you're in, I see no compelling reason to sell. The MA crossover and P-SAR are both mildly bullish, and, as you say, the distribution is decent. url.com/wwaT8R
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Post by chang on Nov 4, 2021 22:01:08 GMT
BUMP * - Hmmm, So SCHY in theory seems like a no-brainer. 4% yield, mostly undervalued holdings and int. diversity. In practice, however, it's been underwhelming. I'm down a few bucks but not much. I don't have conviction to add. So what to do? I could hold and re-evaluate in a few months. If I were to sell I'd redistribute to VGWAX, FMSDX (maybe a little SCHD) - all core holdings - and throw the rest into a CEF, where there is some real yield. What do you think? I feel the same way - surprised and disappointed. I have not compared it to other foreign LCV funds, but it does not seem to be going anywhere. I am down about 1% on cost basis, but probably up considering dividends. However, this was a buy to hold, and I will keep my holding for 3-5 years at least. I have not, however, added to it, so it remains a minor holding (about 2% of equity).
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SCHY
Nov 4, 2021 22:39:07 GMT
Post by Chahta on Nov 4, 2021 22:39:07 GMT
BUMP * - Hmmm, So SCHY in theory seems like a no-brainer. 4% yield, mostly undervalued holdings and int. diversity. In practice, however, it's been underwhelming. I'm down a few bucks but not much. I don't have conviction to add. So what to do? I could hold and re-evaluate in a few months. If I were to sell I'd redistribute to VGWAX, FMSDX (maybe a little SCHD) - all core holdings - and throw the rest into a CEF, where there is some real yield. What do you think? So when and where is the 4% supposed to appear? Waiting for a full year of operation? I asked Schwab but they had no answer. I have not been very impressed either.
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SCHY
Nov 5, 2021 11:30:21 GMT
Post by Fearchar on Nov 5, 2021 11:30:21 GMT
They distributed 5 cents back in June.
Looks like ballast water to me.
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SCHY
Nov 5, 2021 12:44:02 GMT
via mobile
Post by Chahta on Nov 5, 2021 12:44:02 GMT
They distributed 5 cents back in June. Looks like ballast water to me. Right but where is the 4%? It is only quoted as SEC yield. It is .2% TTM.
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Post by Fearchar on Nov 5, 2021 13:24:13 GMT
hmmm Right;
Schwab has a list of distribution dates for their funds and I don't see SCHY on the list.
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Post by richardsok on Nov 5, 2021 17:03:27 GMT
hmmm Right; Schwab has a list of distribution dates for their funds and I don't see SCHY on the list. In the last two weeks of trading SCHY has been slowly trending up 2% in price. RM's question was whether to sell it or not. I suggested so long as it is quietly edging upward he should hold. A 1% quarterly distrib is immaterial aside the question of sinking or rallying, IMO. Don't let attention be diverted -- watch the trend, and 4% annual distributions, if they exist, are only a cherry..
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SCHY
Nov 21, 2021 16:07:12 GMT
Post by rhythmmethod on Nov 21, 2021 16:07:12 GMT
Sorry if it appears like I'm beating a dead horse here. SCHY seems like a slow bleed, currently. Usually in a situation like this I would add more, if I had conviction. I'm down ~2%. As others have pointed out, SCHY appears to have a 4+% dist. but I haven't seen that yet. To bring another topic into play, I'm basically of the opinion that bonds are looking like they are too beaten. I'm considering rolling most of SCHY into VGWAX( a core holding) and letting managers decide how much Int LCV to hold and increase my FI side as well. I'd probably add a little to FMSDX (also core with a good int %) and a little to FI CEF de jour to get some real (not perceived) yield. Thoughts?
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Post by steelpony10 on Nov 21, 2021 16:29:03 GMT
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