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Post by chang on Jul 3, 2021 0:55:49 GMT
A picture is worth a thousand words, see below. Cutting straight to it: for those who want to park cash in an UST fund with duration < 1 year and no exotic risks, what can compare to RPHIX? I hate the ER, but I can't unsee the chart. Attachments:
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Post by chang on Jul 21, 2021 7:52:33 GMT
I am contemplating another cash infusion into RPHIX. The ER makes me gag, but the chart doesn't lie. You can add your own favorite UST or ST bond funds and compare. (Unfortunately the old M* Chart "compare" feature has been axed; you'll have to start from the RPHIX "Performance" page and create the same exhibit as I attached above.)
Anyone think this make sense, or doesn't make sense, or just doesn't care?
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Post by yogibearbull on Jul 21, 2021 12:08:41 GMT
I have pointed out before the distinction between the old, pre-2009/2010 ultra-ST bond funds (those were mostly ST-HY) and the current ultra-ST bond funds (these are only inv-gr), as far as the formal ultra-ST category is concerned (M*, Thomson Reuters, Thomson Reuters Lipper, etc). There was an in-between period when the ultra-ST category disappeared.
Of course, people can do whatever DIY, or use whatever personal terminology they want. But no formal ultra-ST category now will include RPHIX.
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Post by chang on Jul 21, 2021 12:25:27 GMT
Yogi, yes it is my choice to compare this to UST funds (MINT, VUSFX, etc.). The category is irrelevant. RPHIX has the highest 10-year Sharpe Ratio of ALL mutual funds tracked by M*. So it makes sense to ask what any lower-performing fund offers — less volatility? Unlikely. So IMO there is no point trying to put it into a category. Just decide what you want it to do, and compare to other funds that aim to do the same thing. RPHIX's assets have maturities measured in weeks, not years. See below. So it makes no sense IMO to compare it to funds in the HYB category. Sherman once said (somewhere) that if he got hit by a bus, the fund would just roll over into cash by itself in approximately 90 days. www.riverparkfunds.com/assets/pdfs/news/RPHIX-and-the-Current-Market-Environment-A-Remarkable-Match.pdfExcerpt: The weighted average expected effective maturity on the total portfolio has ranged from 2.7 to 6.8 months and averaged 4.5 months. The weighted average expected effective maturity of all new purchases in the Fund has ranged from 0.9 to 6.1 months, averaging just 2.2 months since inception. A unique component of the Fund is its emphasis on called/redeemed high yield bonds. These bonds typically have a remaining expected maturity measured in weeks as opposed to months or quarters. There is typically limited demand for these securities, and therefore they have offered relatively high yields for investors with an expertise at purchasing, analyzing and managing a portfolio of these high turnover securities.
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Post by Chahta on Jul 21, 2021 13:21:18 GMT
I am contemplating another cash infusion into RPHIX. The ER makes me gag, but the chart doesn't lie. You can add your own favorite UST or ST bond funds and compare. (Unfortunately the old M* Chart "compare" feature has been axed; you'll have to start from the RPHIX "Performance" page and create the same exhibit as I attached above.) Anyone think this make sense, or doesn't make sense, or just doesn't care? I bought it last year. It has been heavily discussed on MFO. I don't really care about the ER if the results are worth it. To me ER only counts when 2 very similar funds are being compared. I have an 8% holding and that is enough for now.
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Post by chang on Jul 21, 2021 13:27:54 GMT
What has the MFO crowd had to say? I've never been to that site.
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Post by acksurf on Jul 21, 2021 13:33:16 GMT
I am also moving more dough towards RPHIX (as well as to VWALX). Trying to find an alternative to bonds for a sliver that might otherwise have gone to a bond fund. As stated elsewhere playing with CTFAX and DFND to see how those work. Regardless I'd likely wait to be closer to retirement to fully fund. Just preparing...
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Post by FD1000 on Jul 22, 2021 4:06:51 GMT
A picture is worth a thousand words, see below. Cutting straight to it: for those who want to park cash in an UST fund with duration < 1 year and no exotic risks, what can compare to RPHIX? I hate the ER, but I can't unsee the chart. It's a great fund, except a loss over 3% in March 2020. Other than that it's performance+SD is very good. I can find better performing funds but they have higher volatility. RPHIX has done well for YTD too.
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Post by oldskeet on Jul 22, 2021 11:36:57 GMT
Hi guys, I like to look at funds I have under consideration via a MarketWatch fund report. I have provided a link below to RPHIX's fund report. www.marketwatch.com/investing/fund/rphixFrom review of this fund report, out of a possible total score of 25 it scores 14 on the MW rating scale. On top of that, it appears to be closed to new investors. Regards, OS
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Post by Chahta on Jul 22, 2021 13:53:23 GMT
A picture is worth a thousand words, see below. Cutting straight to it: for those who want to park cash in an UST fund with duration < 1 year and no exotic risks, what can compare to RPHIX? I hate the ER, but I can't unsee the chart. It's a great fund, except a loss over 3% in March 2020. Other than that it's performance+SD is very good. I can find better performing funds but they have higher volatility. RPHIX has done well for YTD too. Like most everything else during March 2020, if not sold then you might see a loss. But hold on and it recovered. It's good for part of my bond AA.
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Post by Chahta on Jul 22, 2021 14:03:04 GMT
What has the MFO crowd had to say? I've never been to that site. It is well-liked there. The main complaint is the transaction fee to buy it. It is one of their "Great Owl" funds. link
SCHD is a Great Owl too.
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Post by chang on Jul 23, 2021 0:45:25 GMT
Hi guys, I like to look at funds I have under consideration via a MarketWatch fund report. I have provided a link below to RPHIX's fund report. www.marketwatch.com/investing/fund/rphixFrom review of this fund report, out of a possible total score of 25 it scores 14 on the MW rating scale. On top of that, it appears to be closed to new investors. Regards, OS Skeet, beware of fund rankings and metrics that involve a "category". These can be valueless when the category is very diverse or when the fund doesn't fit in the category. In this case, M* misclassifies RPHIX in the HY bond category. I compare it to UST bond, since its holdings have mostly maturities of < 90 days. I was not aware the fund had closed. I thought it had actually recently re-opened after a long closure. (I added to my holding today.)
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Post by roi2020 on Jul 23, 2021 3:50:04 GMT
I utilize ultrashort bond funds as a cash substitute and own VUSFX for that purpose. It invests in high-quality and medium-quality bonds with an average duration of 0.9 years. VUSFX is not yielding much right now - the 30 day SEC yield is 0.37% (07/20/21) while the yield to maturity is 0.50% (06/30/21). I also own some I-bonds with a current interest rate of 3.54%.
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Post by chang on Jul 23, 2021 4:27:47 GMT
I utilize ultrashort bond funds as a cash substitute and own VUSFX for that purpose. It invests in high-quality and medium-quality bonds with an average duration of 0.9 years. VUSFX is not yielding much right now - the 30 day SEC yield is 0.37% (07/20/21) while the yield to maturity is 0.50% (06/30/21). I also own some I-bonds with a current interest rate of 3.54%. Every now and then I wonder if I should edge back into ST with my VUSFX money. VUSFX is yielding 0.37% with an average duration of 0.9 yrs and 45.5% BBB-rated and below. VSCSX is yielding 0.80% with a duration of 2.8 years and 47.5% BBB-rated and below. (For comparison, VBIRX is yielding 0.48%, duration 2.8 years and 13.1% BBB and below. Of course, VBIRX / VBILX were the funds to own in March 2020, but I am assuming we're not going to experience that again.) Could be that I ought to shift all my VUSFX to VSCSX. The 1Y chart is shown below. Thoughts? Attachments:
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Post by oldskeet on Jul 23, 2021 7:35:33 GMT
Hi Chang, In response to your comment.
"Skeet, beware of fund rankings and metrics that involve a "category". These can be valueless when the category is very diverse or when the fund doesn't fit in the category. In this case, M* misclassifies RPHIX in the HY bond category. I compare it to UST bond, since its holdings have mostly maturities of < 90 days.
I was not aware the fund had closed. I thought it had actually recently re-opened after a long closure.
(I added to my holding today.)"
Thanks for the comment. I totally agree that a misclassification for a fund can lead to a flase score under MarketWatche's scoring system. For me, it is only a starting point. On the fund's closure it seems that according to the funds fact sheet it is open for investment. This would be the second time that a MarketWatch fund report provided incorrect information. Perhaps, it is a soft close? OS
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Post by Chahta on Jul 28, 2021 11:36:56 GMT
I utilize ultrashort bond funds as a cash substitute and own VUSFX for that purpose. It invests in high-quality and medium-quality bonds with an average duration of 0.9 years. VUSFX is not yielding much right now - the 30 day SEC yield is 0.37% (07/20/21) while the yield to maturity is 0.50% (06/30/21). I also own some I-bonds with a current interest rate of 3.54%. Every now and then I wonder if I should edge back into ST with my VUSFX money. VUSFX is yielding 0.37% with an average duration of 0.9 yrs and 45.5% BBB-rated and below. VSCSX is yielding 0.80% with a duration of 2.8 years and 47.5% BBB-rated and below. (For comparison, VBIRX is yielding 0.48%, duration 2.8 years and 13.1% BBB and below. Of course, VBIRX / VBILX were the funds to own in March 2020, but I am assuming we're not going to experience that again.) Could be that I ought to shift all my VUSFX to VSCSX. The 1Y chart is shown below. Thoughts? I have contemplated doing something similar. I have too much ST bond index, so considered SCHJ (compare to VSCSX), a ST corp ETF. MBS and treasuries are dragging down corps.
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Post by chang on Jul 28, 2021 12:04:14 GMT
Chahta If you want to compare ETFs to ETFs, you can use VCSH instead of VSCSX, and BSV instead of VBIRX. I haven't done anything with my VUSFX — right now I'm occupied with the collapse of China.
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Post by paulr888 on Jul 28, 2021 13:06:00 GMT
I don't agonize much over finding best place for my short term money. I invest in 3 funds, and will offer GILPX as competitive. But I don't get into slicing and dicing the statistics and probably this can be proven a dog. Works for me though. On a side note, you will never find me investing in any fund with High Yield in its name. March 2020 was eye opener for me. I had one go to fund for this purpose and its vol surprised me so now I hedge with 3. You never know.
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Post by Chahta on Jul 28, 2021 13:11:45 GMT
Chahta If you want to compare ETFs to ETFs, you can use VCSH instead of VSCSX, and BSV instead of VBIRX. I haven't done anything with my VUSFX — right now I'm occupied with the collapse of China. A somewhat positive article about China. OTOH, I just don't see investing other than in the USA. Europe and INTL. just can't compete. China may want to act like it is Capitalistic, but in the end it's communistic. The USA may have it's problems but it hasn't killed companies yet. LINK
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Post by fred495 on Jul 28, 2021 16:25:35 GMT
Hi Chang, In response to your comment. I was not aware the fund had closed. I thought it had actually recently re-opened after a long closure. (I added to my holding today.) On the fund's closure it seems that according to the funds fact sheet it is open for investment. This would be the second time that a MarketWatch fund report provided incorrect information. Perhaps, it is a soft close? OS FYI, I just checked at Fidelity, and RPHIX is "Closed to new investors". I am sure that is also the case at other brokerages. Usually, however, existing investors, like you, are allowed to add to their holdings. Fred
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Post by chang on Oct 22, 2021 8:50:52 GMT
See this chart of RPHIX vs. the usual ultrashort funds - VUSFX, MINT, JPST, GSY. RPHIX is kicking ass. I am going to move all my S/T stuff into this fund next week. Expense ratio be damned. This fund has been delivering the goods, day in and day out, year after year.
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Post by racqueteer on Oct 22, 2021 10:06:40 GMT
See this chart of RPHIX vs. the usual ultrashort funds - VUSFX, MINT, JPST, GSY. RPHIX is kicking ass. I am going to move all my S/T stuff into this fund next week. Expense ratio be damned. This fund has been delivering the goods, day in and day out, year after year. View AttachmentI'm seeing a disconnect... M* has it as being in the 4th quartile of its category, all in the lowest 10%, in 7 of the last 11 years - including the last 3 years in a row! In contrast, top quartile 3 times, but only top 10% twice. Better, apparently, than the ultra-shorts you listed, but down from its 'peers'. What does it have to set it apart (favorably) from its 'peers'?
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Post by chang on Oct 22, 2021 10:23:23 GMT
See this chart of RPHIX vs. the usual ultrashort funds - VUSFX, MINT, JPST, GSY. RPHIX is kicking ass. I am going to move all my S/T stuff into this fund next week. Expense ratio be damned. This fund has been delivering the goods, day in and day out, year after year. View AttachmentI'm seeing a disconnect... M* has it as being in the 4th quartile of its category, all in the lowest 10%, in 7 of the last 11 years - including the last 3 years in a row! In contrast, top quartile 3 times, but only top 10% twice. Better, apparently, than the ultra-shorts you listed, but down from its 'peers'. What does it have to set it apart (favorably) from its 'peers'? The key word in your comment is "category". Ignore it - you can't compare it to HY funds. It has always been a 1-star fund! M* doesn't have a clue (what a surprise).
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Post by Chahta on Oct 22, 2021 12:00:31 GMT
racqueteer : "I'm seeing a disconnect... M* has it as being in the 4th quartile of its category, all in the lowest 10%, in 7 of the last 11 years - including the last 3 years in a row! In contrast, top quartile 3 times, but only top 10% twice. Better, apparently, than the ultra-shorts you listed, but down from its 'peers'. What does it have to set it apart (favorably) from its 'peers'?" It was discussed somewhere on BB on what makes this fund special. It has a niche where it buys maturing HY bonds during the last few months of their life. The credit worthiness has been proven and the short remaining life keeps the duration so low. RPHIX is defined by no category.
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Post by racqueteer on Oct 22, 2021 12:52:09 GMT
racqueteer : "I'm seeing a disconnect... M* has it as being in the 4th quartile of its category, all in the lowest 10%, in 7 of the last 11 years - including the last 3 years in a row! In contrast, top quartile 3 times, but only top 10% twice. Better, apparently, than the ultra-shorts you listed, but down from its 'peers'. What does it have to set it apart (favorably) from its 'peers'?" It was discussed somewhere on BB on what makes this fund special. It has a niche where it buys maturing HY bonds during the last few months of their life. The credit worthiness has been proven and the short remaining life keeps the duration so low. RPHIX is defined by no category. Thank you. Based on this information, the fund's potential use for chang's stated purpose makes better sense then.
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Post by yogibearbull on Oct 22, 2021 12:57:47 GMT
racqueteer , M* puts RPHIX in HY category and it does very poorly there. It is ST-HY, not ultra-ST (inv-grade). Using ST-HY for "cash" isn't a new idea - all ultra-ST funds of pre-2008 era were doing this and had such disastrous results that it killed the OLD ultra-ST category. A NEW ultra-ST category (inv-grade) emerged in early 2010s.
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Post by chang on Oct 22, 2021 18:52:50 GMT
racqueteer , M* puts RPHIX in HY category and it does very poorly there. It is ST-HY, not ultra-ST (inv-grade). Using ST-HY for "cash" isn't a new idea - all ultra-ST funds of pre-2008 era were doing this and had such disastrous results that it killed the OLD ultra-ST category. A NEW ultra-ST category (inv-grade) emerged in early 2010s. The UST funds I mentioned are just barely IG. There is a substantial difference between them and typical ST funds like VBIRX, FNSOX, SWSBX etc. For example, average credit rating of VUSFX is BBB, while for VBIRX it is AA. The UST funds reduce interest rate risk but take on more credit risk; that's why their yields often compare favorably with the ST funds which are very AAA-Government heavy. That is why I think it is fair to compare RPHIX to the UST funds.
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Post by chang on Feb 10, 2022 3:33:56 GMT
Update: all the UST funds I know are slowly bleeding. RPHIX, however, is doing what it always does: grind higher. Any reason why I shouldn't move ALL my VUSFX to RPHIX?
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Post by Chahta on Feb 10, 2022 13:13:34 GMT
Would that be considered chasing almost no performance? It is only one of a few treading water well. I thought about adding but don't want it to rival my largest equity position.
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Post by fishingrod on Feb 10, 2022 13:33:42 GMT
The really big difference is the 2.60% SEC yld of RPHIX compared to .83%SEC yld for VUSFX. VUSFX is investment grade. RPHIX is very very short junk.
I don't see any reason not to replace if one is aware of the risks. I hate to see you sell on such a hard day down. But...
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