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Post by shipwreckedandalone on Aug 5, 2021 16:49:54 GMT
linktwo popular funds. Max draw PRBLX -30% vs SCHD -32.77% % equities PRBLX 98% SCHD 99%
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Post by anitya on Aug 5, 2021 17:34:09 GMT
The 32.77% is probably lower on a NAV basis because on severe draw downs ETFs tend to go to discounts. I think SCHD, notwithstanding all the good screens it applies, gets a bit idiosyncratic sometimes. For a core holding, I would go with PRBLX, which I do not own but I own SCHD in my taxable account. However, it is not an apples to apples comparison. They both are good, depending on what you are looking to do with them.
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Post by yogibearbull on Aug 5, 2021 17:42:29 GMT
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Post by shipwreckedandalone on Aug 5, 2021 18:09:00 GMT
"Note that PV drawdowns are based on monthly data and may be understated."
Yogi,
I never use month end max drawdown. I use daily max draw (showing 2/19/20 to 3/23/20).
Using month end maxdraw (which many many people and blog writers do) is like accepting an assignment to determine the temperature of the coldest day of the winter by using month end temperatures only. Worthless information IMHO.
Anitya, fyi...I no longer use M* categories. I compare funds if equity to equity % is similar. I have missed too many good opportunities using M* categories in the past.
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Post by anitya on Aug 5, 2021 19:18:12 GMT
Anitya, fyi...I no longer use M* categories. I compare funds if equity to equity % is similar. I have missed too many good opportunities using M* categories in the past. I was not trying to lecture anybody but simply providing information in case lurkers had not considered. Not trying to find any fault with your post - just trying to provide more complete info. I did not use any M* info for my commentary. Not sure I follow your comment I bolded. The funds do not have the same stated objective and scope (i.e., strategy). One can see that the funds' chosen indices are very different. Funds are just tools for a job, recognizing that I am yet to find two identical investor portfolios. www.parnassus.com/parnassus-mutual-funds/core-equity/investor-shareswww.schwabassetmanagement.com/products/schdP.S.: I do not have any core equity in my retirement accounts and no equity OEFs in my taxable accounts. If I did, PRBLX would be a front runner. |
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Post by shipwreckedandalone on Aug 5, 2021 19:43:24 GMT
I know. Everything is cool Anitya.
"I compare funds if equity to equity % is similar."
What I am trying to say is that I personally have learned to place greater emphasis on fund outcomes (characteristics/metrics/performance) rather than categories/strategies/objectives/screens as long as the equity % is similar. IOW's two totally different objectives can sometimes produce a desired similar outcome (SD/CAGR/MDRAW etc). The personality and culture of the PM has much to do with this. If you use standard screens, you might miss out on these good funds. Over time, PM's behavior usually is predictable once a track record is established. Two paths arrive at the same endpoint. I am in the minority on this viewpoint but I have found new funds i otherwise would have missed.
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Post by anitya on Aug 5, 2021 22:43:31 GMT
I do not think I comprehend your explanation. You are free to share the funds (tickers are fine) you currently own to give an idea of your investing style - you are free to send me a PM too.
When I am ready to make a change to my portfolio, I already know whether I want growth, value, blend or sectors. I just pick the top 4 or 5 funds by 3 year performance in the area of my choice and research the funds' websites to get comfortable whether I want to hire one of those managers. I have also invested with new funds and new managers with no discernable history and made good money. Fund strategy is important for me to know how it fits in my portfolio or what I can expect from the fund. For example, I bought DSEEX within a month of its launch and held it for 5 years as my largest equity holding. Not all managers follow the literature they publish or the stated fund strategy because having ideas is one thing but execution is a different ball game. People who are execution smart are an infinitesimally small percentage of humans. With DSEEX, it is impossible to screw up execution on the equity side and the managers are already proven on the fixed income side.
There is always an investor who just follows price and does better than I do but I have determined that is not who I am. My process while time consuming is what I do but am always looking to improve upon it.
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dirt
Ensign
Posts: 9
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Post by dirt on Aug 6, 2021 0:17:39 GMT
shipwreckedandalone, I own PRBLX/PRILX, SCHD and VFINX (VG S&P 500). If you add VFINX to your PV link you will see PRBLX has a >TR and <STDEV then both other funds. PRBLX also out preforms VFINX since 1993. PRBLX produces the most income of all three funds. So, why do I own all three LCB funds? VFINX – taxable account, the most tax efficient of the three. PRBLX – Roth account. Largest TR and most annual income, mainly from LTCGs. SCHD – T-IRA, income for RMDs. Just extra information. Hope it helps.
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Post by paulr888 on Aug 6, 2021 2:49:46 GMT
I look at performance and the role I want the fund to play in my portfolio. If I need some more dividends that might sway me. But my last check would be to look under the hood of the fund and under the hood of other US stock funds I own. I don't like a lot of overlap coverage. So it would ultimately depend on my other holdings. Hard to say which one is better. It depends.
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Post by shipwreckedandalone on Aug 6, 2021 2:50:42 GMT
Thanks Dirt. Historically PRBLX has performed well. Congratulations!
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Post by roi2020 on Aug 6, 2021 7:16:54 GMT
I own Parnassus Core Equity Institutional (PRILX). The fund has generated greater long-term returns than the S&P 500 with lower drawdowns and less volatility. The current Parnassus CIO (Todd Ahlsten) began comanaging this fund with Jerome Dodson in 2001. The current Parnassus CEO (Ben Allen) began comanaging this fund with Todd Ahlsten in 2012.
Both gentlemen have invested more than $1 million in the fund.
I like it when fund managers "eat their own cooking"!
Note: This is not a recommendation. Please perform your own due diligence.
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Post by retiredat48 on Aug 6, 2021 15:46:02 GMT
I own Parnassus Core Equity Institutional (PRILX). The fund has generated greater long-term returns than the S&P 500 with lower drawdowns and less volatility. The current Parnassus CIO (Todd Ahlsten) began comanaging this fund with Jerome Dodson in 2001. The current Parnassus CEO (Ben Allen) began comanaging this fund with Todd Ahlsten in 2012.
Both gentlemen have invested more than $1 million in the fund.
I like it when fund managers "eat their own cooking"!
Note: This is not a recommendation. Please perform your own due diligence.
M* has PRILX as $100,000 min purchase. Is it available somewhere for less? Vang'd or Fido? TIA R48 |
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Post by yogibearbull on Aug 6, 2021 15:55:28 GMT
PRBLX is no-load/NTF at Fido and Schwab.
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Post by roi2020 on Aug 6, 2021 21:23:40 GMT
I own Parnassus Core Equity Institutional (PRILX). The fund has generated greater long-term returns than the S&P 500 with lower drawdowns and less volatility. The current Parnassus CIO (Todd Ahlsten) began comanaging this fund with Jerome Dodson in 2001. The current Parnassus CEO (Ben Allen) began comanaging this fund with Todd Ahlsten in 2012.
Both gentlemen have invested more than $1 million in the fund.
I like it when fund managers "eat their own cooking"!
Note: This is not a recommendation. Please perform your own due diligence.
M* has PRILX as $100,000 min purchase. Is it available somewhere for less? Vang'd or Fido? TIA PRILX has a $100K minimum at Fidelity and Vanguard. I'm not aware of any brokerages (haven't checked them all) which have a lower minimum for PRILX. PRBLX is available with NTF at both firms with a $2.5K minimum at Fidelity and a $2K minimum at Vanguard. |
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Deleted
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Post by Deleted on Aug 6, 2021 22:08:59 GMT
PRILX is 0.62% ER and PRBLX is 0.84% ER. I know less ER is better but both look reasonable to me. I have both. PRILX in 401k and prblx in IRA.
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Post by Chahta on Aug 6, 2021 23:02:14 GMT
shipwreckedandalone, I am curious why you are comparing these 2 different funds. Do you own both?
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Post by retiredat48 on Aug 6, 2021 23:09:03 GMT
Thanks for info.
Sometimes either Fido or Vgd have special agreements with institutional class fund share managers, to market (sell) them at below stated minimum dollar values.
R48
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Post by FD1000 on Aug 7, 2021 0:00:18 GMT
I know. Everything is cool Anitya. "I compare funds if equity to equity % is similar." What I am trying to say is that I personally have learned to place greater emphasis on fund outcomes (characteristics/metrics/performance) rather than categories/strategies/objectives/screens as long as the equity % is similar. IOW's two totally different objectives can sometimes produce a desired similar outcome (SD/CAGR/MDRAW etc). The personality and culture of the PM has much to do with this. If you use standard screens, you might miss out on these good funds. Over time, PM's behavior usually is predictable once a track record is established. Two paths arrive at the same endpoint. I am in the minority on this viewpoint but I have found new funds i otherwise would have missed. +1 Music to my ear and what I have done over 20 years. I select funds based on risk-adjusted performance, regardless of the category. |
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Post by FD1000 on Aug 7, 2021 0:02:38 GMT
I own Parnassus Core Equity Institutional (PRILX). The fund has generated greater long-term returns than the S&P 500 with lower drawdowns and less volatility. The current Parnassus CIO (Todd Ahlsten) began comanaging this fund with Jerome Dodson in 2001. The current Parnassus CEO (Ben Allen) began comanaging this fund with Todd Ahlsten in 2012.
Both gentlemen have invested more than $1 million in the fund.
I like it when fund managers "eat their own cooking"!
Note: This is not a recommendation. Please perform your own due diligence.
Good info. I don't pay attention to managers investment in their funds. It doesn't produce better risk/reward + the manager goals can be different. |
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