|
Post by Chahta on Oct 4, 2021 13:08:48 GMT
I believe one must look at MS OEFs/ETFs as income investments and not expect too much growth from them. If over time the capital is preserved while receiving 3%+ yield, that is the goal. The safety is in owning quality funds with acceptable long term records.
|
|
|
Post by richardsok on Oct 4, 2021 20:12:00 GMT
I wonder if M/S ETFs like DIAL, MUSI, etc. could serve a purpose? They are certainly a lot cheaper than most of the M/S OEFs which fail to impress. However, I have imposed a ban on any new instruments: I will only add to existing ones. For my purposes, MUSI appears to be too thinly traded. A good sized market order might well move the needle against you and a limit order might not trip when you needed it most. While the DIAL one-month chart appears workable as a trading vehicle with its quite low volatility, the 6-month longer term has had the kind of saw-tooth behavior that can drive a trader like me nutso. VOOG with its unmistakable "SELL" signal on Sept 10 still appears better. Expecting to eke out a distribution from an ETF is poor compensation for holding it when it's plunging. That's bitter experience talking.
|
|
|
Post by chang on Oct 4, 2021 23:19:49 GMT
I wonder if M/S ETFs like DIAL, MUSI, etc. could serve a purpose? They are certainly a lot cheaper than most of the M/S OEFs which fail to impress. However, I have imposed a ban on any new instruments: I will only add to existing ones. For my purposes, MUSI appears to be too thinly traded. A good sized market order might well move the needle against you and a limit order might not trip when you needed it most. While the DIAL one-month chart appears workable as a trading vehicle with its quite low volatility, the 6-month longer term has had the kind of saw-tooth behavior that can drive a trader like me nutso. VOOG with its unmistakable "SELL" signal on Sept 10 still appears better. Expecting to eke out a distribution from an ETF is poor compensation for holding it when it's plunging. That's bitter experience talking. I didn't check liquidity, but you hit a major nail on the head. I demand high liquidity. That's one of the reasons I got out of CEFs; I couldn't build up a large, liquid position. I'm just thinking aloud about what to do with equity sales proceeds. The obvious answer is to distribute them into existing FI positions. So that's what I'll do. (Excepting that Fido might get annoyed if I move $$ out of my accounts and over to VG, after having accepted a TOA promo. I'll figure something out.)
|
|
|
Post by chang on Oct 5, 2021 3:46:07 GMT
Thanks Yogi. By “safely” I really mean not taking silly interest rate risk without compensation (think EDV). I am trying hard to simplify, not complicate, my portfolio. So I would like to add to existing holdings if I can. Options include VUSFX, RPHIX, DODIX, RCTIX, and VWEAX. Since I already own these, it would actually make sense simply to add to them (except the VG funds are sitting with VG). I'm going to add some VWEAX today. There have always been more critics than supporters of this fund, but it seems to work for me. On days like Monday when the equity markets fell hard, VWEAX often ends up flat (like it did Monday). Its trailing returns aren't too shabby. It charges almost nothing, which helps it eke out a 2.8% SEC yield and manage a 4.3% TTM yield.
|
|
|
Post by chang on Oct 5, 2021 22:44:53 GMT
VWEAX actually dropped a penny today, while stocks surged. So much for HY Bond being correlated with stocks.
|
|
|
Post by Chahta on Oct 6, 2021 0:35:11 GMT
There must be an interest rate correlation as well. The 10 year rate was up.
|
|
|
Post by Chahta on Oct 7, 2021 13:33:59 GMT
A fund not discussed here is ZEOIX. Has not had a down year. More volatile than RPHIX.
|
|
|
Post by chang on Oct 8, 2021 23:21:41 GMT
A fund not discussed here is ZEOIX. Has not had a down year. More volatile than RPHIX. ZEOIX is even more expensve than RPHIX. I can't see any advantage. I raised more cash this week, hence more to deploy into "safe storage" next week. I'm not coming up with any great ideas at Fido. Might just shovel it all into RPHIX. FNSOX looks like dead money, brimming with short duration Treasury notes. The only thing new that crossed my radar was PFIIX.
|
|
|
Post by Chahta on Oct 9, 2021 12:34:42 GMT
Looked at PFIIX. It has an active component of derivatives. Not saying it's bad but....
|
|
|
Post by fred495 on Oct 13, 2021 20:21:41 GMT
Duplicate post deleted.
|
|
|
Post by fred495 on Oct 13, 2021 20:25:30 GMT
You may want to check out HRSTX which converted a few years back to an options-based fund: rationalmf.com/wp-content/uploads/funds/factsheets/Rational_Tactical_Return_Fund.pdfVery steady during negative market periods since its 2017 conversion, with bond-like annual total returns and a standard deviation of 1.57%: YTD = 3.7% 3 Yrs = 5.1% 5 Yrs = 6.0% You will not like the fund's expense ratio, but if you get past that hurdle, the results speak for themselves (93% positive months). By the way, another "steady eddie" fund with similarly pleasing attributes is ARBIX.
Good luck,
Fred
|
|
|
Post by chang on Oct 14, 2021 6:40:42 GMT
You are right, a 2%+ expense ratio is a deal breaker — especially for a conservative bond fund. If that’s what is actually costs to execute the strategy, that indicates significant complexity risk to me. After a career in risk analysis, one thing I learned is that complexity risk is hard to model and quantify.
Every expensive, “alternative” fund (long-short, market neutral, 130/30, managed futures, etc.) seems to die the same way. WAGFX, TEAMX, TFSMX, and a dozen more I could name. They start out great, mopping up like gangbusters. Then they fall on their face: every - single - time.
Sorry for the cynicism. I hope one of these funds works out well and repays a courageous investor. Not for me. Just seen that movie too many times.
|
|
galeno
Commander
KISS & STC
Posts: 221
|
Post by galeno on Oct 14, 2021 23:43:47 GMT
If you're looking for SHORT term safety go 100% USD cash.
If you're looking for LONG term safety go 100% equities.
|
|
|
Post by chang on Oct 15, 2021 10:42:12 GMT
After all the discussion, RPHIX still looks to me like the best place to park cash if one wants to avoid duration/interest rate risk. The A-rated options yield nothing, and similar ST/HY funds are either more expensive, more complicated or just inferior. PFIIX remains an interesting runner up. Might be worth a try.
|
|
|
Post by alvinthechipmunk on Nov 25, 2021 22:48:48 GMT
Not sure I understand what folks see in RPHIX. It’s ER is .90 and return is 1.44 YTD and 2.92 life of fund - especially when compared to FAGIX. What am I missing? Trailing inflation and a fat 1 percent ER. Hmmmmmm. FAGIX is "High Yield?" The share-price gain in 2021 is impressive. The dividend pay-outs are paltry for a HY fund, eh? If investing for an income stream, although the share-price is up ytd much less, I'd go with TUHYX. And RPHIX has a high threshold to even get IN.
|
|
|
Post by jongaltiii on Nov 25, 2021 23:40:10 GMT
Not sure I understand what folks see in RPHIX. It’s ER is .90 and return is 1.44 YTD and 2.92 life of fund - especially when compared to FAGIX. What am I missing? Trailing inflation and a fat 1 percent ER. Hmmmmmm. FAGIX is "High Yield?" The share-price gain in 2021 is impressive. The dividend pay-outs are paltry for a HY fund, eh? If investing for an income stream, although the share-price is up ytd much less, I'd go with TUHYX. And RPHIX has a high threshold to even get IN. Asked and answered back in Sep. I can’t bring myself to appreciate 1.64 with a 1.00 ER and with a Fido fee on top. Diff strokes I guess. So, where’s the best place to earn interest on your cash? That might be a good question to ask given the fund is now closed to new investors anyway. Cheers and Happy Thanksgiving.
|
|
|
Post by chang on Nov 26, 2021 0:42:46 GMT
I'm comparing RPHIX to ultrashort-BBB funds like MINT, VUSFX, GSY, JPST, BUBIX etc. Side by side, RPHIX seems to deliver better performance and lower volatility. I hate it’s ER, but this is one case where I'm going on the basis of net results.
I also own VUSFX - those two funds comprise my "safe" cash.
|
|
|
Post by chang on Nov 26, 2021 2:58:29 GMT
I'm comparing RPHIX to ultrashort-BBB funds like MINT, VUSFX, GSY, JPST, BUBIX etc. Side by side, RPHIX seems to deliver better performance and lower volatility. I hate it’s ER, but this is one case where I'm going on the basis of net results. I also own VUSFX - those two funds comprise my "safe" cash. Chart below, I think you will spot the difference I am referring to. (Click to expand.)
|
|
|
Post by FD1000 on Dec 2, 2021 20:51:57 GMT
I'm comparing RPHIX to ultrashort-BBB funds like MINT, VUSFX, GSY, JPST, BUBIX etc. Side by side, RPHIX seems to deliver better performance and lower volatility. I hate it’s ER, but this is one case where I'm going on the basis of net results. I also own VUSFX - those two funds comprise my "safe" cash. Chart below, I think you will spot the difference I am referring to. (Click to expand.) <button disabled="" class="c-attachment-insert--linked o-btn--sm">Attachment Deleted</button> You just found out why high ER can justify itself. I hardly ever look at bond funds ER.
|
|