|
Post by chang on Nov 17, 2023 15:17:39 GMT
IOFIX is “slow moving stuff”?
No, don’t answer that. IMO volatility is a positive, for both traders and non-traders. It allows traders to trade. It gives B&Hers dips to buy on. The longer your perspective, the easier it is to ignore volatility.
No further comments from me.
|
|
|
Post by FD1000 on Nov 17, 2023 19:42:28 GMT
I agree with you and what most should do. There are exceptions and where I have been trading for decades.
|
|
|
Post by fishingrod on Dec 17, 2023 11:54:22 GMT
For reference. This highlights how price affects SEC yld. VWALX seems to have peaked SEC yld, and price bottomed out again on 10/31/2023. On 10/31/2023 VWALX had a price of $9.70 and an SEC yld of 4.92%. Since then it's price has risen to $10.64 and SEC yld has dropped to 4.26%. It is up 10.23% total return since 10/31/2023. Distribution yld of 4.01% as of 11/30/2023, Dist. yld on 10/31/2023 was 3.94%
With rates dropping/dropped I don't think the distribution yld will go up much from here. At least not anytime soon.
As far as I can see 4.92% is the highest SEC yld. since the 2008/2009 crisis. Not even during the Whitney scare or 2013 has it's SEC yld been higher.
It peaked in 2008 with an SEC yld of 5.67%.
"It is argued that the SEC may provide more accurate results in comparison to the distribution yield and the calculation displays more month-to-month consistencies. Both calculations show past performance and not future performance, and the calculations both follow assumptions that may result in skewed results. However, the SEC yield is standardized, which allows investors to easily make comparisons."
|
|
|
Post by yogibearbull on Dec 17, 2023 13:19:16 GMT
M* has data on Weighted-Prices, and that for VWALX is 92.81.
If Weighted-Price < 100, 30-day SEC Yield > distribution yield, If Weighted-Price > 100, 30-day SEC yield < distribution yield.
30-day SEC yield is affected both by the current rate environment and whether a fund holds discounted or premium bonds. It also accounts for expenses and fees that most YTM don't.
|
|
|
Post by fishingrod on Dec 17, 2023 14:27:12 GMT
M* has data on Weighted-Prices, and that for VWALX is 92.81. If Weighted-Price < 100, 30-day SEC Yield > distribution yield, If Weighted-Price > 100, 30-day SEC yield < distribution yield. 30-day SEC yield is affected both by the current rate environment and whether a fund holds discounted or premium bonds. It also accounts for expenses and fees that most YTM don't.
I know you are aware that M* weighted prices are from 9/30/2023. Prices would be much higher now. We are up more than 8% since then.
Comparing 30 Day SEC Yld to it's distribution yld. can help to see the funds potential for capital appreciation/depreciation above or below the stated distribution yld.
|
|
|
Post by yogibearbull on Dec 17, 2023 17:13:01 GMT
fishingrod, interesting that Vanguard publishes 30-day SEC yield DAILY. Noting that 30-day SEC yield (12/15/23) > distribution yield (12/1/23), my guess is that Weighted-Price is still under par, but may be 97-98?
|
|
|
Post by fishingrod on Dec 17, 2023 18:09:18 GMT
fishingrod , interesting that Vanguard publishes 30-day SEC yield DAILY. Noting that 30-day SEC yield (12/15/23) > distribution yield (12/1/23), my guess is that Weighted-Price is still under par, but may be 97-98?
All on one date. VWALX
On 12/1/2023- Average coupon was 4.37%, SEC Yld was 4.47%, Distribution Yld was 4.01%, YTM was 4.69%
|
|