Does anyone remember the announcement in an MFO discussion of an informal contest pitting these two funds against each other? Did David Sherman propose it? As Mr. Smith says in "The Bald Soprano" of Ionesco, "I have an excellent memory, but it's short." As for me, I remember lots of things, just not the ones I need right now.
In any event, the M* chart has OSTIX solidly in the lead so far. I hope I did not misinterpret the data. Help is welcome.
Comments
https://www.mutualfundobserver.com/discuss/discussion/comment/162166/#Comment_162166
Titled: Strategic Income - April Commentary
Does anyone remember why RSIVX lost quite a bit more than OSTIX during the Covid crash? What about RSIVX that prevented it from taking necessary actions to lose less? RSIVX AUM is about 1/10th of OSTIX - so size was not a constraint.
But, for 2018-19, performance is similar but RSIVX has a lower SD.
From 4-1-2020 to 11-30-2023, RSIVX won on performance + SD = Sharpe is almost double, see (https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=3Kn0yyPahzqRMl9wzQRoOf)
Going forward, I expect both funds will do well as we reallocate more from treasury into high yield opportunities with active managed funds.
Assuming the fund allows conversions, not all brokerages allow conversion, even if willing to pay a transaction fees for the conversion. E.g., TD once told me I have to sell one class and buy the class I want to convert to. Going from NTF to TF, they asked me to pay STR fees and then a transaction fees. Fidelity does not do that. Have not tested Schwab.
If I want better performance based on stabilizing rates and lower volatility markets, I would use bond funds in securitized, HY Munis, and multi funds, such as RCTIX.
As usual, nothing is guaranteed.
See below the performance, SD, and correlation
https://www.portfoliovisualizer.com/asset-correlations?s=y&sl=3HwATkieIxH1e2mvss1TzF
https://investor.vanguard.com/investment-products/mutual-funds/profile/rsiix.
Each brokerage have their own policy on buying and selling OEFs, so it pays to check out their difference. Vanguard offers fewer number of funds than Schwab and Fidelity, sometimes you can get into institutional shares with less than $1 million. We invest with PIMIX that requires $25K.
707%.Edit: sleepy eyes typo corrected.
Summary based on total return per Bloomberg:
Apr 22, 2022 thru Jan 14, 2023 has OSTIX at 9.02% which is significantly leading RSIIX at 6.64%. OSTIX outperformance can be attributed to the Nov and Dec robust rally in which OSTIX captured a lot more upside. As for 3 year comparison, RSIIX is ahead and for 5 years, the two funds are neck & neck.
Regardless of the outcome, I will enjoy the dinner and I am sure I will learn much since our styles and execution are different.