Hi Derf, my robo has about 62-63% equities and it dropped -6.7% from high to low. As I look right now it is up +1.5% for the year FWIW. Comparing to the self managed isn't an accurate comparison. The self managed is only about 40-45% equities at this point. That drop was somewhere around -4.5% I believe. Not sure where it sits YTD but it is on the + side. Not as high a YTD return as the robo.

Hi @davfor
ARTFX is a fund I track for purposes of "looking" at this area. Tis a well managed HY fund.
In the HY sector, and not being a trader; I personally would only invest in active managed funds. HYG and JNK usually do not keep pace because of other internal holdings.
A quick 1 year chart for a view.....the link indicates the chosen compares:
http://stockcharts.com/freecharts/perf.php?HYG,JNK,ARTFX,SPHIX&p=5&O=011000
As to MRCDX. It does have a "high" yield, but I suspect this is due to yield rates of the corporate investments. International rates/yields are quite a bit higher than the U.S.

I saw the report earlier and @Ted posted recent about the outflow of monies from high yield bonds; well okay, but.....
Okay, so the second biggest money outflow on record from high yield is probably worth some type of note in the financial press; but it tis a small percentage number in the "move".
Here are more details on fund flows from a current report:
First IG bond fund redemptions in 60 weeks ($2.0bn)
HY bond redemptions second highest on record ($10.9bn)
Largest EM debt outflows for 64 weeks ($2.9bn)
Modest muni fund outflows ($0.7bn)
Strong govt/Tsy fund inflows continue ($2.4bn)
Tiny TIPS inflows ($0.01bn)
Small bank loan fund outflows ($0.2bn)
Based upon the reported numbers above and the reported dollar value of high yield bonds in the U.S. from Forbes being at $1.3 trillion; the percentage change of the HY money outflow = .85% .
I'll use this example of percentage moves that "could" provide the same headlines, but you will not likely ever see a mention:
The U.S. 10 year note yield moves from 2% to 2.05% during a trading day. This is a 2.5% move. Ya won't see this reported, eh?
Anyway, always pay attention to how numbers are crunched. Yes, even small moves may be of value to monitor and other aspects may be causing traders in any market to adjust. What is the overall trend in any market sector and what do you feel is the reason?
These dollar values do not necessarily have any real value in the big picture. This would not be unlike my smile when I see a truck commercial on tv indicating a price drop or rebate or whatever they choose to phrase being at $10,000 of the MSRP. Okay, so what; in 1970 one could buy 3 fully loaded Chevy Impalas for about $10,000. We need reference points, yes???
No, we investors do not "play" in either a fair or concise world of money.
E.O.R. (end of rant)
Have a good remainder
Catch

@Bobpa, I'm not a gold fan myself and I don't hold it in my self managed portfolio, but I will say that my Schwab robo-portfolio holds 5% IAU, a gold index etf. So be it. The robo portfolio is static, so the managers that set the algorithms that make these decisions on diversification believe in gold. In other words, they don't care about the "present" environment. They just think it's worth holding long term. So far the Intelligent Portfolio has done pretty well, so maybe they know what they're doing. FWIW.

@soupkitchen.good point. But if the bond fund has a duration of 6.5 and rates rise by 2% it will take years to break even. Short duration funds will lose less but for us oldsters who need more income so a CD ladder is looking better nowadays.

MIkeM It sounds like you are saying short-term bonds do not make sense in this present investment environment.

Yes, that is what I'm saying.
Look at the performance of BBMX, 1.7% return over the last 3 years, 1.3% over the last 5. With rising interest rates short term bond funds will be challenged to make even that return going forward. In comparison, CDs are now paying 2% for 1 year and up to 3% for 5 years. And the point here, I think, is if you create a CD ladder where you are converting CDs periodically as they mature into a CD market of risings interest rates it's a win-win investment as compared the short term bonds that will be affected negatively with rising rates.
This maybe wasn't true a year ago, but I think the time has come. Eliminate volatility and a guess on return completely and CD ladder into a rising return. That of course is just my opinion.
By the way, this is what I'm going to do with the money I'm bucketing for retirement withdrawals. I happen to choose Synchroney Bank to set up my money market/CD IRA, but there are many good on-line options available.

@msf: I don't think Bobpa has $ 5 million, to invest in BBBIX that's why he ask about BBBMX.
Regards,
Ted :)

@Bobpa & MFO Members: Here is U.S. News & World Report's ranking of the best 75 Short-Term Bond Funds.
Regards,
Ted
https://money.usnews.com/funds/mutual-funds/rankings/short-term-bond
BBBMX: Not Ranked

BBBIX: #2, Ultra-Short Term Bond Fund.
https://money.usnews.com/funds/mutual-funds/ultrashort-bond/bbh-limited-duration-fund/bbbix
https://money.usnews.com/funds/mutual-funds/rankings/ultrashort-bond

hmm ... how does one become an AP? can you lose money? (seems so, not sure)

The short answer is that you sign a contract with an ETF distributor that allows you to buy and sell creation units of the ETF.
Here's a sample AP agreement I pulled up at the SEC site. (I've never read one of these, have no desire to; a quick skim of the headings suggests this agreement is pretty basic.)
https://www.sec.gov/Archives/edgar/data/1414040/000119312513132740/d513469dex99e2.htm
For a more complete answer, here's ICI's "The Role and Activities of Authorized Participants of Exchange Traded Funds".
https://www.sec.gov/Archives/edgar/data/1414040/000119312513132740/d513469dex99e2.htm

What Is an AP?
An AP is typically a large financial institution that enters into a legal contract with an ETF
distributor to create and redeem shares of the fund. APs play a key role in the primary market for ETF shares because they are the only investors allowed to interact directly with the fund. ...

You're correct that there is some risk for APs. On the other hand, while they're allowed to make money via arbitrage (e.g. buying an ETF for less than the value of its components and then selling the underlying securities), they are not required to participate.
In theory you could have an ETF where no AP stepped in to stabilize its market price (relative to its NAV). ICI seems to think this isn't a big deal. Some people here, myself included, might disagree. In its paper, ICI writes:

It is important to remember that even if no APs ...step forward to create and redeem [ETF shares], the affected ETF shares would ... trade like closed-end funds. In addition, the effects would [be] contained to the affected ETFs and not transmitted to other ETFs or the underlying securities markets

@Bobpa, would a guaranteed 2-3% a year work for at least some of that 50% of your portfolio? That is what CD's are paying now and they most surely will go up as interest rates rise. That's the good news for retirees. Pretty good hedge against decreasing bond returns I think.

MikeM, I don't follow your line of thinking. If interest rates are rising, and the rates that CDs are paying will be going up, how is it that bond rates won't be going up as well?

@Bobpa: 5% in CEF, 63% gold, 37% silver bullion.
Regards,
Ted
Sprott Website:
http://sprott.com/investment-strategies/physical-bullion-trusts/gold-and-silver/

Hi @Bobpa,
All three of the funds that I sold (FMTNX, LALDX & THIFX) had nav negative growth over the past 1, 3 & 5 year periods. In short, their yield was greater than their ability to produce same. I'm with @MikeM as I'm thinking CD's are currently a better deal presently over most short term bond funds.
Here is a link to the one, three and five year performance for LALDX. Notice its yield of 3.70% is greater than its return numbers which are listed at 1 year @ 1.54% ... 3 year @ 1.98% ... and, 5 year @ 1.87%.
http://www.morningstar.com/funds/XNAS/LALDX/quote.html
A couple of Lord Abbett income funds that I own and have been able to produce their yield (and more) are LBNDX (Lord Abbett Bond Debenture) and ISFAX (Lord Abbett Multi Asset Income). ISFAX has a yield of 3.58% with 1 year performance listed at 6.17% ... 3 year @ 4.25% ... and, 5 year @ 5.03%. LBNDX has a yield of 4.15% with 1 year performance listed at 5.69% ... 3 year @ 5.36% and 5 year @ 5.75%. Thus they have produced their yield and then some.
When an income fund can not make it's distribution for a good number of years, from my perspective, it's time to let it go and I did. This is the reason I no longer hold LALDX ... FMTNX ... and, THIFX. I'm thinking it will only get worse for these funds as interest rates rise so I let them go.
Old_Skeet

Does 3-5% position in gold make any sense in the present investment environment? It is part of my 50% nonequity portion of my portfolio
74-year young investor

Any opinions on these funds? BBBMX EALDX LALDX THOPX

@Bobpa, yes, they all have the same thing in common. Based on YTD, 1, 3 and 5 year return history, they will all earn less than CDs.

Hello,
I sold three of my bond funds yesterday ... FMTNX ... LALDX ... and, THIFX. And, redeployed most of the capital into BAICX ... CTFAX ... and, PMAIX along with sending some to my cash sleeve for perhaps another spiff.
This leaves my income sleeve holding the following funds: BAICX, CTFAX, GIFAX, LBNDX, NEFZX & TSIAX. Interestingly, a little better than 80% of the sleeve remains invested in bonds from a review of the ticker symbols and their weightings inputed into Instant Xray for analysis. These changes, by my thinking, should help better position the sleeve for a rising interest rate environment. Some noteworthy features of the sleeve are a yield of 3.75%, average duration of 2.6 years and average maturity of 5.35 years along with the prior 12 month total return found to be 4.75%. Currently, PMAIX is held in my global hybrid sleeve found in the growth & income area of the portfolio. This sleeve also holds CAIBX and TIBAX.

@Bobpa & MFO Members: Here is U.S. News & World Report's ranking of the best 75 Short-Term Bond Funds.
Regards,
Ted
https://money.usnews.com/funds/mutual-funds/rankings/short-term-bond
BBBMX: Not Ranked
EALDX: #2
LALDX: #16 (I've owned from time to time.)
THOPX: #3

FYI: Last summer, Goldman Sachs even questioned whether the markets were witnessing the death of value investing.
But if the recent market swoon world-wide is any indication, value stocks could be poised for a comeback, according to an analysis by Morgan Stanley.
Value stocks have historically tended to outperform growth in high-volatility environments, as investors seek what are perceived as safer and steadier stocks. Morgan Stanley defines high volatility as being when the Cboe Volatility Index—a commonly used measure—rises over 30. The VIX surged 116% on Feb. 5, its biggest one-day gain ever, finishing that day at 37.3, its highest since Aug. 2015.
Regards,
Ted
http://www.cetusnews.com/business/It-Might-Finally-Be-Value-Stocks’-Time-to-Shine.BJ7mINM7Pz.html

FYI: After laying low for several quarters, inflation is again on investors' list of worries. This is reflected in the widening spread between the yield on 10-year Treasury bonds and 10-year Treasury Inflation-Protected Securities--the so-called break-even inflation rate--which is often viewed as a market-based proxy for investors' inflation expectations. After steadily falling to 1.66% in late June, the break-even inflation rate ratcheted wider over the back half of 2017 and so far in 2018; it was over 2% as of Feb. 9.
Regards,
Ted
http://www.morningstar.com/articles/850077/10-top-picks-to-fight-inflation.print.html
M*: Inflation-Protected Bond Fund Returns:
http://news.morningstar.com/fund-category-returns/inflation-protected-bond/$FOCA$IP.aspx

Josh Brown, meet Jack Bogle (who never met an ETF he liked - by design they encourage trading).
Jack Bogle: the lessons we must take from ETFs (FT, Dec 11, 2016)

Individual investors are by far the largest holders of the Vanguard [traditional index funds], with annual redemption rates in the range of 8 per cent of assets. Banks and financial intermediaries hold almost 90 per cent of SPDR S&P 500, where the dollar value of annual turnover typically runs to some 3,000 per cent of assets

The only way an ETF can have an outflow is if authorized participants (APs) redeem shares. Otherwise, investors are merely trading among themselves, neither buying new shares nor redeeming existing shares.
APs act only if there is significant tracking error between the ETF price and the underlying portfolio value. For example, when the market is rising, but buyers aren't rushing to buy the ETF, the ETF price may lag. APs will swoop in and buy "cheap" (rising but underpriced) ETFs, redeem them, and then sell the underlying stocks at a profit.
So rapid outflow (redemptions by APs) could be caused by lack of ETF trading, just as it could be caused by excessive trading (e.g. pushing the ETF price down below the underlying portfolio's "true" value). A direct causal relationship between ETF outflow (i.e. AP redemptions) and ETF trading volume doesn't seem clear to me.
Regarding the "active" use of ETFs, Bogle looked at how owners of Vanguard index funds did during a few months of 2016. He wrote that if the investors bought a fund via ETF shares, they underperformed by around 1.6% over the period examined. But investors who bought the same fund via open end shares slightly outperformed the fund.