@rforno,
May 1st is only a couple of days away.
Any additional info you are able to share about CPSM?
The mechanics may be simple. The fund could just buy 1 year collar from a legitimate counterparty.
Below are my notes for me to explore and if you already have answers, please share.
Do they disclose who the counterparties are for the derivatives they are employing? Does the ER include upfront cost of the collar the fund purchases when it launches? unlikely!
Does the fund allow new investors (via creations) after the launch?
(If the fund is greedy and lets other investors to come in after the launch when the cost of the collar is high, that cost will be shared by all investors if the defined outcome (0-9.65%) is before all expenses and fees.)
I think the idea is legitimate. My only concern would be how it is implemented. JPM and BLK have buffer products but not products with complete down protection (even at the end of the defined period). May be @David_snowball can find out if they are planning to launch.

Looks like PIMIX has done a little better longer term than the previous post reveals. (+7.68% over 15 years). Let’s remember how dastardly low interest rates were over most of the past decade. That said, for a fund that’s invested about 35% in sub-investment grade paper, I’m not overly impressed either. The .62% fee is a bit high as well.
Take a look at (probably riskier) RPSIX over that same term: 3 yr -1.06%, 5 yr +2.03%, 10 yr +2.62%, 15 yr +4.83% . Interestingly, RPSIX carries an identical .62% fee.
So, with a 10-15% equity component, RPSIX lagged PIMIX over all the terms cited. No horse in the fight. Just adding to what’s already been said.

Let's not kid, or let anyone else, kid us.
If you "held onto" PIMIX for the last 5 years, you got yourself an average annual TR of of 3.07%, and for 10 years, 4.27%.
Again, in an attempt to beat a dead horse, our 5-yr CP CD ladder was paying ~4% during that 5-yr period and is paying over 5% now.
PIMIX sounds like a "free lunch" (sic) at McDonald's or worse to me.

Another bite into Schwab Gummint MM SNVXX with 5.02% yield this morning.

This is a rehash/update of an old M* article,
https://www.morningstar.com/funds/15-funds-that-have-destroyed-most-wealth-over-past-decade

Mercury Insurance Reviews -
https://content.naic.org/cis_consumer_information.htm
https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=27553&:refresh
https://wallethub.com/profile/ci/mercury-insurance-13013247i Customer Reviews at the bottom of the page are not good
https://www.thezebra.com/insurance-companies/mercury-insurance-reviews-coverage-options-and-ratings/
https://www.bankrate.com/insurance/reviews/mercury/#home-insurance
https://www.nerdwallet.com/article/insurance/mercury-home-insurance-review#:~:text=Mercury home insurance star rating&text=our editorial team.-,The scoring formula incorporates discounts, coverage options, website transparency,,determined by our editorial team.

PIMIX is a prime example of why it's helpful to have access to the Institutional class of any fund - you can save anywhere from 25 to 75 bps per year in expenses. Especially for bond funds, it's a difference maker.
Having to pay a Transaction Fee always feels "wrong", but should work out fine in the long run - assuming you hold on.

It is a combination of poor stock picking and doubling down on those stocks including Tesla, Zoom Video Communications and Roku. Tesla itself is down 45% this year as the Chinese EVs have overtaking Tesla at a fraction of the price. Something can be said about the benefit of broad diversification such as S&P500 index.

From Wednesday’s Wall Street Journal:
”Investors have pulled a net $2.2 billion from the six actively managed exchange-traded funds at her ARK Investment Management this year, a withdrawal that dwarfs the outflows in all of 2023. Total assets in those funds have dropped 30% in less than four months to $11.1 billion—after peaking at $59 billion in early 2021, when ARK was the world’s largest active ETF manager. “
ARK (ARK Innovation ETF) is down 15.85% YTD after gaining 67% + in 2023 (Morningstar)
(requires subscription)
https://www.wsj.com/finance/investing/ark-funds-cathie-wood-investors-56e2950c?st=ezyihgf7p1r7b9u&reflink=article_copyURL_share
“Long-term” investors? Or GTHOOH?

Absolutely mesmerizing @Level5. Apple swallows the world toward the middle. Then the information age hype of the 90s becomes the Apple, Microsoft, Alphabet, NVIDA, META with a dab of Amazon thrown in just teasing of today. But the appearance of some big guys getting chopped off at the knees over the years was worth watching the whole thing.

@Level5 - That presentation is absolutely fascinating. Thanks!

Funds, even "pure" Treasury funds, have some wiggle room to hold some other assets. As noted in the Boglehead thread (see below), WisdomTree doesn't make it easy to find the numbers. But last year, "only" 99.9868% of the income was state tax exempt. I've looked at the referenced spreadsheet and verified this.
One always needs to check the supporting figures that a fund family publishes at tax time. Once upon a time, VUSXX was 100% (exactly) state-tax-exempt. Vanguard changed the way it managed the fund a couple of years ago. With its wiggle room, only about 80% of the income from that fund was state-exempt last year.
Boglehead post:
https://www.bogleheads.org/forum/viewtopic.php?p=7710372&sid=b5b46754ca9e296f26c5f65246618ac5#p7710372
WisdomTree spreadsheet:
https://view.officeapps.live.com/op/view.aspx?src=https://www.wisdomtree.com/investments/-/media/us-media-files/documents/resource-library/fund-reports-schedules/tax-reporting/2023-tax-supplement-report.xlsx&wdOrigin=BROWSELINK

4/27/24 Episode:

Strong demand and limited supply have created long-term opportunities in residential real estate. Top ranked Baron Real Estate Fund manager, Jeff Kolitch shares his highest conviction investments.

Hi @yugo The beginning of the current near term (looking backwards) change of directions for U.S. equity, CD rates, MMKT rates, ultra short term and related bond funds noted by others began to take shape in 2023. Your note about the return for MINT in 2022 is correct.
Let us start with Covid period. I'll use Fidelity's core MMKT of SPAXX for notation, but this applies to other fund houses and some of their MMKT's, too.
During this beginning period, MMKT's and CD's were paying next to nothing in yields/interest, as the Fed. was supporting the economy with low rates. One should probably include the beginning of the Russia invasion of Ukraine in February, 2022 for other disruptive circumstances. As the Covid upwind took place and inflation became a large concern for the Fed.; they/it began rate increases with the goal of chasing the 'dubious' goal of obtaining a 2% inflation rate.
--- April 2020 - April 2022 nominal interest rates/yields were .1%.
--- July 2022 found rates near 1%
--- December 2022 found rates near 2.6%
--- May 2023 found rates near 4.7%
--- October 2023 - April 26, 2024 4.96%, + or - .05%
MINT etf distributions, which are paid monthly; reflect the above changes in interest rates/yields.
--- April 2020 - April 2022 $.05-$.05 Fully range bound and LOW
--- As with the above for May 2023 - April 2024, MINT distributions have ranged from $.41 - $.45 (current, April 2024). The yield increase from April, 2022- April, 2024 is a full 800%.
What do all of these numbers mean??? For conservative investors or investors who desire a portion of their portfolio to be relatively uneventful and still make some decent money, are those who chose to follow the CD's path find yields worth pursuing. MMKT's are worth keeping at the current yields. MINT, IMHO; is worth keeping at this time; as well as other etf's mentioned by others.
The rotation away from the above areas will 'show' it's face when the Fed. chooses to change it's policy on rates.
NEXT: Late October of 2023 was the beginning of another 'phase', post Covid and Fed. actions. LQD (IG corp. bonds) does look like much against the other listings in the chart. But, it has tried to perform, now and then. It's included, only for reference of a few other etf total returns for the period. Yes, I'm a growth fan.
CHART of SPY, QQQ, SMH (semi conductors etf) and LQD (investment grade bonds).
NOTE: Please make me aware of mistakes or contradictions, as I write this while under the influence of meds. TIS big pollen time in Michigan.
Remain curious,
Catch

@hank, it's easy to setup, say, a DIY 5-yr Treasury Zeros-ladder. It will have a duration of approximately 2.5 years, comparable to a short-term bond fund.
For Zeros, duration = maturity, so a 30-yr Zero will have huge volatility.

Yes @msf / Your answer is confirmed by AC ‘s prospectus …
”Although the fund’s investment policies are designed to provide an investment that is similar to investing in a zero-coupon U.S. Treasury security that matures in the year 2025, a precise forecast of the fund’s final maturity value and yield to maturity is not possible.”
Interesting. ISTM back in the early 2000s the TD bond funds at AC had a defined termination price … And a lot of jig-sawing up and down along the way. Just puzzled here. BTTRX’s current NAV of $108 + is equally puzzling. I’ve no idea what those shares would look like when the fund terminates in December 2025. One would think a very close predetermination would be possible if it invests in zeros like it says.

PS - If I remember correctly, The AC zero-coupon funds I played with 2 decades ago terminated at a set dollar price per share. The U.S. backing of Treasuries made such precise forecasting possible. Corporates (zero or not) occupy a different playing field.
They terminated at roughly a target price because they were (and BTTRX still is) target maturity funds that held zero coupon bonds (no reinvestment risk/price fluctuation) that matured in the target year. Admittedly holding treasuries eliminates default risk, but that should be minimal with high grade corporates as well.
Even with all that certainty, forecasting a precise end price wasn't possible. From the summary prospectus:

Although the fund’s investment policies are designed to provide an investment that is similar to investing in a zero-coupon U.S. Treasury security that matures in the year 2025, a precise forecast of the fund’s final maturity value and yield to maturity is not possible.
...
The anticipated value at maturity is an estimate of the fund’s net asset value as of the fund’s weighted average maturity date. It is based on the maturity values of the zero-coupon securities held by the fund.

Here it is from 1990 - 2024:

humm … interesting I’ll look at BOXX. Thanks Yogi.
What I’ve been mulling over in recent days is something similar to a zero-coupon, but maybe just out 2, 3, 4 years. (Zeros are crazy volatile as I think everyone knows.) Might be a good hedge / hold if you think a serious recession lies ahead (late ‘24 or ‘25).
I’d guess these can be purchased individually but that funds like the old AC series have pretty much disappeared. I have begun watching AC’s BTTRX for what information it may provide. (This one has 1.56 years to maturity and has a NAV over $108 which doesn’t make a lot of sense to me. My 2 decade old memory is that they matured at $100. But can’t be correct.)

@LewisBraham mentions BSCP as an illustration of the target date bond ETFs available in this Week’s Barron’s. (I’ll caution that it does not appear to be a specific recommendation, but constitutes just one component in a broader look at bond ETFs.) The fund invests in corporate bonds. My understanding is that such funds return no regular / compound interest, but mature at a higher valuation, providing interest-like return. For the most part it should be possible to project the yield from the date of purchase until maturity. But ISTM the vicissitudes of the corporate bond markets would inject a certain amount of uncertainty?
From Invesco’s Prospectus:: ”The Fund will terminate on or about December 15, 2025 without requiring additional approval by the Board of Trustees (the “Board”) of Invesco Exchange-Traded Self-Indexed Fund Trust (the “Trust”) or Fund shareholders, although the Board may change the termination date. In connection with the termination of the Fund, the Fund will make a cash distribution of its net assets to then-current shareholders after making appropriate provisions for any liabilities of the Fund.”
- Short question - How could I project out the likely return at the termination date when purchasing?
- Or, is there no reliable way to do so?
Thanks for any tips. Thanks to Lewis for a good article.
PS - If I remember correctly, The AC zero-coupon funds I played with 2 decades ago terminated at a set dollar price per share. The U.S. backing of Treasuries made such precise forecasting possible. Corporates (zero or not) occupy a different playing field.