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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Not Your Girlfriend's SPACs
    What's a SPAC?
    A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as "blank check companies," SPACs have been around for decades. In recent years, they've gone mainstream, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019. In 2020, more than 50 SPACs have been formed in the U.S., as of the beginning of August, raising some $21.5 billion.
    https://investopedia.com/terms/s/spac.asp
    Investments in SPACs ETFs and BDCs:

  • Hedge Fund Strategies That Act As Bond Surrogates
    Addl ideas:
    ARBIX Absolute Convertible Arbitrage Fund ($25K min)
    SVARX Spectrum Low Volatility Fund
    DRSK Aptus Defined Risk ETF
  • M* Premium
    You asked..."Does this have anything to do with M* Premium"?
    You asked me if M* Basic was daily data. In order for me to answer the question I went to M* Interactive Charts to get detailed data. That lead me to find the inconsistencies and hence my question.
    I can teach you how to use PerfCharts. Place your cursor over the slider and right click. This gives you several options including YTD which as of 10/29 shows +1.73%. Vanguard shows 1.75% as of 10/29.
    Extra navigation is required in M* if you need to compare funds which is my main daily workload which is why Stockcharts is so much better for that purpose. They offer free Technical Analysis SharpCharts as well. They also offer nice seasonality charts which I seem to be using more frequently.
  • Brokerage Rant - Schwab Acquisitions
    (1) Will Schwab honor TDA customers' grandfathered mutual fund commission rates of $15 for mutual funds like Primecap or Vanguard? I came into TDA as an old Waterhouse customer.
    (2) Will Schwab allow monthly repeat purchases in these funds without transaction fees after the initial purchase (with a one-time commission)? This was something I liked about TDA.
  • Chuck Akre
    In November 2019, Chuck Akre appeared on Wealthtrack (PBS and youtube) with his co-manager Neff and talked about the coming transition. I'm hanging on. Here's a link to that 25 minute program:
    https://wealthtrack.com/finding-compounding-machines-with-the-great-investor-chuck-akre-his-gen-x-co-manager-john-neff/
  • M* Premium
    We agree that StockCharts is wrong. Vanguard showed 1.71% (it now shows 1.75% through 10/29), and Vanguard is the authoritative source.
    If you're clicking (interactive chart) and clicking again (YTD) at M* to get YTD data, it's not surprising that M* would appear less friendly than StockCharts. All you need do is read the (correct) YTD data straight from the fund's "home" page. No extra navigation required.
    I don't see any easy way to get the same data out of StockCharts. I've found no instructions on how to query YTD performance data. I can only find StockChart instructions on how to input starting/ending dates for performance data.
    https://support.stockcharts.com/doku.php?id=other-tools:perfcharts#changing_the_chart_s_time_period
    The instructions say that one can use a slider to change dates, or one can hold the shift key (to adjust starting date) or hold the ctl key (to adjust ending date) and simultaneously click arrow keys until a date changes to the desired value.
    [Sliders make lousy numeric input widgets. "Use a slider only when the precise value won’t matter to the user."
    https://www.nngroup.com/articles/gui-slider-controls/]
    At least once I get everything set up, and then I mouse over the chart, I do finally see the 1.70% figure you stated.
    FWIW, here's an interactive M* chart with the correct 1.71% figure.
    M* chart.
    Does this have anything to do with M* premium features?
  • M* Premium
    For VWINX, I find M* performance, YTD at 1.71%; at Stockcharts = 1.70% at 5:40pm, Oct. 29.
    NOTE: I'm using M* without an account/sign in. Never had a subscription.
  • Bear
    M* Premium Fund Screener:
    (Fund Category = Bear Market)
    and (Distinct Portfolio Only = Yes)
    and (Fund Name not like %ultra%)
    and (Fund Name not like 2X)
    and (Fund Name not like Inv)
    That cuts the fund search down to a handful (5). Few enough to look at one by one.
    Of course there's a more basic question of what "leveraged vehicles" you're expecting to exclude. For example, GRZZX "can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) which may increase market exposure, magnify investment risks, and cause losses to be realized more quickly."
    https://fundresearch.fidelity.com/mutual-funds/summary/527289797
    Even if you don't consider that leveraged, what about BEARX? The fact that the top ten holdings amount to -177% of assets (from the M* screener) suggests that a look at the prospectus is in order.
    "Under normal market conditions, the Fund will use leverage in implementing its investment strategies, and the aggregate exposure of the Fund's short positions plus its long positions is expected to exceed the Fund's net asset value." Summary Prospectus.
  • M* Premium
    One simple example - get a quick comparison/filter of bond funds that made over 2.1% in 2013 (generally a down year for bonds).
    The screen tells me that the main type of bonds that that did well was junk bonds: 39 bank loan funds, 139 HY bond funds, 5 core plus, 23 multi-sector, 16 nontraditional. There were also a few funds in less "junky" categories: 2 corporate bond funds, 1 EM local currency fund, 7 short term, and one word bond (hedged) fund.
    Only 11 funds above junk (above BB), only 2 of those above BBB. Mostly "deep" junk.
    Reset the filter to retrieve trailing returns between 0% and 2.1% exclusive, and one starts seeing lots of muni funds.
    It used to be a lot easier to get info out of the screener before M* broke the ability to build custom views (which I had used to get 15 year trailing return data, among other things). It's still possible to coax all this info out from a screen, but one needs to do it via filters.
  • Perpetual Buy/Sell/Why Thread
    Been a buyer since last week. More dry powder available, but wondering if the rout may be over. Planning my next purchases or ready to take profits, either way.
    Last two purchases are 100 K @ $63.60 and 85 MMP @ $35.20, plus $20K of LCG OEF at COB.
  • The Best Taxable-Bond Funds -- M*
    it's a miracle
    Nothing new. The bull market started in 03/2009 months ahead before the recovery.
    Stock short term performance doesn't have high correlation to unemployment, the economy, inverted yield, valuation, PE, PE10 and even earnings(SP500 earnings were down Q4/2012 + Q1/2013 and SPY was up 12+% in Q1/2013)
  • Anybody have a website that displays “tax efficiency” of a fund?
    Morningstar shows tax cost ratio for funds on their "Price" tab (pun not intended). It's on the right hand side in the lower block of data.
    See here.
    The tax cost ratio is 0.03%, meaning that on average, over the past three years, you lost 0.03% of your assets to taxes each year. The category average is 0.02%. So I suppose that means the fund is "horrid", giving up an extra 1 basis point on average each year. Especially with so many HY muni funds giving up nothing to taxes.
    FWIW, over five years, the average tax cost ratio is 0.03%, and PRIHX's 5 year tax cost ratio is also 0.03%.
    If you have access to the M* premium screener, you can screen on HY muni funds. On the "Risk and Tax Cost" data display, you can see all the peers' 3-, 5-, and 10-year tax cost ratios.
    0.03% is nothing. If you really insist on a TRP HY muni fund with a lower tax cost ratio, the screener shows that PRFHX's tax cost ratio is just 1/3 as much: 0.01% across all timeframes.
    FWIW, PRTAX gives up nothing to taxes (tax cost ratio of 0.00%) vs. a category average of 0.04% over three years.
  • Anybody have a website that displays “tax efficiency” of a fund?
    I’m using Lipper. For some strange reason, PRIHX, which Price calls “Tax Free”, receives the lowest possible score for “tax efficiency.” (1/5).
    Might be that within its (tax-free) category, that’s true. So, what I’d like to do is compare it to similar funds that don’t limit their investments to just tax-free bonds.
    Inputting various TRP “tax free” funds generates a wide variety of results. Their longer term (more generic) fund, PRTAX, scores highest (5/5) for tax efficiency at Lipper.
  • The Best Taxable-Bond Funds -- M*
    Some slightly contrarian contextual takes here, of high-level interest perhaps:
    https://humbledollar.com/2020/10/follow-the-fed/
    Interesting article
    1)Employment: has nothing to do with stocks. Disregard.
    2+5)Inflation + Plan for higher inflation.: I don't see any inflation coming soon. Still high unemployment, Covid, big tech improve processes, globalization. Disregard
    3)Expect low yields. Of course, the Fed told us that
    4)Favor the middle. intermediate term bonds are where you should be long term. Disregard
    6)Rethink asset location: Same old narrative. Not all bonds are treasuries. Example: PTIAX,PIMIX pay about 4% annually.
    6)Stay flexible. Keep your style and why disregard. If you are buy and hold investor and it worked for you changing isn't your strength. I'm a trader for about 20 years and why flexibility works for me.
    7)Avoid gold. Sure. Most should avoid other stuff such as CEFs, risk parity and other exotic funds. KISS. Use only several funds, Core funds: wide indexes, explore funds: a few managed.
  • The Best Taxable-Bond Funds -- M*
    @msf. Been working on the house. So dodging the internet. Sorry I missed your post re DODIX.
    At the time I wrote about DODIX I could swear it was BBB, and that the duration had crept up to five years. That's why I read their report, and discovered that they were buying some energy bonds. Today, all is back to normal. Duration under 5, credit rating A.
    Don't know what I saw. Maybe it was primer fumes. All the regular paint is low VOC. But not the primer.
    It may seem contrary to some, but I do not view bond index funds as boring.
    The main reason I would sell bond funds in the near future is to realize some profit, and have some cash for the next opportunity.
  • Bond mutual funds analysis act 2 !!
    VIX is one of my main criteria based on daily movements.
    VIX has been elevated since early September, it finally broke above 30 and that's not a good sign.
    I use other criteria relate only to my goals (low volatility and never lose more than 3% from any last top). Making 2.5 times more in 2020 than my goals and I'm fine sitting out for days.
    Interest rates are inching higher since early August, they are lower for several days but I think the 10 year treasury may go higher, maybe 0.9-1%
  • VWINX
    Both of these funds are run by the same team, and seem to have done great. I note that the low vol fund (SVARX) holds AlphaCentric Income and Braddock Multi-Strategy Income Instl (35% weight combined), both funds were covid disasters. My guess is that mngt swooped in after they cratered. Anyway, I was impressed enough in SVARX to take a flyer. http://thespectrumfunds.com/LowVolatility.cshtml#close SFHYX is a separate fund group with a philanthropy angle, but its run by the spectrum team. We'll see.
  • The Best Taxable-Bond Funds -- M*
    Out of tax considerations I also decided to take a modest 2020 distribution from the Traditional side, even though that was not required in 2020. Didn’t need the money. So it went into Price’s PRIHX - a “limited term“ HY muni fund that I think is probably a better fund than M* and the others currently rate it. ... As to the tax considerations, I’d rather write the IRS a check next April 15 than have to wait in line for a tax refund. Building up the non-IRA assets may prevent having to take an unwanted withdrawal from the Roth someday
    I have an inherited Roth that requires me to take unwanted distributions. The only reason why I don't want those distributions is that after sticking the money into a taxable account all the future earnings are taxable. Aside from moving money out of a tax-sheltered account, I don't see anything unwanted about Roth distributions.
    It's a different question when comparing T-IRAs and Roths. There are several reasons for keeping at least some money in a T-IRA (QCDs, lower tax bracket for heirs, leave to charity, etc.) But given a choice between adding eligible money to a Roth or leaving it in a taxable account, I'm not aware of a reason to keep it in a taxable account. So I'm not clear on your thinking here.
    The muni bond fund does let you escape federal taxes (it's still substantially subject to state taxes). However that comes at a cost - muni bond yields are less than taxable bond yields (which would be tax free in a Roth).
    For example (this is just the first one I picked, not necessarily the best comp), RPIHX is a taxable junk bond fund with a duration of 3.58 years and an unsubsidized SEC yield of 4.94% (subsidized is 5.08%). PRIHX is a muni junk bond fund with a duration of 4.44 years and an unsubsidized SEC yield of 1.40% (subsidized is 1.84%)
    Though most multi-sector funds don't hold equity worth mentioning (5%+), about 1/8 of the nearly 100 funds do. They can get a fair amount in dividends plus a small growth kicker, but at the expense of higher volatility.
    When Kathleen Gaffney left Loomis Sayles, it seemed she tried to outdo her mentor Dan Fuss at LSBDX by upping the equity to 20% in Eaton Vance Bond (EVBAX). That resulted in a fund even more volatile than LSBDX.
    https://www.mutualfundobserver.com/discuss/discussion/23855/wealthtrack-preview-guest-kathleen-gaffney-manager-eaton-vance-bond-fund
    PRIHX appears to merit a 2* rating because of its below average returns. This in turn is likely because it has one of the shortest durations of any high yield muni fund. A problem with M*'s ranking of junk bond funds is that it groups funds together regardless of duration - no short term, intermediate term, long term breakdown. There are only five muni high junk bond funds with durations under five years. Four have 2 stars; only ISHYX which has done slightly better, has a 3* rating.
  • VWINX
    +1 fd1000 I sold all my shares of CTFAX after that change. The only reason I bought it was its ability to limit stock holdings at 10% during market tops. Now it's just another 50-70% allocation fund or tactical allocation fund !