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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.

Barron's on Slow Growth of Active ETFs
I wonder how long before we see active ETFs holding positions in newly-created OEFs that can serve as a 'black box' to get around some of the reporting and investing restrictions ETFs face if they try to hold those underlying assets (foreign/bonds) themselves. So something like, for example, a PRWCX might be 70% stocks easily disclosed and 30% in 'PRWBB or some-such. (I think RPGAX has a 10% holding in a non-public Blackrock 'black-box' offering anyway.)
It comes down to a business decision, I guess -- ETFs are more attractive to individuals, while OEFs are more attractive to issuers.

rforno April 2022 in Fund Discussions
I Bond Question
For those taking RMD's, one could take $5K more at end of year & have all forwarded to IRS as tax payment. Then it is received back as a refund .
You may mean for those over 59½, i.e. for those not subject to early withdrawal penalties. It doesn't matter whether one is subject to RMDs or not.
I'm generally not fond of taking money out of tax-sheltered accounts unless one must - either for RMDs or because one has current needs for the money. Though savings bonds do defer taxes until one redeems them. However, one can't switch from savings bonds into another investment without taxes coming due. One has more flexibility with IRAs.

msf April 2022 in Fund Discussions
I Bond Question
Don’t like selling at the bottom. ... Umm ... PRIHX is due for a nice bounce ISTM. All it needs to do is finish 2022 at “break even” (0% return) and I’d achieve a 6+% tax free gain between now and year’s end.
Why is the fund due for a nice bounce? We are at the end of a 40 year secular decline in interest rates. If one is just looking at trends, ISTM that we're due for a nice, long bounce in interest rates. That in turn means a continued decline in NAV. At best, perhaps a pause as investors begin to find current rates attractive.
Chart of 20 year maturity muni bond rates from 1972 to now (from MuniBondAdvisor)

With I Bonds you’re sacrificing liquidity for a year. Dow drops to 15,000 in 3 months and you’d not have that cash to throw at stocks.
Assume your best case scenario, that Dow drops nearly 60% in three months. (Hard to call that a best case, but whatever ...)
(a) Would you expect bonds of any sort (aside from Treasuries) to go up then, or aside from a possible flight to quality, would you expect bonds to fall? I ask this because you don't like selling at the bottom. So you might not make the trade if bonds were continuing to fall.
(b) If you did sell, would you sell 100% of your fixed income (PRIHX) to purchase stocks? ISTM that would be betting the farm on catching a falling knife. The alternative is that you would continue to hold some fixed income - not for trading purposes, but as ballast.
Unless (a) you would trade and (b) you would move 100% into equities, the question is not one of liquidity, but of choosing the superior one year fixed income investment: PRIHX or I-bonds.
Hindsight is 20/20 and there's no use crying over spilt milk. Still, FWIW, you pointed out the higher rates for I-bonds in Nov. Since Nov 1, the I-bonds have gained 5/6 x 3.56% = 3%, while PRIHX has lost 5.25% (6.5% NAV).
What really matters is what will happen going forward.
ISTM there’s no guarantee that 7% return will be continued after a year. There we’re making assumptions just as with any other investment
We just have to make assumptions for the next year. The I-bond will return over 5%, net, after withdrawal penalty, if purchased this month. The only assumption I'm making is that the next inflation adjustment (to be announced in a few days) will be at least 6% (3% semi-annually).
Calculation: 3.56% for six months, and 1/2 of 3% for the next six months after penalty comes to 5%.
There's certainly a case to be made for not losing hope on fixed income funds. Charles made it in his column this month. But it requires patience. More than twelve months worth of patience.

msf April 2022 in Fund Discussions
What are you buying - if anything?
@wxman123, use the "Link" feature of PV to post PV results.
Done, thanks!!

wxman123 April 2022 in Other Investing
What are you buying - if anything?
@wxman123, use the "Link" feature of PV to post PV results.

yogibearbull April 2022 in Other Investing
What are you buying - if anything?
Interesting....
@wxman123, @Level5...do you think that RPIEX bumped up due to possibly (I have no idea) that the fund mgr has nasdax puts on (see latest portfolio holdings)...and some global sovereigns might be doing well as some are anticipating/seeing? the mucho debasement of the US dollar and possiblity of the Dollar no longer being the world's reserve currency as the sanctions on Russia backfire...after all, isn't the rational way to think about this that after the spike in interest rates we're going to go right back to QE ad infinimum as the markets go splat? Maybe a real good fund pick here, dunno.
I don't know, but the manager has shown skill, that is for certain. Check out the drawdowns on this chart from PV, Nov 30, 2021, now that is active management with results! (If chart does not populate just plug in RPIEX and BND.)
https://www.portfoliovisualizer.com/fund-performance?s=y&symbol=RPIEX&benchmark=BND

wxman123 April 2022 in Other Investing
What are you buying - if anything?
“We have recently been DCA'ing into the iconic FSELX - Fido Semis, DOWN ~22% YTD”
+1 / Makes infinitely more sense to me than buying something that’s up 22% YTD as some appear to do.

hank April 2022 in Other Investing
Mairs & Power proxy vote on murkiness
Same investment adviser (Mairs & Power, Inc.), no "change to the ... investment objectives, strategies, or investment policies". What more are you looking for? To compare the prospectus of the current funds and of the new funds?
Current: https://www.mairsandpower.com/images/reports/prospectuses/Mairs__Power_Prospectus.pdf
New: https://www.sec.gov/Archives/edgar/data/1141819/000089418922001017/mairspowercombined485a.htm
Current Principal Investment Strategies of M&P Growth Fund:
The Fund invests primarily in U.S. common stocks. In selecting securities for the Fund, the Fund’s investment adviser, Mairs & Power, Inc. (the Adviser), gives preference to companies that
exhibit the potential for above-average growth and durable competitive advantages at
reasonable valuations. In the Adviser’s experience, these securities typically have strong returns on invested capital. The Adviser follows a multi-cap approach and the Fund invests in stocks of small-cap, mid-cap and large-cap companies. The Adviser focuses generally on companies located in Minnesota and other states in the Upper Midwest region of the U.S. (which the Adviser considers to be the states of Illinois, Iowa, Minnesota, North Dakota, South Dakota and Wisconsin).
New Principal Investment Strategies of M&P Growth Fund: [Why bother? It is the same, verbatim.]
P.S. The independent registered public accounting firm is changing, from Earnst & Young LLP headquartered in Minneapolis to Cohen & Kahn, Ltd based in Milwaukee. Legal counsel is changing as well, from Godfrey & Kahn, S.C. in Milwaukee to Vedder Prince P.C. in Chicago.
So we can already see how changing the board will affect things. We can likely expect the annual statements to have a different format. Maybe even a different color :-)
No change in fund administrator, transfer agent, or accountant. US Bankcorp Fund Services (based in Milwaukee) provides these services to both the current funds and the new ones.

msf April 2022 in Fund Discussions
I Bond Question
One generally has until Jan 15th to make estimated payments for the previous year. For example, one could make estimated payments for 2021 taxes through Jan 18, 2022. (It's the 18th because the 15th is a Saturday, and the following Monday, the 17th, is MLK Day.)
While one won't have 1099s that soon (except perhaps from some banks), nearly all the fund divs will have been paid. So, aside from unusual situations like K-1s, one can have a very good idea of one's tax liability by then.
What's the worst that can happen if you're off a bit? Pay a little less than planned and you may only be able to get $4800 or so in I-bonds. Pay a little more and you'll get a bit more in a refund. Uncle Sam will only be holding that overpayment for at most three months (Jan 15 until April 15).

msf April 2022 in Fund Discussions
I Bond Question
@msf,
One can eek out another $5K in savings bond purchases by overpaying on one's Jan 15th tax estimate. Add enough to create a $5K refund to buy the bonds.
With year-end distribution, it is often not easy to estimate how much to “overpay” the additional $5K.. Also why Jan 15th and not say Dec 15th for 2022 tax reporting? Please advise. Thanks.
By the way, we started to invest in I bonds in 2021 based on this board’s recommendation. We owed a small amount to IRS. So we will plan better for 2022.

Sven April 2022 in Fund Discussions
I Bond Question
I could move some of the money in PRIHX into I Bonds. But I’m not moved to do so. Don’t like selling at the bottom. Very little committed to cash. Less than 8% of entire portfolio presently. Cash facilitates my (too frequent) tactical moves. With I Bonds you’re sacrificing liquidity for a year. Dow drops to 15,000 in 3 months and you’d not have that cash to throw at stocks. Further, aside from PRIHX everything is in IRAs. Pull from the Roth to buy I-Bonds? Pull from the Traditional and pay taxes on the distribution?
Agree I-Bonds are a great investment. I think I was the one who first posted the information when the yield topped 7%. Here
7% is indeed an impressive one year return. But about what a good mining fund might be expected to bounce in 1 or 2 day’s time. Just trying to inject a little perspective. ISTM there’s no guarantee that 7% return will be continued after a year. There we’re making assumptions just as with any other investment ... albeit, if you’re benchmarking to the CPI it doesn’t matter.
“more than one hopes for this year” - Umm ... PRIHX is due for a nice bounce ISTM. All it needs to do is finish 2022 at “break even” (0% return) and I’d achieve a 6+% tax free gain between now and year’s end.

hank April 2022 in Fund Discussions
I Bond Question
Savings bonds don't have to be held for years. One can cash them out after a year if one wants. At current rates they'll still net 5%+, which is still "kind of like giving candy away".
"Withdrawals, both the anticipated and the unexpected, come out of the whole investment pot."
The usual expectation is that one won't cash out (withdraw) 100% of one's portfolio within a year. Given that expectation, there's going to be some money, say at least $10K, that will remain in fixed income investments for a year.
For that $10K that we know isn't going to be withdrawn, it's hard to find a better place to keep it than in I-bonds. There's a guaranteed 5%+ rate of return, which is more than one hopes for this year with most fixed income investments. Then there's the guarantee that one won't lose principal (no interest rate risk). And as an added bonus, no credit risk.

msf April 2022 in Fund Discussions
I Bond Question
:) Must be tough not knowing what to do with an extra $1M ...
I’ve stayed away from this vehicle not wanting to restrict my fixed income investments in any way. Probably dumb on my part, as 7% today is kind of like giving candy away. But I value the simplicity and flexibility of having that money available for other investment at any time. And, to an extent, more traditional bonds / bond funds help provide an element of portfolio balance.
ISTM the 7% I Bond is ideal for those who maintain several years’ anticipated expenses separate from their more aggressive portfolio. I’ve never done that. Withdrawals, both the anticipated and the unexpected, come out of the whole investment pot.

hank April 2022 in Fund Discussions
Superb Interview - Ron Baron - Squawk Box
- Baron talks a good game. The “slow and steady” investment approach works, provided one has (1) the time horizon and (2) the patience. The latter can be learned. The former cannot.
- Re Elon Musk: It’s been said, “There’s a fine line between genius and insanity.”
- Re Electric and autonomous cars: Can’t wait to own a fully autonomous vehicle. My Accord has auto-steering which is engaged in similar manner to cruise control. Unfortunately, current regulations require you to interact with the steering wheel every 15-20 seconds - or be perturbed by warning lights, beeps and a “shaker” steering column, Still nice.
- Re The eventual demise of dealerships: Spot-on. Electric motors run nearly forever. No oil changes, plug or injector service. No $5,000 + “transmission jobs” ... because they don’t have transmissions.

hank April 2022 in Fund Discussions
I Bond Question
My usual problem, where can I buy I-bond at 1 million Dollar + be able to cash out within 6-12 months and buy something else?
This is why I never bought directly.
I wish there was an ETF/OEF that pays half of I-bonds with more flexibility and much bigger amounts as you do with treasuries OEF.

FD1000 April 2022 in Fund Discussions
Inflation: Food prices are going up — and at levels Americans haven't seen in decades
@old_Joe, agree that Intel would be a better choice and there are few others too.
Apple moved away Intel X-86-based chips to other advanced (faster and low power consumption) architectures, M1 for their computers. M1 chips are designed by ARM, a British company who supports the A1 chips for iPhones and iPads. And the chips are manufactured by Taiwan Semiconductor Manufacturer. There is already a second generation, M1 Ultra and M1 Pro chips in the latest MacBook Pro and iMac.
https://macrumors.com/guide/m1/

Sven April 2022 in Other Investing
Inflation: Food prices are going up — and at levels Americans haven't seen in decades
Used to be you had to go to a major league baseball game to get "sticker shock"..."how much you want for that beer, $12 bucks? Huh?" Now you walk into the grocery store to Rono's point...and you get the same kind of sticker shock...the "huh, that costs that much" thought.
Really feel for those who are on a limited budget and have kids at home to feed.
What a mess! This would be a real good time to those of us who have had financial success in life to maybe buy an extra week or two's worth of groceries and donate to their local food bank.
Good Luck to ALL,
Baseball Fan

BennyB April 2022 in Other Investing
Vanguard FundAccess Funds
I
I have been looking at non-Vanguard funds available at Vanguard and for the past two days, when I try to get T. Rowe Price funds to populate, I get this message:
"The information you've requested is temporarily unavailable. Please try again later."
I wonder if this is another one of Vanguard's technical glitches or there is something else going on. It does not seem like the former because there is not a problem getting other fund family funds to populate.
https://personal.vanguard.com/us/funds/other/bytype?FundFamilyId=31698

I receive the same message.
It's probably a technical glitch.
Vanguard modified its website in the recent past.

Observant1 April 2022 in Fund Discussions
What are you buying - if anything?
Interesting....
@wxman123, @Level5...do you think that RPIEX bumped up due to possibly (I have no idea) that the fund mgr has nasdax puts on (see latest portfolio holdings)...and some global sovereigns might be doing well as some are anticipating/seeing? the mucho debasement of the US dollar and possiblity of the Dollar no longer being the world's reserve currency as the sanctions on Russia backfire...after all, isn't the rational way to think about this that after the spike in interest rates we're going to go right back to QE ad infinimum as the markets go splat? Maybe a real good fund pick here, dunno.
@stillers...interesting...your mention of FFGCX...you think we're just getting started here? Multi year trend, this spike in commodities...crazy how even after the big move up how the holdings still have very low valuations....
Good Luck and Good Health to All,
Baseball Fan

Baseball_Fan April 2022 in Other Investing
What are you buying - if anything?
Added to positions:
FSENX - Fidelity Select Energy
FSAGX - Fidelity Select Gold
FARMX - Fidelity Agricultural Productivity
Nice choices.
Note however Fido makes investing in all three of those areas a lot easier easier with FFGCX - Fidelity Global Commodity Stock, which allocates roughly 1/3 each to Energy, Agr and Metals. Speaking of easy, FFGCX is easily our best YTD performer, UP ~34%.
Investing in the three funds of course affords the investor more control over the respective allocations. BUT...given the expertise we believe is necessary to intelligently and profitably invest in those specific areas, we prefer to leave all of that to the FFGCX PMs.
Elsewhere..
(1) We have recently been DCA'ing into the iconic FSELX - Fido Semis, DOWN ~22% YTD. Expecting the eventual semis move UP to be parabolic when it happens, and we can easily wait for that move while DCA'ing into it. Yes, talking heads make a worthy case for NOT buying the whole sector and concentrating on the best names, but that just ain't our style or risk appetite.
(2) Thanks to regular reading of anything uncleharley posts anywhere, we finally "saw the light" (so to speak) and a while back bought utilities, choosing FSUTX - Fido Select Utilities, arguably the best utilities OEF on the planet. Note that uh meanwhile prefers ETFs UTG, MGU and MFD.

stillers April 2022 in Other Investing