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Need an opinion

Are there any allocation funds that you would have confidence in other than VWINX, PWRCX or VLAAX. given the recent market downturn?


  • edited March 2020
    I believe the board would need more information to answer your question. Do you have a target? Some allocation funds tend to hold more equity holdings than others. For example, EXDAX and GLRBX could be included, but it would depend on what level of 'potential' equity holdings you're seeking.
  • Hi Bobpa
    I must presume you have ready access to about whatever balanced fund you desire.
    Over a +10 year time (the longer the better), none of your choices will vary much, or at least enough to cause concern, IMHO.

    chart, from July, 2008 to date

    Moderate Allocation list

    Build your own: BAGIX and FDGRX , 198% average since July, 2008 chart

    Comparative returns from my list in the chart, from July, 2008:
    --- JBALX = 159%
    --- VLAAX = 152%
    --- FBALX = 143%
    --- VWINX = 135%

    *** BAGIX and FDGRX, build your own = 198% (note: FDGRX closed, with exceptions, but an excellent equity example in the growth fund area.

    Overview: If one holds a 50-70% moderate allocation fund, active managed; there will be periods when equity takes a hit that will cause the investor to have "oh, crap" moments.
    There is nothing designed into these type of funds that attempts to "out think" the markets, Standard balanced funds had "ah-ha" periods during the 2008 market melt, the 2011 downgrade of the AAA rating of U.S. debt by Moody's, a period in 2015-2016, a market thump in Feb. 2018, a big downward hit in Dec. 2018 and this past week. Given a long period, a quality fund in this area; from a firm that has a long enough track record to support a proper review, should allow an investor to pick from a top 20 or 30 list resulting in similar return outcomes over any 10 year period. A top 20 list is going to have comparisons, variations over shorter time frames due to management changes in holdings and what sector of the equity market in "hot" for awhile. A quality choice should serve anyone well in this area, with perhaps the greatest risk to the portfolio coming from the ability of the investor to stay with a plan. One may have faith in the skills of the management of a fund or build your own balanced fund. One bond fund and one equity fund or perhaps 2 of each at the most, for more of a diversified mix.
    Only my view, Bobpa.

  • Not sure what your goals are, but the best diversified fund over time may be a retirement target date fund. A lot of these balanced or allocation funds mentioned are focused on US domestic stocks and bonds. It has been for a while, but it won't always be the case that domestic outperforms. My 2 cents. Consider a TRP target date with the equity-bond allocation you're comfortable with.
  • jabax, dodbx sometimes, fpurx
  • @MikeM: It seems to me that you promote of recommend target date funds from time to time. Do you own any TDF's ? I have a small % of taxable TDF's at Vanguard & recently added to Retirement income.
    Have a good one , Derf
    P.S. Do you live in the recent snow zone?
  • Something to be very wary of is that bond rates are at all time lows right now.... I personally would be wary about taking on new positions in bond funds right now
  • edited March 2020
    Hi sir...imho if you have long term horizon >10yrs probably keep trucking and keep place your new monies into lifecycles etf funds or sp500/dows/qqq etf.
    This is what we did before and continued after 2007 crash and we did extremely well

    If short term horizon few yrs til retirement probably best to speak to fidelity or Schwab advisors./vanguard advisors and decide best actions maybe placed to high bond portfolio/cash/monies-CD high quality corporate bonds. We rebalance mama portfolio 16 months ago (she retired now high 50s%bonds and 40%stocks) ; she lost 1.5% over past 5 wks but lots Dividends from Corp bonds come in tomorrow so she maybe happy in next few days

    Her few top holdings DODFX /fidelity contrafund(we stop distributing to these fund),
    But continued to add to fbnd, phk, jnk, fidelity2015 lifecycle fund, poncx, lsbrx
    Very conservative portfolio

    For mine portfolio highest holdings are in brk.b, dows etf, vti vanguard primecap core, vgstx, spy, eem...we continued to add to these recently
    2%in gold, 1% cash

    We added vde energy oil etf late friday
  • edited March 2020
    @Bobpa, did you get out of Intelligent Portfolio? I meet with my Schwab guy this week and that is one of the topics I will discuss with him.

    Hi @Derf. I am not in a target date fund... yet. I have 1/2 my IRA in the Schwab robo but my plan is to reduce that or even get out altogether. When I do a big chunk will go to the TRP 2020 fund.

    No major storms in the Rochester area. In fact it hasn't been to bad a winter here. Forecast is mid to upper 40s the next 10 days. Hoping for an early start to golf season this year!
  • It would help to disclose more on what you already have access to. Not sure why you need more allocation funds.
  • RPGAX is worth considering if you are interested in having some exposure to international stocks and bonds.
  • edited March 2020
    For Mike, yes I did move out of two IRA Intelligent Portfolios. I think they have taken diversification to an extreme, which has affected performance, but to be a fair Schwab rep told me not to expect any outperformance from the portfolio, but I thought it would hold up better during the recent downturn. When I compared them to VWINX they were not doing better than it even before the recent downturn.

    Thank you for all the responses and your time to make them.

  • @Bobpa
    My addition would be SGENX, if you can get it without load. It has NOT been outstanding in the market when it was going up like crazy, but I think it will hold on better than others if this downturn is prolonged. The fact that it holds 9% gold and 13% cash should help. It is not bulletproof, but it is a keeper in my opinion.
  • rpgax gets another vote from me. I"m still holding on to WHGIX. BTBFX and VWELX and its international sibling. If you are feeling lucky then FTEMX.
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