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  • Roy June 2021
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Ping Roy, allocation mix with ETF's

catch22catch22
in Fund Discussions
Hi @Roy

From Golubs thread of MUTUAL FUNDS WHY .....

You wrote: Moderate allocation fund, PRWCX as mentioned in the past holds the bulk of our investments. Never used an ETF to this point which doesn't mean we may not sometime in the future. I have looked at allocation ETFs in the past to compare to PRWCX and have been left wanting. Thus, actively managed mutual fund over an ETF.

Haven't looked at MA ETFs anytime recently, but if anyone has knowledge of any worth examining, bring it on.

>>>>>

Not unlike mutual funds and your allocation mix, you may build your own mix with etf's, too.

*** stockcharts data is total return for a period, which includes any distributions.

*** two examples in charts.

PRWCX, 10 year total return

QQQ and AGG,10 year total return

The above PRWCX 10 year return = 231%

The above, QQQ and AGG, with a mix of 50/50 and using a simple average between the two etf's for total return = a combined 10 year return of 302%.

Mental benchmarks that I use for what I consider two high class allocation mutual funds are VWINX and FBALX. VWINX has a nominal mix of 30/70, equity/bond and FBALX has a nominal mix of 70/30 equity/bond.

One could mix QQQ and AGG for any combination of equity/bond percentages.

Broad bond etf list

Broad growth etf list


Perhaps the most substantial question now is, what performance paths do the various bond types travel into the future; with many types having had a most decent 40 year run.

My 2 cents worth about this topic.

Regards,
Catch

Comments

  • Roy
    Hey catch, thanks for your suggestions.

    Yes, in the past I paired up some equity funds with bond funds for a desired allocation mix. Beginning in 2006 mainly switched to moderate allocation funds, primarily PRWCX, but also a few others. One reason then as now and going into the future was for simplification. My wife is not interested in investing, so I needed a plan that could largely run itself if something happened to me. We are 57 & 54 and have largely saved what we will probably need for retirement and are pretty much just looking for moderate growth for the next 5-7 years.

    I'm guessing Giroux is around 10 years younger than I which may mean another 13-18 years at PRWCX before his retirement, fingers crossed. After which I would still be looking for a one stop fund of some sort. From my minimal research, current allocation ETFs (AOR for example) are pretty lousy compared to PRWCX.
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