Most of the MFOers who held the DoubleLine CAPE funds were displeased (shocked?) at their performance during market downturns, first in 2018, then this year. Almost since the inceptions of DSENX and MOAT (Morningstar Wide-Moat ETF),
I have held both funds and I periodically owned CAPE, the ETN. Up until the past few months, performance was quite similar, with both methodologies regularly besting SPY. This is no longer the case as MOAT has shown itself to be the superior fund. As I may have previously mentioned, I have exited all CAPE strategies while maintaining my MOAT positions. I won't quibble here about whether the CAPE approach is value or blend. MOAT is LCB without argument. My finding is that wide-moat investing works and that the CAPE strategy, dependent as it is on the bond "sauce," does not work as well. FWIIW, I have not found a member of this board who owns MOAT, although I have mentioned it before. Please come out of the woodwork because it's lonely at the head of the train (LOL).
I use this fund as a "core" domestic holding (could be a mistake on my part). If I sold DSENX, I would substitute VTI. Any opinions as to DSENX's suitability as a core domestic holding going forward?
I have been heeding the 'growth has got to end at some point' arg for over 40 years and have 'sacrificed' mucho dollars investing prudently in value funds, all the best ones.
Could hardly care less about pricing and spreads unless egregious.
DSE_X has suffered from the bond discombobulation, yes. I would not advise anyone to bail out of it tho unless they were simply going to shift to CAPE, which gives many investors fits, for extraneous reasons.
If you want to hold the equities and are eyeing VTI, don't forget about considering RSP.
Others smarter here have delved the various gogo bond areas each of these funds works in. Regardless, I am willing to believe that CAPE will do as well as / better than DSE_X in the near term and perhaps beyond, and am looking forward to getting out of my Pimco holdings when back to breakeven and into less gogo.
@BenWP, ty for VONG mention, was looking at that, had been thinking that in retirement I would just stick with the varsity, but will continue to, or perhaps resume is better, mull and reconsider. Some days I remain in poky mode.
I'm also going to get out (or mostly out) if/when PONAX breaks even. I know that's not necessarily a good investment strategy, so I may act earlier and book a loss.
See graph here. (Graph only shows CAPE through 5/21; it closed up 0.24% on 5/22)
The graph does show fairly clearly that the bond portion of DSEEX is not, however, mimicking PONAX. If it were, the spread between DSEEX and CAPE would have been microscopic until a week ago (since PONAX was roughly flat for the first couple of weeks in May).
CAPE: +0.35% + 0.24% (Friday)