A pundit I watch mentioned PFIX (Lipper score card above) as a potential buy 3-4 weeks ago. So I’ve been tracking it, just as I sometimes track funds folks here mention or buy.
The idea behind this fund makes sense. Profit from the increase in interest rates everybody and his brother (or sister) expect to be coming by shorting longer dated bonds. This fund attempts to do that. I haven’t studied the mechanics. And don’t own it. Judging by the dismal 4 week results it must be using some leverage.
Since inception (May 10, 2021): -18.9%
Last 4 weeks: -13%
Not to flagellate a fund (or anyone who might have thought it a good idea). But might be sobering, possibly instructive, for all of us to consider the difficulty “calling” interest rates. Just because everybody agrees they’re going to rise doesn’t mean they will - at least anytime soon.