I will transfer the pre-tax portion of my 401(k) to a Rollover IRA and need to replace the bond fund — DOXIX.
DOXIX is a good fund which resides in the M* Intermediate Core-Plus category.
I've expanded the search beyond Intermediate Core and Intermediate Core-Plus bond funds
that many investors utilize for their primary fixed income positions.
Desirable characteristics are listed below.
• at least 5 years of operating history but preferably more than 10 years¹
• short-to-intermediate term duration
• typically holds < 20% high-yield bonds
• typically holds < 20% EM bonds
• low/moderate volatility and max drawdowns
• expense ratio preferably < 1.00%
Here are several funds which are/were being considered (~dozen others were reviewed).
• PFIIX
• PGBIX
• WCPBX
• GBOAX (too much high-yield, lots of EM also)
• DODLX (good trailing returns, low expenses, too volatile)
I've read the posts in the Low Risk Bond OEFs for Maturing CDs thread.
I'm open to your suggestions — thanks in advance!
¹ Unless portfolio managers ran other funds with a similar strategy for > 5 years.
Comments
If you have a subscription to MFO Premium your stated criteria should yield good results.
Thanks for your suggestions!
I've previously checked FATRX and FTHRX but will look into the other funds.
I looked at CBLDX and IMO, it's better than all the funds above.
I checked from 1-1-2020 and it's number one.
For one year it's not number 1, but it's still among the top.
And it's the best risk/reward fund, AKA Sharpe.
It still pays about 5.3% yearly dist based on last month.
The manager's track record is known.
Basic Info
• Asset Universe: Mutual Funds
• SubType: Bond
• Age, years: 10+
Index? No Index Funds
More Basic Info
• Share Class: All Classes (Note: This option takes longer to load, initially.)
• Fund of Funds? No Fund of Funds
More Risk Metrics
• DSDEV Rating: 1 - 2 Below Average
• Down Rating (In Type): 1 - 2 Bottom Quintile
Purchase Info
• Expense Ratio (ER), %/yr: 1.00 or Less
Bond Info
• Quality: BBB or Better
• Junk Plus Non-Rated: 20% or Less
• Duration: 6 Years or Less
• Effective Duration: 6 Years or Less
I set the time period from 202112. There were few results over three years of effective duration, which is not too surprising given the environment we have been in. Here they are by duration length, then lowest ER of the fund without regard to purchase conditions: FIJEX, PGBIX, SNGVX, VCFIX. HWDVX, FPNIX.
When I looked at the results for the last twelve months there were no funds with a duration over 2.3. It has been a bumpy flight.
So then I dialed out to ten years and ended up with PGBIX, SNGVX, HWDVX, and FPNIX.
I might try dialing up the risk factor a little later today, but I think this post has gone on long enough.
I was going to ask how you would purchase WCPBX, or in the alternative say wow, I'm impressed, $1M min in most places.
But upon checking, I see that Vanguard offers it with a $500 min. Any other ways to access it?
WABAC mentioned possible concerns over large amounts of securitized debt (presumably with its distinctive risk profile). DODIX holds 50% in securitized debt. Perhaps that is why its drawdown 8/1/21 to 10/31/22 (using monthly performance figures) was -15.11% (per M*). And its risk score (again, M*) is 16, which is a little high if one is looking for a moderately conservative bond fund.
The point is that in stretching constraints a bit one can sometimes turn up an interesting prospect. (Mona made the same point.)
With that in mind, TSIIX may be worth a look. Taking together both its junk rated (19.31%) and its unrated (5.57%) bonds, its remaining (IG) holdings are a bit under your 80% min target. And its securitized holdings, though less than those of D&C (3/8 vs 4/8) are still substantial.
Counterbalancing this is its superior stability (3,5,10 yr std devs all around 4) and a max drawdown between 10/1/21 and 10/31/22 (monthly performance) of "just" -8.09% (M*).
Personally I like the fact that its portfolio allocations can change significantly. But that does mean that you would run the risk of it meandering well outside your guardrails from time to time.
If I was looking to creep out on the duration limb I might look at similar constraints.
But, you know . . .
So I tacked CBLDX onto my query.
I did not put a duration floor on my query, and it should go without saying that the funds mentioned below will have much less of it.
I'm not making any adjustments in the ranking for multiple share classes.
At five years CBLDX would have given you the better Sharp, but BATPX would have returned 8.2 vs 6.1
At four years CBLDX wins on Sharp, but is outperformed by BATPX, LCTIX, and ENIAX.
At three years CBLDX still leads on Sharp. There are now seven funds ahead in performance one of which is ENIAX only .12 behind in the Sharp race.
At 2.5 years CBLDX falls to 16th place on Sharp. It ties for 6th place on returns.
At two years CBLDX drops down to 20th place on Sharp. It ties for 9th place on returns.
At 1.5 years CBLDX is way down there on Sharp. It's down to 10th place on returns.
At one year CBLDX falls to 29th place on Sharp. It's now back up to 6th place on returns.
MFO Premium works on month to month numbers. If you have a way to track daily performance then your results may differ.
I did the ranks by human-powered eyeball, so let me know if you see an error when you run the query as I have.
Thanks, WABAC.
You've given me lots of homework to do!
I'm not aware of any other brokerages which allow access to this fund
with a low minimum investment but haven't conducted extensive research.
I'll look into TSIIX.
Thanks!
To complement my equity holdings, I'm seeking a primary bond fund with the potential
for higher future returns than DODIX or BCOIX without assuming too much risk.
CBLDX is an excellent fund and David Sherman is a talented portfolio manager.
However, CBLDX has a greater allocation to below investment-grade bonds
than I'm comfortable holding within my primary bond fund.
I am considering this fund as a potential satellite position
with a considerably smaller allocation in a different account.
I also like RCTIX and ICMUX for this role.
CBLDX as of 06/30/2025 (M*)
BB - 10.79%
B - 24.24%
Below B - 0.20%
Not Rated - 26.75%
RCTIX as of 08/31/2025 (River Canyon)
BB - 14%
B - 22%
Below B - 10%
Not Rated - 19%
ICMUX as of 06/30/2025 (Intrepid Capital)
BB - 30.8%
B - 30.7%
Below B - 7.3%
Not Rated - 20.9%
CBLDX=I don't pay too much attention to ratings and a lot more to actual performance,risk,SD. Sherman proved it already.
TSIIX lags CBLDX for 1-3 years. No go.
WCPBX made just 10% in 5 years. No go.
Anything VG bond funds is always a no-go for me, including VCPAX.
BATPX: too volatile. No go
LCTIX: higher SD than CBLDX, lower performance for 1 year. Higher for 3-5.
ENIAX: similar to CBLDX
ICMUX: more volatility but the best return for 1-3-5 years.
Now, it depends on your allocation, style, and how long you hold. I always invested in bond funds with good risk/reward but also great performance. Never high-rated bond funds.
Neither are the kind of thing I would go in for. But I had fun with the query.
I might take a longer look at some of the shorter duration funds that showed up. People are a little too comfortable with "inflation in line with expectations" to tempt me further out on the duration limb than I already am.
Exactly! That's a big motivator in commenting on some threads.
I may have a sense of what Observant1 is looking for. As I tried to prune my portfolio I sought a reasonably behaved solid bond fund to anchor the fixed income side of my portfolio. Something that would return more than cash-ish or run of the mill short-ish funds. I don't look at long duration (these funds are more suitable for bets on interest rates than for long term, stable holdings). I'm willing to take on some credit risk but not sink into a junk-heavy portfolio. And preferably a core fund would have a long track record from a well regarded money manager.
On the one hand, one can stretch boundaries a bit to avoid lagging. OTOH, one tries to avoid taking on fundamental risks regardless of how well behaved the fund appears to be. Performance, even risk adjusted performance is not the end all.
In the interest of partial disclosure
I've taken a careful look at CBLDX but like Observant1 don't feel it is good in a core position. Rather, I could use it to stretch risk in my near-cash (0-5 year) sleeve. For that satellite role I find it a close call.
OTOH, one tries to avoid taking on fundamental risks regardless of how well behaved the fund appears to be. Performance, even risk adjusted performance is not the end all."
Very well said, sir!
I spent some part of my working life selling raw data to people looking for answers. Some people asked better questions than others.
I really enjoyed @Observant1's specificity.
If DODIX is considered core for many, I would invest twice in CBLDX as my core. I rather have a great manager, with small AUM that knows how to select bonds and navigate markets.
BTW, I have been posting for several years about the following 3 funds managed by Sherman from less risky to more RPHIX(great "sub" MM), CBLDX, and RSIIX.
3 year Sharpe based on MFO...DODIX=0..........CBLDX=1.8 and...RSIIX=1.25.
5 year Sharpe based on MFO...DODIX=(-0.3)...CBLDX=1.8 and...RSIIX=1.4.
There are rate-hedged investment grade bond funds / etfs which provide the income stream of longer dated maturities without subjecting you to much rate risk. These sell Treasury’s short to offset rising rates in their long term holdings. IGHG and AGZD are a couple I’ve owned. AGZD is higher quality. I’d probably do a 50/50 split. Of course, if inflation and interest rates fall, as they did for much of the past 30 years, you’re better off in conventional bonds.
And I think that 25+ year period probably distorts a lot of what we perceive when researching funds’ past performance.