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Core has different meanings to different investors.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.
Thanks, FD1000.My question starts with why do you need a core bond fund?
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.
Yes, I'll have access to WCPBX via Vanguard.Here are several funds which are/were being considered ... WCPBX
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.
I read many investment books/articles and many papers trying to find how to have a better risk/reward performance. I found it in 2000.My first investment book was Andrew Tobias’ The Only Investment GuideYou’ll Ever Need. Most memorable point was that if the stock market ever enters bubble territory you should sell everything and move to cash. I may now be in flagrant violation of Tobias’ advice.
I didn’t know FD needed books. Seems to operate by Divine Inspiration.
You are concentrating on the wrong things:What made HOSIX great to this point is its SD. In terms of returns, HOSIX performed in line with HY bonds, hence my reference to BGHIX. What is unknown is how HOSIX will do when the space gets hit, and it inevitably will. What concerns me most is even looking at the structured space, other funds experienced significantly more volatility (the SD for CLOZ was 3.07 compared to 1.25 for HOSIX...and the max DD was 1.35 versus .16). Was this the result of better bond selection at HOSIX or the possibility that HOSIX has hard to price bonds such that volatility is masked when the bonds perform? Again, no one knows. I think I will still with JSVIX for now. Those guys from Semper have seen tough times before and that provides some comfort. Separate from these bond funds, I've been pretty impressed with BUYW in terms of risk v. reward. Good luck all!
What made HOSIX great to this point is its SD.
Nope. Both performance and risk/SD were great. That's 2 knockouts.
RPHIX has better SD than HOSIX but performance is far behind.
This is exactly what I'm looking for. Performance + lower SD. It doesn't mean I get the best performance; I get good risk-adjusted performance funds.
Remember, SD is based on monthly numbers and does not always show the volatility.
I don't invest in typical HY or EM, and if I do, it's only for weeks.
But if I'm looking for riskier funds, EGRIX, and APDPX would be top funds for me.
See 3+ years of EGRIX, APDPX, BGHIX
(
The fact is that since the inception of HOSIX its CAGR is 8.97 versus 8.01 for BGHIX. I get the comparison over the past three years of the funds you listed on PV...but if you go back past 3 years you can look at how HOBIX compares to BGHIX (surrogate for the HY space) back to 2016. While I get that HOBIX is not HOSIX, if I recall correctly it was still a fund heavily invested in the securitized space. It's not such a pretty picture for HOBIX as BGHIX performed better overall, and even better compared to EGRIX, which shows how different times can yield very different outcomes.
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