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Mr. Waggoner missed the fact that RPHYX is closed to new investors; so this fund, 20% of the monies per his write, would need a replacement for this list.
Staying with Mr. Waggoner's choices, there now exists several other short duration high yield bond funds. A quick check could be to use FSAHX. I only indicate this one fund; as I was familiar with its existing within Fidelity. Lower fee and competitive YTD, vs RPHYX .
I have not reviewed any of the short duration hy funds; as I am not interested in this area, at this time. I have no idea how these funds from different vendors operate their funds; as to whether one may compare these funds against one another.
YTD: FSAHX = +2.47% RPHYX = = +.38%
Obviously, something is different with the investment styles.
Edit: since RPHYX was born; the competition has expanded into this sector type
Waggoner said this in the article about RPHYX, which is closed anyway.
"It invests in short-term, low-quality bonds that have a very low probability of failure. It's designed as a place where you can park your money and earn more interest than you would in a money fund."
Parking your money in a HY fund means keeping an eye on it. How many seniors are going to do that? Wait, USA Today will run an article when it's time to get out, right?
Hopefully not too many readers get their investment advice from USA Today.
@JohnChisum: This is what the article is about. "Here are five funds you should consider as part of a retirement portfolio. You may not want to invest in all of them, or any of them. But each could form a component of your retirement portfolio." Regards, Ted
Comments
Regards,
Ted
Staying with Mr. Waggoner's choices, there now exists several other short duration high yield bond funds.
A quick check could be to use FSAHX. I only indicate this one fund; as I was familiar with its existing within Fidelity. Lower fee and competitive YTD, vs RPHYX .
I have not reviewed any of the short duration hy funds; as I am not interested in this area, at this time. I have no idea how these funds from different vendors operate their funds; as to whether one may compare these funds against one another.
YTD:
FSAHX = +2.47%
RPHYX = = +.38%
Obviously, something is different with the investment styles.
Edit: since RPHYX was born; the competition has expanded into this sector type
"It invests in short-term, low-quality bonds that have a very low probability of failure. It's designed as a place where you can park your money and earn more interest than you would in a money fund."
Parking your money in a HY fund means keeping an eye on it. How many seniors are going to do that? Wait, USA Today will run an article when it's time to get out, right?
Hopefully not too many readers get their investment advice from USA Today.
Regards,
Ted
If I might jump in, ZEOIX, profiled by David, seems to be pretty much the same thing so far as I can tell.