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In this Discussion

  • bee November 2012
  • hank November 2012
  • Ted November 2012
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Investors Move Out Of Junk To High-Grade Debt

TedTed
edited November 2012 in Fund Discussions
FYI: On Friday, took some cash and opened a position in Vanguard's Long-Term Corporate Bond ETF (VCLT).
Regards,
Ted
http://www.marketwatch.com/Story/story/print?guid=E7484BF2-300F-11E2-97FC-002128040CF6

Comments

  • beebee
    edited November 2012
    Looks like a good performer over the last 1,3 and 5 years. Going back over 5 years (VWESX has a 10.4% 5 year average return)...hopefully it continues. Thanks for the update.

    Others in this space I have researched:
    PBDDX (PCTIX)
    DEERX (DEEIX)

    I wonder if trading in this space causes these inflow/outflow dynamics? Volitility is a bit higher in this ETF than the average in this space.

    Related article:
    November Outflows:
    VCLT: Large Outflows Detected at ETF
    October Inflows:
    Vanguard Long-Term Corporate Bond ETF Experiences Big Inflow
  • Dear Bee: I bought VCLT rather than VWESX because I didn't want to open an account with Vanguard. VWESX is a great fund with an annualized return of 8.92% since inception with 38 up years, and only 4 down years (1999,1994,1979,1974).
    Regards,
    Ted
  • edited November 2012
    Nearly posted this - the linkster got there first. Biggest moves are out of junk ETFs. Apparently, pricing is more volatile (trading throughout the day) than for mutual funds where price is settled at day's end. Hope moving to higher quality bonds at current rates isn't akin to leaping from pan into fire. Perhaps as short or intermediate play makes sense. Rates spiked month ago then retrenched. May have fueled the rally. fwiw
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