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A lot of that difference happened early on. If you change the starting data to 2018 or thereabouts, it's a toss-up, but I don't see a clear advantage for one over the other. The type of bond holdings are more likely to be an issue than the governance of the funds.
RLBGX returns were greater than VWENX returns for the trailing 1 year, 3 year, 10 year, and full periods ending March 2024. RLBGX returns were higher in 9 out of 14 full calendar years. During this period, there were two years (2018, 2022) where both funds experienced losses. The 2018 and 2022 losses were greater for VWENX. Both funds are appealing. RLBGX has a minor advantage based on past risk/return data.
Bought back all the shares of NSRGY I sold Friday (small speculative position). As noted earlier it went X-dividend this morning and there would have been a 10% foreign tax on the dividend. (I guess this is all legal.) Also got completely out of SDS (2X inverse S&P). Replaced it with CCOR as a hedge. The 3 hedges, CCOR, SJB, PSQ, account for around 1.5% of portfolio - a “speed-brake” of sorts on down days.
@Observant1, just for information in case you didn't know, Capital Group Core Balanced ETF, CGBL, from American funds parent company Capital Group is I believe a clone or at least very similar to RLBGX in stock holdings. In my quest to have mostly balanced funds anchor my portfolio, I've pushed CGBL close to 10% of total... FWIW.
Thanks for the info. CGBL may be a good option for those who don't have access to RLBGX.
Edit/Add: After reading your post, I did some additional research. CGBL has the same general approach as the mutual fund but it's not a clone. The mutual fund has four equity managers and a balanced manager who are not named managers on the ETF. CGBL has two equity managers who are not named managers on the mutual fund. The mutual fund has four managers who build the bond portfolio while the ETF leverages Capital Group Core Plus Income ETF (CGCP) for its fixed-income exposure.
Submitted an order to buy 2-yr treasury notes at auction in both our IRAs. I’ve been moving most of our investment grade bond funds to laddered treasuries (bills, notes, TIPS).
I’m also taking advantage of the recent spike in interest to add more Treasuries to my ladders. Some of the shorter term CDs in my ladders are starting to mature, and I’m reinvesting the proceeds in Treasuries since their yields are similar with tax advantages and greater ease in selling if necessary. A few of the first CDs I bought last year are callable in May, so I might need to reinvest at that time in noncallable issues.
@MikeM: from what I can see, CGBL is about 30% FI, with another Capital Group ETF, CGCP as the only holding in that asset class. The rest of the fund appears to be all individual stocks. CGCP is labeled a core plus income fund. I don't know how RLGBX invests in FI.
I have Washington Mutual in my TIAA account and I use CGGR, CGGO, and CGDV in our taxable and Roth accounts. I had previously avoided American Funds because of loads.
I don't know how RLGBX invests on the bond side either @BenWP. I don't know much about it at all, though it looks like the same stocks in the top 10 at similar percentages to CGBL. The return trend is very similar also. I've always liked the American balanced fund. That is why I was comfortable giving CGBL a respectable percentage in the portfolio.
I also hold CGDV and to a lesser extent, CGGR. I'm comfortable with Capital as an investment house.
Buying at the 2y T auction Tuesday, unless the rate plunges first thing in the a.m. like it's done a few times in the past, in which case I'll likely cancel before it goes thru. Like with others, the bump up in rates is the attraction, especially with the state income tax benefit.
Otherwise, doing very little trading; I've been happy with a pretty big stake in ultrashort duration, mostly investment grade, mostly floating rate, for months now.
Andy’s said: Otherwise, doing very little trading; I've been happy with a pretty big stake in ultrashort duration, mostly investment grade, mostly floating rate, for months now.
I am taking similar approach on the fixed income side. Today I am rolling over 6 months T bills that matured, and continue to build ladders similar to Warren Buffet.
Schwab gov't Money Fund still at 4.95% yield, TTM. SNVXX. I just took cash in the account and bought some. Pretty damn good rate. Easy to grow. No gas, no time taken. A few keystrokes. Convenient. I'll take it, sure. Everyone watch for falling rates--- if it happens in our lifetime!
Exited the small position in PSQ (inverse NASDAQ).. Pocketed a few pennies from last week’s romp - but too hot to handle. Added to CCOR and SJB. I’m completely out of my shorts, except the small bit in SJB - which shorts junk bonds. If we encounter turmoil in the credit markets I expect it to pop.
FWIW, I have almost nothing in cash at the moment. Waiting for a bump in some of my core holdings to take a bit of risk off the table.
Exited the small position in PSQ (inverse NASDAQ).. Pocketed a few pennies from last week’s romp - but too hot to handle. Added to CCOR and SJB. I’m completely out of my shorts, except the small bit in SJB - which shorts junk bonds. If we encounter turmoil in the credit markets I expect it to pop.
FWIW, I have almost nothing in cash at the moment. Waiting for a bump in some of my core holdings to take a bit of risk off the table.
PUT ON SOME PANTS, BUDDY!!! /ducks
Sorry, been one of those days and I'm getting a bit snarky....
Buy-sell-why: Fighting the FOMO feeling. But I'm losing an argument with myself: wait for the late May divvie to sell PSTL? Do I want to smell that dawg for so long? Meanwhile, my new REIT darling is rising. RHP. Gotta wait for at least a tiny pullback, now....
@Crash - you'll have to explain to me the logic of holding on until you collect the divie. If you sell before it's paid you will have in essence collected the divie. Also, a lot of dividend paying equities seem to ramp up in the days prior to the ex-date by those who wish to collect said dividend and nothing more. They then sell on the ex-date lowering the quote on the stock/ETF/whatever. Not always mind you but I've seen it happen all to often. It likely depends a lot on how eager sellers might be to hold on to the position.
Thanks, @Mark. I don't follow your explanation to this extent: how can I sell before the divvie and ipsofacto "in essence" have collected the divvie, by so doing? (Yes, I've seen some stocks run up before the ex-date. Sure enough.)
@Crash - for example let's say that Stock X has a value of $10 and holds that value up to the ex-date. It also pays a dividend of $0.50. (I'm ignoring all the scenarios of capital gains/losses from selling etc., etc. in this example.)
On the ex-date the value will be listed as $9.50 (you haven't lost anything but you now have a stock at $9.50 + a dividend of $0.50 = $10. If you sell it before the ex-date you still have a stock at $10 which includes the $0.50 dividend scheduled to be paid. The values are the same whether you get paid the dividend or not. In other words the dividend paid is not a bonus on top of the listed stock value. The dividend is incorporated into the listed value of $10.
Comments
Risk/reward data for RLBGX is somewhat better.
Portfolio Visualizer
1 year, 3 year, 10 year, and full periods ending March 2024.
RLBGX returns were higher in 9 out of 14 full calendar years.
During this period, there were two years (2018, 2022) where both funds experienced losses.
The 2018 and 2022 losses were greater for VWENX.
Both funds are appealing.
RLBGX has a minor advantage based on past risk/return data.
Thanks for the info.
CGBL may be a good option for those who don't have access to RLBGX.
Edit/Add:
After reading your post, I did some additional research.
CGBL has the same general approach as the mutual fund but it's not a clone.
The mutual fund has four equity managers and a balanced manager who are not named managers on the ETF.
CGBL has two equity managers who are not named managers on the mutual fund.
The mutual fund has four managers who build the bond portfolio while the ETF
leverages Capital Group Core Plus Income ETF (CGCP) for its fixed-income exposure.
https://www.morningstar.com/funds/4-new-funds-our-radar-2
I have Washington Mutual in my TIAA account and I use CGGR, CGGO, and CGDV in our taxable and Roth accounts. I had previously avoided American Funds because of loads.
I also hold CGDV and to a lesser extent, CGGR. I'm comfortable with Capital as an investment house.
@MikeM - yes, we did well for many years with the American Balanced.
Otherwise, doing very little trading; I've been happy with a pretty big stake in ultrashort duration, mostly investment grade, mostly floating rate, for months now.
FWIW, I have almost nothing in cash at the moment. Waiting for a bump in some of my core holdings to take a bit of risk off the table.
Sorry, been one of those days and I'm getting a bit snarky....
Well, holding short positions does leave you feeling somewhat “exposed.”
Now I am not so sure about what is really being discussed here, so instead of ducking, I'll just show myself out.
Fighting the FOMO feeling. But I'm losing an argument with myself: wait for the late May divvie to sell PSTL? Do I want to smell that dawg for so long? Meanwhile, my new REIT darling is rising. RHP. Gotta wait for at least a tiny pullback, now....
On the ex-date the value will be listed as $9.50 (you haven't lost anything but you now have a stock at $9.50 + a dividend of $0.50 = $10. If you sell it before the ex-date you still have a stock at $10 which includes the $0.50 dividend scheduled to be paid. The values are the same whether you get paid the dividend or not. In other words the dividend paid is not a bonus on top of the listed stock value. The dividend is incorporated into the listed value of $10.