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Holy Sh-t . That is a ridiculous amount of new choices!
More than I want to deal with, even if there are some gems to uncover. Problem is, gems usually take quite a while to show their glow.
I have been going more the ETF route using Advantis and Capital Group funds mostly. Consistent and above average returns is all you can hope for with so many options.
Not brand new (January 2020) - But would appreciate any takes on LCR from Leuthold. The Professor mentions a cousin LCORX in his November commentary. Both funds have “gold” ratings at M*. The ETF is a little less expensive at .85% (waiver in effect) than LCORX. But .85% still seems high to me for a ETF. The objectives appear similar. However, from what I can tell LCR invests in other ETFs, while LCORX owns stocks / other assets directly.
Probably won’t buy either. Sticking with a 10 component allocation model I’ve used for a number of months now and like. So would need to toss another holding out to make room for anything new.
Hi @hank. I bought into LCR earlier this year when I pulled a large chunk of money out of my Schwab robo and put it in my self-managed account. Seemed like a "safer" way to stay somewhat in equities while the market was trying to figure things out this summer. David's commentary influenced me also.
What mattered to me in choosing LCR over LCROX was that their trend lines have pretty much laid on top of each other since LCR inception. I'm assuming since, as you mentioned, LCR holds index ETFs versus stocks, the manager just categorizes by sector the stocks in LCORX and buys that sector percentage in corresponding index ETFs to match. Just my assumption. I have no way of knowing for sure how they actually do get virtually the same return. And the exp. ratio of LCR is a heck of a lot less than LCORX. I personally don't think the LCR exp. ratio is any higher than most other actively managed ETFs.
I'm still holding much more cash than I have in the past due to the robo sale. I've been maybe to conservative. I like the idea of using balanced funds long term, so with LCR at the limit I want it at, I'm now looking at the new Capital Group ETF, CGBL, to put some cash.
Thanks Mike for your thoughts re LCR. That’s about what I’ve gathered as well from couple hours looking at it. Yes, returns since LCR opened are similar.
I had overlooked your comment re robo. (Got it now.)
Adding to my earlier comments … 3 stocks count as 10% of portfolio combined. Than 10% in cash. 8 assorted funds make up the rest. (KISS)
That is a very long, long list - did not know that many launched in 2023. Many are not seeded by fund companies. I wish the website gave a choice to view them by categories.
I confess I haven’t looked at the list. Don’t deal well with complexity.
Common sense advice from Henry David Thoreau:
“An honest man has hardly need to count more than his ten fingers, or in extreme cases he may add his ten toes, and lump the rest. Simplicity, simplicity, simplicity. I say, let your affairs be as two or three, and not a hundred or a thousand; instead of a million count half a dozen, and keep your accounts on your thumb nail.”
Just looked at the list. Such niche products. Reminds me of the PhD. dissertation titles I'd see posted back in my school daze. I held just a couple ETFs very briefly. They were unsatisfying. Like hank, I'm holding 11 positions and don't want to add. I might sell and redeploy one in particular, but don't need a 12th thing. FIVE single stocks, with far from equal weightings, represent 13% of my total.
For income, I'm chewing on whether to sell that one, but not buy a stock to replace it; instead, I have designs upon PRHYX. (Junk.) Re-opened a while ago. In the taxable account, there are no bonds yet. And I could eventually tap into the monthlies, but there's not a real need to do so, anytime soon.
I held just a couple ETFs very briefly. They were unsatisfying.
… I have designs upon PRHYX. (Junk.)
I used to own PRHYX. One of my biggest mistakes was selling it after Price closed it. But, generally, I don’t have the temperament to deal with junk, so have none except for what an allocation fund might hold.
ETFs? I’ve expressed some concern recently whether over the long term they’ll do as well as similarly designed traditional mutual funds. Those concerns have been dismissed by several smart people. You can’t argue with the lower fees. I own just one ETF along with one CEF. I’ve learned CEFs can be highly volatile / feel like being aboard a steep roller-coaster.
Comments
More than I want to deal with, even if there are some gems to uncover. Problem is, gems usually take quite a while to show their glow.
I have been going more the ETF route using Advantis and Capital Group funds mostly. Consistent and above average returns is all you can hope for with so many options.
Probably won’t buy either. Sticking with a 10 component allocation model I’ve used for a number of months now and like. So would need to toss another holding out to make room for anything new.
What mattered to me in choosing LCR over LCROX was that their trend lines have pretty much laid on top of each other since LCR inception. I'm assuming since, as you mentioned, LCR holds index ETFs versus stocks, the manager just categorizes by sector the stocks in LCORX and buys that sector percentage in corresponding index ETFs to match. Just my assumption. I have no way of knowing for sure how they actually do get virtually the same return. And the exp. ratio of LCR is a heck of a lot less than LCORX. I personally don't think the LCR exp. ratio is any higher than most other actively managed ETFs.
I'm still holding much more cash than I have in the past due to the robo sale. I've been maybe to conservative. I like the idea of using balanced funds long term, so with LCR at the limit I want it at, I'm now looking at the new Capital Group ETF, CGBL, to put some cash.
I had overlooked your comment re robo. (Got it now.)
Adding to my earlier comments … 3 stocks count as 10% of portfolio combined. Than 10% in cash. 8 assorted funds make up the rest. (KISS)
Anybody else own LCR?
The only new ETFs I'd be interested in are from Capital Group and maybe TRP, but not pulled the trigger on any of them yet.
Common sense advice from Henry David Thoreau:
“An honest man has hardly need to count more than his ten fingers, or in extreme cases he may add his ten toes, and lump the rest. Simplicity, simplicity, simplicity. I say, let your affairs be as two or three, and not a hundred or a thousand; instead of a million count half a dozen, and keep your accounts on your thumb nail.”
Walden (1854)
For income, I'm chewing on whether to sell that one, but not buy a stock to replace it; instead, I have designs upon PRHYX. (Junk.) Re-opened a while ago. In the taxable account, there are no bonds yet. And I could eventually tap into the monthlies, but there's not a real need to do so, anytime soon.
ETFs? I’ve expressed some concern recently whether over the long term they’ll do as well as similarly designed traditional mutual funds. Those concerns have been dismissed by several smart people. You can’t argue with the lower fees. I own just one ETF along with one CEF. I’ve learned CEFs can be highly volatile / feel like being aboard a steep roller-coaster.