Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
TCW Funds/TCW Metropolitan West Funds liquidates funds
This fund served as a competitor to PSTKX while being slightly cheaper and performing slightly better. It even bested VFIAX over the past decade by a hair, though hugely tax inefficient. But unlike PSTKX ($2.6B AUM) it didn't get much love ($30M AUM). Portfolio Visualizer comparison
Both this fund and PSTKX go to show that building a better mousetrap with derivatives is relatively costly, often tax-inefficient, and at the end of the day doesn't come out any better than old, boring vanilla.
"Both this fund and PSTKX go to show that building a better mousetrap with derivatives is relatively costly, often tax-inefficient, and at the end of the day doesn't come out any better than old, boring vanilla."
MWATX and PSTKX returns lagged VFIAX returns over the trailing 3 Yr and 5 Yr periods. PSTKX returns lagged VFIAX returns by 52 bps over the 10 Yr trailing period and the fund experienced a greater max drawdown. MWATX returns exceeded VFIAX returns by 26 bps over the 10 Yr trailing period albeit with a greater max drawdown and lower Sharpe/Sortino Ratios.
Comments
This fund served as a competitor to PSTKX while being slightly cheaper and performing slightly better. It even bested VFIAX over the past decade by a hair, though hugely tax inefficient. But unlike PSTKX ($2.6B AUM) it didn't get much love ($30M AUM).
Portfolio Visualizer comparison
Both this fund and PSTKX go to show that building a better mousetrap with derivatives is relatively costly, often tax-inefficient, and at the end of the day doesn't come out any better than old, boring vanilla.
often tax-inefficient, and at the end of the day doesn't come out any better than old, boring vanilla."
MWATX and PSTKX returns lagged VFIAX returns over the trailing 3 Yr and 5 Yr periods.
PSTKX returns lagged VFIAX returns by 52 bps over the 10 Yr trailing period
and the fund experienced a greater max drawdown.
MWATX returns exceeded VFIAX returns by 26 bps over the 10 Yr trailing period
albeit with a greater max drawdown and lower Sharpe/Sortino Ratios.