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Well. I won't argue with the numbers, then. Yes, my two junk funds are TUHYX and PRCPX. The former is two and a half times bigger than the latter. And I also hold Investment Grade WCPNX. I got into my junk just exactly at the wrong time, before the Fed's rate hiking cycle. I rode the buggers down, then back up. Reinvested all profit. I'm ahead of the game by now. Since 2018, there have been 2 terrible years, one of them being the historically putrid year of 2022. And PRCPX: right now having its worst year since 2015.
Funny, how Morningstar's performance charts don't look like they match the actual sadistics. But it's Morningstar, so... I've looked and looked for similar yields elsewhere. I'm not married to these two, but I want to discover something else that looks better to me, before I make a move. If The Fed reduces rates again, I suppose these two will benefit, like all the others.
As mentioned by @Catch22 in this thread, the yield on the 10 year treasury has increased 17.4% since September 16.
Under the circumstances, what have you done for me lately means between the last week and the last four weeks (YMMV.) Over that time period some very nice short term funds are under-performing SPAXX. If M* can be believed the SEC yield for SPAXX is 4.31 to 4.29 for RPHIX though the total return for the latter is still slightly ahead.
If M* can be believed the SEC yield for SPAXX is 4.31 to 4.29 for RPHIX though the total return for the latter is still slightly ahead.
30 day and 7 day SEC yields measure different things.
The yield for MMFs including SPAXX is the average current (i.e. distribution) yield (before compounding). The yield for other funds is a 30 day average yield approximating YTM, i.e. projected future total return.
To simplify the non-MMF case, consider an OEF holding a single bond to maturity. If that bond matures in one year, pays a 7% (of face value) coupon semiannually, and is priced at $1,020. Then its YTM (SEC yield) is 4.902%. Its distribution yield is 7% x $1000/$1020 = 6.863%. http://www.moneychimp.com/calculator/bond_yield_calculator.htm
Likewise, I can't find the 30 day SEC yield for RPHIX on M*. Nor can I find it on RiverPark's site. The best I can find there is an SEC yield of 4.61%as of June 30th. While I do find an SEC yield of 4.29%at Schwab.
However, going by that source, Schwab also gives the current (7 day SEC) yield of SPAXX as 4.49%. Same as Fidelity (to be expected).
My bottom line: RPHIX has outperformed SPAXX over the past 1 month through 9/30, I believe, which I'll take as approximating current performance. In October (through 10/25) RPHIX has returned 0.31% (per M* graph). Without compounding, that's 4.5%, still slightly outperforming SPAXX.
I still expect RPHIX to outperform after-tax, but it will be close. As far as MMFs go, especially in high tax states, these Treasury-only MMFs seem like no-brainers.
Likewise, I can't find the 30 day SEC yield for RPHIX on M*.
I'm reporting what I see in the watch list I've created at M*. To my custom view I can add %SEC Yield, and 4 Week Total Return which gets relabeled to Total Return 1 Month on the view. M* then fills those fields with numbers. Where those numbers come from I couldn't tell you. Your work is an example of why I prefaced my post with: "If M* can be believed."
Thanks! That was stupid of me, I even have a view like that set up for exactly that purpose. Though I hadn't included the 30 day SEC yield column before.
Definitions matter. If you look at the M* SPAXX page I linked to, under the "Performance" tab you'll see a one month return of 0.36%.
Now look at the "Chart" tab. Click on the 1M setting. A different gain - 0.37% (actually 0.3727%). At least there we can see that this return is from 9/24/24 through 10/25/24.
And it gets worse. Here's another Fidelity page giving 1, 7, and 30 day returns for SPAXX, without saying what exactly they represent. My best guess is the average daily dividend payout over the past 1, 7, and 30 days annualized (i.e. no compounding). But who knows? https://institutional.fidelity.com/app/fund/sasid/details/458.html
While Morningstar doesn't mention 30-day SEC yield on its mutual fund Quote pages, its reported YTM yield on the Portfolio page is the 30-day SEC yield.
M* does report 30-day SEC yield for ETFs on the main Quote page.
Thanks! That was stupid of me, I even have a view like that set up for exactly that purpose. Though I hadn't included the 30 day SEC yield column before.
Definitions matter. If you look at the M* SPAXX page I linked to, under the "Performance" tab you'll see a one month return of 0.36%.
Now look at the "Chart" tab. Click on the 1M setting. A different gain - 0.37% (actually 0.3727%). At least there we can see that this return is from 9/24/24 through 10/25/24.
While M* doesn't say when it omits SEC yields for funds, for ETFs it says that "When a dash appears, the yield available is more than 30 days old." (This is from mousing over the SEC yield field on any ETF Quote page.)
Comments
Funny, how Morningstar's performance charts don't look like they match the actual sadistics. But it's Morningstar, so... I've looked and looked for similar yields elsewhere. I'm not married to these two, but I want to discover something else that looks better to me, before I make a move. If The Fed reduces rates again, I suppose these two will benefit, like all the others.
Under the circumstances, what have you done for me lately means between the last week and the last four weeks (YMMV.) Over that time period some very nice short term funds are under-performing SPAXX. If M* can be believed the SEC yield for SPAXX is 4.31 to 4.29 for RPHIX though the total return for the latter is still slightly ahead.
The current 7 day yield for the Fido MM, SPAXX = 4.49%. Down from last weeks 4.52% yield.
YTD return is indicated at 4.10%, as of 10-25-24
The yield for MMFs including SPAXX is the average current (i.e. distribution) yield (before compounding). The yield for other funds is a 30 day average yield approximating YTM, i.e. projected future total return.
To simplify the non-MMF case, consider an OEF holding a single bond to maturity. If that bond matures in one year, pays a 7% (of face value) coupon semiannually, and is priced at $1,020. Then its YTM (SEC yield) is 4.902%. Its distribution yield is 7% x $1000/$1020 = 6.863%.
http://www.moneychimp.com/calculator/bond_yield_calculator.htm
SPAXX's 7 day yield as of 10/25/24 is 4.49%, compounding to an annual yield of 4.59%.
https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/31617H102
I'm not sure where you found any SEC yield for SPAXX on M*. Here's M*'s page for the fund: https://www.morningstar.com/funds/xnas/spaxx/quote
Likewise, I can't find the 30 day SEC yield for RPHIX on M*. Nor can I find it on RiverPark's site. The best I can find there is an SEC yield of 4.61% as of June 30th. While I do find an SEC yield of 4.29% at Schwab.
However, going by that source, Schwab also gives the current (7 day SEC) yield of SPAXX as 4.49%. Same as Fidelity (to be expected).
My bottom line: RPHIX has outperformed SPAXX over the past 1 month through 9/30, I believe, which I'll take as approximating current performance. In October (through 10/25) RPHIX has returned 0.31% (per M* graph). Without compounding, that's 4.5%, still slightly outperforming SPAXX.
https://fundresearch.fidelity.com/fund-screener/results/compare/short-term-perf/averageAnnualReturnsYear3/desc/1?order=&tickers=RPHIX,SPAXX
https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/ICCRateSheet.pdf
I still expect RPHIX to outperform after-tax, but it will be close. As far as MMFs go, especially in high tax states, these Treasury-only MMFs seem like no-brainers.
https://fundresearch.fidelity.com/fund-screener/results/compare/short-term-perf/averageAnnualReturnsYear3/desc/1?order=&tickers=RPHIX,FSIXX
Definitions matter. If you look at the M* SPAXX page I linked to, under the "Performance" tab you'll see a one month return of 0.36%.
Now look at the "Chart" tab. Click on the 1M setting. A different gain - 0.37% (actually 0.3727%). At least there we can see that this return is from 9/24/24 through 10/25/24.
30 days hath September, April, June, and November ... or something like that.
https://poets.org/poem/leap-year-poem
And it gets worse. Here's another Fidelity page giving 1, 7, and 30 day returns for SPAXX, without saying what exactly they represent. My best guess is the average daily dividend payout over the past 1, 7, and 30 days annualized (i.e. no compounding). But who knows?
https://institutional.fidelity.com/app/fund/sasid/details/458.html
M* does report 30-day SEC yield for ETFs on the main Quote page.
The YTM field is not described in M*'s documentation for its fund portfolio page.
https://awgmain.morningstar.com/webhelp/glossary_definitions/indexes/mfportfolio.htm
However, elsewhere M* says that it gets this figure from the fund company; it does not calculate the number itself.
https://advisor.morningstar.com/Enterprise/VTC/FI_Survey_Guidelines_cashRevision_FINAL.PDF (2016)
https://advisor.morningstar.com/AWSOE/Training/WMCloud/FIEA/FIEAFAQ.pdf (2020)
While M* doesn't say when it omits SEC yields for funds, for ETFs it says that "When a dash appears, the yield available is more than 30 days old." (This is from mousing over the SEC yield field on any ETF Quote page.)