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Thoughts on DIAL

I have been watching Columbia Diversified Fixed Inc Allc ETF (DIAL) for the past 2-years. As a multi-sector fixed income ETF:

This fund seeks investment results that, before fees and expenses, closely correspond to the performance of the Beta Advantage® Multi-Sector Bond Index.

The Beta Advantage® Multi-Sector Bond Index is a rules-based multi-sector strategic beta approach to measuring the performance of the debt market through representation of six sectors, each focused on yield, quality and liquidity of the particular eligible universe. The index will have exposure to the following six sectors of the debt market: U.S. Treasury securities; global ex-U.S. treasury securities; U.S. agency mortgage-backed securities; U.S. corporate investment-grade bonds; U.S. corporate high-yield bonds; and emerging markets sovereign debt.

It’s 3-year history shows:

YTD = 8.26 / 3-year CAGR = 6.64 / StDev = 5.51 / sharpe = .93 / sortino = 1.22

I am interested in this ETF as a substitute for PIMIX and would appreciate your thoughts / opinions...

Brian aka level5


  • edited December 2020
    DIAL looks to me as a pretty good option:
    1) ER=0.28% is cheap for Multi sector bond. PIMIX ER=1.09%(I know, it includes borrowings and repurchase agreements but still it's expenses)
    2) Risk/reward looks good. I used MFO data for 3 years, Multi sector funds + MFO rating of 4-5 and DIAL showed up while PIMIX didn't.
    3) Distribution are at the lower range under 3%.

    See MFO Table (link).
  • @FD1000 - thanks so much for your research and opinion!
  • I'm still not sure I want to bet against PIMCO over the longer term, even with the bloat in PIMIX, it's my largest holding. As for an ETF, I like FIXD.
  • edited December 2020
    @wxman123 - thanks for your thoughts. I’ve been invested in PIMIX for the past 3-years during it’s asset bloated period and investment faux pas (see Argentina). Analysis and opinions from online folks has challenged me to reconsider this position on multiple occasions, even while it manages to surge during the 4th quarter each year. Still, I’ve scaled it back by 50% of my original investment.

    I’ve appreciated DIAL’s rule-based investment theme of maintaining positions in 6 categories:
    - HY Corporates = 30%
    - Emerging Market debt = 20%
    - US MBS = 15%
    - US IG Corporates = 15%
    - US Treas = 10%
    - Global Treas = 10%

    Best to all!

    Brian aka Level5
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