I only started following this fund in the last several months.
SVARX is a fund of other fixed income funds. The ER=2.95 is very high, but the results are very good. Several of these funds have ER of 1.5% already. BTW, in 03/2020 the fund lost less than 2% peak to trough. The risk-adjusted performance easily beat VBINX+VWIAXAs of 1/15/2020:
(One year SD is from PortVis)
SVARX performance/SD...............1 year=23.4%/6.4.......3 year=10.4% annually/5.4.....5 year=11.4% annually/4.9.
VBINX (60/40) performance/SD.....1 year=23.4%/16.8.....3 year=11.2% annually/11.9...5 year=11.15 annually/9.7.
VWIAX (40/60) performance/SD.....1 year=23.4%/11.55...3 year=7.2% annually/7.7......5 year=8.0% annually/6.3.
When you look at their (site
) they do a good job not to mention the fact they invest in other fixed income funds.Their top funds from M* as of 9/30/2020
are and by now it's probably different
Recv Nuveen Prf Secs Inc
Pimco Govt Mm Instl
Eaton Vance Floating=bank loans
Ishares Tr Pfd Inc S (-10%)
The yield is low under 1% for 2020 and about 3-3.5% for 2019 and about 2.5% in 2018.
So, if you are looking for a good risk/reward fund, maybe that's the one. See one year (chart
) and change to 3-5.
I'm not sure what the managers of SVARX are doing, but I managed my own portfolio with the following goals: making more than 6% annually, never losing more than 3% from any last top, SD under 3
. In the last 3 years, since retirement in 2018, I have used mainly bond funds with several very short term (hours-days) of stocks/ETF/CEFs, usually very concentrated in 2-3 bond OEFs, using momentum and switching between best performing funds but also selling to cash when risk is very high as I did in Q4/2018 and Q1/2020. My portfolio risk-adjusted performance below as of 12/31/2020 are actually even better. Directly from Schwab, you can see below that SD=2.3 for both one and three years. The portfolio never lost more than 1% from any last top during 2018-2020.