My next article on MFO is about inflation along with a study of funds that do well. I was home on break and just returned to work. I see that I have missed some posts on the discussion board about commodity funds such as COM being lower volatility. Yes, commodity funds will be volatile, but COM has a lower drawdown because it is long/cash on 12 different commodities. COM is a good choice for those wanting inflation protection with lower volatility.
In the article, I will discuss Allianz PIMCO Inflation Response Multi-Asset (PZRMX) which is a real return fund available no-load at Fidelity. Real return funds are less volatile than most commodity funds partly because they have a limited allocation to commodities and some in inflation protected bonds, among other assets. I own the Fidelity FSRRX real return fund. I have researched PZRMX and while I like it, am happy with FSRRX.
After writing the article, I researched Allianz PIMCO Inflation Response Multi-Asset on Vanguard and found that the institutional class (PIRMX) is available with a minimum of $25,000 and lower fees of 0.73% vs 1.18%. It is a fund worth considering.
Comments
FSRRX is obviously no-load/NTF at Fido, but $74.95 fee (higher) at Schwab because Fido doesn't pay-to-play.