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....And who will steer me away from putting money into Total Return ETF right about now? Dividends look healthy. Performance = down -13% ytd. How low will it go? For what it's worth, M* rates it gold, but with no stars yet: too young. Would you call this "Core-Plus?" https://www.troweprice.com/personal-investing/tools/fund-research/etf/TOTR
Let’s frame the question differently. If you had bought 100 grand of it on Dec 31, 2021 how would you feel today? It’s not cheap,,, it’s leveraged and it’s duration is problematic in these times. And it’s trailing my grandson’s piggy bank by how much YTD?
true. The advantages I see are the divs, plus a 13 percent discount, not to fair value, but to share price, compared to jan 1st. it has lost 13 percent ytd, but not me---not in that fund. there is an OEF version, too. DURATION: yes, a negative. 40 percent in top 10, too. concentrated. The OEF shows TURNOVER at 458 percent!!!!! Whoa. It would be for the IRA account, anyhow. I can continue to track it. Along with @hank, I'll be watching equities on Tues, and see if they hold up to what the Futures are showing just now, at almost 4:00 a.m. in the East.
New funds do seem to draw a significant amount of attention. What else makes TOTR attractive?
Looking for a short term bounce? It's down a bit more than average YTD for its category (13% vs 11½%), but not enough to call it out.
Dividends? If one is looking for a bounce, wouldn't it be better to keep the money in the fund than to take the div distributions? (Disclaimer: My personal preference is to focus on total return: what does it profit a man if he should gain the income but lose his shirt?)
High turnover per se doesn't spook me in bond funds, though it probably should. Intermediate bond funds seem to be either sedate or frenetic. There are many Intermediate core/core-plus funds with turnovers above 200%. Some topping 400% include funds from Blackrock (BCBAX, MDHQX), MetWest (MWTRX), TCW (TGFNX, TGMNX), even Vanguard (VCOBX).
I don't put much stock in M*'s analyst ratings, and even less in their computer-generated ones. FWIW, there are other rating services (which might not be any better). FactSet focuses on ETFs, and gives TOTR a 'C' rating (on an A-F scale). Recognia does technical analysis and rates TOTR weak in the short term and neutral in the intermediate and long term. (A security may be rated weak, neutral, or strong.)
To the extent that TOTR is a clone of PTKIX, one could look at that fund's ratings (3* for the past three years).
Here's a piece written a year ago by the fund managers (plus the manager of TRBUX) entitled Navigating the Challenge of Rising Rates. Given the slightly longer than average duration of TOTR, it is interesting to read:
While intermediate- and longer-maturity Treasury yields have been increasing, it is important to keep in mind that our flexible multi-sector approach to managing the Total Return and Ultra Short-Term Bond Funds has allowed us to shorten relative duration and take advantage of relative value among sectors to help offset some of the negative price effects of rising rates
When volume is so low, you can literally see your trade go by on CNBC ticker display. One has to be very careful and must use limit orders. A market buy or sell order of even 1,000 can lead to bad fill. https://finance.yahoo.com/quote/TOTR/history?p=TOTR
When volume is so low, you can literally see your trade go by on CNBC ticker display. One has to be very careful and must use limit orders. A market buy or sell order of even 1,000 can lead to bad fill. https://finance.yahoo.com/quote/TOTR/history?p=TOTR
.......Oh, I get it, now. I appreciate the response, @yogibearbull.
Comments
Competition includes Pimco BOND, Fido FBND, DoubleLine TOTL, etc (all active core-plus ETFs).
Looking for a short term bounce? It's down a bit more than average YTD for its category (13% vs 11½%), but not enough to call it out.
Dividends? If one is looking for a bounce, wouldn't it be better to keep the money in the fund than to take the div distributions? (Disclaimer: My personal preference is to focus on total return: what does it profit a man if he should gain the income but lose his shirt?)
High turnover per se doesn't spook me in bond funds, though it probably should. Intermediate bond funds seem to be either sedate or frenetic. There are many Intermediate core/core-plus funds with turnovers above 200%. Some topping 400% include funds from Blackrock (BCBAX, MDHQX), MetWest (MWTRX), TCW (TGFNX, TGMNX), even Vanguard (VCOBX).
I don't put much stock in M*'s analyst ratings, and even less in their computer-generated ones. FWIW, there are other rating services (which might not be any better). FactSet focuses on ETFs, and gives TOTR a 'C' rating (on an A-F scale). Recognia does technical analysis and rates TOTR weak in the short term and neutral in the intermediate and long term. (A security may be rated weak, neutral, or strong.)
To the extent that TOTR is a clone of PTKIX, one could look at that fund's ratings (3* for the past three years).
Here's a piece written a year ago by the fund managers (plus the manager of TRBUX) entitled Navigating the Challenge of Rising Rates. Given the slightly longer than average duration of TOTR, it is interesting to read: https://www.troweprice.com/content/dam/trp-ecl/global/en/ipc/assets/us-retail-intermediary/2021/april/navigating-the-challenge-of-rising-rates-id0004166/Navigating-the-Challenge-of-Rising-Rates.pdf
Sure, go "all-in".
https://www.barchart.com/etfs-funds/quotes/PTKIX/opinion
https://finance.yahoo.com/quote/TOTR/history?p=TOTR