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Can FPURX, FBALX Beat the "Vanguard 3-Fund Portfolio"
Any Balanced fund that limits its international exposure will have done really well over the past decade+. FPURX and VWELX are the 2 that I spent the most time looking at for my parents. had we moved them to vanguard or Fidelity that is what they'd of got.
Right now we are working on moving about 9 american funds into ABALX...(meh)
VWELX and RLBGX have very similar expense ratios. The expense ratios are 0.26% and 0.25% respectively. RLBGX compares favorably to VWELX over the trailing 3 year, 5 year, and 10 year periods ending Jan. 2025. ABALX also performs well vs. VWELX but can't overcome higher expenses (0.57%) over the trailing 10 year period.
I really want to have a one fund solution but I always find a reason to rule out every contender. Too much international,,, too long a bond duration,,, too much tech,,, not enough tech. But the main reason is I am afraid of being locked into 70% fixed income with a longish duration when rates are volatile.
NTF/no-load at Fido & Schwab is BALFX, ER 0.62% Cheapest is Retirement R6 RLBGX, ER 0.25%
R6 shares are what American Fund uses in their Target Date funds which is why they are the cheapest to reduce costs on top of costs. Not something that you can buy. currently right now my parents are in R2 (shares typically used in 403b's)
The cheapest available shares are F2, and F3 shares but are only available through their CG advisor but they'll pay AUM. The cheapest way for them to own AF with an advisor is with A shares using a 1MIL+ breakpoint which reduces the front load to 0 and outside of a few annual account fees, the advisor manages the portfolio for their 12b-1 fees.
My parents won't manage their own and I don't have time, so this is the best way to get them what they need even though i'm not an American Funds fan.
I really want to have a one fund solution but I always find a reason to rule out every contender. Too much international,,, too long a bond duration,,, too much tech,,, not enough tech. But the main reason is I am afraid of being locked into 70% fixed income with a longish duration when rates are volatile.
This is not responsive to having a single fund, and is moreover exceedingly boring, but you could always buy a same-sized position in each of the 4 AO_ ETFs and adjust them monthly or quarterly according to what was up or down --- ?
@mskursh, before our 403b was changed ("improved", as they said), I had AF RERGX (Euro Pacific R6) in our large plan and owned it for years. So, they are available in plans, not just for AF TDFs.
Again they are only available in specific retirement plans R1-R6. but outside that R6 is most notably used in their portfolio series and target dates although I suppose they could be available in other 401k/403b type plans as well.
still not something a retail investor can buy off the street or from their advisor.
American Funds' R6 share classes may also be available via certain Health Savings Accounts. RERGX, RNPGX, RGAGX, and RLBGX are available in my H.S.A. for example.
@David. Thanks for the idea but my whole reoccurring 1fund dream is that my widow won’t have to mess with it. I have been playing with Portfolio Visualizer this morning and also trying to see if my wife would rather be a boglehead or a one funder. Not much interest in either one.
Comments
On your question, we own two Moderate Allocation funds, FBALX and PRWCX.
The only others we would currently consider are FPURX and/or CBLAX.
Right now we are working on moving about 9 american funds into ABALX...(meh)
RLBGX compares favorably to VWELX over the trailing 3 year, 5 year, and 10 year periods ending Jan. 2025.
ABALX also performs well vs. VWELX but can't overcome higher expenses (0.57%) over the trailing 10 year period.
Portfolio Visualizer
NTF/no-load at Fido & Schwab is BALFX, ER 0.62%
Cheapest is Retirement R6 RLBGX, ER 0.25%
The cheapest available shares are F2, and F3 shares but are only available through their CG advisor but they'll pay AUM. The cheapest way for them to own AF with an advisor is with A shares using a 1MIL+ breakpoint which reduces the front load to 0 and outside of a few annual account fees, the advisor manages the portfolio for their 12b-1 fees.
My parents won't manage their own and I don't have time, so this is the best way to get them what they need even though i'm not an American Funds fan.
still not something a retail investor can buy off the street or from their advisor.
RERGX, RNPGX, RGAGX, and RLBGX are available in my H.S.A. for example.
Smaller plans may have R1-R4 available, larger plans R5-R6.
AF has specific classes for 3rd party channels (DIY, independent advisors), F1-F3; advisor load channels A, C; 529.
If you are wondering why isn't there an institutional class I, that's really R6 within large retirement plans only.