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Wow. Depends on what you're trying to accomplish. I don't play around in bonds seeking high return. Prefer to take risk elsewhere. d
For monies that would otherwise sit in cash I use AGZD and PAAA. I think AGZD is a terrific fund. Hedges interest rate risk while investing farther out on the curve. M* agrees with me (gold rated). A good hedge against rising long term rates - if that's your mindset. Also tends to gain on nasty market days as money flees to quality.
* I have a sizable CEF sleeve. Those CEFs tend to hold a lot of bonds across the credit spectrum. But I don't consider that pertinent to the question.
Timely thread! I am looking at possibly changing some bond oef positions around. I don't have a favorite. Clearly, certain bond funds are better in certain economic circumstances. At the moment, it seems that riskier funds are the way to go. Presently, I am in PIMIX and a vanilla 401K bond OEF, where I temporarily stashed a smallish allocation after an equity sale.
Of course, if not wanting to keep an eye on bond funds, or preferring not to occasionally change funds, then vanilla may be the best bet. Many of the above cited funds look rock steady.
I am looking to take a little more FI risk right now, probably selling some PIMIX (20%) and buying EGRIX next week. My thesis is that taking added risk is prudent at times. I do have plenty in TBUX at the present.
DODLX. NEAR. SJNK. TBUX ….. With my very conservative equity allocation,,,, and shrinking risk free yields from MM and my overweight CD ladder got to go somewhere. I look for a mix of duration and yield. And I look at 2022 in the rear view mirror.
"The investment strategy as stated in the fund's prospectus is as follows: The investment seeks to track the price and yield performance, before fees and expenses, of the Bloomberg Rate Hedged U.S. Aggregate Bond Index, and Zero Duration (the "index"). The index is designed to provide long exposure to the Bloomberg U.S. Aggregate Bond Index while seeking to manage interest rate risk through the use of short positions in U.S. Treasury securities".
Albeit, the bonds the fund is long on tend to be high grade corporates while it shorts treasuries (the fly in the ointment perhaps). Morningstar rates credit quality AA. Nothing lower than BBB in the portfolio, except in negligible amounts.
What does it mean for you or me? Means you won't have to worry much about it getting clocked badly if longer term rates spike higher as they did in 2022. It's never had a losing year in its 10+ years of existence.
Price's TRBUX has done slightly better over 5 & 10 years, but with 25+% of its holdings rated either BB or not rated at all..
Comments
BBBIX is used as my "near-cash" position.
dFor monies that would otherwise sit in cash I use AGZD and PAAA. I think AGZD is a terrific fund. Hedges interest rate risk while investing farther out on the curve. M* agrees with me (gold rated). A good hedge against rising long term rates - if that's your mindset. Also tends to gain on nasty market days as money flees to quality.
* I have a sizable CEF sleeve. Those CEFs tend to hold a lot of bonds across the credit spectrum. But I don't consider that pertinent to the question.
Of course, if not wanting to keep an eye on bond funds, or preferring not to occasionally change funds, then vanilla may be the best bet. Many of the above cited funds look rock steady.
I am looking to take a little more FI risk right now, probably selling some PIMIX (20%) and buying EGRIX next week. My thesis is that taking added risk is prudent at times. I do have plenty in TBUX at the present.
My bond funds are mixes of multisector and ultra-ST bond funds with some munis thrown in.
"The investment strategy as stated in the fund's prospectus is as follows: The investment seeks to track the price and yield performance, before fees and expenses, of the Bloomberg Rate Hedged U.S. Aggregate Bond Index, and Zero Duration (the "index"). The index is designed to provide long exposure to the Bloomberg U.S. Aggregate Bond Index while seeking to manage interest rate risk through the use of short positions in U.S. Treasury securities".
Albeit, the bonds the fund is long on tend to be high grade corporates while it shorts treasuries (the fly in the ointment perhaps). Morningstar rates credit quality AA. Nothing lower than BBB in the portfolio, except in negligible amounts.
What does it mean for you or me? Means you won't have to worry much about it getting clocked badly if longer term rates spike higher as they did in 2022. It's never had a losing year in its 10+ years of existence.
Price's TRBUX has done slightly better over 5 & 10 years, but with 25+% of its holdings rated either BB or not rated at all..
https://www.cnbc.com/quotes/TUHYX?qsearchterm=tuhyx
https://www.cnbc.com/quotes/PRCPX?qsearchterm=prcpx
Gentleman, start your wheezing little 55 horsepower 1.1L engines.
Pretty certain that the fellow who originally applied the "racing Yugos" metaphor to bond oefs, back in M* forums, posted in this very thread today.
@LarryB 420 should keep the race interesting.