Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
PETDX is leveraged real estate fund using treasuries and mortgage backed securities. Below is a MarketWatch perfomance table. Anyone have any experience with this fund?
Symbol Fund Name 1 Wk 13 Wk YTD 1 Yr 3 Yr 5 Yr 10 Yr PETDX PIMCO:RE Rl Rtn;D -0.67% 10.13% 23.55% 8.84% 15.43% 30.40 12.87%
@prinx Either you do not understand leverage, or you have misunderstood this fund's prospectus. Albeit, this fund does have a high beta, but it is not leveraged.
Now that this fund has a history, and we have a better idea how it will perform under various market conditions, I think it would be an excellent source of dvd income if you can catch it at the right price; then, as for capital appreciation over time, well, you'll get the market gives ya--- and that might be a very good thing!
@jlev I understand your sentiments. That's why I added the caveat--- catch it at the right price--- because that would be the only way I could stomach the roller coaster. But that's the REIT index all over anyway, isn't it?
An additional concern has arisen for me recently re.PETAX: the distribution yield. It was great for quite awhile after the financial crisis, but lately... not so much. If it should prove to be highly variable as well, at certain times, then that would take away one of the positives of going with this fund as (a part of) one's real estate investments. IMO.
I bought it at the end of 2012. I was looking at adding a real estate fund for diversification and was intrigued by this find. It had beaten it's category average 11 of the last 12 quarters (at that point), and the one miss wasn't by that much. It then proceeded to under perform the category average in the next 3 quarters (2013 Q1, 2013 Q2, & 2013 Q3). I exited the position around the end of Q3. It looks like it under performed again in Q4, but is back to its over-performing ways in 2014. I think I can handle the volatility (I rode everything down in 2008-2009, and then back up again afterwards), but going essentially 0-3, after posting a dominant 11-1 record spooked me. Early on, I figured it was just a bad PIMCO macro bet on what bonds to be in, so I kept looking for a turn around. But, after 9 months and seeing no light at the end of the tunnel, I headed for the exit. The strategy seems sound, and I still own PIXDX, a large blend fund from PIMCO which seems to use the same or a similar strategy to juice returns. It's performance was fine during this time.
@MFO Members: Right now this fund is king of the hill with outstanding 5-yr. performance figures. It's an Alpha Male, get off the porch and hunt with the big dogs type of fund. Regards, Ted
Comments
It's not a bad thing, it's just a matter of knowing what you're getting into and whether or not the risk and volatility appeals.
Now that this fund has a history, and we have a better idea how it will perform under various market conditions, I think it would be an excellent source of dvd income if you can catch it at the right price; then, as for capital appreciation over time, well, you'll get the market gives ya--- and that might be a very good thing!
An additional concern has arisen for me recently re.PETAX: the distribution yield. It was great for quite awhile after the financial crisis, but lately... not so much. If it should prove to be highly variable as well, at certain times, then that would take away one of the positives of going with this fund as (a part of) one's real estate investments. IMO.
Regards,
Ted
3-Mo. 11.15%
YTD. 25.95%
3-Yr. 13.78%
5-Yr. 31.24%
M* Real Estate Fund Returns: http://finance.yahoo.com/funds/lists/?cat=$FOCA$SR$$