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Longterm LC choices for 30yo

davidrmorandavidrmoran
in Fund Discussions
I am making some LC (domestic) changes in one of my kids' retirement accounts. I have finally given up on the Yackts after many years of significant underperformance, and am also going to sell a large percentage of her FLVCX. She has held both for some time. Account is with Fido, so am considering adding to her PRBLX and also buying DVY and maybe some HDV. Thoughts, general or specific? She has good amounts in good small and mid funds, plus some (disappointing) foreign.

Comments

  • davidrmorandavidrmoran
    (Meant to add personal obvious, that for her moneys I do not yet have the courage of my convictions to put all into DSENX.)
  • MikeMMikeM
    Myself, I would only consider low cost index ETFs or funds in the large cap area. Especially for a young person.
  • msf
    Instead of HDV, how about VYM? More diversified (400+ vs. 73 stocks), lower turnover (11% vs. 63% vs. category avg 34%), lower cost (if you amortize the Fidelity commission as a one time cost). They share 14 of the largest holdings (though HDV seems to weight them more than twice as heavily, consistent with its smaller portfolio).

    Key stocks held only by Vanguard include MSFT, GE, T, JPM. HDV has no 1%+ holding not shared with VYM.

    For value leaning LC/MC, you might consider BPAIX/BPAVX. Fits right between FLVCX (mid cap value) and LC, reasonable (0.95%) to good ER (for institutional shares, $100K min), modest turnover (33%), and seems to be somewhat overlooked ($1.3B AUM).

  • davidrmorandavidrmoran
    Thanks much!
    - Was avoiding Fido commissions else I woulda listed my faves OUSA, NOBL, CAPE, and SPHD. (How come you did not mention them yourself?)
    - Was thinking DVY would provide the breadth, and the proportion to HDV would be modest. May scrap HDV altogether; can't decide.
    - Would look into Boston Partners except she has a ton in FLPSX, which I think should stay.
  • rforno

    PRBLX is a solid fund that held up nicely during the '08 GFC - I own it and still add to it.

    For large or megacap check Bridgeway 35 (BRLIX too -- only .15 ER (cheap!) and a nice allocation/weighting of companies.
  • Edmond
    As you are with Fido, I'd stick with one/more of the NTF ETFs they offer. HDV and/or DGRO would probably be the ETFs I would look at.

    good luck
  • davidrmorandavidrmoran
    tnx, will dive into DGRO to do some comparisons.
  • ccrider2
    A low cost S&P 500 Index fund is highly likely to have a better 10 and 20 year return than any other fund you choose....
  • wxman123
    SCHD SDOG NBL
  • davidrmorandavidrmoran
    >> A low cost S&P 500 Index fund is highly likely to have a better 10 and 20 year return than any other fund you choose....

    I cannot find a period where PRBLX has not surpassed SPY. Can you? Not saying that it's highly unlikely, but.

    >> SCHD SDOG

    DVY is at least a good so far as I can see. Usually better. What am I missing ?

    (If she is going to pay commission, I was thinking NOBL, OUSA, and/or CAPE over these.)
  • wxman123
    edited June 2016
    SDOG has better 3yr record compared with SDY and is equal weight, which is a feature I really like in this space. SCHD IMO is the single best dividend style ETF though its under performed lately as investors chase the slightly higher yield of DVY (which is an OK fund though I'd choose SPHD over it, but can't recommend SPHD this second wary of what happens when low vol fad reverts to mean). If I could have only one it would be SCHD without doubt. Really love the low almost free ER of SCHD. SDY is 3x as much, that will matter alot over a lifetime.
  • davidrmorandavidrmoran
    Noted. I have recently switched my own personal preference from SCHD to NOBL.
    Keeping an eye on the new OUSA, courtesy Snowball.
    You might like looking into CAPE.
    (I also track RSV, RPG, and RPV, though they're not div-oriented.)
  • PRESSmUPPRESSmUP
    For an actively managed fund, AKREX might be a consideration.
  • davidrmorandavidrmoran
    Thanks. Looks sort of short-lived as to managers, but pretty good. Maybe some of her FLPSX moneys can be transferred to it.
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