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.
ISTR that many Primecap managed funds have distributed sizable capital gains in the past.
These funds tend to have very low turnover for active funds so excessive turnover is not an issue.
It's probably best to hold Primecap funds outside of taxable…
According to the article, Robert Horrocks decided to "step back from his current leadership responsibilities."
He will remain as a portfolio manager on Matthews Asia Dividend, Matthews Asian Growth and Income,
and Matthews Asia ex-Japan Total Return…
Consumers can be severely impacted by errors and misrepresentations
made by the three major credit bureaus (Equifax, Experian, TransUnion).
A laborious effort may be required to remediate problems caused by these credit bureaus.
Equifax, Experian, a…
The Week in Charts (10/15/23)
The most important charts and themes in markets, including...
00:00 Intro
00:18 How Long Will Inflation Remain Elevated? (Latest)
05:36 Bond Market Doing the Fed's Job (Fed Policy)
11:43 Boomer Spending Boom
13:53 Bank…
A real yield of ~2.39% for 5-yr TIPS presents a good opportunity
for those seeking protection from "unexpected" inflation.
I would be a buyer if I hadn't purchased 5-yr TIPS earlier this year.
This year is challenging for smaller cap funds when the broader index is dominated by the large tech stocks. Only one out three, FMIMX, did decently, the rest trailed considerably. So we pause until the market broaden out. Not indexing in the smal…
From Jan. 2001 through Dec. 2011, the Russell 2000 and S&P 600 significantly outperformed the S&P 500*.
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=qEr2lFXVGTW5gNPWAJxWs
From Jan. 2012 through Dec. 2022, the S&P 50…
The Week in Charts (10/08/23)
The most important charts and themes in markets, including...
00:00 Intro
00:12 That Escalated Quickly (Bond Yields)
04:36 More Mortgage Pain (Housing)
06:36 Higher Rates, Less Building (Apartments)
08:32 The Coming De…
I received an email from Vanguard a few days ago touting Vanguard Cash Deposit.
This doesn't appeal to me when 7-day yields for VMRXX and VMFXX are 5.29% and 5.28% respectively.
I believe Vanguard would never allow these money market funds to "brea…
The Week in Charts (10/01/23)
The most important charts and themes in markets, including...
00:00 Intro
00:16 Frozen Housing Market
06:41 7 Years Gone (Bonds)
09:14 Fed on Hold (Fed Policy)
12:27 Unaffordable Healthcare
16:18 King Dollar (Currencie…
The Week in Charts (09/24/23)
The most important charts and themes in markets, including...
00:00 Intro
00:37 Webinar Next Week (9/26 @ 1pm EST)
01:06 Are Higher Rates Here to Stay (FOMC Meeting)
08:52 Good Times, Bad Times (Bonds)
17:02 Rising Rat…
[snip]
@hank,
Good questions!
I'm not an expert on robo-advisors.
I recently worked with Vanguard Personal Advisor Services (PAS)
to create a financial plan as a trial exercise.
My thoughts are below.
- Are these robo’s aware that bonds recently …
From the news release:
"Vanguard’s track record remains unparalleled — 95% of Vanguard active bond funds
outperformed their peer group averages over the past 10 years ending June 30, 2023¹."
¹ For the ten-year period ended June 30, 2023, 42 of 44…
FPPFX generated bottom decile 10-year and 15-year trailing returns in the large-cap growth category¹.
It currently has only $58.6 Mil in assets.
¹ FPPFX was previously categorized as mid-cap growth or large-cap blend according to M*.
@Sven,
Thanks!
I am a Fido customer and have used one of the Fidelity planning tools in the past.
It provided detailed information and utilized Monte Carlo analysis to project outcomes.
I'm not sure if it's the same tool (don't recall name) you are…
As a follow-up to their robo-advisor evaluation, M* conducted additional research.
Two hypothetical investor profiles were created.
Only seven of the 20 robo-advisors allow investors to complete risk assessments without registering.
Their sample r…
[snip]
As @Sven noted, Vanguard PAS can incorporate outside investments in its planning. It is one of several robo/hybrid advisors that do this (including the top five in M*'s ranking). See thread on Robo Advisor Evaluation.
https://mutualfundob…
Those suggested allocations for VG PAS in 60s & 70s (60-40), early-80s (55-45), late-80s & beyond (50-50) are much higher than those for target-date funds (TDFs), including Vanguard TDFs. Of course, the questionnaire for PAS determined the s…
@Observant1- In the many years that I've been with MFO I've never seen anyone present such complete, detailed and interesting information with respect to a retirement plan that was recommended by a financial firm. Nice job! It should be useful to ot…
@Observant1 What did you think of the information that was kicked back to you ?
I see nothing that hasn't been brought up here from time to time.
I was contacted by rep from Schwab for the second time , to make a plan. I passed for the second ti…
Vanguard's spending strategy and recommended actions are sensible*.
The Vanguard Capital Markets Model is proprietary but appears to be robust.
Approximately half of my total portfolio is held outside of Vanguard.
While the corresponding dollar amo…
Select Disclosures
Asset allocation: We assume the accounts supporting this goal are rebalanced
annually to the target asset allocation over your entire planning horizon.
However, we do not calculate the tax consequences of rebalancing the accoun…
Spending Strategy
We have a withdrawal plan to help maximize the longevity of your portfolio.
Our general approach is to use both the income and capital appreciation from your portfolio
to meet your spending needs.
We recommend directing all int…
The Week in Charts (09/17/23)
A tour of the markets covering the most important charts & themes, including...
00:00 Intro
00:29 A Second Wave of Inflation? (CPI Report)
08:44 The Long Pause? (Fed Policy Expectations)
15:04 All Is Calm (Market V…
M* Fund Reports include a fund's turnover rate for the past 10 calendar years.
You may be able to access M* Fund Reports online via your public library system.
I'm not aware of any websites which provide annual turnover statistics spanning multiple …
M* Fund Reports include a fund's turnover rate for the past 10 calendar years.
You may be able to access M* Fund Reports online via your public library system.
I'm not aware of any websites which provide annual turnover statistics spanning multiple …
Additionally, can fund outflows affect a fund's turnover stats?
For example, if the fund usually has 5% turnover, but then gets hit by a 20% outflow, would their turnover (if they had to sell 20% of their positions) then go to 25%?
Thanks!
Fund o…
Jeremy Grantham became famous for predicting the dot-com crash in 2000 and the financial crisis in 2008.
Grantham did not anticipate the superior returns for large U.S. stocks (particulary growth stocks)
since the financial crisis because he believ…
@Hank. Big +1 for your comments on the Morgan Housel book. Lots of common sense and well worth the time.
I agree. The Psychology of Money is a good book!
I consume a lot of financial media.
Frankly, this is often an inefficient use of my time.
Good books written by talented authors are frequently more informative and rewarding.
I just finished reading the recently released second edition of The Four …
