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It uses derivatives for equity exposure. So, much of the capital gain shows up as realized CG. Check its history.
This is the same issue with many Pimco equity funds. It is best to hold such funds in tax-deferred/free accounts.
Synchrony/SYF was spun out as IPO in 2014. The IPO was for 15%, and in 2015, GE distributed the rest 85%.
https://finance.yahoo.com/quote/SYF/profile?p=SYF
https://www.ge.com/news/reports/ge-completes-the-separation-of-synchrony-financial
Many fund families provide brokerage services to hang on to clients. Many have tie ins with 3rd parties such as Pershing (BNY Mellon) or others.
But if you need serious brokerage services, go with real brokers (Fidelity, Schwab, Interactive Brokers…
I think that TRP allows 401k/403b transfers into its closed TRP funds. But you ran into problems because you tried to move VG IRA funds into closed TRP funds. I am surprised that this didn't come up before hand in your talks with TRP.
But, all's wel…
Originally I'd hoped to name this site FundWatch.com. A squatter in the Netherlands wanted $25,000 for the URL so, no. (Mercer now owns it.) To the extent we have an active going-forward, it would be good to find a way to signal the fact that we ca…
Stocks as inflation hedge - Prudent Speculator, Market Watch in Barron's
".....nine-plus decades of market history suggest that equities have gained ground, on average, whether inflation is rising or falling.....Yes, stocks have performed better wh…
@mark, no, it is a total stock market INDEX but with humongous min for retirement plans. So, when they leave (with millions), it causes realized CGs.
I will edit my previous post by inserting "Index" in the names.
Yep, that happened in 2012 when Vanguard had a fee dispute with MSCI and moved about 2 dozen indexes from MSCI to CRSP and FTSE.
As for VG Total Stock Market Index (VTSAX/ VITSX/ VTI), it also has a smaller but separate cousin VG Institutional Total…
That is why we have resisted conversions of our VG mutual fund accounts to VG brokerage accounts. I think that VG will finally force that in 2022 but we may be the last ones. We have Fido and Schwab brokerage accounts, and we don't/won't hold anythi…
Before the pandemic, the US car sales were around 17+ million/yr. The post-pendemic sales rebound peaked in April 2021 at 18+ million/yr (annualized) and are now at 12+ million/yr (annualized). That gives an idea of the severe disruption caused by s…
Thanks for the note from my Barron's summary this AM. People know where to find it.
"COMMODITIES. The auto market (new or used cars) is very tight. But PALLADIUM (-26% YTD) and PLATINUM (-14% YTD) are down sharply because of the drop in auto produc…
@racqueteer, since VIX is based on current options pricing info, it has to be COINCIDENT. Like rain forecasting based on measures of precipitations. I still find VIX (and SKEW) as useful measures of "fear" (and hedging).
The SEC has issued several warnings on leveraged ETFs under its "Investor Alerts & Bulletins" since 2009 with most recent being in 2021. These explain that the leveraged ETFs work as indicate only over "days" and should be used only for very sho…
ETF industry has +2x NUGT, -2x DUST and the reference is supposedly GDX. So, the sponsor does fine whether investors win or lose, or lose and lose (see 3 yrs below).
In the Stockcharts below, timeframe may default to 1 yr eventually, so reset times…
I also watch SKEW. High SKEW indicates high level of hedging activity via puts. This is similar to put-call ratio but instead of volumes, SKEW uses relative prices of nearby calls and puts. Unfortunately, both VIX and SKEW tend to act as coincident …
2021 AAII Tax Guide is in the latest issue of AAII Journal. At this time, some stimulus related tax stuff is still pending and AAII may issue a release on those changes later. AAII members can access it online. I think that nonmembers can also acces…
Cathie Wood is also planning a new "ARK-on-steroid" fund that will be long-short (L-S). It will be long ARK-type stocks and short un-ARK (non-ARK? anti-ARK?) like stocks. If you think that ARK funds are suffering now, wait until this new ARK-on-ster…
There are 3 ways to go public now - traditional IPO, SPAC/blank-check mergers, direct-listings. Due to this competition, the IPO underwriters may be overpricing IPOs to lure business.
Or, it could just be a market phase - hot IPOs bring on more IPO…
ETFs are not good vehicles for HY (HYG, JNK, muni HYD, etc). They are liquid wrappers of illiquid underlying securities. In a selloff, they may develop CEF like discounts.
Low-cost OEFs are fine for HY ( VWEHX, SPHIX, aggressive FAGIX, muni NHMAX …
Derivatives involves bets on both direction and time. So, one can be right about direction but wrong about the timeframe and results would be poor, and so on. The other thing is that assumptions underlying derivatives-based portfolios may unravel du…
M* Portfolio "% Below 52-wk High" is price-based and is not reliable as distributions are not accounted for. The other thing to note is that for bond funds, the high was in December 2020 while for stocks in November 2021. Stockcharts provides better…
@msf, thanks for the linking tip. Some of this site's features are not intuitive or are hidden.
I should have thought of clicking on post date for link to a post - a FB like trick.
Threads here open to the "latest" post by default and I figured …
Good point about insurance companies in general.
But I have personally seen an insurance RUN - Mutual Benefit Life (MBL). It was a provider in my 403b. My BIG mistake was that when I first heard the news of the run, I tried to alert out HR person i…
I could just repeat what I said in a nearby thread on BAMBX (LINK).
These multi-strategy funds (ALL alternatives; a formal M* Category under Alternatives) should NOT to be confused with multi-asset funds discussed elsewhere (SOME alternatives; not…
Good point about OppenheimerFunds (thankfully merged away now into Invesco/IVZ) that was NOT following the script and had put lot of junk/HY in its core bond and allocation/balanced funds. Its Oppenheimer-Rochester funds were the junkiest of the jun…
These days, a typical core-plus bond fund can have up to 35% in below investment-grade bonds.
So, insurance companies having 35% in below investment-grade (and illiquid alternatives) doesn't sound so alarming. Leaving aside companies such as BRK th…
I have an update on PDI in the M* link above.
"PDI is starting to look interesting. It is under pressure from the upcoming merger and tax-loss selling. I am watching $24-25 area in trading ahead of Friday, December 10 merger date (PKO and PCI will …
BAMBX has SD of 4.6% (high). Turnover of 500% is high, so is ER. About 11% in stocks, rest in bonds & others (probably convertible). Don't treat is as cash or CD proxy.
There are discussions on the merger of PKO and PCI into PDI at other sites. This has been a long convergence theme with the merger finally effective on December 10, 2021 (about 3 weeks). https://community.morningstar.com/s/feed/0D53o00005UznTdCAJ
