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David,
Thanks for the updates. Still don't know what's causing that turnover figure, but then again, I've never understood how some bond funds show figures over 500% (it's almost impossible to trade that fast, at least deliberately).
The descrip…
You mean I wrote all that for nothing - it doesn't matter for you?
Glad it seemed clear (albeit convoluted) to you; this really this is nothing new, since you could always select which shares to sell. And I've done my English composition pract…
Depends.
For example, if you're liquidating a position, then all of the methods except average cost give the same result. That's because you're selling all shares, so it doesn't matter whether you say you're selling the highest cost ones first, …
Reply to @David_Snowball:
David, it's not quite that simple. On a technical matter, bonds that mature are not counted in calculating turnover. This is, however, a distinction without a difference, because most bond funds are effectively required …
The answer to the first part (average cost has two buckets - covered and non-covered shares) is yes. See IRS Cost Basis Reporting Overview and FAQ, FAQ #52.
Regardless of the cost method used when selling shares, the MF company will report sales o…
Fidelity reports:
- Expense ratio: 2.65% (10/25/2010)
- Expense ratio after reductions: 1.25%
What it doesn't say is that the expense waiver can be withdrawn on 90 days notice by a majority of the independent board member…
The only requisite for the $5 AIP purchases is that one have an initial position. One does not have to pay $75 for that initial position. The shares could have been purchased from the fund company and transferred in (no charge), or even purchased…
The best deal for you, but perhaps not for others.
It depends on what you're using them for. Bonds? You have to go through customer service (cannot purchase online, just search). Costs? $50 for Treasury auction (many of the other brokers give t…
Fidelity may make you whole on the $95 transfer fee, though they won't touch it if it's an IRA. Not as familiar with Schwab, though I'd expect similar white glove treatment.
Given that one can make $5 TF trades at Fidelity, the savings at WT do n…
Let me offer a somewhat simplistic perspective on the current portfolio (recognizing that this is only a snapshot and does not represent the a fundamental strategy), the fund is essentially positioned in two pieces:
1) A fairly basic unhedged bon…
Reply to @BobC:
Concur completely. And would go a couple of steps further.
1) Why would one believe that one knows more about the international currency and interest markets than Hasentab? (There is sometimes an argument to be made that one can…
Why off-topic? Money market funds are true, legal mutual funds. In contrast, people have no problem considering on-topic vehicles including:
- some ETFs (like SPY) that are actually UITs (that cannot reinvest dividends/interest),
- HOLDRs (whi…
This is a fairly good article. It does though beat a dead horse to death. Items 1-5 can be boiled down to: multiplier compounds return for each reset period.
For example, with a 2x multiplier, a daily reset, and a return of r1, r2, etc. for the i…
Reply to @AndyJ:
I'm looking at the Oct 31 data, it's not quite an exact match for your data (e.g. it shows 24% short the Yen, not 23%), so I'm not sure what your source or freshness of data is.
One of the great things about this fund is that its…
-2.83% is total return:Morningstar's calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital gains distributions during the periodIn short, it is unaffected by distributions, specia…
From looking at the prospectus, I'd say that except for 2007 (when everyone seemed to be raving about Alpine Dynamic Dividend and throwing money at it), the assets have been pretty stable (around $600M). (In 2007, assets more then doubled, then rec…
Andrei - thus my example of IBM dropping and Apple not. Then the one share of apple costs not 2x IBM but 4X, which is why those 2 shares of IBM are now worth 1/3 of the world's value, and the one share of Apple is worth 2/3. Obviously you cannot s…
One way to look at this (admittedly simplistic) is that money is nothing but a way of keeping score, within a larger barter system. To apply this simplistic model, assume that there are no bank accounts, no mattresses stuffed with cash, just non-ca…
Catch - you are right that inverse funds and options have very different characteristics. But as I look over your posts, I'm not clear (and I'm not sure you're clear) on what you want to accomplish.
You write about "insurance". Insurance is ba…
In your example, I don't see where you are establishing a neutral position or shorting against the box, as you appeared to advise in your previous post.
Here is the timeline as I understand it: If I've misunderstood or misrepresented your example, …
Rather than short against the box (SATB), why not simply go to cash?
It used to be that SATB provided clear tax advantages (you weren't closing out your long position and recognizing a gain), but the ability to do that was significantly eviscerated…
Agreed, the article does serve as a good introduction, for people who have the interest in learning more. And columnists still do have inch limits.
And it is also true that it's much easier than ever before to get information than it ever was.
T…
Unfortunately, even the AP article (via Zions Direct) is a bit overly simple - so is it boomers that don't know the basics, or financial reporters?
Nothing wrong per se, but a fair amount of incomplete statements. A few amendments:
- Financial in…
Link says "The markets in the US will close at 1pm EST". For completeness:
Bond markets (both listed and OTC) close at 2PM. And there's still extended-hours trading. Fidelity will participate until 4PM. Scottrade appears to be in until 5. YMM…
Things are at least somewhat more complex than you may think.
Rydex Target Beta funds generally price twice daily, not once. That is, unless there's a short trading day (like this Friday), when they only price once. Or unless you're trading throu…
http://dealnews.com/black-friday/
They're pretty good at cutting through the clutter and highlighting (and predicting) the real values. (Also have links to nearly all the ads, if your idea of Thanksgiving is 16 hours of surfing.)
I tend to tune out columnists as soon as it becomes apparent that their rhetoric is factually false. It demonstrates, to paraphrase Times v Sullivan, a reckless disregard for the facts. In this column dated Nov 17th, we have the assertion that th…
Just a few flat tax highlights, removing special treatment of some types of income:
1) Capital gains taxed the same as ordinary income (since all income is taxed the same, and the 1099Bs, starting this year for equity, and next year for funds, wil…
Upon reflection, this kind of makes sense. This is a large cap value fund with low turnover (on an absolute basis, let alone for a quant fund), meaning that it should be able to handle a large amount of assets, unlike most of the other Bridgeway f…
Thanks for the reminder. I saw the existence of this article flashed (on CNBC?) while I was at a broker yesterday, and had forgotten to look it up.
Every honest tax "expert" will say the same thing as stated here - that it's not the calculation of…
Let me offer an opposing viewpoint. I find the M* forums and articles that I participate in generally civil, and often (though not always) well-informed, Boggleheads® Unite being an exception, as is the vitriol between a few select participants el…
Reply to @fundalarm:
Good speculation, but what about this use of short term bills is unique to bond funds. To put it another way, why don't equity funds, which also have to deal with cash flows show similar turnover ratios? (These days, dividend-o…
Regarding high turnover, M* asserts "With bond funds, though, quite often managers employ cash-management strategies that inflate turnover rates. It's not uncommon to see turnover rates of 300% or more, even in funds that aren't particularly aggress…
Reply to @catch22:
I am not aware of a method to determine that a given investment sector (I relate this to the U.S.) is about to end or begin from such a long time frame of moving in one direction or another. Who says that the 30 year bond bull is…
