No. of Recommendations: 4
Here's a more interesting perf chart - yes, it's a total return chart - of another PIMCO fund PDI since inception vs SPY. up around 300% on a total return basis. Yup, SPY beat that one too, but quadrupling one's money in 13 years is still pretty good, yeah?.Yes, but what's the point?
If you are going to reinvest the dividends--which you must do if you care about total return--then the metrics that matter are total return, Maximum Drawdown, Volatility, and other risk metrics like Sharpe Ratio, Sortino Ratio.
Between PDI, SPY, and VTI, PDI is the worst by all of these metrics.
Looking at the total return chart, PDI acts more like a stock than a bond.
https://testfol.io/?s=ftAbOo4A5eMSame chart taking the dividend instead of reinvesting:
https://testfol.io/?s=fovAl17fr3ZTo paraphrase Tuco (Eli Wallach): ""When you want stock return, buy stock. Don't buy bond."
PDI is a junk bond fund. 76% of its holdings are below investment grade.
But I'm making a point no one here is interested in and we're talking past each other, so enough.True. But this did give me a reason to dig into some analysis, so all good.
