No. of Recommendations: 0
With interest rates going down I noticed the SEC yield is down to 3.75%. That is the yield I use. I was thinking funds like IUSB and FBND, would be better because as interest rates go down prices go up, so I probably would not lose money buying those funds.
Thoughts?
No. of Recommendations: 5
PDI
PAXS
PDO
WDI
PHX
PDX
11%+ yields, professionally managed CEFs by the best in the business - PIMCO
No. of Recommendations: 0
Thank you. I ended up going with FBND, only because a lot these are selling at a premium to NAV. I like FRA.
No. of Recommendations: 9
I guess it depends on what you are looking for.
FBND is Fidelities version of BND which is the same as AGG.
Have you looked at their charts? They all have lost -10.5% to -11.5% in the last 5 years. Price only. If all you care about is the dividend, that's okay I guess. But it sure isn't what I would use for "safe" "income" money.
FBND total return 5 years CAGR 1.24% $10,000 became $10,650. Yuck
If you took the dividends in cash (as income), $10,000 became $8,900.
10 years not much better. CAGR 2.37%. $10,000 became $12,600
Max drawdown -17%. I'm not feeling it.
I prefer to go with a decent Money Market fund, like SWVXX. No volatility, no drawdown, no excitement. Just what I want for safe money. I'll take the slightly lower total return. Stock allocation is where I want the volatility to be.
Actually, I like FLRN for my bond allocation and SWVXX or WMPXX for Money Market cash allocation.
No. of Recommendations: 1
Ray, you are right. SWVXX is better. I will go with that, and look for CEFs at a discount to NAV when they occur.
