Funds (Series)

[gente]

SPYD fund would seem to me to be a fund that might rebound more quickly and one that you could dollar cost average into in this bear market! The real estate portion is dragging it down and oddly 3M. It is a cash flow fund and dividend payer at 3.87 % per Morningstar! It would benefit in general with SPY. Dividends aren’t appreciated by some investors but in this market maybe that has changed. All thoughts appreciated!

[gspear]

gente,

I looked up SPYD in Morningstar and MS has given it 2 stars. The appreciation for five years is 9.87%.
Compared SCHD. MS has given it 5 stars. The appreciation for 5 years is 55.7%. Its yield is 3.1%. Even though its yield is less, I prefer it over SPYD.
gspear.

[gente]

Thanks, gspear!!

[Admin/YBB]

CEFs, 09/2022

CEFs today offer interesting risks and rewards.

I have posted previously on 2 underappreciated risks of CEFs - understated leverage (by stating debt as % of gross assets, not net assets, see link below) and forced-deleveraging of bond CEFs (in meeting regulatory leveraging requirements) that can lead to permanent losses.
ybbpersonalfinance.proboards.com/thread/22/funds-series?page=1&scrollTo=471

I have also noted new changes in the CEF world - like the term-structures of the newer CEFs (see link below) such as PDO, PAXS (vs larger and older cousin PDI) and TBLD (vs giant OEF cousin TIBAX/TIBIX). At least the discounts on these term-structure CEFs will eventually disappear, so they have some advantages. Many won't touch these new CEFs because they are new (well, their life is 12.0-13.5 years, and the new ones will keep coming, like a series), but remember that they are better clones of something older and well-known.
ybbpersonalfinance.proboards.com/thread/22/funds-series?page=1&scrollTo=436

Now some general observations.

This has been a very difficult environment for the bond market. It is being called a bond crash and one has to go back to 1931 or 1949 to find similar times for bonds (see image link below from Twitter Link1). While equities are also suffering, there is nothing historic about this typical run-of-the-mill equity bear market (so far).
pbs.twimg.com/media/FdbXoeMWQAEXAeh?format=png&name=small

What is indeed unusual is that both stock and bond drawdowns are now happening simultaneously and this is seen in hybrid portfolios (see image link below from Twitter Link2).
pbs.twimg.com/media/FdbYT--WAAEJYUb?format=png&name=small

But this is not the time to panic. It is the time to rationally analyze what you hold (OEFs, ETFs, CEFs), assess portfolio risks and your own risk tolerance, make appropriate portfolio adjustments and trade/invest wisely.