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Frequent Contributor

TAIFX ... wonderful fund that consistently underperforms VTMFX

Five star fund, great strategy, good looking portfolio, TAIFX is a winner. What’s not to like? Except it underperforms VG Tax-Managed Balanced over every time period.

Give me one reason not to sell TAIFX and distribute the proceeds into other equity and muni funds I own (or buy VTMFX as an alternative).

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21 Replies
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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

If one doesn't have access to VTMFX [at Vanguard only], then TAIFX is a decent alternative [e.g. at Fido NTF, Schwab NTF].

YBB
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Explorer ○○○

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@yogibearbull wrote:

If one doesn't have access to VTMFX [at Vanguard only], then TAIFX is a decent alternative [e.g. at Fido NTF, Schwab NTF].


VTMFX is available @ Schwab for same $10k initial position as at Vanguard.  There is a $49.95 transaction fee.  However, not clear that @chang wants to move to another balanced fund vs. splitting the proceeds between other equity and muni funds. Happy trading.

https://www.schwab.com/public/schwab/investing/investment_help/investment_research/mutual_fund_resea...

 

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

I have a VG acct so I could buy VTMFX if I want to. The issue is that if TAIFX can’t even beat this, it just can’t be that great a LT hold.

VTMFX is a fine fund, but I’ve got a fairly large and diverse portfolio, so adding a balanced fund would be somewhat pointless. I’d be better off distributing the proceeds into existing high-conviction funds in approximately the same allocation as TAIFX.

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

And the odd thing is, TAIFX holds HY minus (which makes it a pretty unique fund) while VTMFX holds IG munis, so TAIFX should have had a long term advantage over VTMFX ..... but it doesn’t.  

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

@chang , you are now using wrong ticker for VTMFX.

YBB
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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

Oops, thanks. Fixed it.

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Explorer ○○○

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

Take a look at VLAAX/VLAIX. This allocation fund has better performance than both TAIFX and VTMFX, even on a pre and after tax basis.

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@Coptomist wrote:

Take a look at VLAAX/VLAIX. This allocation fund has better performance than both TAIFX and VTMFX, even on a pre and after tax basis.


Probably because it’s higher % in equities and very LCG bias.

That’s why it’s hard to compare allocation funds. 

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

I got to tease you. Observation: in the last several months you promoted posted why you like VG funds.  After all, the low ER wins at the end.  It's time to switch it all :-)

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Follower ○○○

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

After inheriting a considerable amount of money about 10 years ago, I dumped my biggest investment chunk in VTMFX in my Vanguard brokerage account and never looked back. Nice source of muni income and you really don't have to worry about it through the ups and downs. It's still my largest holding after all these years. It's amazing to me that there's really no other fund that can compete with it, given its particular investment style.

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@FD1001 wrote:

I got to tease you. Observation: in the last several months you promoted posted why you like VG funds.  After all, the low ER wins at the end.  It's time to switch it all :-)


I'm getting there slowly quickly.

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@chang wrote:

@Coptomist wrote:

Take a look at VLAAX/VLAIX. This allocation fund has better performance than both TAIFX and VTMFX, even on a pre and after tax basis.


Probably because it’s higher % in equities and very LCG bias.

That’s why it’s hard to compare allocation funds. 


Hmm, I just checked, and the same thing is true of VTMFX vs. TAIFX - the VG fund has a higher % of equity and is more growth-biased. So in fact the comparison may be unfair. Apples for apples, TAIFX may well be as good as they come.

Nevertheless, I have decided to cut the cord. Balanced funds don't make a lot of sense for me as I mentioned below. I will likely move the proceeds of TAIFX into VGHAX/VIMAX (60%) and VWEAX/VBILX (50%). I am already heavily invested in munis.

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@chang wrote:

@FD1001 wrote:

I got to tease you. Observation: in the last several months you promoted posted why you like VG funds.  After all, the low ER wins at the end.  It's time to switch it all :-)


I'm getting there slowly quickly.


I can see the future, no matter what non-VG fund anybody will offer, you will come up with a reason why not  :-)

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@FD1001 wrote:

@chang wrote:

@FD1001 wrote:

I got to tease you. Observation: in the last several months you promoted posted why you like VG funds.  After all, the low ER wins at the end.  It's time to switch it all :-)


I'm getting there slowly quickly.


I can see the future, no matter what non-VG fund anybody will offer, you will come up with a reason why not  :-)


Now that’s not fair. I’m still a diehard fan of plenty of non VG funds. I won’t name them, because then everybody will start telling me which funds are better...!

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Explorer ○○○

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

TAIFX has been a better choice for income-oriented investors. Over the calendar years that TAIFX and VTMFX have both existed, TAIFX has paid more in income distributions taken in cash than VTMFX.

From 2013 through 2019, with the only transactions being taking the income distributions in cash and reininvesting the capital gain distributions (only TAIFX had capital gain distributions), TAIFX had average inflation-adjusted income distribution per year of 2.99% of the end of 2012 balance, with the minimum for a year being 2.91%. VTMFX had average inflation-adjusted income distribution per year of 2.57% of the end of 2012 balance, with a minimum for a year being 2.31%.

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Follower ○○○

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

In terms of total return, VTMFX has outpaced TAIFX over YTD, 1-year, 3-year, 5-years. The 5-year returns are not even close, frankly. If you are looking for muni income and some capital appreciation, VTMFX is a better option. Much lower fees, too. Slightly less risk and volatility for TAIFX but that certainly hasn't proven to be correct this year. Much better Alpha for the Vanguard fund over the trailing 3 and 5 years.

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX


@chang wrote:

Five star fund, great strategy, good looking portfolio, TAIFX is a winner. What’s not to like? Except it underperforms VG Tax-Managed Balanced over every time period.

Give me one reason not to sell TAIFX and distribute the proceeds into other equity and muni funds I own (or buy VTMFX as an alternative).


Chang ...  I am quite late in replying.  I have been holding some small dollar placeholder allocation funds in my trust for some day I should have inheritance.  I've realized today that TAIFX is lagging and/or is a misfit with my 5 preferred funds so I am selling it tomorrow.  I don't really need 50% national tax free bonds in TAIFX because I will be allocating future money to a couple of Calif muni funds to get double tax free Fed and State.  

My preferred funds are:

VWINX
FMSDX
USBLX
MACFX
HBLVX

 

 

 

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Frequent Contributor

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

I jettisoned this fund a few weeks ago, some time after the OP.

I have LV and IG / HY muni exposure in other funds, so I moved the proceeds there. Mainly consolidation and simplification; concentrating in higher conviction funds. 

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Contributor ○

Re: TAIFX ... wonderful fund that consistently underperforms VTMFX

Why not man-up and buy only index equity funds in your taxable account (e.g., VFIAX, QQQ)?

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