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RPV

@chang  I sold off VYM in my mother’s IRA last month. Unfortunately far too late to avoid some significant carnage. But it seemed to me that investors fled pure HY/dividend plays like VYM, in the face of certain, widespread dividend cuts — and with uncertainty surrounding dividends likely to linger for some time, I concluded that VYM was not a good candidate for a sharp bounce-back.

With no better ideas, I actually replaced it with FXAIX (in a Fido account).

Chang,

I recently purchased RPV again after once owning it before I retired.  There are many value funds with better long term records but RPV did extremely well in 2009 & 2010. The stocks in this fund have really been beaten down and I believe will do well when the economy (not the market) bounces back.  If we have another leg down RPV is already sporting a low P/E which should make the recovery quicker when it does happen.

helmut

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Re: RPV

@helmut Wow, that is definitely a value fund. Look at the metrics (P/E, P/B, etc.) - amazing. And the 40% hit it took in March ... you definitely get bragging rights for buying on a dip.

The breakdown shows its eggs are mostly in financials and energy ... not surprising.

It might be a bit early for this kind of exposure ... or maybe not. Nobody knows.

I’ve been trying to consolidate small positions, not create new ones, so I’m avoiding the temptation to “explore” (and I still have plenty of those), so this wouldn’t be up my street.

I’m glad I don’t have your nerve in my tooth. Good luck!

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Re: RPV


@chang wrote:

@helmut Wow, that is definitely a value fund. Look at the metrics (P/E, P/B, etc.) - amazing. And the 40% hit it took in March ... you definitely get bragging rights for buying on a dip.

The breakdown shows its eggs are mostly in financials and energy ... not surprising.

It might be a bit early for this kind of exposure ... or maybe not. Nobody knows.

I’ve been trying to consolidate small positions, not create new ones, so I’m avoiding the temptation to “explore” (and I still have plenty of those), so this wouldn’t be up my street.

I’m glad I don’t have your nerve in my tooth. Good luck!

@chang If only I was that smart.  I did not buy RPV at -40%YTD.  I bought it at about -25% YTD.  In 2008 RPV finished at -48.11% so if we have another leg down I'm about half way there which is still not good in itself.  With that said I hold EDV which had  TR of 55.41% in 2008. Last week I felt like long-term treasuries were extremely over sold so I purchased RPV thinking EDV would be a good hedge.  

Anyway I'm not sure if any of this makes good sense but I have found that sound judgment is often instinctive or unlearned so I feel paired with EDV the risk with RPV is not as great as one may think.

helmut


 

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Re: RPV

@helmut Good luck, you seem to have a watchful eye and a plan. Personally, I don't do hedges. Slight tweaks of the overall stock/bond ratio is my only "hedge". I don't want to deal with the complexity of owning another asset to hedge against existing assets. It smacks to me of paying for two things that cancel each other out. Then I might want to hedge against the hedge... and so on. I don't even want to think about going there...

The most I have done by way of hedging is to choose bond index funds that hold 50-75% USG (as opposed to 100% corporates) in both S/T and I/T durations (nothing L/T). That's about it for me.

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