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Re: Where to Put Cash? [Ultra & ST ETFs]

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SHV   ISHARES SHORT TREASURY BOND ETF 2.00%     DUR 0.33 yrs. AVG MAT 0.40  28B

SHY   ISHARES 1 TO 3 YEAR TREASURY BOND ETF 1.95%     DUR 1.88 yrs. AVG MAT 1.90  23.5B

MINT   PIMCO ENHANCED SHORT MATURITY ACTIVE ETF 2.48%     DUR 0.24  12.6B

JPST   JP MORGAN ULTRA SHORT INCOME ETF 2.27%     DUR/AVG MAT no info   10.1B

VGSH  VANGUARD SHORT-TERM TREASURY ETF 2.10%     DUR 1.91 yrs. AVG MAT 2.0   8.3B

SCHO SCHWAB SHORT TERM US TREASURY ETF 2.09%     DUR 1.88 AVG MAT 2.0  7.1B

ISTB   ISHARES CORE 1 TO 5 YEAR USD BOND ETF 2.67%    DUR 2.65 yrs.  3.6B

SPTS  SPDR PORTFOLIO SHORT TERM TREASURY ETF 1.97%      DUR 1.91 yrs. AVG MAT 2.0   3.1B

ICSH   ISHARES ULTRA SHORT TERM BOND ETF 2.41%     DUR 0.31 yrs.  2.7B

CLTL  INVESCO TREASURY COLLATERL ETF  1.97%      DUR 0.42 yrs. AVG MAT 0.40   817M.  This one had hardly any loss YTD (link)

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@fred495 wrote:

For example, I am currently checking out ICSH, an ultra short-term bond ETF, with a 12-month trailing yield of 2.34%. The fund lost 0.87% in March. It has an ER of 0.08%, a SD of 0.79%, and 76% of the bond portfolio is AAA-A and 22% BBB rated.


 

In my original post I correctly noted that ICSH had a 12-month trailing yield of 2.34%. I think this is somewhat misleading, particularly in the present very low interest environment. It would have been more helpful if I had used the current SEC yield of 1.61%, instead. Sorry if I inadvertently mislead anyone.

It should also be noted that FD's above list of ultra and short term bond funds also displays the 12-month trailing yield and not the SEC yield.

Fred

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@fred495 wrote:

In my original post I correctly noted that ICSH had a 12-month trailing yield of 2.34%. I think this is somewhat misleading, particularly in the present very low interest environment. It would have been more helpful if I had used the current SEC yield of 1.61%, instead. Sorry if I inadvertently mislead anyone.

It should also be noted that FD's above list of ultra and short term bond funds also displays the 12-month trailing yield and not the SEC yield.

Fred


Thanks, I noticed that, but did not want to nitpick. Good point that the fund will not yield 2%. NEAR does yield a bit over 2%, but it lost quite a bit in March, now seems to be recovering. I have more cash in ICSH, as it is a better cash sub, if anything is.

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@FatKat wrote:

@fred495 wrote:

@fred495 wrote:

For example, I am currently checking out ICSH, an ultra short-term bond ETF, with a 12-month trailing yield of 2.34%. The fund lost 0.87% in March. It has an ER of 0.08%, a SD of 0.79%, and 76% of the bond portfolio is AAA-A and 22% BBB rated.


 

In my original post I correctly noted that ICSH had a 12-month trailing yield of 2.34%. I think this is somewhat misleading, particularly in the present very low interest environment. It would have been more helpful if I had used the current SEC yield of 1.61%, instead. Sorry if I inadvertently mislead anyone.

It should also be noted that FD's above list of ultra and short term bond funds also displays the 12-month trailing yield and not the SEC yield.

Fred


Thanks, I noticed that, but did not want to nitpick. Good point that the fund will not yield 2%. NEAR does yield a bit over 2%, but it lost quite a bit in March, now seems to be recovering. I have more cash in ICSH, as it is a better cash sub, if anything is.


It is not just ICSH, but all ultra-short bond funds are reporting abnormally high yields for some reason.

I was trying to calculate ICSH as an individual bond this morning using the values quoted on the ishares website and did not have much luck. 

isch.jpg

It will usually work out within tenths of percentages, but not this time for some reason.  I calculate YTM of 0.48% including dividend reinvestment. This (0.48%) is very much in line with treasury yields + corporate spread.

Dividend cash flow should be about $1.13 per $1,000 invested, but I lost interest and did not check. The website reported an average weighted coupon of 1.35%, and the actual distribution amount per $1k should either verify or disprove that.

Price sensitivity includes convexity, and is the multiple for yield changes. Duration calculations are on the right.

I calculated duration nearly 3 times higher than what ISCH reported. Duration goes up as yield goes down. So, if the coupon was higher, or the price was lower, then the duration would decrease towards the 0.32 reported.

It is probably a crash-related anomaly that is affecting them all. 

comparison table.jpg

Holiday

EDIT:  I am showing a price return (loss) of -$8.60 per $1,000 which is subtracted from the yield. Bonds mature but these funds do not so the actual price gain or (loss) is unknown.

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Hi @fred495 ,

I found THIS CALCULATOR at the bottom of the iShares webpage for ICSH.  You will need to scroll all the way to the bottom of the page to find it.

iCSH calculator.jpg

Using today's price of $50.44, this calculator shows a YTM of 1.20%, and a Modified Duration of 0.73 for iCSH.

This is pretty close to what I calculated this morning after I doubled the average weighted coupon.  I did this because ISCH sells in $50 increments while all of the bonds in their portfolio sell in units of $100 of face value. So, each share would be entitled to 1/2 of each coupon and 1/2 of each $100 of face value at PAR.

This is what iCSH looks like as an individual bond:

isch 2.jpg

I think the portfolio data listed in the table is stale, and the calculator uses a fresher version.  Due to redemptions at maturity or forced by recent market action, this is one slight adjustment that makes the two match:

Average weighted coupon adjustment:

  • 1.35% from the ISCH Portfolio Characteristics Table 
  • 1.225%  used in the Excel Spreadsheet (value doubled in the spreadsheet field as explained above)

I am thinking that either iShares has not refreshed all of it's tables, or that I cannot otherwise account for financial engineering in the form of floaters, wraps, or shorts made by the fund.

Either way, my spread sheet and the ISCH calculator agree on these points:

Yield (YTM) 

  • 1.269% Excel Spreadsheet. 
  • 1.20%  iCSH Calculator

Modified Duration:

  • 0.73  iCSH Calculator
  • 0.739 Excel MDURATION Function
  • 0.741 Spreadsheet Calculation
  • 0.744 Spreadsheet Sensitivity Calculation (includes convexity)

From this arithmetic, I am convinced that the 2%-ish yield reporting for ultrashort bond funds is a Crisis-Related Report-Blooper created by commonly accepted reporting methods that blew out somehow during the recent extraordinary bond market volatility and forced-redemption conditions.

The 1.22% yield I calculated is still a 0.96% (96 bps) ACF spread above the 6-month treasury which is massive given the 9 month average maturity and investment grade credit rating.

5-12 Yield Curve.jpg

Please notice that this data is about 1-week old, so I would be happy to update it if it is necessary.

I am convinced that iCSH is not alone in this, and that the yields of other ultra-short bonds are similar in reality.  I expect to see a reporting adjustment after someone with clout calls them on the carpet.

Again, I am calculating with a capital loss because the bond fund is selling at a premium, and the ETF never matures in entirety like an individual bond, so there are small differences there (short time frame) that get swamped out when looking at longer duration funds. I don't know how the fund accounts for bonds maturing at PAR (mid-day or monthly).

Thank you for the topic Fred, I would be happy to calculate for other ultra short funds as a double check if anyone is interested time permitting.

Holiday

edit: Some of those Boglehead.org guys seem to be really good at getting to the bottom of bond math questions if anyone is inclined to get a second opinion.

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@Holiday wrote:

Hi @fred495 ,

[...] Thank you for the topic Fred, I would be happy to calculate for other ultra short funds as a double check if anyone is interested time permitting.

Holiday


And, thank you, Holiday, for the very extensive analysis you presented here. Much appreciated.

However, at this point, I am still going with ICSH, it seems to be the best ultra-short bond fund out there. As you noted, "The 1.22% yield I calculated is still a 0.96% (96 bps) ACF spread above the 6-month treasury which is massive given the 9 month average maturity and investment grade credit rating."

Thanks, again.

Fred

 

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@fred495 wrote:

@Holiday wrote:

Hi @fred495 ,

[...] Thank you for the topic Fred, I would be happy to calculate for other ultra short funds as a double check if anyone is interested time permitting.

Holiday


And, thank you, Holiday, for the very extensive analysis you presented here. Much appreciated.

However, at this point, I am still going with ICSH, it seems to be the best ultra-short bond fund out there. As you noted, "The 1.22% yield I calculated is still a 0.96% (96 bps) ACF spread above the 6-month treasury which is massive given the 9 month average maturity and investment grade credit rating."

Thanks, again.

Fred


Hi Fred, 

I don't think you will go wrong with iCSH. I still need to find out how long it takes funds to settle. I will most likely buy it myself if the funds from a sale are immediately available in my Fidelity account.

Thank you,

Holiday

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Have you considered using an online savings account? I use ally for money i have on the sidelines which generates 1.25%

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@investlikedad wrote:

Have you considered using an online savings account? I use ally for money i have on the sidelines which generates 1.25%


Yes, it has been discussed and it a viable alternative. Most looking at these ultra short funds are wanting to keep cash ready for other moves.

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Re: Where to Put Cash? [Ultra & ST ETFs]

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@PaulR888 wrote:

FD ...   You are the king of deflect and divert.  All my big down investments are CEFs in Bucket 2 and equity in Bucket 3.  I do not fret over those.  I give them years to rebound.  Yes, DBLSX is down as you said, but I got the yield as a buffer.  It too will rebound and much quicker.  And it still beats your DHEAX that has lost 7.1% YTD.  Ouch!

As you have no idea what my asset allocation in dollars are, I will say my YTD through April is down 14% but I've also received $15K in dividends so I am on track to more than cover all my gap expenses for the year.  While my risk assets are down, I do maintain 6% to 8% in precious metals/commodities:  FNV is up 46% YTD (and 100% over 1 yr) and LCSIX is up 14% YTD. 

And finally, my diversified portfolio made 20% last year.  I can keep fully invested all the time and not have to rely on your Ouiji board or whatever you use to exit and enter markets.  Yes, staying in the market subjects oneself to painful losses sometimes.  Like a golfer who gets into trouble on certain holes during the round but if he or she sticks to their game plan and strategy they can still win.  

To refresh your memory, on Sep 25, 2019 1:03 PM, you posted "I would invest in Multisector bonds funds with several bond categories and let their management worry and adjust their asset allocation, duration and others for market conditions. Just buy the following 3 funds VCFAX/VCFIX, JMUTX/JMUIX, JMSIX/JGIAX...all with distributions over 4%...and go to sleep." 

Well, during March peak to trough, VCFAX lost 20%, JMSIX lost 18% and JMUTX lost 16%.  What ya say 'bout that FD?

You throw darts at my bond funds yet your bond fund picks are no better.  You throw darts at my equities yet we don't know what your equities were.  I often wonder why your base is so strong here?  You remain all hat and no cattle, no better predictor of performance than the next guy.  All you outshine us is in the ego category.      


Let me help you, I owned IOFIX, sold it and then it lost over 40%.  DEAHX lost but I didn't own it either, remember I sold it all, it's documented pretty well at Sold most of my portfolio to cash.

But the facts show that you owned DBLSX as cash and it lost over 7% which is a pretty bad choice for cash and your excuse is "but I got the yield as a buffer"...no, DBLSX lost over 7% including all the yield. You also own several CEFs with high yields but it doesn't change the fact that your portfolio lost money more than you anticipated.  On the other hand, I beat my strict rules for years already.  

Basically, the only thing that matters is what you own and not a discussion about funds.

The usual, if you refer to me I will answer until you stop.  The record shows I didn't start it.

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Re: Where to Put Cash? [Ultra & ST ETFs]

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@FD1001 wrote:

@PaulR888 wrote:

FD ...   You are the king of deflect and divert.  All my big down investments are CEFs in Bucket 2 and equity in Bucket 3.  I do not fret over those.  I give them years to rebound.  Yes, DBLSX is down as you said, but I got the yield as a buffer.  It too will rebound and much quicker.  And it still beats your DHEAX that has lost 7.1% YTD.  Ouch!

As you have no idea what my asset allocation in dollars are, I will say my YTD through April is down 14% but I've also received $15K in dividends so I am on track to more than cover all my gap expenses for the year.  While my risk assets are down, I do maintain 6% to 8% in precious metals/commodities:  FNV is up 46% YTD (and 100% over 1 yr) and LCSIX is up 14% YTD. 

And finally, my diversified portfolio made 20% last year.  I can keep fully invested all the time and not have to rely on your Ouiji board or whatever you use to exit and enter markets.  Yes, staying in the market subjects oneself to painful losses sometimes.  Like a golfer who gets into trouble on certain holes during the round but if he or she sticks to their game plan and strategy they can still win.  

To refresh your memory, on Sep 25, 2019 1:03 PM, you posted "I would invest in Multisector bonds funds with several bond categories and let their management worry and adjust their asset allocation, duration and others for market conditions. Just buy the following 3 funds VCFAX/VCFIX, JMUTX/JMUIX, JMSIX/JGIAX...all with distributions over 4%...and go to sleep." 

Well, during March peak to trough, VCFAX lost 20%, JMSIX lost 18% and JMUTX lost 16%.  What ya say 'bout that FD?

You throw darts at my bond funds yet your bond fund picks are no better.  You throw darts at my equities yet we don't know what your equities were.  I often wonder why your base is so strong here?  You remain all hat and no cattle, no better predictor of performance than the next guy.  All you outshine us is in the ego category.      


Let me help you, I owned IOFIX, sold it and then it lost over 40%.  DEAHX lost but I didn't own it either, remember I sold it all, it's documented pretty well at Sold most of my portfolio to cash.

But the facts show that you owned DBLSX as cash and it lost over 7% which is a pretty bad choice for cash and your excuse is "but I got the yield as a buffer"...no, DBLSX lost over 7% including all the yield. You also own several CEFs with high yields but it doesn't change the fact that your portfolio lost money more than you anticipated.  On the other hand, I beat my strict rules for years already.  

Basically, the only thing that matters is what you own and not a discussion about funds.

The usual, if you refer to me I will answer until you stop.  The record shows I didn't start it.


FD, why don't you respond and/or defend your perfect suggestion of investing in VCFAX, JMSIX, and JMUTX and then going to sleep?  What happened with that?  I don't see the hilarious "..." excuse as a possibility.  

And btw, I don't lose my yield;  it collects in my Core account and I get to spend it.  

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Re: Where to Put Cash? [Ultra & ST ETFs]

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@PaulR888 wrote:

@FD1001 wrote:

    

Let me help you, I owned IOFIX, sold it and then it lost over 40%.  DEAHX lost but I didn't own it either, remember I sold it all, it's documented pretty well at Sold most of my portfolio to cash.

But the facts show that you owned DBLSX as cash and it lost over 7% which is a pretty bad choice for cash and your excuse is "but I got the yield as a buffer"...no, DBLSX lost over 7% including all the yield. You also own several CEFs with high yields but it doesn't change the fact that your portfolio lost money more than you anticipated.  On the other hand, I beat my strict rules for years already.  

Basically, the only thing that matters is what you own and not a discussion about funds.

The usual, if you refer to me I will answer until you stop.  The record shows I didn't start it.


FD, why don't you respond and/or defend your perfect suggestion of investing in VCFAX, JMSIX, and JMUTX and then going to sleep?  What happened with that?  I don't see the hilarious "..." excuse as a possibility.  

And btw, I don't lose my yield;  it collects in my Core account and I get to spend it.  


What happened to VCFAX, JMSIX, and JMUTX and many other funds? The coronavirus.  VCIT is a good, reliable investment grade bond fund from Vanguard, it lost over 12% from peak to trough. When a black swan shows up bad things happen.

The question is how your portfolio handles it and we found out your portfolio didn't do as expected which means that your analysis of volatility, 20 funds, Merriman, higher yield, buckets, BDC, diversification...none...helped you.

On the other hand, there are many investors that understand volatility/risk and are not surprised and it doesn't need to be so complicated.

Where did I say you lose the yield? PCI pays over 8% annually and already paid nicely YTD.  IF I have $100K invested in it since the beginning of 2020 now you have 26.9% less money, this includes all the yield and what you do with it is your choice.  If you started with BND you now have 4.8% more money regardless if it has higher distributions or not.  You have the choice to reinvest, use some of it, or sell shares, the only thing that matters is the total return.  PCI was an example, DBLSX is another fund and when it was down 7% it meant that a $100K was worth less than $93K which included all the yield. That was your cash and it wasn't pretty.  Higher yield doesn't guarantee anything and never comfort me, I care how much money I have.

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For us at Schwab, SWSBX is much better than BSBIX due to easy in and out without fees at all.


@dtconroe wrote:

@fred495 wrote:

Looking for suggestions where to put cash since MM interest rates are currently almost negligible, and probably will remain so for the foreseeable future. Have a significant amount of cash sitting on the sidelines that I will not invest until I get a better sense how this downturn, that is “without modern precedent” according to Fed Chair Powell, evolves. 

For example, I am currently checking out ICSH, an ultra short-term bond ETF, with a 12-month trailing yield of 2.34%. The fund lost 0.87% in March. It has an ER of 0.08%, a SD of 0.79%, and 76% of the portfolio is in AAA-A and 22% in BBB rated bonds.

Any other recommendations are appreciated.

Fred

 


Fred, I am struggling with the same issue.  Since I am at Schwab, you may be looking at a different brokerage for your options, but I have a significant amount of cash in SWSBX.  I still maintain some monies in Schwab Money Market funds, but like you, I prefer to take some additional risk, to get a little more return.  Other funds I monitor, that look promising (depending on your risk criteria) include BSBIX, VUSFX, and FCONX.  


 

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@Gary1952 wrote:

For us at Schwab, SWSBX is much better than BSBIX due to easy in and out without fees at all.


@dtconroe wrote:

@fred495 wrote:

Looking for suggestions where to put cash since MM interest rates are currently almost negligible, and probably will remain so for the foreseeable future. Have a significant amount of cash sitting on the sidelines that I will not invest until I get a better sense how this downturn, that is “without modern precedent” according to Fed Chair Powell, evolves. 

For example, I am currently checking out ICSH, an ultra short-term bond ETF, with a 12-month trailing yield of 2.34%. The fund lost 0.87% in March. It has an ER of 0.08%, a SD of 0.79%, and 76% of the portfolio is in AAA-A and 22% in BBB rated bonds.

Any other recommendations are appreciated.

Fred

 


Fred, I am struggling with the same issue.  Since I am at Schwab, you may be looking at a different brokerage for your options, but I have a significant amount of cash in SWSBX.  I still maintain some monies in Schwab Money Market funds, but like you, I prefer to take some additional risk, to get a little more return.  Other funds I monitor, that look promising (depending on your risk criteria) include BSBIX, VUSFX, and FCONX.  


 


At Schwab it's great, they never hassle me about their funds. I have been using trading SWNTX(munis) many times in all accounts (even IRA) and why I don't have cash.  If I trade and I have some money it goes to SWNTX when I think it's worth it like now.

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I am glad you are trusting SWNTX. I have been and for longer term I hope.


@FD1001 wrote:

@Gary1952 wrote:

For us at Schwab, SWSBX is much better than BSBIX due to easy in and out without fees at all.


@dtconroe wrote:

@fred495 wrote:

Looking for suggestions where to put cash since MM interest rates are currently almost negligible, and probably will remain so for the foreseeable future. Have a significant amount of cash sitting on the sidelines that I will not invest until I get a better sense how this downturn, that is “without modern precedent” according to Fed Chair Powell, evolves. 

For example, I am currently checking out ICSH, an ultra short-term bond ETF, with a 12-month trailing yield of 2.34%. The fund lost 0.87% in March. It has an ER of 0.08%, a SD of 0.79%, and 76% of the portfolio is in AAA-A and 22% in BBB rated bonds.

Any other recommendations are appreciated.

Fred

 


Fred, I am struggling with the same issue.  Since I am at Schwab, you may be looking at a different brokerage for your options, but I have a significant amount of cash in SWSBX.  I still maintain some monies in Schwab Money Market funds, but like you, I prefer to take some additional risk, to get a little more return.  Other funds I monitor, that look promising (depending on your risk criteria) include BSBIX, VUSFX, and FCONX.  


 


At Schwab it's great, they never hassle me about their funds. I have been using trading SWNTX(munis) many times in all accounts (even IRA) and why I don't have cash.  If I trade and I have some money it goes to SWNTX when I think it's worth it like now.


 

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Capital One has what they call a 360 money market savings account offering a transfer bonus of $100 per $10,000 transferred to them, limited to total of $500 for a $50K or more transfer to open account. Funds must remain in the account for 90 days to earn bonus. Account pays about 1.2% with interest paid monthly. Cap One does charge $30 for an outgoing transfer. I opened an account last fall and received my $500 bonus for my $50K transfer. Interest earned on a $50K transfer, bonus included, for a 90 day holding period is in excess of 5% annual yield.

Accounts are FDIC insured.

OFFER EXPIRES MAY 30, 2020.

https://www.capitalone.com/score500/?external_id=360B_MM_SEM_71700000066042767GOOGLE5870000583053287...

 

 

 

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Doesn't Schwab observe frequent trading restrictions on its own short-term bond funds? I checked the prospectus and it says round trips within 60 days are considered frequent or short-term trading. Unclear what the penalty is.

For non-Schwab funds on its NTF platform, sale within 90 days of buy means imposing a commission among other potential penalties.

As noted earlier, these trading restrictions were the reason that I have decided to use ICSH with T+2 settlement as source and target of trading funds at Schwab for things with like settlement [T+2]. Previously, I was using Schwab m-mkt funds with T+1 settlement but those are now paying almost nil.

YBB
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Re: Where to Put Cash? [Ultra & ST ETFs]

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@FD1001 wrote:

@PaulR888 wrote:

To refresh your memory, on Sep 25, 2019 1:03 PM, you posted "I would invest in Multisector bonds funds with several bond categories and let their management worry and adjust their asset allocation, duration and others for market conditions. Just buy the following 3 funds VCFAX/VCFIX, JMUTX/JMUIX, JMSIX/JGIAX...all with distributions over 4%...and go to sleep." 


Let me help you, I owned IOFIX, sold it and then it lost over 40%.  DEAHX lost but I didn't own it either, remember I sold it all, it's documented pretty well at Sold most of my portfolio to cash.


Paul openly admits that his investments didn't do as well as he had hoped and that's cajones to admit it on an anonymous board. He doesn't have to but he did it anyway. Bravo!  

FD, you mentioned several times that some of your favorite funds are a cash sub and had advised many of your friends and family to buy and forget it.  I guess "" "" means that it works only when it works and on the other times, the investor has to do strict and constant due diligence. It's funny if you think about it. In that same vein, all the funds can be touted as "cash sub" as long as the investor is keeping a very *close* eye on it. I guess "sleeping" is out of the question.

Why is so hard for you to admit that some of your picks were horrible? Granted, no one expected a March meltdown! Just be a man and admit it - nothing wrong. After all, no one is giving any awards here for picking the best stocks/funds *all the time* as no one knows what exactly happens in an anonymous user's portfolio.

Even the great Bill Miller, who beat S&P several years in a row, is thrown to the wolves and licking the wounds now.

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@yogibearbull wrote:

Doesn't Schwab observe frequent trading restrictions on its own short-term bond funds? I checked the prospectus and it says round trips within 60 days are considered frequent or short-term trading. Unclear what the penalty is.

For non-Schwab funds on its NTF platform, sale within 90 days of buy means imposing a commission among other potential penalties.

As noted earlier, these trading restrictions were the reason that I have decided to use ICSH with T+2 settlement as source and target of trading funds at Schwab for things with like settlement [T+2]. Previously, I was using Schwab m-mkt funds with T+1 settlement but those are now paying almost nil.

 


YBB,

I own SWSBX at Schwab. The best answer I could get is Schwab's "Mutual Fund Department" receives a frequent trader report. If someone does a lot of trading (I could not get a definition), they will end up on the list. In turn, a broker will then see the person on the list and be able to control the transaction. Let's assume that Schwab enforces the 60-day frequent trader policy. Let's assume that you buy and sell SWSBX within the 60 days and then repurchase within 60 days. Then you end up on the "list". If you repeat this, Schwab can then lock you out for 90 days. After 90 days you again purchase SWSBX and sell it within 60 days. They can then lock you out for 12 months.

Unlike Vanguard's frequent trading policy, I do not get the sense that Schwab's is black and white and I do not get the sense that it is enforced. I get the sense that it "depends" on how much trading of the fund you do and how much Schwab values your business. An "I'm sorry won't do it again" probably works once if their policy is enforced. There is no financial penalty for violating their frequent trading policy.

Hootz

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Re: Where to Put Cash? [Ultra & ST ETFs]

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@RainGater wrote:

@FD1001 wrote:

@PaulR888 wrote:

To refresh your memory, on Sep 25, 2019 1:03 PM, you posted "I would invest in Multisector bonds funds with several bond categories and let their management worry and adjust their asset allocation, duration and others for market conditions. Just buy the following 3 funds VCFAX/VCFIX, JMUTX/JMUIX, JMSIX/JGIAX...all with distributions over 4%...and go to sleep." 


Let me help you, I owned IOFIX, sold it and then it lost over 40%.  DEAHX lost but I didn't own it either, remember I sold it all, it's documented pretty well at Sold most of my portfolio to cash.


Paul openly admits that his investments didn't do as well as he had hoped and that's cajones to admit it on an anonymous board. He doesn't have to but he did it anyway. Bravo!  

FD, you mentioned several times that some of your favorite funds are a cash sub and had advised many of your friends and family to buy and forget it.  I guess "" "" means that it works only when it works and on the other times, the investor has to do strict and constant due diligence. It's funny if you think about it. In that same vein, all the funds can be touted as "cash sub" as long as the investor is keeping a very *close* eye on it. I guess "sleeping" is out of the question.

Why is so hard for you to admit that some of your picks were horrible? Granted, no one expected a March meltdown! Just be a man and admit it - nothing wrong. After all, no one is giving any awards here for picking the best stocks/funds *all the time* as no one knows what exactly happens in an anonymous user's portfolio.

Even the great Bill Miller, who beat S&P several years in a row, is thrown to the wolves and licking the wounds now.


Why do I need to repeat myself? I called these funds "cash sub" for investors who understand the risk/volatility. The current thread also talks about cash.  Do posters understand that ICSH is really not cash? I hope they do.

Did you really think that SEMMX can make 4+% with very low volatility in all market conditions? if you did, please stop reading M* and go to a financial advisor.

Ho, I know what is going on.  You wanted to be diversified in bondland while the black swan ate your floating rate funds...no wonder you are upset.

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