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YAFFX - Yacktman Focussed

Keep or fold?

Large value. underperforming like all value.  M* 5* and silver rated. In IRA so no tax considerations. It appears to remain in mostly in bottom of large value funds. Not sure why 5* silver ratings. 

Small and old holding. What should I replace it by? May be some ETF? (Does not have to be large value. )

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Re: YAFFX - Yacktman Focussed

My LV exposure comes from SCHD, DODGX, DSEEX and the equity part of VWIAX.

DODGX remains on probation. If it falls into the bottom half of the LV category for 6 quarters or the bottom quartile for 2 quarters, then it will be gone.

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Re: YAFFX - Yacktman Focussed

@chang What is your allocation to LV, LG, and LB if available.?

Are you underweighting value , by how much?

Any other commentators?

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Re: YAFFX - Yacktman Focussed

@Sheryldell I don’t run X-ray very often, but last time I did, my equity was about 75-80% LC, and the LC was split pretty evenly among LV, LB and LG, but a little heavier in LG.

But that includes US and foreign, and my foreign is definitely growth biased (LC and SC). So my actual US equity is probably evenly split among LV, LB and LG.

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Re: YAFFX - Yacktman Focussed

Thanks @chang. DODGX is  much worse than YAFFX in performance but better in ER. 

So that leaves me with SCHD and DSEEX as better choices.

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Re: YAFFX - Yacktman Focussed

@waffle Yes indeed, I could not really recommend DODGX to a new buyer. My sell criterion are statistically certain to trigger selling sooner or later. Frankly, it needs to catch fire and rip the category to shreds for me to decide to keep it LT. OTOH, SCHD and DSEEX look like keepers. SCHD, in particular, is a fund I've never doubted, seems to be very well constructed, and has delivered.

Here is a chart of SCHD, DODGX, DSEEX and VEIPX (a crude proxy for the equity portion of Wellesley) over the last 5 years. Change the scale to "YTD" and you can see that SCHD and DSEEX demonstrate their strength both short- and long-term.

I'm not sure why I don't just dump DODGX now and put the proceeds into SCHD. Dodge & Cox are a huge disappointment.

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Re: YAFFX - Yacktman Focussed

Deleted

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Re: YAFFX - Yacktman Focussed


@norbertc wrote:

Consider Vanguard's VDIGX or VEIPX instead of SCHD?

ScreenHunter 791.png

N.


@norbertc  I think that chart is wrong. The new M* charts do not work for ETFs. See the link I posted below:

  • Here is a chart of SCHD, DODGX, DSEEX and VEIPX (a crude proxy for the equity portion of Wellesley) over the last 5 years. Change the scale to "YTD" and you can see that SCHD and DSEEX demonstrate their strength both short- and long-term.

SCHD is actually beating VEIPX handily.

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Re: YAFFX - Yacktman Focussed

@chang 

Good grief!  You're correct. I deleted my post.

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Re: YAFFX - Yacktman Focussed

We are learning a good investing lesson. The market doesn't care about value, growth, small cap, large cap, international.

Price is the ultimate indicator, it is ACTUALLY what people pay for a stock.  It doesn't depend on models, risk management, smart people, research and more. The SP500 simple formula based on capitalization which comes from the price can't be wrong too long and since the ER is so low it would be very difficult to beat it LT.

The SP500 is wide enough and global enough (40% of revenue come from abroad) to be a major core fund if not all/most of it.  If you want to go farther on the risk/reward then QQQ (50% of revenue come from abroad).

Sure, one day it will crash but is it going to be out? nope, the index will adjust, regroup and be good again because price will always be the most effective criterion.

We also learned another lesson, companies like D&C with long successful history have been sticking to what they know best and will not change, that cost their shareholders a lot of money.

The IT revolution started decades ago, I had a couple of really smart hands on lecturers (non were PhD) and one of their said the following: “Change is the only constant".

But these funds/managers are not the only ones.  The GMO team and Arnott models have been wrong for years too.

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Re: YAFFX - Yacktman Focussed

@chang  @yogibear   

RE Performance Charts

Is M*aware the new Performance tab charts don't work for ETF s? Do they work for OEFs mutual funds? What are they good/useful for?

Is there ever a reason to click on the new performance tab for TR or comparisons to other funds? I have often done that. This is very disconcerting to find out now. The links to old charts @yogibear  provided sometimes have not worked  for me when I substituted in a ' symbol ' in the url.

What is the best way to get to the old charts? Can a symbol be substituted for PIMIX in the url of that chart?  

Can ETFs be compared to mutual funds in the old chart format?

TIA

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Re: YAFFX - Yacktman Focussed

@FD1001 

Along your line of thinking:   How about beating the SP500 index by choosing/concentrating on the sector etfs that are leading , in essence trying to eliminate many of the bottom/ losing stocks out of the SP500, instead of the using the index 500?

 What about  using VUG (similar to using QQQ) to beat SP500 until there is a rotation to value, if ever it happens?

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Re: YAFFX - Yacktman Focussed


@Sheryldell wrote:

@FD1001 

Along your line of thinking:   How about beating the SP500 index by choosing/concentrating on the sector etfs that are leading , in essence trying to eliminate many of the bottom/ losing stocks out of the SP500, instead of the using the index 500?

 What about  using VUG (similar to using QQQ) to beat SP500 until there is a rotation to value, if ever it happens?


Why bother, the SP500 works great for decades. VUG is a growth index, what will happen when value leads? it will be behind.  SP500 will adjust to the market where ever it is.

If you are a good trader then it's possible.

============

BTW, this is what DSEEX is doing but looking for undervalue sectors.. 

I copied the following from my old notes.  First, managers invest in global bonds then, they look at 11 US stock sectors and select 5 undervalued sectors, then take 4 sectors out of 5 with the best momentum. They don't invest directly in the index but in a derivative that is similar to the index.

Basically, you get 200% investments for the price of 100%.  You get real bonds + derivative of stock indexes.

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Re: YAFFX - Yacktman Focussed


@Sheryldell wrote:

@chang  @yogibear   

RE Performance Charts

Is M*aware the new Performance tab charts don't work for ETF s? Do they work for OEFs mutual funds? What are they good/useful for?

Is there ever a reason to click on the new performance tab for TR or comparisons to other funds? I have often done that. This is very disconcerting to find out now. The links to old charts @yogibear  provided sometimes have not worked  for me when I substituted in a ' symbol ' in the url.

What is the best way to get to the old charts? Can a symbol be substituted for PIMIX in the url of that chart?  

Can ETFs be compared to mutual funds in the old chart format?

TIA


Old charts still work.   https://community.morningstar.com/t5/Mutual-Funds/M-Charts-for-OEFs-ETFs-CEFs-Stocks-Old-Style/m-p/7...

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