I enjoy your posts and our exchanges.
Not to worry about terminology.
I think we understand each other.
My 2X portfolio dropped more than twice what the underlying non-leveraged funds or indexes fell. I received, YTD, 2.1 times the portfolio income that the unleveraged funds generated. I won't know how much my total portfolio cash flow will go down, going forward, until the middle of April. I won't be surprised if it drops down, from 2.1X to 1X, still covering my retirement withrawals.
My portfolio, a month ago, was roughly 2X, consisted of 1 CEF, PCI (20%) and 3 ETNs (SDYL (30%), PFFL (20%), and MORL (30%)) Today, it is roughly 40% SDYL, 50% PFFL, 10% cash.
So far, it's doing what I expected it to do, regardless of whether the market went down, or up.
I have to keep your "amazing" style 😊
Maybe I should change the word “carnage” to a less profound word? What I was referring to is the fact that many of the medium to higher quality bond funds I held (VBILX, VICSX, etc.) with investment grade corporates/ treasuries, FELL as stocks sold off. I would have expected them to have held up better.
Granted, they fell a fraction of equity funds and individual stocks, but still did not provide as much “downside protection” as I was expecting.
Hi Win ... I know you are looking for ballast bond funds and you are not happy with VICSX. VBILX looks fine to me. Personally, for a ballast bond fund I would find -3% or better YTD is acceptable. VICSX has too high of a sector bet. Think IOFIX.
DODIX TGLMX/TGMNX has some appeal but I am sure you can search Vanguard for other options. So far, no harm no foul. Stress test is good to help you pick something better for your portfolio. Since you have a significant portfolio, I would avoid bond funds who say current income is a focus. That would be yield above 3%. In my portfolio, they have lost more. I need to reach for yield as my portfolio is smaller. My weighted average YTD of my bond OEFs as of yesterday was -6.6% and the current income funds took it down. I can live with the volatility as you said no where near equity volatility, but I see no reason you should. Good luck.
CORRECTION: Sorry Win. I gave you a bum example. Maybe look at TGLMX/TGMNX. I would lean toward an Intermediate Core Bond fund for you or a Total Return bond fund.
Also, the other day I listened to a Fidelity webcast and American Funds was represented. They mentioned their American Funds Bond Fund of America as a solid intermediate core bond fund offering balance and diversification. Maybe check that one out too and if nothing else use for comparison if shopping for a good core bond fund (See BFAFX).