This articles explains how bond closed-end funds work and how they are better or worse than the traditional open-end mutual funds and ETFs.
Vanguard long-term muni bond fund offers a much higher yield with a duration not that much longer than that on the intermediate-term fund. What gives? Is it a free lunch?
For reasons I don’t completely understand, bond ETFs, especially ones investing in illiquid bonds such as munis, trade at a premium to the net asset value (NAV) most of the time. That means you will pay more to buy the ETF than the value of the illiquid bonds held by the ETF. Look at these […]
It’s a new year. The IRA contribution limit has gone up by $500 to $5,500 ($6,500 if you are 50 or older). Have you made your IRA contribution for 2013 yet? I haven’t. I’m going to continue with my experiment with buying on a dip. Last year I bought Vanguard Total International Stock Index Fund […]
401k plans are slowly getting better. My plan added a low-cost collective trust. My wife’s plan added a self-directed brokerage account, also known as a brokerage window. Her plan is managed by Fidelity. Fidelity calls it BrokerageLink. Some 401k plans managed by Charles Schwab also have this feature. Schwab calls it PCRA — Personal Choice […]
My 401k plan recently added a new investment option. It’s a collective trust from BlackRock — BlackRock EAFE Equity Index Collective Trust. It invests in stocks in developed countries, tracking the MSCI EAFE index. What Is a Collective Trust? A collective trust is like a mutual fund but it only sells to institutional investors like […]
When people start investing outside their 401k or 403b plan for the first time, their very first question is often "Which broker?" The answer should be "You don’t need one." Vanguard is a great choice for beginning investors (and seasoned investors!), but Vanguard is not a broker. It’s a mutual fund company. Vanguard has a […]
I wrote on Tuesday that I bought PIMCO CommodityRealReturn Strategy Fund D (PCRDX) on Dec. 5, 2008. It’s a good segue to today’s post. As luck had it, only a few days later, my jaw dropped when I saw the price of the fund dropped 25% in one day. It turned out it was just […]