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VG - Commodities Fund?
Old 04-27-2006, 07:12 PM   #1
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VG - Commodities Fund?

Is there a fund or a group of funds that cover commodities at Vanguard? They offer PCRIX and PCRDX, but both have a 1.24% expense ratio :P. I'm thinking of adding commodities for greater diversification in the future. If not VG, some other low-fee mutual fund Co?

PS: I asked a similar question in another thread but it wasn't really relevant to the topic so I'm posting this new thread.
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Re: VG - Commodities Fund?
Old 04-27-2006, 07:16 PM   #2
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Re: VG - Commodities Fund?

I own PCRIX through Vanguard's brokerage service at a 0.74% ER.

Cb
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Re: VG - Commodities Fund?
Old 04-27-2006, 07:23 PM   #3
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Re: VG - Commodities Fund?

Quote:
Originally Posted by Cb
I own PCRIX through Vanguard's brokerage service at a 0.74% ER.
Oops! Must of looked at PCRDX twice. Thanks for the correction. I guess PCRIX is the cheapest as far as commodities go right?

Cb, would you share your % allocation in PCRIX?
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Re: VG - Commodities Fund?
Old 04-27-2006, 08:00 PM   #4
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Re: VG - Commodities Fund?

How has that fund be doing?
I don't think it has moved much over the last year

What do you think about it going forward?
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Re: VG - Commodities Fund?
Old 04-28-2006, 12:24 AM   #5
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Re: VG - Commodities Fund?

Quote:
Originally Posted by Veritasophia
Oops!* Must of looked at PCRDX twice.* Thanks for the correction.* I guess PCRIX is the cheapest as far as commodities go right?

Cb, would you share your % allocation in PCRIX?
It was 15% of our portfolio when I bought in a year ago, and it was the first real "diversifier" added to our mostly US & Int'l Total Market indexes. Returns and payroll additions to the other classes have shrunken that to 12.6%. I'm content to leave it as-is...when I retire altogether later this year (I'm part time now) I'll do a 401K rollover to an IRA, at that point we'll be able to diversify more broadly, and PCRIX will have a smaller role in the portfolio, perhaps ~10%.

When both my wife and I have retired (and rolled out 401K's) our portfolio might look something like this, give or take a few percent here and there depending on tax consequences, Admiral class availability, etc, etc:

US Equities:
9% Large Growth
9% Large Value
9% Small Value
9% REITS

Internatíl Equities:
9% Europe
9% Far East
9% Emerging
9% Intíl Value

9% Commodity Futures Index

9% Short term Bond Index (gradually increasing as we age)
9% TIPS (gradually increasing as we age)

1% Old Guitar Amps

We've got decent pensions & SSI coming in the future, so I'm comfortable with the heavy equity allocation.

Cb


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Re: VG - Commodities Fund?
Old 04-28-2006, 04:32 AM   #6
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Re: VG - Commodities Fund?

i put 5% split between pcrdx ,,gld gold etf and fidelity select energy fsesx.........
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Re: VG - Commodities Fund?
Old 04-29-2006, 05:49 AM   #7
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Re: VG - Commodities Fund?

Sweet portfolio CB! Raddr-pages.com mentions that his analysis suggests that some gold/gold equity might be a good diversifier even if hold the commodities fund also. Cheers!
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Re: VG - Commodities Fund?
Old 04-29-2006, 03:52 PM   #8
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Re: VG - Commodities Fund?

Quote:
Originally Posted by ben
Sweet portfolio CB! Raddr-pages.com mentions that his analysis suggests that some gold/gold equity might be a good diversifier even if hold the commodities fund also. Cheers!
I think of the amps, guitars, and motorcycles as my hard assets. Of course my my wife has some difficulty with the concept, but this high falutin' MPT theory isn't for everybody, is it?

Cb
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Re: VG - Commodities Fund?
Old 04-30-2006, 08:43 AM   #9
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Re: VG - Commodities Fund?

Quote:
Originally Posted by Gerald
How has that fund be doing?
I don't think it has moved much over the last year

What do you think about it going forward?
Recent (e.g. last quarter) performance isn't relevant. After all, nobody would be down on an S&P 500 index fund because it had a crappy quarter. The point is diversification.
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