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12-01-2009, 05:12 PM
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#1 | | Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 2,405
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I'm sure many of us hold PCRIX in our portfolios. Did anyone notice that the ER went from .74 to 1.21 in the last few months?
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12-02-2009, 03:38 PM
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#2 | | Thinks s/he gets paid by the post
Join Date: Feb 2004 Location: Carolina Beach
Posts: 1,648
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Hmmmm... didn't notice because I haven't been watching it. I've owned it for 4-5 years. Bought it in the good ole days when it was trading around $16 
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12-03-2009, 07:39 AM
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#3 | | Thinks s/he gets paid by the post
Join Date: Jul 2003 Location: Pasadena CA
Posts: 1,977
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I like that fund and would like to buy some but the minimum investment is $5M!! I know there are some wealthier folks on this board but for that to be just part of a portfolio is way beyond me.
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12-03-2009, 07:46 AM
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#4 | | Thinks s/he gets paid by the post
Join Date: Feb 2004 Location: Carolina Beach
Posts: 1,648
|  Quote: Originally Posted by yakers  I like that fund and would like to buy some but the minimum investment is $5M!! I know there are some wealthier folks on this board but for that to be just part of a portfolio is way beyond me. | Hey, not me. I'm as broke as the next guy.... Vanguard and many others can get you in that fund for a few thou' as a minimum.
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12-03-2009, 07:56 AM
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#5 | | Thinks s/he gets paid by the post
Join Date: Jul 2003 Location: Pasadena CA
Posts: 1,977
| Quote: Originally Posted by BUM Hey, not me. I'm as broke as the next guy.... Vanguard and many others can get you in that fund for a few thou' as a minimum. | Interesting, I called Wells Fargo and they didn't offer a way in under the $5M min for me.
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“There are only two ways to live your life. One is as though nothing is a miracle. The
other is as though everything is a miracle.” - Albert Einstein
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12-30-2009, 12:07 PM
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#6 | | Recycles dryer sheets
Join Date: Jul 2008
Posts: 304
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I decided to use DBC for my commodities: best combo, IMHO, of low
expense, minimal transaction fee, and lack of credit risk. Do not hold
it in a taxable account, or you will be hating life come tax-time.
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06-15-2010, 01:01 PM
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#7 | | Thinks s/he gets paid by the post
Join Date: Feb 2004 Location: Carolina Beach
Posts: 1,648
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Anybody else think this is a buy now?
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06-15-2010, 03:12 PM
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#8 | | Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 2,405
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I would think so, I'm down about 50K.
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06-15-2010, 03:39 PM
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#9 | | Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 10,970
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Hard to see this as a speculation vehicle; its realy more suited to a long term portdolio diversifier and inflation hedge.
For a speculation, I like onshore natural gas producers a lot better.
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06-15-2010, 09:09 PM
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#10 | | Full time employment: Posting here.
Join Date: Jun 2005
Posts: 543
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I don't think the ER changed, it is still 0.74 last that I checked. But I think the larger number somehow represents total operating costs of the instruments they use. I posted the question on Bogleheads forum but never really got a fully satisfactory answer.
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06-15-2010, 09:17 PM
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#11 | | Full time employment: Posting here.
Join Date: Jun 2005
Posts: 543
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I posted this in June, 2009 on raddr's board just after I bought PCRIX for the first time, after thinking about it forever. I thought these reasons might help folks think about their purchase. I now keep 5% of my portfolio in PCRIX, I bought a bit more since the post below, and I don't have any plans to modify this percentage in the near term (the 0.74% expense ratio institutional version available to Vanguard investors for, I believe, 25K minimum purchase).
If you go by history, you can actually take the investment in PCRIX out of bonds, and still have a safer portfolio. Larry Swedroe recommends instead to take it out of equities, thus reducing the risk and average return of your portfolio (basically, decreasing the potential for outsize portfolio returns as a trade for decreasing the possibility of very low returns).
Kramer Quote:
After a long time examination of the evidence for futures, I am still not sure. That being said, I finally took the plunge last week and put 4% of my portfolio in them (PCRIX). I already had about 2% of my portfolio in precious metals (VGPMX).
I thought it might be instructional to lay out my own reasons. I personally have a more compelling case for investing in commodity futures than most people. Without most or all of these special factors, I would probably still be holding back.
1) I have extra need for protection against dollar weakness because I am retired and spend most of my time outside of the USA spending something other than dollars. 2) My portfolio is weighted toward value stocks, which have a lower historical correlation to futures than ordinary stocks. 3) Since I no longer have a job, do not own a home, have no inflation-adjusted pension (or social security at this time), and must maintain private health insurance, I am much more susceptible to inflation than most working people *and* most retirees. 4) Where I spend the most money, in developing countries, energy prices have a much greater effect on local inflation than in developed countries. 5) One of my future key assets, social security, is denominated in dollars. So my portfolio is even more dollar-heavy than it appears. 6) It is difficult for me to overweight foreign stocks because I do not receive all of the foreign tax credit due to my tax situation, which effectively increases their expense ratio for me (so only about 40% of my equities are non-USA). 7) I had room in tax deferred for the futures fund.
Also, as Larry Swedroe recommends, I went slightly longer duration with my bonds when I added futures to my portfolio.
I should mention that I am not negative on the future of the dollar whatsoever, I just like to diversify when possible. Even with the futures in there, my portfolio is still only about 26% non-dollar. That is mostly because all my bonds are dollar-denominated. But half of those are inflation-linked (TIPS and I-bonds) so that helps, too. Also, there is a high likelihood that much of my future spending will be in dollars. I still have not found a foreign bond fund that meets all my standards.
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06-16-2010, 08:09 AM
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#12 | | Thinks s/he gets paid by the post
Join Date: Feb 2004 Location: Carolina Beach
Posts: 1,648
| Quote: Originally Posted by brewer12345 Hard to see this as a speculation vehicle; its realy more suited to a long term portdolio diversifier and inflation hedge.
For a speculation, I like onshore natural gas producers a lot better. | Hedging is where I'm headed. Might look like speculation when I'm done. Trimming stocks and a position in gold makes sense to me now. I think the world has gone 
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06-16-2010, 11:40 AM
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#13 | | Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005 Location: Stepfordville
Posts: 6,761
| My allocation to PCRIX is 5%. Haven't added or subtracted lately. Would like to own "some" gold, but would rather have bought at $300/oz. Don't think there's much upside at $1200...
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06-16-2010, 04:05 PM
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#14 | | Thinks s/he gets paid by the post
Join Date: Feb 2004 Location: Carolina Beach
Posts: 1,648
| Quote: Originally Posted by HFWR My allocation to PCRIX is 5%. Haven't added or subtracted lately. Would like to own "some" gold, but would rather have bought at $300/oz. Don't think there's much upside at $1200... | My PCRIX slice is less than 5%. I haven't ever added. Its about time. As far as gold goes IMHO its got as much upside as the market has downside.
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In a panamax down by the river. | |
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06-17-2010, 08:30 AM
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#15 | | Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005 Location: Stepfordville
Posts: 6,761
| Quote: Originally Posted by BUM My PCRIX slice is less than 5%. I haven't ever added. Its about time. As far as gold goes IMHO its got as much upside as the market has downside. | When my rebalance bands were smaller, I added/subtracted occasionally. Also lowered allocation from 10% to 5%, somewhere in the $12 range... 
Think 5% provides the diversification I am seeking.
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"...Brains only provide the means to be more elaborately and ornately stupid...." Fred
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