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Timing PIMCO MINT - noob question
Old 04-20-2017, 02:44 PM   #1
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Timing PIMCO MINT - noob question

Two questions here really. There is so much data out there and hard to figure out which is best for an emergency cash fund account.

Have money in Vanguard Federal Money Market Fund (Settlement Fund) and am considering switching to MINT (PIMCO Enhanced Short Maturity Active ETF).

Which of the two funds above do you think is a better bet overall?

Also, had to title this post "noob question", because I notice something rather obvious in the way MINT has performed during the past year or so. At the end of the month, it drops predictably!

Even factoring Vanguard's $7 brokerage commissions for buying and selling MINT, if you take a look at the performance, wouldn't it make sense to always sell it before the last day of the month to avoid the month-end drop?

I know this is not completely predictable, as the returns have varied on this ETF, but it looks like the way to go, at least in the short-term.

Thoughts?

P.S. Thinking of putting at least 100K in this so this is a bit more than an emergency stash, while I search for a better low-risk alternative
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Old 04-20-2017, 04:06 PM   #2
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It drops in value because of monthly distribution.
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Old 04-20-2017, 04:22 PM   #3
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Sorry to say, it really is clear that you are a noob. You really should find a fee-only registered financial advisor to work with. It will pay off in the end.

One thing he/she will tell you is to forget worrying about these kinds of nickel-dime questions.

If you don't want to get advice, then just buy a low-fee, short-term govvie fund and relax. If you don't want to relax, buy a floating rate fund like SAMBX.
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Old 04-20-2017, 04:30 PM   #4
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Or just open an Ally Bank savings account that pays 1% and is insured for your emergency fund. Better yield and no expense ratio.
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Old 04-21-2017, 04:16 AM   #5
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Quote:
Originally Posted by hgm735 View Post
if you take a look at the performance, wouldn't it make sense to always sell it before the last day of the month to avoid the month-end drop?
If you sold it you wouldn't get the distribution, so it's a wash.

Another possibility is to transfer the money from the settlement fund (VMFXX) to the Prime Money Market Fund (VMMXX) and pick up 50% more interest with no commissions since they are both VG funds. This is what I do if my settlement fund builds up above what I need for anticipated transactions.
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Old Yesterday, 12:05 AM   #6
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Quote:
Originally Posted by FIRE'd@51 View Post
If you sold it you wouldn't get the distribution, so it's a wash.

Another possibility is to transfer the money from the settlement fund (VMFXX) to the Prime Money Market Fund (VMMXX) and pick up 50% more interest with no commissions since they are both VG funds. This is what I do if my settlement fund builds up above what I need for anticipated transactions.
That happens often, so will consider VMMXX, thanks.

Bought MINT in the middle of this month (April) - does this mean that I'll get approx 50% of the regular distribution? I also don't understand the drop in price at the end of the month and how it relates to distributions. Thanks for explaining if you have time
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