Thought we were in good shape until we came here. Please help!

[davebarnes]

More on SWAN at https://www.bogleheads.org/forum/viewtopic.php?t=263557

[pb4uski]

Quote:

Originally Posted by Time2 I've been looking for something other than bonds to reduce my stock allocation. This looks interesting, it was down less than 1% during the March Covid drop, yet is up about 13% for the year. I compared it to a couple of Vanguard bonds, they dropped a lot more in March, and are only up the 5% for the year with the dividend. The expense ratio is 0.49%, they safety, it seems to provide may be worth that. Need to look further, thanks for posting.

It did well during the Covid drop in March, but was down more than 1%.

SWAN's 2020 low was on 3/19/2020... 5.95% off the beginning of the year, compared to 26.60% for VTI as of the same date.

VTI's 2020 low was on 3/23/20... VTI was 31.60% off of the beginning of the year, while on the same date SWAN was down 3.03% from the beginning of the year.

YTD, SWAN is up 14.42% vs 16.21% for VTI.

Black line is VTI, blus line is SWAN... YTD.

[Time2]

Quote:

Originally Posted by pb4uski It did well during the Covid drop in March, but was down more than 1%.

You're right, I only missed by a factor of 10! It was -0.089 and read it as -.0089. That's why we have adults like you around.

Quote:

SWAN's 2020 low was on 3/19/2020... 5.95% off the beginning of the year, compared to 26.60% for VTI as of the same date.

Just to clarify, those are both negative returns.

Quote:

VTI's 2020 low was on 3/23/20... VTI was 31.60% off of the beginning of the year, while on the same date SWAN was down 3.03% from the beginning of the year. YTD, SWAN is up 14.42% vs 16.21% for VTI. Black line is VTI, blus line is SWAN... YTD.

I think it held up very well, relative to VTSAX, the S&P 500 and the Dow.


Are you arguing for or against it, as protective against a market down turn? With a decent return if the market rises. Any reason the may not keep this type of performance?

[FundManager81]

If you're willing to bear some equity market risk, there are some high quality dividend yielding stocks that might help
you meet your goals.

The main one I have in mind is a megacap with a
high, safe, and growing yield...

But even with a little diversification, $1,000,000 of IRA money could generate over $35,000 in annual dividend income alone if you spread it across a small handful of stocks.

You'd need to have the fortitude to stick with the stocks even if they temporarily go down, but there are a few names out there that are more likely to appreciate, and raise their dividends, with fairly high probability. You just need to take a 3 year view and not get spooked by a 10% swing the wrong way.