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01-18-2006, 08:32 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Short-term Bond Return
My return for Vanguard Ltd-Term Tax-Exempt Inv since 5/04 is less than 1%. I am thinking about moving it a money market fund. Has anyone moved money from short-term bond fund to something else?
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Re: Short-term Bond Return
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01-18-2006, 10:59 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Re: Short-term Bond Return
I wouild guess that your interest income has been cancelled out by capital losses. That may not say anything about the future. If it is a long term committment, it will sometimes do better, sometimes worse than shorter term securities, but overall it should do a bit better over cycles of both rising and falling rates. Right now, the Fidelity Muinicipal Money Market fund has a 7-day yield of 2.60%
ha
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Re: Short-term Bond Return
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01-19-2006, 05:31 AM
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#3
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Re: Short-term Bond Return
I am not sure how much you have Invested, but if you are $10,000 +, why not just buy a Bond yourself, or if more$'s, ladder some Bonds.
A bond earning 3% a year in a Fund is subject to an Annual 2% MER, 2/3 of your return is taken by the fund.
I would suggest at this juncture, stay with 3 and 5 year maturing Bonds, rates are going up, you want to be able to ladder into higher rates.
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Re: Short-term Bond Return
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01-19-2006, 06:20 AM
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#4
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Jun 2003
Location: Florida's First Coast
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Re: Short-term Bond Return
 Quote:
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Originally Posted by Spanky
My return for Vanguard Ltd-Term Tax-Exempt Inv since 5/04 is less than 1%. I am thinking about moving it a money market fund. Has anyone moved money from short-term bond fund to something else?
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PenFed 3 year CD 5.5% APY.
SWR
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Re: Short-term Bond Return
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01-19-2006, 06:28 AM
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#5
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Mar 2003
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Re: Short-term Bond Return
Spanky, it is hard to see how a ST bond fund would be more attractive than the Vanguard MMF or a high rate savings account. As SWR suggests, a CD from Pen Fed for 3 years or Corus for 1 year also looks more attractive. Alternatively, I noticed yesterday that Sallie Mae has an exchange-traded bond (OSM) that pays CPI plus 2% and adjusts monthly.
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Re: Short-term Bond Return
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01-19-2006, 07:31 AM
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#6
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Join Date: Jun 2005
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Re: Short-term Bond Return
Even the PIMCO total return fund which has an intermediate term bond style is more than 50% cash.
Calvert Income fund (CFICX) available as a no-load in my 401(k) has a short style, but has 14% cash.
Do you really need tax-exempt?
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Re: Short-term Bond Return
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01-19-2006, 08:56 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Re: Short-term Bond Return
Quote:
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Originally Posted by LOL!
Even the PIMCO total return fund which has an intermediate term bond style is more than 50% cash.
Calvert Income fund (CFICX) available as a no-load in my 401(k) has a short style, but has 14% cash.
Do you really need tax-exempt?
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I do not need the income. Tax-exempt is nice since I do not want to pay tax. I might just buy IBond from Treasury Direct and do not have to worry about tax.
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