Selling Picmo Paudx at a loss and buying BND?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Selling Picmo Paudx at a loss and buying BND?

Postby jasondhsd » Tue Jul 16, 2013 7:12 pm

I was wondering if this would be a good move. I currently have $9950 in PAUDX which is 90% bonds and it's down 2.35% overall. I was wondering if it would be a good move to sell it and buy BND as my bond fund?
jasondhsd
 
Posts: 18
Joined: Wed Aug 10, 2011 1:49 am
Location: owner

Re: Selling Picmo Paudx at a loss and buying BND?

Postby William4u » Tue Jul 16, 2013 7:32 pm

PAUDX is a very "un-bogleish" fund, and is not like the BND fund at all. They are apples and oranges.

BND is a diversified bond passive index fund with an ER of 0.1%, and contains no stocks. PAUDX is an actively managed mix of stocks, bonds, commodities, short positions, etc., with an ER of 2.08%. The expense ratio (ER) of PAUDX is more than 20 time the expense of BND.

You can see the differences
http://investments.pimco.com/Products/p ... lassCode=D
https://personal.vanguard.com/us/funds/ ... IntExt=INT

Since I am a Boglehead, I think PAUDX is a very, very bad fund to own. Its ER is way to high, and I never short the market (the fund prospectus says it can hold 20% short positions).

If I were you, I would have a classic three fund portfolio and call it a day...
http://www.bogleheads.org/wiki/Three-fund_portfolio
User avatar
William4u
 
Posts: 535
Joined: Fri Jun 01, 2012 3:02 pm


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: Bing [Bot], cherijoh, Flyers13, Grateful1, springnr, Yahoo [Bot] and 44 guests