Search found 6460 matches

by lack_ey
Fri May 25, 2018 4:30 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

To some extent the perspective of how good a model is depends on what you want to learn from it and how you're evaluating it. If you focus on explaining the variability of returns, FF3 seems to hold well for evaluating small growth or some other Morningstar style box. Statistics such as R^2 are rela...
by lack_ey
Fri May 25, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: Total Return, Yield, Average Annual Performance
Replies: 16
Views: 552

Re: Total Return, Yield, Average Annual Performance

Understood. My point was about being able to change the "May well favor" to "Will favor" or "Will not favor". Previously, in another thread I did a comparison of the SEC yields adjusted for the taxes I will pay in my brackets (only federal for Treasury and none for State tax exempt Muni). Muni was ...
by lack_ey
Fri May 25, 2018 11:21 am
Forum: Investing - Theory, News & General
Topic: Total Return, Yield, Average Annual Performance
Replies: 16
Views: 552

Re: Total Return, Yield, Average Annual Performance

Ok, so the blue bar for the 3 year - is the "annualized" return (something like CAGR, right?) for the last 3 years. e.g. if I bought the fund for $10, in three years it fell to $9.8, but gave dividends of $0.6 in total (roughly 2% going by SEC yield). The Total Return is 9.8 - 10 + 0.6 = $0.4 for 3...
by lack_ey
Fri May 25, 2018 10:55 am
Forum: Investing - Theory, News & General
Topic: Total Return, Yield, Average Annual Performance
Replies: 16
Views: 552

Re: Total Return, Yield, Average Annual Performance

manedark wrote:
Fri May 25, 2018 10:51 am
https://i.imgur.com/WHYXgCL.png
I assume the blue bars are just the performance of the NAV value not the total return.
Blue bars are total return performance for the periods specified. Those are annualized figures of total return.

Fund performance is always quoted by total return net of fees.
by lack_ey
Fri May 25, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

...As triceratop has pointed out more than once, the full extent of any claim that Fama & French made on this front is that their three factor pricing model explains asset returns better than the single factor CAPM. This is, in fact, easy to verify. From 1972 to present, CAPM explains about 75.4% o...
by lack_ey
Fri May 25, 2018 12:53 am
Forum: Investing - Help with Personal Investments
Topic: Small & Community Bank ETF's
Replies: 6
Views: 326

Re: Small & Community Bank ETF's

On closer inspection, KRE starts from equal weighting (or so) and does include a number of larger regional banks that would fit between the $50 billion and $250 billion assets. You'd probably have to go name-by-name to see the percentage, though. The weighting would bias towards smaller banks within...
by lack_ey
Thu May 24, 2018 11:05 pm
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 100
Views: 8893

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

Thanks for the info. Question. For bond funds, what is the mathematical relationship between Per Share Distribution and Distribution Yield? For example, in April 2018, VBTLX has a PSD of $0.02349, and a DY of 2.73%. However, in March 2018, when the DY is lower at 2.69%, the PSD actually increased t...
by lack_ey
Thu May 24, 2018 10:26 pm
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 100
Views: 8893

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

Wait, does 1 share of VBTLX give the same yield regardless of its NAV? If so what you say make sense, NAV doesn't matter. I had no idea that's how it worked. I always assumed that 1 share of VBTLX at a NAV of $30 will give off more dividend per month than 1 share of VBTLX at a NAV of $20. Not exact...
by lack_ey
Thu May 24, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Small & Community Bank ETF's
Replies: 6
Views: 326

Re: Small & Community Bank ETF's

So is your investment thesis that any change isn't properly priced in now, and these will all do better than expected because people underestimate the effect currently? Anyway, investment rationale aside, one ETF that looks close to what you're asking is SPDR S&P Regional Banking ETF (KRE, ER = 0.35...
by lack_ey
Thu May 24, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

If you look at the way the factor series are defined, there's nothing there that would force the (true, or sample) correlations down to zero, and so they're not. I don't think ti's that surprising intuitively that for example small stocks might have higher equity beta on average than large stocks (l...
by lack_ey
Thu May 24, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

So if we look at let's say 100 randomly selected U.S. equity mutual funds, adjusted R^2 for a 3-factor model you think would be worse than adjusted R^2 for a 2-factor model of market and value?
by lack_ey
Thu May 24, 2018 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Short Duration Bonds ETF with Fidelity
Replies: 15
Views: 815

Re: Short Duration Bonds ETF with Fidelity

There are the short-term fixed income iShares ETFs that are commission free at Fidelity, which is not all of them. iShares Floating Rate Note (FLOT) - ER = 0.20%, investment grade corporate bonds with basically zero term risk, being floating rate with the rate moving with short-term interest rates i...
by lack_ey
Thu May 24, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

Related to the independence question, here's a modeled market beta of the SMB factor over time, assuming the linear coefficient is basically a Gaussian random walk over time (which is probably not how the relationship actually evolves over time, but is simple enough and illustrative), showing the cr...
by lack_ey
Thu May 24, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

jalbert wrote:
Thu May 24, 2018 1:28 pm
Quantified independently is different from being uncorrelated, independent variables, which is what the “independent” means when independent variables are defined for statistical linear models.
Linear models don't require independence of the explanatory variables with each other.
by lack_ey
Thu May 24, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

Non-exhaustive potential reasons for small caps returning more: Lower liquidity and illiquidity premium Informational uncertainty about prospects Greater sensitivity to financial distress and negative economic activity Higher cost of capital and default risk You might say that in some of the above, ...
by lack_ey
Wed May 23, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: Why do "traditional slice-and-dice" portfolios split 50/50 between value and blend?
Replies: 13
Views: 891

Re: Why do "traditional slice-and-dice" portfolios split 50/50 between value and blend?

Edelman's is showing as half value, half growth. Not half blend. But yeah, I don't think there's really much hard theoretical justification here. It looks fancy, seems like a compromise between a more heavy tilt and not tilting, and so on. Though really what matters is the overall tilt and factor ex...
by lack_ey
Wed May 23, 2018 4:34 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

If I remember correctly I saw an argument according to which one of the reasons the S&P600 beats the Russell 2000 is that it tend to avoid the junk stocks. Also it suffered less from frontrunning, but yes, the effective quality screen (earnings requirement) does filter out some junk and that should...
by lack_ey
Wed May 23, 2018 10:58 am
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

It still sounds as if they are using a private definition of the "size factor," or two different definitions, and it still sounds to me as if they are saying in one place that the size factor exists ("has been resurrected") because it exists in combination with quality, and in another place that it...
by lack_ey
Tue May 22, 2018 9:57 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 4992

Re: Fact, Fiction, and the Size Effect

Another interesting read from AQR, from 2015: The Small-Firm Effect is Real, and it's Spectacular , and the 2015 paper it references, Size Matters, if you Control Your Junk by five authors including two of the authors of the 2018 paper . (As a general skeptic I like the 2018 paper better. That's ju...
by lack_ey
Tue May 22, 2018 8:35 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

The fed dot plot drives the longer-end of the curve. You need to have a look at the correlation between it and the 5/7/10s. Take a look at page 3 here from the March meeting: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20180321.pdf The dot plot more so than market expectations o...
by lack_ey
Tue May 22, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: Edelman & Financial Engines merging
Replies: 36
Views: 3472

Re: Edelman & Financial Engines merging

What the fumarole is "Exponential Technologies?" The only one I ever heard of is https://en.wikichip.org/w/images/thumb/b/b1/Exponentials_533MHz_X704.jpg/320px-Exponentials_533MHz_X704.jpg which became Intrinsity and was then bought by Apple. It's something of an investment theme for Ric Edelman th...
by lack_ey
Tue May 22, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Is HFXIX (Catalyst Hedged Futures Strategy Fund) a good idea for long-term, low-risk capital preservation?
Replies: 8
Views: 390

Re: Is HFXIX (Catalyst Hedged Futures Strategy Fund) a good idea for long-term, low-risk capital preservation?

So the question is probably what should count as "the life of the fund." Morningstar and Fidelity believe that it should be treated as beginning in 2013 due to a change in fund "strategy and legal structure." From old fund filings, the first semi-annual report: Catalyst Hedged Futures Strategy Fund...
by lack_ey
Mon May 21, 2018 12:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total World Bond ETF
Replies: 30
Views: 3037

Re: Vanguard Announces Plans To Launch Total World Bond ETF

abuss368 wrote:
Mon May 21, 2018 12:19 pm
Is there a foreign tax credit with the bond fund? If so would this present a problem like Total International Stock did when it was a fund of funds?
In 2017 the foreign tax was 0.34% of income dividend distributions for the international bond index fund.
by lack_ey
Mon May 21, 2018 11:26 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total World Bond ETF
Replies: 30
Views: 3037

Re: Vanguard Announces Plans To Launch Total World Bond ETF

Does Vanguard normally create ETFs before creating mutual funds? I thought the mutual funds usually arrived before the ETFs. These days they launch together. Here the structure is another ETF of ETFs, like Vanguard Total Corporate Bond ETF (VTC) launched last year, for which there's not a mutual fu...
by lack_ey
Sun May 20, 2018 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1188

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

I don't understand the reason for the the hair-spitting here. Certainly the s&p 500 is by no means passive, yet an index based on it can be considered passively managed, so... where does that leave you? It's almost like people are wondering if a fund is "pure" enough to receive some sort of Boglehe...
by lack_ey
Sun May 20, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

I always appreciate your insights, lack_ey, but the following statements seem somewhat contradictory: To clarify, I mean that the expectations hypothesis is a very bad model for bond yields and that the shape of the yield curve is not generally indicative of the direction of future short rates (whi...
by lack_ey
Sat May 19, 2018 10:20 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

It doesn't do it justice to call the empirical evidence in support of the expectations hypothesis "weak" when IIRC over some period I checked, it actually predicted future rate changes so badly it got the sign wrong on average. For decades nobody has worked from the expectations hypothesis as it's ...
by lack_ey
Sat May 19, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

My working premise is that the yield curve reflects both expectations and liquidity preference, at least out to 10-year maturity. So do you have any thoughts about in general or today determining how much of a given yield (e.g. 10-year Treasury) comes from expectations (of future rates) and how muc...
by lack_ey
Sat May 19, 2018 7:02 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 3663

Re: Larry Swedroe: No Need For Corp Bonds?

Can someone point me to a time when owning a broad based corporate bond fund led to losing a tangible percentage of money and that this was *specifically* due to companies defaulting on the bond payments? Isn't that a really hard thing to do, simply because of how the funds are set up? Aren't many ...
by lack_ey
Sat May 19, 2018 6:09 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

If you go by the Larry Swedroe guideline of 20 bps/year to extend maturity, you wouldn't extend beyond 2-year maturity. It seems to me that if you were to apply a heuristic like that for curve positioning, the additional yield you should not be a constant but should depend at least in some part on ...
by lack_ey
Sat May 19, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Financial times: Wealthfront's experiment in risk parity has a rocky start
Replies: 14
Views: 1760

Re: Financial times: Wealthfront's experiment in risk parity has a rocky start

A couple of months is so short a time for comparing these funds that it is pointless. Get back to this in 10 years or so. In the article's defense, Wealthfront were the ones who claimed their strategy delivered superior results over short time frames. They had a table showing that over 6 and a half...
by lack_ey
Sat May 19, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

It really makes a big difference the way you pose the question. patrick013 seems to be focusing on correlations of the actual rates, not the changes in rates, which drastically changes the results. It's one thing to look at linear relationships, correlations, etc. but we need to back up and first fi...
by lack_ey
Sat May 19, 2018 12:10 pm
Forum: Investing - Theory, News & General
Topic: Bond Yields and Federal Funds Rate
Replies: 30
Views: 2439

Re: Bond Yields and Federal Funds Rate

The FFR has about a .90 correlation with movements of market interest rates. The Federal Funds Rate had a correlation of 0.358 with 10 year Treasuries over the period 1983-2007. Over the subperiod 2001-2007 the correlation was even lower, 0.128. From the paper "Decoupling between the Federal Funds ...
by lack_ey
Fri May 18, 2018 8:46 pm
Forum: Investing - Theory, News & General
Topic: Want Vanguard funds. Need Vanguard account?
Replies: 9
Views: 792

Re: Want Vanguard funds. Need Vanguard account?

At Vanguard's brokerage, Vanguard funds and ETFs are commission free when buying and selling. That's generally not the case elsewhere. Furthermore, the majority of platforms do not have Vanguard's lower-cost admiral share classes of their mutual funds (typically $10k minimum for the index funds), an...
by lack_ey
Fri May 18, 2018 2:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Real Estate Isn’t Special
Replies: 49
Views: 7011

Re: Interesting read on REITs by Swedroe

Okay, so this is older and overlaps with a more recent article but is unique and not the same. Here's a prior discussion of a 2018 article on the same topic and author: https://www.bogleheads.org/forum/viewtopic.php?t=248350 I'm not particularly enamored of the idea of considering something an asset...
by lack_ey
Fri May 18, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: CD ladder setup with Merrill ??
Replies: 5
Views: 592

Re: CD ladder setup with Merrill ??

Coupon is your interest payment. They usually are semiannual (twice a year), like many bonds. Sometimes not. So a $1,000 par CD with coupon of 2.9% semiannually would pay out $14.50 twice a year. Merrill Edge doesn't typically have a great selection available through the platform, and it's mostly ne...
by lack_ey
Fri May 18, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 3663

Re: Larry Swedroe: No Need For Corp Bonds?

Despite the credit risk of corporate bonds, I am under the impression that bondholders are paid before shareholders. Is this not a risk premium worth considering in the face of an economic downturn when bankruptcy is rife and equities are tanking? Sure, but in theory the entire market could be syst...
by lack_ey
Fri May 18, 2018 12:35 am
Forum: Investing - Theory, News & General
Topic: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009
Replies: 35
Views: 3626

Re: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009

AlohaJoe wrote:
Fri May 18, 2018 12:33 am
lack_ey wrote:
Fri May 18, 2018 12:19 am
Do people only understand rebalancing as a kind of mantra
I think this is true not just for rebalancing but for many things in investing and life :happy Most of the time it kinda sorta mostly works.
Life is simplifications and heuristics to make it through the day, huh.
by lack_ey
Fri May 18, 2018 12:33 am
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard Short Term Government Bond Fund?
Replies: 2
Views: 438

Re: Which Vanguard Short Term Government Bond Fund?

Vanguard Short-Term Federal is primarily not Treasuries (Treasury bonds, notes, bills), though it has some of those too for good measure. Instead it's mostly federal government-affiliated agency bonds and tend to be considered as implicitly or explicitly backed by the government but not guaranteed i...
by lack_ey
Fri May 18, 2018 12:19 am
Forum: Investing - Theory, News & General
Topic: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009
Replies: 35
Views: 3626

Re: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009

Estimating the spread in returns was tough and honestly my gut feeling was off and I wasn't really sure there. But I'm kind of disappointed somehow that people apparently don't understand what rebalancing does with respect to risk. Starting from near a market peak with a given allocation, of course ...
by lack_ey
Fri May 18, 2018 12:11 am
Forum: Investing - Theory, News & General
Topic: "5-Star Funds That Are Less Than Meets The Eye"
Replies: 4
Views: 985

Re: "5-Star Funds That Are Less Than Meets The Eye"

It is now starting to be long enough for those ratings to have a track record. It will be interesting to see whether they are more predictive than the star ratings. They took a look at how their medalist (analyst) ratings have done in 2017: http://www.morningstar.com/articles/840926/report-card-how...
by lack_ey
Thu May 17, 2018 10:55 pm
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 100
Views: 8893

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

I would prefer to buy when there is an expectation that I will receive a positive return, or at least break even. Here's my view. I generally don't believe in or practice market timing, but this one is so obvious (to me), I couldn't let it go. I don't really care so much about the price or the yiel...
by lack_ey
Thu May 17, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009
Replies: 35
Views: 3626

Re: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009

1) Measured by ending balance, compared to not rebalancing: a) None of the rebalancing regime helped. Not rebalancing gave the highest ending balance. b) Some rebalancing regimes helped, but none made money--none exceeded $10,000, all resulted in losses over the two-year period c) Many of the balanc...
by lack_ey
Thu May 17, 2018 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Things I don't understand... [Questions on: dividends, gains, munis]
Replies: 5
Views: 1237

Re: Things I don't understand...

1. Living off of dividends This is a portfolio consumption (withdrawal) strategy that involves not selling assets, only spending (at most) the dividends received from investments. 2. Reinvesting dividends This refers to using dividends received to buy more of the investment, rather than doing somet...
by lack_ey
Thu May 17, 2018 11:07 am
Forum: Investing - Theory, News & General
Topic: Bank Interest Rates — when will they go up?
Replies: 25
Views: 2783

Re: Bank Interest Rates — when will they go up?

These bank rates are not of products that are traded on the market, and these types of accounts are used by individuals. Thus there's no direct linkage with the fixed income market. If banks don't see it in their interest to raise the rates they pay on deposit accounts, then they won't. They might i...
by lack_ey
Thu May 17, 2018 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1188

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

Given that this is in the "help with personal investments" subforum, I don't feel it's particularly productive to make categorizations and define attributes more generally. Better to respond more specifically based on what you are looking for rather than what I might call something in a different co...
by lack_ey
Wed May 16, 2018 7:11 pm
Forum: Investing - Theory, News & General
Topic: Microcap Stock Screener
Replies: 21
Views: 1430

Re: Microcap Stock Screener

So is your goal to have multifactor loadings or to have microcaps? You kind of have to prioritize at some point. What's your starting universe of stocks, anyway? Rank is probably fine in doing the sorts, but something like z-scores may be a little better. Or something in between. Frankly, z-scores c...
by lack_ey
Wed May 16, 2018 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Lower cost but similar alternatives to these American Funds in my Roth IRA?
Replies: 9
Views: 430

Re: Lower cost but similar alternatives to these American Funds in my Roth IRA?

If they're all in a Roth IRA, do you really need a fund-by-fund replacement or just an allocation to replace the whole? If the latter, you might want to detail the weightings you have there. How closely are you expecting to match exposures? For example, looking at AMCAP, would you call that just a U...
by lack_ey
Wed May 16, 2018 1:05 pm
Forum: Investing - Theory, News & General
Topic: Do people in the forum hold foreign bonds?
Replies: 69
Views: 5714

Re: Do people in the forum hold foreign bonds?

Intuitively I can see why this is so (relative steepness of the yield curves) although I would have thought the cost of the FX hedging cancels that out. Normally in this context FX hedging should be with rolling short-term forwards (if nothing else, that's how the funds tend to do it), so there is ...
by lack_ey
Wed May 16, 2018 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Junk Bond fund
Replies: 65
Views: 3647

Re: Vanguard Junk Bond fund

What's your goal here? To get a different kind of bond? To get a higher yield? To get a diversifying source of return? Or what? What would you be investing in otherwise? Would you consider junk bonds if selected randomly, or via an index fund, or is this about Wellington's management? How much manag...