Why not 100% PSLDX?

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Booogle
Posts: 43
Joined: Wed Nov 09, 2016 3:57 pm

Re: Why not 100% PSLDX?

Post by Booogle »

If we established PLRIX reflects the bond portion of PSLDX, what explains PLRIX's NAV going up and down?

It seems to go up and down regardless of interest rate.

https://finance.yahoo.com/quote/PLRIX/chart?p=PLRIX
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cflannagan
Posts: 1000
Joined: Sun Oct 21, 2007 11:44 am
Location: Working Remotely

Re: Why not 100% PSLDX?

Post by cflannagan »

Booogle wrote: Tue Sep 14, 2021 6:42 am If we established PLRIX reflects the bond portion of PSLDX, what explains PLRIX's NAV going up and down?

It seems to go up and down regardless of interest rate.
Not sure I understand your question? Bond funds/ETFs goes up and down because the value of bonds goes up and down. PLRIX behaves just like any other bond funds.

But if you're asking why bond values change.. let's say you bought an awesome bond with 10% rate. Then the rate changes, it's now 9%. So new bonds will have only 9%, while you still have your bond that pays out 10%. Your bond is now more valuable if you sell it. That's how bond value change over time.

Of course it's more nuanced than this. This might be of interest to you, if you want to dive in https://portfoliocharts.com/2019/05/27/ ... convexity/
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