You don’t understand the numbers you are trying to use to claim your approach is superior. To include the interest expense of leverage and compare that to a non levered expense isn’t remotely the same thing.Right, so you said "Gross Expense Ratio..1.71% includes other expenses including interest expense etc etc."Are folks sticking with PSLDX or adding RSSB ETF?
Other than the international allocation how different is PSLDX from RSSB? Does PIMCO have a secret sauce, because it is an active bond allocation? PSLDX did better than 100-100 portfolio in backtest.
PSLDX vs RSSB SIM
https://www.portfoliovisualizer.com/bac ... gFbsQLqmf5PSLDX expense ratio is 0.59%.Effective as of 07/31/2023
Gross Expense Ratio1.71%
Really everyone? If you check yourself, it has had a worse return as of 2017 (6 years) and also costs a bunch more.
https://www.portfoliovisualizer.com/bac ... sisResults
VTI's cost ratio is .05%
PSLDX cost ratio 1.71%
It also underperforms.
Why again?
Gross Expense Ratio1.71% includes other expenses including " interest expense from borrowings and repurchase agreements and dividend expense from investments on short sales incurred directly by the Fund or indirectly through the Fund’s investments in underlying PIMCO Funds (if applicable), none of which are paid to PIMCO."
See the performance above.
So, what is the matter? You even make my point that it is expensive. Why are we bringing this up again? I mean, I say it's expensive and may underperform for years. So, if you want some active management (whose managers could quit at any time) then go for it! Go get it and tell me who is managing it in 15-20 years. I'll probably be here and I wonder if the fund will be around. Maybe I'll just be okay with market returns.....so boring.
Psldx return = equity return + bond return - interest expense - management expense ratio. The management expense is 0.59%. Interest expense should be ~ 3mo TBill which is 5.4%. So if you assume 10% equity return and 6% bond, you get: 10+6-0.59-5.4=10.01
VTI = equity return - expense ratio.
10-0.05=9.95
Statistics: Posted by Iknownothing2 — Sat Jan 06, 2024 2:17 am — Replies 2085 — Views 371679