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luisHK
 

Registered: Sep 2010
Posts: 1006

 

03-30-12 09:17 PM

Hi

Any feedback on the new Pimco active ETF ?

I bought some earlier this month and although the volume is low, it's growing steadily, the way it seems the Total Return Fund has been growing. Plus for tax reasons I like the fact there is no dividends yet. ( I read somewhere that there's no witholding tax on bond dividends, but if IB expects me to apply for the refund on behalf of a foreign corporation to the IRS, it sounds like much hassle) I'm actually thinking of adding to this position to abt half my account value to buy and hold, than use margin for the swing trades.

What are the risks if bonds crash ? For instance today it's been down 0.14%, but on some days TLT/ZB go down TRXT hold its head out of the water.

Btw, the ticker will change I think on April 4th, to become BOND.

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FrankSlaughtery
 

Registered: Aug 2010
Posts: 811

 

03-31-12 12:02 PM

his fund is just USGOV and MTG secs - if you don't have access to futures just buy TLT and NLY and be done w/ it

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luisHK
 

Registered: Sep 2010
Posts: 1006

 

03-31-12 01:21 PM

I have access to futures. The plus with TRXT, besides beeing activily managed _ with decades long of good performance from the related mutual funds - is it seems to be only slightly correlated to US tresuries. I'm not about to buy and hold ZB or TLT. Yet I wonder of TRXT reaction if bonds crash.

Besides I have no experience with NLY

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FrankSlaughtery
 

Registered: Aug 2010
Posts: 811

 

04-01-12 12:29 PM


Quote from luisHK:

I have access to futures. The plus with TRXT, besides beeing activily managed _ with decades long of good performance from the related mutual funds - is it seems to be only slightly correlated to US tresuries. I'm not about to buy and hold ZB or TLT. Yet I wonder of TRXT reaction if bonds crash.

Besides I have no experience with NLY



re decades long good perf, yes it has good perf over long periods of time but it can severely underperform during short periods like last year. they call it a track record for a reason...

re if bonds crash, TRXT aka BOND will get killed just like any bond fund unless he somehow completely changes his effective duration the day before the crash which is unlikely.

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luisHK
 

Registered: Sep 2010
Posts: 1006

 

04-01-12 01:42 PM

Thanks Frank, your input is duly noted - and I'll stick with only a small TRXT position for the moment.

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