Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Monday March 1, 2021. 

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Total Return Bond ETFs Review

Total return bond ETFs managed by excellent managers are candidate funds for our popular MPIQ ETF Fixed Income portfolio (see Fixed Income page). In this newsletter, we look at some new ETFs in this category and review the portfolio. 

Total return bond ETFs vs. their mutual fund counterparts

Our total return bond mutual funds based fixed income portfolios have continued their excellent return streak (see mutual fund Latest Performance on Fixed Income page). These portfolios pick one candidate fund every month based on their return momentum to invest (thus rotation). The candidate funds need to satisfy one important condition: they are at least once managed by managers who have won Morningstar Fixed Income manager of the year award. 

We have monitored these so called ‘total return bond funds’ in ETF space. We believe if there are good enough number of such ETFs, the portfolio constructed based on the similar strategy should be more useful and hopefully have better returns than the mutual fund portfolios as ETFs are inherently more flexible (not subject to minimal holding period, for example, that’s sometimes imposed for mutual funds by fund companies or a brokerage). Often, ETFs are somewhat cheaper in terms of their expense ratios too. 

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