The AGG is a bond fund ETF that does do a pretty good job of mimicking our F-fund, but that is not its intention. It's not as correlated as the EAFE index and our I-fund.
Tom
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I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Was checking out the F fund price history on yahoo and noticed that the AGG went down significantly in 2008 but the F Fund that year made 6 %...I read Tom's previous post...but there seemed to be no correlation that year
I believe the F fund reinvests the yield in itself. You can do that with AGG by using the "DRIP" method offered by most brokers, but it won't show in the price history. If I'm not mistaken, this would be why the F fund performs just slightly better than AGG most days.
For example, yesterday AGG was down (-0.22%), while the F fund was only down (-0.16%). So the F fund outperformed AGG by .06%. Woohoo!
Hope this helps.
Can someone enlightenment why Bond market drop off along with the market back in 09? I thought the two inverse each other.
looking over the F fund return history...there is no correlation between stocks and bonds...F fund seems to make around 5-6 % every year no matter how equities perform...i think F only had 2 negative years...it looks like this year will make #3...if it does stay negative this year odds are that it will have multiple positive years ahead...might be a good play to hop aboard come jan 1
seems like a good time to gobble up some F fund shares since everyone is exiting bond funds...F fund price is nearing the G...equity correction should be bullish for F...who knows the way this market is behaving though
Yields go down = F Fund goes up
Yields go up = F Fund goes down
The Fed has been driving yield rates down. When they stop the bond buying spree, the F Fund won't like that so much and neither will the housing market.
where do you see the F fund price at the end of the year...after 3 months of tapering
May start looking at the F Fund if it hits its right shoulder next few days.
F-Fund.jpg
CURRENTLY 50% C and 50% S (as of COB 04/18/2024) 2nd April IFT
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BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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