I understand that Fidelity L/T Treasury fund (FLBIX) has shorter duration than TLT and hence is less volatile. It's expense ratio is 0.20, which is just a tad bigger than TLT. Current yield is 3.88% for TLT and 3.85 for FLBIX.
However, I can't understand why StoctCharts shows such a huge lag in performance over the last 3 years:
http://stockcharts.com/charts/performan ... ?TLT,FLBIX
I thought the long-term returns should not differ too much. Can anyone shed some light?
Thanks!
TLT vs. FLBIX
Moderator: Global Moderator
TLT vs. FLBIX
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: TLT vs. FLBIX
Morningstar 3yr performance:
fblix: 10.30%
TLT: 9.93%
Not that huge?
http://performance.morningstar.com/fund ... ture=en-US
fblix: 10.30%
TLT: 9.93%
Not that huge?
http://performance.morningstar.com/fund ... ture=en-US
"Well, if you're gonna sin you might as well be original" -- Mike "The Cool-Person"
"Yeah, well, that’s just, like, your opinion, man" -- The Dude
"Yeah, well, that’s just, like, your opinion, man" -- The Dude
Re: TLT vs. FLBIX
As to your note regarding 3yr performance: I'm not sure if 3 years is a long enough period to draw conclusions, it could be data mining issue, i.e. during these 3 years FLBIX happened to carry more bonds with higher yield. If you look at the chart below, TLT outperformed in 2007 and 2008 and lagged in 2009, so it really might be just noise. Hopefully local experts will jump in with explanation.jmourik wrote: Morningstar 3yr performance:
fblix: 10.30%
TLT: 9.93%
Not that huge?
http://performance.morningstar.com/fund ... ture=en-US
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: TLT vs. FLBIX
I posted my question at the BH forum and got it answered - it turned out StockCharts charts were incorrect.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: TLT vs. FLBIX
I have no explanation for the fund return differences. Could be many things. The benefit of owning the bonds directly is that you don't need to worry about how a fund is being managed behind the scenes. But if that is not an option, then TLT and probably FLBIX are about as good as you can find out there.