TLT Alternatives in 401k?

Discussion of the Bond portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
Cortopassi
Executive Member
Executive Member
Posts: 1318
Joined: Mon Feb 24, 2014 2:28 pm
Location: Illinois

TLT Alternatives in 401k?

Post by Cortopassi » Fri Nov 09, 2018 9:21 am

For my rebalancing, which needs to add a boatload of bonds...I have to add these into my 401k (because that's where all the cash is), which does not have TLT as an option, or any true long term bond option.

I have two choices:

DFIGX, Intermediate Govt Fixed Income, Yield, 2.15%, Expense 0.12%, YTD return -2.22%

or

DIPSX, Inflation protected Securities, Yield 3.26% Expense 0.12%, YTD return, -2.48%

As compared to TLT, Yield 2.78%, Expense 0.15%, YTD return, -8.68%

Would either of those be a reasonable sub for TLT?

Thanks!
User avatar
Kbg
Executive Member
Executive Member
Posts: 1131
Joined: Fri May 23, 2014 4:18 pm

Re: TLT Alternatives in 401k?

Post by Kbg » Fri Nov 09, 2018 9:52 am

The closest to a classic PP would be the first and without cash as you “are” transitioning from a barbell to an intermediate length term. Backtesting suggests over longer periods, performance is a wash.
Post Reply