TLT Alternatives in 401k?

Discussion of the Bond portion of the Permanent Portfolio

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Cortopassi
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TLT Alternatives in 401k?

Post by Cortopassi »

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!
Kbg
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Re: TLT Alternatives in 401k?

Post by Kbg »

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.
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