BSV for cash portion

Discussion of the Cash portion of the Permanent Portfolio

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pugchief
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Re: BSV for cash portion

Post by pugchief » Wed Jul 29, 2020 11:31 am

Kevin K. wrote:
Wed Jul 29, 2020 11:26 am
I'm sticking with T Bills yielding nothing and a chunk of NCUA-insured CD's yielding ~1% but crazy as it may sound I'd choose this ultra-conservative Vanguard fund-of-funds over BSV or anything else containing corporates if I were desperate for yield:

https://investor.vanguard.com/mutual-fu ... olio/vasix

This is an obscure fund but if you look at the components and performance (including during market crises) it's a pretty resilient way to generate (just barely, admittedly) a real return above inflation for the least possible risk in a plain vanilla portfolio.
Except that fund has corporates, as 80.3% of the fund is Total Bond Market (US+International). Also since it's 20% stocks, how would this be suitable as a substitute for cash? ???
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Re: BSV for cash portion

Post by Kevin K. » Wed Jul 29, 2020 2:22 pm

I only mentioned that fund because it's extremely broadly diversified and requires no management. One could easily do a "roll your own" version with 80% intermediate-term Treasuries and 20% TSM and in fact I have an elderly relative who's done just that for her retirement income fund. Not recommending either of these options I like them both better than a bond fund like BSV which has the risk of corporate bonds without the prospect of equity returns.
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mathjak107
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Re: BSV for cash portion

Post by mathjak107 » Wed Jul 29, 2020 5:54 pm

I would never use shv for a cash proxy
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