VUSTX up, TLT down

Discussion of the Bond portion of the Permanent Portfolio

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ZedThou
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VUSTX up, TLT down

Post by ZedThou »

I've had to start buying VUSTX in my wife's 403(b) to keep the bond portion of our portfolio at the proper allocation, and so I've started tracking it. Today I see VUSTX is up roughly a percent, while TLT was down about the same. Does anyone know why this might be the case?

Incidentally, I was planning on buying about half as much EDV as VUSTX for the purposes of the long term treasury allocation - 1/3 EDV + 2/3 VUSTX = 1 TLT - or roughly so, was my thought. Does this sound about right?
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MediumTex
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Re: VUSTX up, TLT down

Post by MediumTex »

ZedThou wrote: I've had to start buying VUSTX in my wife's 403(b) to keep the bond portion of our portfolio at the proper allocation, and so I've started tracking it. Today I see VUSTX is up roughly a percent, while TLT was down about the same. Does anyone know why this might be the case?
I noticed that, too.  I don't know what's up with that.
Incidentally, I was planning on buying about half as much EDV as VUSTX for the purposes of the long term treasury allocation - 1/3 EDV + 2/3 VUSTX = 1 TLT - or roughly so, was my thought. Does this sound about right?
That sounds about right to simulate TLT.
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AdamA
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Re: VUSTX up, TLT down

Post by AdamA »

It might have to do with the 80% Treasury 20% whatever-we-want business that vanguard engages in.
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Re: VUSTX up, TLT down

Post by TripleB »

Is it possible one paid a dividend during the time? And maybe you have it set to reinvest on VUSTX but not reinvest in TLT, so the money from TLT went into your sweep account?
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Re: VUSTX up, TLT down

Post by steve »

ZedThou wrote: I've had to start buying VUSTX in my wife's 403(b) to keep the bond portion of our portfolio at the proper allocation, and so I've started tracking it. Today I see VUSTX is up roughly a percent, while TLT was down about the same. Does anyone know why this might be the case?

Incidentally, I was planning on buying about half as much EDV as VUSTX for the purposes of the long term treasury allocation - 1/3 EDV + 2/3 VUSTX = 1 TLT - or roughly so, was my thought. Does this sound about right?

My holding for long term treasuries are 1/3 EDV + 1/3 VGLT + 1/3 TLT the TLT is in IRA the rest in taxable.  When I sold TLT in taxable account to do a tax loss harvest a while back I split the proceeds and bought 50/50 EDV /VGLt split.
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