PIMCO has been quietly beating the market and doing a version of the famous Hedgefundie Adventure for years with their mutual fund PSLDX. In this video, I review it and we'll check out its components, historical performance, replication options, and where to buy it.

M1 Pie for PSLDX replication: https://m1finance.8bxp97.net/AoBz71

// TIMESTAMPS:

00:00 - Intro
00:16 - What Is PSLDX?
03:15 - Risks of PSLDX
04:53 - Performance
06:08 - Replicating PSLDX
06:53 - Conclusion
07:22 - Where To Buy PSLDX
08:47 - Outro

// SUMMARY:

PSLDX is roughly 50/50 stocks/bonds levered up 2x for effective 100/100 exposure, and as is the PIMCO way, they’re active on the bonds side, with the stocks side linked to the S&P 500 via derivatives. PIMCO call it the StocksPLUS® Long Duration Fund.

So basically we’ve got a real-world proof of concept of the Hedgefundie strategy that’s been going on since 2007. Whereas the Hedgefundie strategy is 165/135 and NTSX is 90/60, PSLDX sits somewhere in the middle around 100/100. Also note that NTSX uses intermediate bonds, while HFEA and PSLDX use long bonds. HFEA and NTSX only use treasury bonds, but PSLDX’s managers are buying a cauldron of U.S. and foreign government and corporate debt securities. So while these 3 strategies are similar, they’re also different.

After the fee for PSDLX used to be above 1%, as of August 2021 it was adjusted down to 0.59%, compared to 0.99% for the Hedgefundie strategy and 0.20% for NTSX at the time of this video. Note that PSLDX would be terribly tax-inefficient and should only be held in tax-advantaged space. It pays sizable quarterly dividends and annual capital gains distributions. Its turnover is also nearly 200%! Seriously, don’t even try.

I think PSLDX is a good solution for someone who wants to implement a milder version of the Hedgefundie strategy while being completely hands-off. Truly set and forget. You would quite literally be letting the pros handle it. You’re just paying that relatively high fee for that convenience. But the fee is about the same as the leveraged funds it would require to get the same exposure. That fee has also decreased as of August, 2021, from 1.01% to 0.59%.

M1 Pie for PSLDX replication: https://m1finance.8bxp97.net/AoBz71

Read the blog post here: https://www.optimizedportfolio.com/psldx/

#investing #stockmarket #mutualfunds #stocks

// INVEST

► M1 Finance: https://optimizedportfolio.com/go/m1
► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1-finance-review/
► Get my dividend portfolio: https://www.optimizedportfolio.com/m1-finance-dividend-pie/
► Lazy Portfolios: https://www.optimizedportfolio.com/lazy-portfolios/
► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/beginners-start-here/
► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.html?hl=en&inviteCode=iKJHc5TS9HSe

// SOCIAL

► Website: https://www.optimizedportfolio.com/
► Patreon: https://www.patreon.com/optimizedportfolio
► Facebook: https://www.facebook.com/optimizedportfolio/
► Instagram: https://www.instagram.com/optimizedportfolio/
► Twitter: https://twitter.com/OptimizedPort

► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc

I appreciate all the support!

Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/terms/

Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.