> vehicles
I've got a new toy (^_^) this account set up where I can switch...
BOND-FUND <--> MM-FUND <--> OEX-FUND
the BOND-Fund yields 7.5% APR (payout every 30-days) but, the NAV goes up or down with changes in TYX.
the MM-Fund yields 5.4% APR (payout every 30-days) and, the NAV does not change with TYX - but the APR (computed & accrued daily) does change with TYX.
This account is setup within an IRArrangement, so right now the taxable equivalent APR yields are ~10.7% BondFund and ~7.7% MMfund.
the OEX-Fund simply tracks what appears to be 65% OEX + 35% NDX BigBoy combined indices; ie., it has sufficient NDX stox in it to juice it more than OEX-100 by itself. I think it could be duplicated with a 50:50 = GE+CSCO construct, but WTH.
We can move $$$ between these 3 vehicles at no cost; there is no T+3 delay, though all transfers are "at close" NAV. Further, we can direct automatic re-investment of distributions from any Fund back to compound itself or, "cross" ie., to accumulate any other fund.
ROI is driven by TYX and OEX; there are four possible states, depending upon TYX and OEX trends. For example here are two setups...
TYX up : OEX up ==> Bondfund --> OEXfund% <-- MMfund
TYX up : OEX down ==> Bondfund --> MMfund% <-- OEXfund
...where % is indicating re-investment, and the arrows indicate cross re-investment (of these 30-day fund distributions) from one fund to another.
fwiw I've set a minimum level for each fund at 10% so, this thing has been set up...
TYX up : OEX up ==> 10% MMfund --> 80% OEXfund% <-- BondFund 10%
...and it's been running like this (in this "state") since mid-November. Since then, BondFund has declined about ~2% in NAV; OEXfund has gained about ~25%.
I just turned it "off" today; ie., it is now set up...
10% BondFund% <-- 80% MMfund <-- 10% OEXfund
...in a defensive mode, which accumulates Bonds while idling. It's an interesting toy, Berney.
-Steve |
