My Charlies Schwab broker set me up with a fixed income expert of theirs since I've been putting a lot of money into municipal bond ETFs, namely VTEB and SCMB.
The bond guy recommends Wasmer Schroeder Strategic Tax Exempt, an active fund which carries a .55 expense ratio. I told them I would need to have a feeling that the active fund would beat the index at least by the expense ratio. They argued that while indexing in stocks usually beats active managed funds, there are many advantages to allowing your fixed income to be actively managed. They also said Wasmer Schroeder could manages an individualized ladder account for me.
Reviewing the prospectus they sent me, it does appear they regularly beat the Bloomberg Municipal Bond Index, but not net of fees.
Does anyone see any advantage to use actively managed funds for municipal bond investing?
The bond guy recommends Wasmer Schroeder Strategic Tax Exempt, an active fund which carries a .55 expense ratio. I told them I would need to have a feeling that the active fund would beat the index at least by the expense ratio. They argued that while indexing in stocks usually beats active managed funds, there are many advantages to allowing your fixed income to be actively managed. They also said Wasmer Schroeder could manages an individualized ladder account for me.
Reviewing the prospectus they sent me, it does appear they regularly beat the Bloomberg Municipal Bond Index, but not net of fees.
Does anyone see any advantage to use actively managed funds for municipal bond investing?
Statistics: Posted by William Million — Fri Sep 27, 2024 6:31 pm — Replies 2 — Views 139