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  1. #1

    Difference between PFIUX and PUTIX?

    Both are non-traditional bond and both are indeed tax efficient bond funds based on M* tax ratio. So what is the biggest difference between them? Thx!

  2. #2
    The biggest difference...PUTIX is a muni fund which is a better choice in a taxable account and will save you some taxes depending on your brackets.

  3. #3
    Well, based on M* data, PFIUX actually has lower tax ratio than PUTIX which means PFIUX might be more tax efficient than PUTIX regardless it is using muni or not.

  4. #4
    Not sure how M* calculates bond fund tax effciency, but PUTIX has keep duration a bit more extended than PFIUX, which resulted in a higher yielding fund. For the trailing twelve months, PUTIX has yielded about 0.5% more than PFIUX

  5. #5
    Paying nothing on Fed tax is better regardless of the efficiency. This means PFIUX has to perform better in order for you to justify holding it in a taxable account after paying taxes according to your brackets.
    5 years chart looks much better for PUTIX unless you are a trader and looking for momo, but then again, I have much better options (at Pimco) for a world bond fund.
    PFIUX has nothing special to offer, low return + high risk when you look at 1-3-5 years.


 

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