Fixed-Income Annual Returns 2014 to 2023: Chart

One of the simplest and easiest strategies for reducing risk with investing is diversification across asset classes. In addition to equities, it is important to hold fixed-income assets in a portfolio. Bonds can provide a cushion during adverse market conditions and one can also reinvest coupon payments in equities for instance or reinvest in other bonds. Cash also generates a decent return in this high interest time. I came across the below showing the annual return for fixed-income assets from 2014 to 2023. In the past 10 years, high-yields have earned positive returns in most of the years. Historically cash been the worst performer and earned poor returns in the period noted above as well.

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Source: Thrivent

Related ETFs:

  • iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
  • Vanguard Total Bond Market ETF (BND)
  • SPDR® Barclays High Yield Bond ETF (JNK)
  • iShares Core Total U.S. Bond Market ETF (HYG)
  • iShares TIPS Bond ETF (TIP)

Disclosure: No positions

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