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.
Click to enlarge
![](https://topforeignstocks.com/wp-content/uploads/2024/01/Fixed-Income-Annual-Returns-104-to-2023-Chart-Page-1-1024x787.png)
![](https://topforeignstocks.com/wp-content/uploads/2024/01/Fixed-Income-Annual-Returns-104-to-2023-Chart-Page-2-1024x796.png)
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