BondSavvy's Bond Investment Returns

Investing 'experts' have been telling investors for years that they are better off investing in large index funds rather than owning individual securities. Steve Shaw founded BondSavvy because, through his own bond investing, he saw how owning a select portfolio of individual corporate bonds can provide returns higher than bond funds and bond ETFs, as well as many other advantages.  Below are the returns achieved from all of BondSavvy's prior bond investment recommendations.  We compare these investment returns to those of leading bond ETFs.

We have publicly revealed a number of previous investment recommendations in the Sample Edition of The Bondcast and the BondSavvy Blog, and show the names of those previously disclosed picks below. Subscribe to learn all of our corporate bond investment recommendations and be the first to know our new corporate bond picks.

  BondSavvy Recommendation Returns Returns of Leading Index Funds (7)

Recommendation Date & Bond
Pick Date 
Price (1)
Feb 28, 2019
Price (2)
Total
Return (3)
iShares
AGG
iShares
LQD
iShares
HYG
December 12, 2018            
High-Yield Pick #1 95.90 98.50 4.13%      
High-Yield Pick #2 97.42 99.64 3.51% 2.02% 3.86% 3.99%
Investment-Grade Pick #1 90.93 93.95 4.06%      
Investment-Grade Pick #2 79.96 82.48 4.36%      
November 19, 2018 (4)            
JC Penney 5.65% 6/1/20 82.04 88.00   9.17%      
8/14/18 High-Yield Pick #1 90.56 98.75 11.03%      
Citrix Systems 4.500% 12/1/27 94.84 95.89   2.42% 3.02% 4.72% 4.58%
5/2/18 Investment-Grade Pick #2 68.34 74.46 10.94%      
12/13/17 Investment-Grade Pick #3 76.40 80.11   6.30%      
September 10, 2018            
JC Penney 5.65% 6/1/20 92.75 88.00 -2.27% 2.43% 2.78% 2.50%
August 14, 2018            
High-Yield Pick #1 99.50 98.75 2.79%      
High-Yield Pick #2 96.29 97.16 3.58% 2.23% 2.51% 2.84%
Investment-Grade Pick #1 95.04 95.78 2.85%      
High-Yield Pick #3 93.27 93.25 3.76%      
May 31, 2018            
Pitney Bowes 4.625% 3/15/24 85.55 91.50 11.00%      
L Brands 6.875% 11/1/35 91.66 86.25 -0.29% 2.62% 3.19% 4.75%
Dish DBS 7.750% 7/1/26 86.46 86.50  6.75%      
Citrix Systems 4.500% 12/1/27 98.08 95.89  1.20%      
May 2, 2018            
Investment-Grade Pick #1 85.85 90.23 8.71%      
Investment-Grade Pick #2 76.60 74.46 2.51% 3.49% 4.10% 4.91%
March 8, 2018            
High-Yield Pick #1 99.33 100.28 5.63%      
High-Yield Pick #2 97.40 94.88 2.55% 3.26% 3.05% 5.18%
Alphabet 1.998% 8/15/26 91.13 92.65 3.81%      
High-Yield Pick #3 93.62 94.59 5.01%      
December 13, 2017            
Investment-Grade Pick #1 96.35 90.23 -2.01%      
Investment-Grade Pick #2 107.39 102.00  1.74% 1.2% -0.07% 4.44%
High-Yield Pick #1 60.95 37.50 -25.81%      
Investment-Grade Pick #3 92.27 80.11 -7.93%      
September 26, 2017 (5)            
Investment-Grade Pick #1    86.86(6) 73.88 -6.48%      
Albertsons 7.45% 8/1/2029 78.50 88.00 25.62% 0.99% 0.43% 4.61%
Verizon 3.45% 11/1/2042 89.72 89.52  5.89%      
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. SUBSCRIBER RETURNS MAY DIFFER BASED ON WHEN SUBSCRIBERS ACT ON BONDSAVVY RECOMMENDATIONS.
 
(1) Pick date price is the top-of-book offer price shown on Fidelity.com the trading day prior to the pick date. Price assumes a $1/bond (0.1 points) mark-up on the quoted offer price.
(2) As of February 28, 2019, BondSavvy founder Steve Shaw owned all but two of the BondSavvy recommendations. Prices for bonds owned by Steve were obtained from the account statement for the brokerage where the bonds were held. The prices of the two not-yet-owned bonds reflect the top-of-book bid prices available on Fidelity.com on February 28, 2019 corroborated by actual trade prices reported to FINRA's Trade Reporting and Compliance Engine (TRACE). 
(3) Returns are calculated from the trading date immediately prior to the Pick Date through February 28, 2019.  BondSavvy believes these returns are understated compared to methodology of iShares returns, as (i) BondSavvy's total returns do not factor in re-investment of interest income and capital gains and (ii) the individual bond returns reflect a purchase at the offer price and a valuation at the bid price, which can negatively impact returns from 0.25 to 0.75 percentage points on average. The iShares returns are calculated based on changes in the fund's net asset value and, therefore, aren't penalized as significantly by a bid-ask spread. Returns calculations are not annualized. BondSavvy total returns include capital gain/loss and interest accrued. 
(4) During the 11/19/18 Super Bondcast, we recommended subscribers buy additional amounts of these previous BondSavvy picks.
(5) BondSavvy recommended one other bond on September 26, 2017, which it then recommended subscribers sell on September 12, 2018. The total return on this bond was -7.1%. Thus far, this is the only bond pick we have recommended selling.
(6) BondSavvy recommended these bonds at 89.92 on September 26, 2017. The price shows the blended price Steve Shaw has acquired these bonds across four different transactions. Note that we no longer are recommending purchases of these bonds but now recommend shorter-dated bonds of the same issuer.
(7) Returns calculated from the date before the Pick Date through February 28, 2019.  Source of iShares returns is the iShares website.  We went to the home page for each iShares ETF, clicked "Performance" and then clicked the "View Full Chart" hyperlink under the "Growth of Hypothetical $10,000" heading.  We then entered the various date ranges and recorded the investment returns shown for the specific iShares ETF.                                  
 
Subscribe