Steve Shaw has shown that a handpicked portfolio of corporate bonds can generate returns that exceed those of popular
bond funds and ETFs. For example, year to date through September 30, 2017, Steve's investment-grade corporate bond
investments have returned 11.14% compared to 3.15% for the iShares AGG ETF. Click here for a detailed analysis of Steve's 2017 returns.
The below charts compare his portfolio's year-to-date 2017 and full-year 2016 performance to leading bond funds and ETFs:
All returns calculations include the price appreciation of the bond, interest received and accrued, and all transaction costs. As per the Global Investment Performance Standards (GIPS), accrued interest is included in both the amount invested as well as the total value of the bond when it is either sold or valued at the end of a period.
(1) Return is after 1% sales charge, which is imposed if fund is sold within one year.
(2) Other parts of the BondSavvy site indicate a 31% annualized return for Steve's high-yield corporate bond investments in 2016. Note that the returns shown in this chart are not annualized. The key driver of the returns difference is Steve's investment in Toys R Us bonds that were bought on February 12, 2016 and then called September 29, 2016. Annualized, this return is 54.4% compared to 31.1% if not annualized.