FYI: How many hedge fund managers would kill for the following performance characteristics over a 40 year time frame?
Annual Returns: 7.7%
Volatility: 6.9%
Number of Up Years: 37
Number of Down Years: 3
Annual Win %: 93%
Worst Annual Loss: -2.9%
Average Annual Loss: -1.9%
Max Drawdown: -12.4%
On an absolute and risk-adjusted basis these numbers are ridiculous. Steady returns with about one-third of the historical volatility seen in stocks. Very few — and shallow — drawdowns. It was up nine out of every ten years.
Here’s the kicker — these results were earned in only investment grade fixed income securities. This is the historical track record of the Barclays Aggregate Bond Index since it’s inception in 1976 through 2015. The BC Aggregate is a good proxy for the overall U.S. investment grade bond market. Just look at how impressive this section of the bond market has been over time:
Regards,
Ted
http://awealthofcommonsense.com/2016/02/the-greatest-bull-market-of-all-time/M* Snapshot AGG:
http://www.morningstar.com/etfs/ARCX/AGG/quote.htmlAGG Rank #8 In The (IB) ETF Category By U.S. News & World Report:
http://money.usnews.com/funds/etfs/intermediate-term-bond/ishares-core-us-aggregate-bond/agg
