How To Potentially Crush Bond Fund Returns With DIY Treasury Trading

Logan Kane26.14K FollowersFollow5ShareSavePlay(8min)CommentsSummaryDirectly purchasing specific US Treasuries can yield significantly higher returns than passive bond funds or ETFs.By targeting bonds with optimal maturities and harvesting rolldown returns, I can currently achieve an expected total return of ~5.75%.Passive bond funds like IEF and BND often fail to capture rolldown premiums, leaving return on the table.DIY bond trading offers a valuable, low-correlation complement to equity portfolios, especially for income-focused investors. Kenishirotie/iStock via Getty Images Since I last wrote on Seeking Alpha last year, the S&P 500 (SPY) is still super concentrated, and shaky economic indicators have yet to lead to the tipping point where this wild bull market thatThis article was written byLogan Kane26.14K FollowersFollowMy articles typically cover macroeconomic trends, portfolio strategy, value investing, and behavioral finance. I like to profit from the biases and constraints of other investors.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.