Rolling 12-month returns for the Newfound Multi-Asset Income strategy are currently ranked 47th of 49 since strategy inception in September 2013.
We reflect upon research performed over the last several years that continually points back to one critical idea: yield matters.
We rebuild this foundational idea from basic building blocks to establish that in the world of fixed income, mark-to-market returns often just push and pull future returns forward and backward in time.
Using several fixed income ETFs, we demonstrate that yield remains the dominant force of returns over time, though price volatility and default risks are necessary components if we expect to earn anything above the risk-free rate.
Like gravity, yield serves as a constant attracting force for portfolio returns and we believe the same holds true for our Multi-Asset Income strategy going forward.
Newfound Research was awarded ETF.com's 2016 ETF Strategist of the Year
Investing at the intersection of thoughtful, quantitative research and behavioral finance, Newfound Research is dedicated to helping clients achieve their long-term goals with research-driven, systematically-managed portfolios, while simultaneously acknowledging the importance of managing the quality of the journey along the way is just as important as the destination.
