Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Treasury Funds Trumped Stock Funds Over the Past Decade Not Rated 5.0 Email Routing List Email & Route  Print Print
Wednesday, November 4, 2009

Treasury Funds Trumped Stock Funds Over the Past Decade

by: Daniel Tovrov

Typically seen as the low-risk, low-return options, Treasury-bond funds have actually outperformed U.S. and international stock funds in the past decade, Sam Mamudi noted in the Wednesday edition of the Wall Street Journal Fund Track. The column also contained recommendations from Morningstar director of investment research Russ Kinnel for investors who want to own Treasurys through mutual funds. Though Kinnel thinks Treasurys "might not be a good place going forward," he said investors should have a little amount in those vehicles at all times. He recommended Vanguard's line of offerings due to their low cost and gave special mention to the Vanguard Intermediate-Term Treasury Fund.

In the article, Mamudi wrote that Treasury funds experienced an annualized gain of 5.2 percent, on average. U.S. stock funds, on the other hand, saw annualized returns of only 2.1 percent in the same period, and the average international stock fund gained 4.7 percent. Treasury-bond funds were only out-earned by high-quality corporate-bond funds, which netted average annualized returns of 5.6 percent, but carry a high-risk.

The funds also performed well last decade, with an average annualized return of 6.7 percent between 1989 and 1999. However, stock funds ruled the market in those years, with an annualized gain of 15.7 percent for U.S. stock funds, and a 10.4 percent gain for international stock funds.

"[The] decade that saw two bear markets and fairly tame inflation," Kinnel told Mamudi. "In the 1990s, Treasurys would have been the worse place to have been. It speaks to how things go in cycles."

So, although Treasury bond funds are glowing, the future might not be so bright. With the 10 year Treasury yield around 3.4 percent, plus the "duration risk," which is the risk that inflation or interest rates will increase in the next years, the fund type might start to see fewer gains. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q4Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. IDC webinar - Distribution for Fund Directors: Evolution and Trends, September 15
  2. MMI webinar - The Case For Alts In UMAs: Why Incorporating Alternatives Into a UMA Structure Is Becoming a Strategic Imperative, September 16
  3. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  4. IMEA Content Management Roundtable, September 16
  5. IMEA 2025 Star Awards Celebration, September 16
  6. IMEA Marketing Summit, Sep 16-17
  7. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  8. WE PNW - Mentorship Program Virtual Session: Building Trust to Win New Business and Influence Others, September 23
  9. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  10. Nicsa webinar - Utilizing AI to Enhance Distribution & Advisor Engagement, September 24
  11. IMEA Portfolio Construction Roundtable, September 24
  12. IMEA Models Roundtable, September 25
  13. Expect Miracles Atlantic Coast Classic 2025, September 29
  14. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  15. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  16. 10th annual Fuse Forum, October 8
  17. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  18. MFDF webinar - Series Trust Funds - Effective Board Relationships with Advisers, October 15
  19. 2025 MMI Annual Conference, Oct 15-17
  20. Samfund Soiree Manhattan 2025, October 23
  21. Tiburon CEO Summit XLIX, Oct 27-29
  22. 2025 Sohn San Francisco Investment Conference, October 28
  23. Schwab Impact 2025, Nov 2-4
  24. UCITS & AIFMD for U.S. Managers 2025, Nov 4-5
  25. MFDF In Focus webinar - Audit Committee Chair, November 5
  26. 2025 Nicsa Asset & Wealth Management Summit, Nov 11-12




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use