Pragmatic Capitalism

Capital for Living a More Practical Life

Long Term Bond Returns

« Back to Previous Page

This is the NAV performance of Wells Fargo Advantage High Yld Bond EKHBX that started in Sept 1935 till today. I find it strange that NAV continuosly falls over time even as yields fell to 1946 and then rose to 1981 and fell again. (You can check out the fund and data here

(There are two older mutual bond funds (Nicholas High Income I NCINX 5/1/1930 and DWS Core Plus Income SCSBX 4/24/1928) but I can’t find history of their NAV as I wanted to see what occurred around 1929).

At any rate, I take it the yield income is paid out so the “total return” is not shown but does the continuous drop in NAV surprise you and suggest poor management or is this expected?

    Marked as spam
    Posted on 06/19/2016 5:46 PM
    Private answer

    Yeah, you’re not getting the total return in those charts. They’re not adjusted for dividends. I just ran a 20 year chart on that fund and its avg annual return is about 5.6%. Keep in mind that’s not adjusted for taxes and fees though. You’ve gotta do a deeper dive than that. At 1.78% in annual expenses it’s hard to imagine this fund being worth it in the long-term when it’s only yielding about 3.7%….

    Marked as spam
    Cullen Roche Posted by Cullen Roche
    Answered on 06/20/2016 4:22 PM
      « Back to Previous Page