09/16/2026
TLDR: While explaining to clients how "less-bad" they're doing this year with their fixed income investmens, when I show this comparison, they see the difference (on average) between a -2.25% bond portfolio and a +2.07% income portfolio isn't luck, and they understand how they benefit from our efforts put into thoughtful positioning.
📈 Not All Fixed Income Is Created Equal
Many investors turn to bonds for stability (i.e. preservation of capital and secure consistent income), but 2026 has been a powerful reminder that how you invest in fixed income matters just as much as whether you invest in fixed income.
Year-to-date (through September 14th), some of the largest traditional bond ETFs have struggled (total return) as interest rates moved higher: 🔴 Long-Term Treasuries (TLT): -4.55% 🔴 Investment Grade Corporate Bonds (LQD): -2.39% 🔴 Aggregate Bond Funds (AGG): -1.43% 🔴 Vanguard Total Bond Market (BND): -1.34% 🔴 Intermediate Treasuries (GOVT): -1.54%
Why? Because bond prices and interest rates have an inverse relationship. When rates rise, the value of existing bonds fall, and the longer the duration, the greater the impact. Investors who were expecting "safe" bond exposure have instead experienced meaningful losses.
At Boyd Capital, we've taken a different approach. Two examples are: ✅ USFR (WisdomTree Floating Rate Treasury Fund): +2.78% total return ✅ NPFI (Nuveen Preferred and Income Fund ETF): +1.37% total return.
Rather than locking investors into fixed-rate bonds that lose value as rates increase, these strategies are utilized for their ability to adapt to changing rate environments. Floating-rate securities and actively managed flexible income strategies can help investors capture attractive income while reducing the interest rate risk that has hurt many traditional bond portfolios this year.
The lesson? In today's market, reaching for traditional "safe" income may not be enough. Understanding duration risk, interest rate sensitivity, and portfolio flexibility has never been more important.
As fiduciaries, our job isn't just to seek income. It's to seek income intelligently.
Contact us today if you'd like to learn how you might benefit from our thoughtful due diligence and solutions.
DISCLAIMER: The information shared here is intended for general educational purposes only and should not be considered personalized investment advice. Every investor's situation is unique, and past performance does not guarantee future results. Please consult a financial advisor before making any investment decisions.
