Direct Treasury trading outperforms passive bond funds significantly.

Direct Treasury trading outperforms passive bond funds significantly. Individual investors can achieve expected returns around 5.75% by strategically selecting specific US Treasury maturities and capturing rolldown premiums that passive funds like IEF and BND typically miss. This approach targets bonds at optimal maturity points to maximize total returns beyond what standard bond ETFs deliver. For income-focused portfolios seeking diversification from equities, DIY Treasury trading offers a compelling, low-correlation alternative. The strategy requires understanding rolldown mechanics and timing but provides meaningful advantages over passive bond investing for those willing to manage their positions actively.