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  5. XSB: Hi, I have heard about short term bonds providing high yields. [iShares Core Canadian Short Term Bond Index ETF]
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Q: Hi, I have heard about short term bonds providing high yields. I don't have much experience in this area. Could you recommend a way to add this into my portfolio?

Thanks
Paul
Asked by Paul on July 04, 2023
5i Research Answer:

We would start off by understanding how bonds work with Investopedia. Short-term bonds offer lower sensitivity compared to longer-bonds when it comes to changes in interest rates. We consider short-term bonds to be relatively 'safer', and thus yields for such are often lower than long-term bonds as well. We would look into XSB, BSV, and SHV as potential ETF options for a portfolio. Short term rates have risen in the past year. SHV for example now has an indicated yield of 4.71%.