-
iShares Core Canadian Short Term Bond Index ETF (XSB)
-
iShares Core Canadian Long Term Bond Index ETF (XLB)
-
Vanguard Canadian Aggregate Bond Index ETF (VAB)
-
iShares iBoxx USD High Yield Corporate Bond ETF (HYG)
thanks
HYG is a high yield corporate bond ETF with a strong AUM of $13.7B, a nice yield of 8.1%, and an MER of 0.49%. Its holdings are mostly low credit-quality corporate bonds (BB to CCC ratings) and it is certainly higher risk than investment-grade bond ETFs such as VAB, XLB, or XSB.
If an investor is looking for something that offers a bit more safety than equities but still has high return potential, we think this space can make sense. These do tend to be higher duration, which means they will move a bit more with changes in interest rates, so there will likely be some correlation to tech here as well. With the understanding that it is on the higher risk end of the spectrum for fixed income, we think it can make sense as an income stream with a bit more growth potential.