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iShares Core Canadian Corporate Bond Index ETF (XCB)
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Vanguard Canadian Corporate Bond Index ETF (VCB)
Q: Good morning, Is it a good time to invest in US corporate bonds? What would you recommend to get through these turbulent times in the market?
5i Research Answer:
Both government and corporate bond yields have been surging recently, and this has not bode well for bond prices. We feel that eventually the tides will change and yields will begin to stagnate or even decline, causing bond prices to increase. For an investor with a long-term time horizon, we would be comfortable accumulating corporate bond ETFs here. We like the VCB and XCB Canadian corporate bond ETFs. Both have an MER of 0.17%, while XCB has a much larger AUM ($1.6B vs. VCB at $0.3B).