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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
I know you can’t give personal advice but what might be a good way to tweak my portfolio to increase fixed income exposure for 5-10 years ie gic or bond ladder, ETFs, individual bonds or?
Or should I stay in dividends and forget about it?
Ok thank you!
We think bonds present a good opportunity right now, on the assumption that interest rates will peak soon. We think a combination of GICs and ETFs make sense for an investor seeking some safety and income. It is difficult (but not impossible) to create a diversified portfolio of individual bonds. The main decision for an investor is their asset allocation. Bonds/GICs can provide stable cash flow regardless of market conditions. Generally (not last year!) they are not correlated with equities. We think some good bond ETFs are: CBO, XBB, XHY, VCIT, and these, combined with some 5%+ GICs, could help diversify away nicely from equities. Note, we are not 'against' equities at all, so bond exposure really does depend on one's risk tolerance and income needs. Keep in mind bond income is also taxed differently.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VCIT.