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iShares Core Canadian Short Term Bond Index ETF (XSB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)
Q: With the sell-off and resultant higher yields on bonds, what are a few bond ETFS that I might consider as a short term park for money in registered accounts. Maybe there are bonds I could buy? They are hard to get some times on my bank platform: CIBC Investors Edge.
I have not owned any bonds for a very long time. Prefer dividend growth stocks.
I have not owned any bonds for a very long time. Prefer dividend growth stocks.
5i Research Answer:
For an investor primarily seeking yield on bonds rather than as part of a longer-term position for capital appreciation and yield, we like the shorter end of the curve. For Canada, we like the XSB ETF (2.8% yield and an average duration of around 2.7 years). In the US, the SPDR Bloomberg 1-3 month T-Bill (BIL) ETF has a distribution yield of 4.4% and will incur minimal price volatility.
Alternatively, for an all-purpose bond approach, we like aggregate bond ETFs for their exposure to all ranges of the yield curve (short, intermediate, and long). We like the VAB ETF for this purpose (3.4% yield), but it will have more price volatility than XSB or BIL.