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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares Core Canadian Long Term Bond Index ETF (XLB)
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Fidelity Global Core Plus Bond ETF (FCGB.U)
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Dynamic Active Discount Bond ETF (DXDB)
What is your view on bond ETF's FCGB and DXDB, or can you offer another bond ETF to consider?
Thank you
Tim
Yes; after 2.85 years of losses (bonds might show a gain now for 2023) investors should start to price in lower rates to the bond market, which will help prices/performance. We think the timing is good. We think FCGB is fine for exposure. It is a global fund so there is some currency exposure, but we see that as another form of diversification. Duration is 8 years so it should have good leverage if rates do fall. It is 74% exposed to the US right now so not as 'global' as perhaps it should be. But we would be fine owning it. DXDB also looks fine, with a focus on discount bonds. Effective duration is shorter at 4.24 years. Indicated yield is 4.47% and it's now up 3.6% YTD. We can also suggest XBB for a general bond ETF and XLB for investors looking for longer duration exposure.