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iShares Core Canadian Universe Bond Index ETF (XBB $28.78)
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iShares Core Canadian Long Term Bond Index ETF (XLB $19.39)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.90)
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PIMCO Active Bond ETF (BOND $94.46)
Q: Good morning - With the market rising so nicely, it's timely for me to do some re-balancing. For fixed income, I have positions I xlb, xbb and XHY. What fixed income investments do you suggest these days. I could add to the above and/or to corporate bonds, if that makes sense. But, I am nervous about the prospects for Canadian companies as the Trump tariffs take their toll. What does your crystal ball reveal? Many thanks.
5i Research Answer:
We would remain quite comfortable with the three funds noted. XHY is hedged, but its securities are US companies. XLB only owns 22% corporate bonds. XBB is about 24%. We would not be worried about this level of exposure. We might add BOND to this group for a balance of US fixed-income exposure.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.