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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO $18.61)
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iShares Core Canadian Universe Bond Index ETF (XBB $28.46)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.60)
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Vanguard Total Bond Market ETF (BND $74.20)
Q: I am all equities in my RSP and RIF portfolio. Although a solid blue chip list of Cdn, US, some international, I would like to mitigate risk by adding one or two bond etf's (cdn dollar). These can be Canadian bonds or a combination NA and global. Please offer one or two...and are we looking at shorter duration or longer in light of current interest rate environment/future outlook. Ideally 4%+ yield
5i Research Answer:
With interest rates heading lower, there may be a tendency for investors to go long term, but keep in mind such a decision would still be a 'bet' on the yield curve. We would prefer a more balanced approach. We would suggest XBB (general Canada), CBO (corporate), XHY (US high yield), BND (US total bond).
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.