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iShares Core Canadian Universe Bond Index ETF (XBB $28.23)
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iShares Convertible Bond Index ETF (CVD $18.00)
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Vanguard Total Bond Market ETF (BND $74.26)
Q: Hi, just starting to look at the bond market, do not want anything to do with U.S. tax filings. Would like like your three recommendations for Canadian bonds. Do you have a Canadian equivalent for BND? (Low mer and nice yield) also corporate bonds eg.XCB could you touch on risk compared to your three recommendations.
Thanks, happy, healthy New Year
Thanks, happy, healthy New Year
5i Research Answer:
We would see XBB as equivalent to BND. XHY and CBO we think can also be suggested. XHY owns US bonds but is a Canadian-domiciled fund. We think CVD (convertibles) is also interesting, and XLB if one believes Canadian rates are going lower. XCB is fine for corporate exposure. Corporates of course do carry more credit risk than government bonds. CBO is similar, but its laddered approach provides some maturity-date diversification, and CBO also has a better 5-year performance number (2.24% vs 1.31%).