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iShares 1-10 Year Laddered Government Bond Index ETF (CLG $17.29)
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iShares Core Canadian Short Term Bond Index ETF (XSB $26.74)
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iShares Core Canadian Universe Bond Index ETF (XBB $27.82)
Q: Last week I sent you a question about etfs and my portfolio. You answered my question and suggested I put some money in fixed income because I am 60 and retired. GICs currently appear to yield about 2.5%. Bonds seem to vary greatly. Can you suggest a fund where I would get a steady return.
Thanks Steve
Thanks Steve
5i Research Answer:
Any bond fund will have some variability. The variability is higher if the average maturity of the bonds held is longer. XSB is a short term bond fund so is less volatile. One year return is 3.85%. XBB is a more diverse fund. Safe, but with a wider range of maturities. One year is 3.42%. CLG is a 10-year laddered maturity fund. One year is 3.64%. Note we would be fine with any of these. They could also do better if interest rates fall as expected.