Q: What is your opinion on this bond ETF? Have owned this in an RSP for a very long time and it has been extremely disappointing. Would you continue holding?
5i Research Answer:
Real return bonds have been disappointing as inflation in 2022 only impacted part of the bond yield curve. Five year return here is negative 1.25%. One year is a blistering 0.21%. While these types of funds can offer 'insurance' against giant gains in inflation, with the current set up of lower inflation we doubt this fund does much, and we would be fine selling this, provided one already has a well-diversified overall portfolio.