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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.41)
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Purpose Global Bond Fund (BND $17.69)
Q: Good Mormning.
Given your positive comments om XHY and BND, I am considering adding to my holdings. How safe are the distributions on these types of funds? Will the distributions remain constant regardless of market conditions?
Thank you.
Given your positive comments om XHY and BND, I am considering adding to my holdings. How safe are the distributions on these types of funds? Will the distributions remain constant regardless of market conditions?
Thank you.
5i Research Answer:
BND is a total market bond ETF, we wouldn't be too concerned on the reliability of distributions here. XHY is higher risk than BND but has paid a consistent yield since 2012 in the 5% to 6% range. The distributions do have more risk of variability in different economies but this would be more relevant to a particularly weak (recessionary) economic backdrop.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.