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iShares Core Canadian Universe Bond Index ETF (XBB $28.15)
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Vanguard Total Bond Market ETF (BND $73.86)
Q: I’m 74 and want to add both U.S. and CAN government securities to my portfolio, can you suggest the best alternatives to invest in and stay ahead of inflation?
5i Research Answer:
Two general bond funds we can suggest are XBB (Canada) and BND (US). These are mostly government bond funds. The price will fluctuate, but the underlying assets are safe. In terms of yield, XBB currently yields 3.41% and BND 4.07%. In times of inflation (i.e. 2022) there could be a capital loss if interest rates rise. But over time we would view these as safe investments that will generate consistent long term income.