Q: A book I am reading says that the nominal return for bonds going back to 1928 is 4.9% represented by 10-year U.S. government-issued treasuries. How is this return calculated? How is the return on 10-year bonds transformed into an annual compound return?
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Investment Q&A
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- Horizons Active Ultra-Short Term Investment Grade Bond ETF (HFR)
- iShares Core Canadian Short Term Bond Index ETF (XSB)
- iShares Core Canadian Universe Bond Index ETF (XBB)
Q: Good Morning: I have been raising my cash holdings somewhat in light of a prolonged bull market with high equity valuations and increasing geopolitical risk. I have some of this cash in HISA's with an average yield of about 1.7% or so. However, I am considering putting some of it into a bond etf since I don't feel I have the know how to successfully put together a ladder of actual bonds. What I would like your opinion on is what would be the best 2 or 3 options in Cdn. bond etfs for preservation of capital combined with optimal yield (recognizing that the two are almost always working in opposite directions.) Of course, if you have another option for parking cash, that would also be appreciated. (I do have some preferred share holdings but past experience has taught me that they are not immune to market corrections.) Many thanks.
Q: Please give me your three top fixed income etf's.
Also, I would like your top Europe and International E T F's.
Thank you again for your help!
Audrey
Also, I would like your top Europe and International E T F's.
Thank you again for your help!
Audrey
- iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
- iShares Core Canadian Universe Bond Index ETF (XBB)
Q: What would be your preference between either CLF or XBB for government bond exposure at this time?
Q: I have the fixed income section of my portfolio (about 20%) invested in 1-4 yr GIC ladders earning virtually nothing after inflation. This money is there to stabilize the portfolio and provide an emergency fund in the event of a very significant need for funds, but hopefully never needed. I also have 50% of my portfolio in large cap dividend paying equities that provide income in excess of current requirements so would only draw on the GIC money if the cash need was quite large.
Is there any other investment you might recommend for the fixed income portion of my portfolio that would provide similar safety and liquidity but improve returns in a rising rate environment? Thanks for the help. Jim.
Is there any other investment you might recommend for the fixed income portion of my portfolio that would provide similar safety and liquidity but improve returns in a rising rate environment? Thanks for the help. Jim.
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Could you please outline the risks in holding these types of high yield bond ETFs, with respect to the effect on the capital and yield components. I have a long term (15-20 years) view.
Are there scenarios where more stable bonds (ie. XBB) might outperform it over a longer period (15-20 years) of time?
Thank you
Are there scenarios where more stable bonds (ie. XBB) might outperform it over a longer period (15-20 years) of time?
Thank you
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- CI 1-5 Year Laddered Government Strip Bond Index ETF (BXF)
Q: COULD YOU TELL ME YOUR VIEW REGARDING THOSE ETF, FOR AN INCOME PORTFOLIO.(CBO - XBB - BXF )
THANK YOU.
P.
THANK YOU.
P.
Q: With bond rates as low as they are, does making GICs the fixed income portion of a portfolio make sense for a middle aged beginning investor, or is a bond fund still the way to go?
Thanks
Thanks
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
Q: Hello 5i
I have been using Preferred shares as fixed income strategy but would like to ask for your recommendation on traditional bond ETF and a Mutual Fund. (volatility dampening and downside risk protection)
Can you comment on return expectation and whether one should just stay in cash instead of select a bond investment?
Is there another strategy or investment that may be a consideration for inclusion in a well diversified equity portfolio to accommodate volatility dampening like Government bonds are suppose to do(but do not like 0 or negative return)?
Thanks
Dave
I have been using Preferred shares as fixed income strategy but would like to ask for your recommendation on traditional bond ETF and a Mutual Fund. (volatility dampening and downside risk protection)
Can you comment on return expectation and whether one should just stay in cash instead of select a bond investment?
Is there another strategy or investment that may be a consideration for inclusion in a well diversified equity portfolio to accommodate volatility dampening like Government bonds are suppose to do(but do not like 0 or negative return)?
Thanks
Dave
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
Q: For a person with no bond or preferred share exposure. What would be your top 3 or 4 holdings to add at this time? Keep up the good work, you guys do a great job.
- BMO Aggregate Bond Index ETF (ZAG)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- Vanguard Canadian Aggregate Bond Index ETF (VAB)
Q: A few questions have mentionned the ETF XBB. Since its fee is 0.34% versus ZAG's fee of 0.23%, shouldn't we go for ZAG? I also like the fact that ZAG is a BMO product which means I pay fees to a canadian company rather than a U.S company (bonus points). Thank you.
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
Q: Hello and Merry Christmas to all at 5I.
Moving forward I have new funds to add to my portfolio in the fixed income sector. My RRSP portion is fully utilized for fixed income using CBO and XBB so this is new fixed income funds outside of a sheltered account should I still use XBB/CBO or is there some other fixed income source that would be more beneficial that I should consider.
Moving forward I have new funds to add to my portfolio in the fixed income sector. My RRSP portion is fully utilized for fixed income using CBO and XBB so this is new fixed income funds outside of a sheltered account should I still use XBB/CBO or is there some other fixed income source that would be more beneficial that I should consider.
Q: IS THERE ANY JUSTIFICATION TO HAVE ANY BOND IN ANY PORTFOLIO IN VIEW OF SUCH A LOW RETURN AND PAY TAX ON(50/50)- KEEP THE MONEY IN MONEY MARKET FUND DOES THE JOB AND YOU ARE NOT LOOSING ANY EXCEPT INFLATION EFFECT ?.MOST BOND FUND HAVE LOST MONEY.THANKSEBRAHIM
Q: Given the speculation about upcoming US rate increases and the impact of the Nov.8 US election, I have lost significant valuation on ETFs and bonds across my portfolio.
Is there an expectation that these values could fall even more precipitously in future?
Is it truly wise to remain ‘in bonds’ at this time, even after losses so far?
Is there any hope these could improve in future or is the long term prospect dismal?
Is there an expectation that these values could fall even more precipitously in future?
Is it truly wise to remain ‘in bonds’ at this time, even after losses so far?
Is there any hope these could improve in future or is the long term prospect dismal?
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Short Term Bond Index ETF (XSB)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: I am retired, and have a portfolio with a mix of equities, ETFs and bonds. I have some money from municipal bonds to reinvest and I am considering some ETFs such as XSB, CBO, XBB and XHY as options to invest these funds, with a 5 year investment horizon. In the current environment (interest rates and the US election), how do you think these ETFs will perform in the coming years? Thanks for your great service.
Q: As a senior retired investor I have most of your Income Portfolio and BE Portfolio. My question is about my fixed part. I had some bonds come due and also some GICs. Since the rates are so low I am at a loss to know where to put the fixed part of my portfolio. I am tempted to just buy something like BCE and Fortis and let them collect dividends, which is more tax efficient. I understand these are still stocks and not fixed income. Your suggestions would be appreciated.
Thanks
Thanks
- iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
- iShares Core Canadian Universe Bond Index ETF (XBB)
Q: Our advisor has recommended that we sell some of our equities and purchase more fixed income funds. His recommendations are Manulife Strategic Income F (CAD); TD Retirement Balanced Portfolio F Series; Fiera Defensive Capital Global Equtiy Fund and Lysander-Canso Corporate Value Bond Fund. We are already invested in Pimco Monthly Income Fund (PMO 205), DFA Five-Year Global Equity and CBO. We are leaning in favour of investments we already own as well as XSB, XBB and CLF. We are looking for Canadian, US and International diversification. What would you recommend?
Q: Why does FTB have such a large spread between the Actual MER (.50) and the Actual Management Expense ratio (.92)/ My financial planner is actively promoting it. I wonder if he gets some of the MER as an incentive therefore encouraging him to promote it. Its current yield is 3.4% wile CLF has a yield of 2.9% with an MER of .15 and .17. Do you have any comment on XBB, XSB, CLF, and FTB. Should I mirror the FTB portfolio of the five bond fund ETFs (CLF, XBB, PGL, ZEF, and ZHY) or buy FTB? I assume the yields are after the MER is taken.
Thank you.
Thank you.
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares MSCI EAFE Index ETF (CAD-Hedged) (XIN)
- Vanguard FTSE Canada All Cap Index ETF (VCN)
- Vanguard U.S. Total Market Index ETF (VUN)
Q: my teenage daughter has just registered her tfsa. She has a small amount of $ (4000) to start. she is thinking for simplicity and risk sake at this point in her life to go with the global couch potato. Which 4 ETFs would you recommend for her. she needs a CAN equity, US equity, INTER equity and a bond ETF.
Do you think this is a good idea or would you recommend she stick to specific company stocks instead?
thanks
michele
Do you think this is a good idea or would you recommend she stick to specific company stocks instead?
thanks
michele
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
- iShares TIPS Bond ETF (TIP)
Q: I have been wanted to diversify my portfolio and I was wondering if this is a good list or a bit of overkill. I have recently bought some XBB. I want these for fairly long positions, my concern is that I might be over paying for these as everyone is fearful and flocking to bonds as a safety net. Would it be wise to let things settle or buy partial positions in these etfs. Also would it worthwhile also owning some us long term treasuries. I am looking to try to cover all possibilities so I am not chasing in the future when market conditions change. I would like diverse group to cover inflation, rising market, recession. I know that I cant take all risk off but I would like have some safety net and not hold all equities.