Q: I keep hearing about the 60/40, 40/60 ratio of what you should be invested in with regards to Stocks and Bonds...
- I have Never held Any Bonds of Any Sort...Just Stocks...
- Please recommend some sort of Bond Investment I can consider that is somewhat safe, but Not ultra conservative...
- I remember when my parents said that Canada Savings Bonds were a good and reliable investment...a vintage memory...
Have a good weekend
Thanks
M
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Any thoughts on David Rosenberg article in the Globe today? Are we that close to a shift to a a profitable bond market? If so your top two picks. Thank you
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BMO Aggregate Bond Index ETF (ZAG)
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iShares Core Canadian Long Term Bond Index ETF (XLB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (VBU)
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iShares Core U.S. Aggregate Bond ETF (AGG)
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iShares 20+ Year Treasury Bond ETF (TLT)
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BMO High Yield US Corporate Bond Index ETF (ZJK)
Q: What would be your top 3 bond ETF picks for both Canadian and US bonds? Is now a good time to put money into these?
Read Answer-
BMO Aggregate Bond Index ETF (ZAG)
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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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iShares Core Canadian Short Term Bond Index ETF (XSB)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares Core Canadian Long Term Bond Index ETF (XLB)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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iShares Core U.S. Aggregate Bond ETF (AGG)
Q: I am looking at adding a 15 to 20 percent bond component to my portfolio. From the mix of laddered, aggregate, short/long term and high yield ETF’s listed. Which would you recommend and why? Please let me know if you have other possible suggestions? Thank you
Read Answer-
BMO Aggregate Bond Index ETF (ZAG)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Mackenzie Core Plus Canadian Fixed Income ETF (MKB)
Q: I'd like your assessment of MKB versus aggregate bond etfs like XBB, ZAG, and VAB. Has MKB performed better than the listed etfs? If it has performed better then is it because the etf has taken on additional risk to achieve the higher return? How might one incorporate MKB into the bond portion of their portfolio? Is it worth the higher fees?
Read Answer-
BMO Aggregate Bond Index ETF (ZAG)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
Q: Please explain why the yields on these etfs differ so much
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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iShares Core U.S. Aggregate Bond ETF (AGG)
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Vanguard Balanced ETF Portfolio (VBAL)
Q: Hello 5i Team
Last year stocks and bonds both had a down year, I would like to add to a fixed income ETF that you think would have upside the next few years as interest rate starts to pause and decline in the future. I currently own a position in Vbal etf which has bonds component in it.
Thanks
Q: Hi 5i, I currently hold RCDB.TO in my margin account. My goal is twofold: 1) move it to my RRSP account 2) sell it and replace it with VAB.CA. Would I be best to sell RCDB.TO in my margin account first and then move the cash into my RRSP, or transfer it in kind to my RRSP and then sell it? And would I need to wait 30 days before I purchase VAB.CA? Please deduct as many points as needed. Thanks, and have a great weekend!
Read Answer
Q: Hi Peter,
In 2023, when do you predict would be a good time to move from money market funds to bond ETFs such as VAB and AGG? On the fixed asset side of the portfolio, there is an even split between money market funds and a GIC step ladder.
Also, what would be a good indicator(s) for identifying a long-term downturn in interest rates in Canada?
Thanks, and have a great New Year!
Q: Good Evening 5i,
I am a retired income investor with very little knowledge of and exposure to bonds.
Looking for your thoughts/opinions and suggestions on aggregate bond funds.
These funds apparently give exposure to government and corporate bonds, and to bonds maturing in the short, medium and long term.
Is there something worthwhile here?
Thanks very much.
Q: I would like to increase the percentage of bonds holdings in my portofolio. What would you suggest for a mix of short and LT high quality bonds (ETF or funds)
Thanks
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BMO Aggregate Bond Index ETF (ZAG)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares Core Canadian Long Term Bond Index ETF (XLB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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iShares Core U.S. Aggregate Bond ETF (AGG)
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iShares 20+ Year Treasury Bond ETF (TLT)
Q: For price appreciation in the next 12-24 months, would you prefer a long-term ETF like XLB/TLT or an ETF with shorter duration like XBB/ZAG. Or a bit of both?
Thanks.
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
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iShares 7-10 Year Treasury Bond ETF (IEF)
Q: The last line in the recent article on bonds that you sent members reads, “In our minds, the better place to be within fixed income is higher-quality, shorter-dated fixed income, where you’re not taking on as much risk.” Assuming you concur with this statement, what investments do you recommend that align with "higher-quality, shorter-dated fixed income"?
Read Answer
Q: Peter and Co.
Having never purchased a bond or a bond fund I would appreciate any recomendations you might have for an individual bond to purchase or a bond ETF that provides some income, not a high priority, as well as good potential for capital gains when rates eventually drop. Would a strip bond be recommended?
With appreciation,
Ed
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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iShares Core U.S. Aggregate Bond ETF (AGG)
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iShares 20+ Year Treasury Bond ETF (TLT)
Q: Hi 5i, What is your current read on the attractiveness of investing in TLT? I assume it would be best to hold in a registered account but you could please confirm. If acquiring just one bond fund today, would this be your preferred choice, and/or is there a comparable CDN bond fund worth considering? Thanks.
Read Answer
Q: Is it too early to move some cash to a bond etf.
Which would you suggest in Canada and US.
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S&P/TSX Composite Index (TSX)
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iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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iShares Core Canadian Short Term Bond Index ETF (XSB)
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iShares Core S&P/TSX Capped Composite Index ETF (XIC)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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S&P 500 ETF TRUST ETF (SPY)
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Vanguard Conservative ETF Portfolio (VCNS)
Q: For a ultra conservative retired income based investor can you please give us your 10 best portfolio building blocks starting a new portfolio?...many thanks...
Read Answer-
BMO Aggregate Bond Index ETF (ZAG)
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BMO Short Corporate Bond Index ETF (ZCS)
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iShares Core Canadian Short Term Bond Index ETF (XSB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC)
Q: What is your suggestion for bonds or a bond fund in this market climate? Thanks
Read Answer-
iShares Canadian Corporate Bond Index ETF (XCB)
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iShares Canadian Real Return Bond Index ETF (XRB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
Q: All my fixed income is in XCB,XRB and VAB. All are held in tax sheltered RSPs and distributions are in DRIP programs. My question is " would you continue with the DRIP programs as I have to start withdrawals in 5 years when I turn 71? " These bond ETFs are all in serious down trends.
Read Answer-
iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Laddered Preferred Share Index ETF (ZPR)
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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
Q: Hello,
I am concerned in a rising interest rate environment CBO (5.0%), CPD (1.92%), XHY (7.4%), VAB (4.13%) are positions that need to change in my portfolio. Portfolio Analytics recommends holding 35% in fixed income. I currently hold about 18%.
Should I be selling some or all of these positions and then re-investing in other fixed income vehicles given the rising interest rates?
I would appreciate your feedback/suggestions on current position. Thanks again for all your great service.