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BMO Short Corporate Bond Index ETF (ZCS $14.03)
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iShares 1-5 Year Laddered Government Bond Index ETF (CLF $17.50)
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iShares Core Canadian Short Term Bond Index ETF (XSB $26.94)
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iShares Core Canadian Universe Bond Index ETF (XBB $28.09)
Q: Within my fixed income allotment I've recently favored short term bonds over long term bonds on the advice that they will react less to changes in interest rates. However, since the Fed's meeting last week the opposite has occurred, as there has been a flight from short term bonds into long term bonds. Can you please explain why this is the case and then, given the current environment could you also rank the above ETF's in order of preference. If there are better fixed income suggestions please indicate. Thanks.