Q: What is your best recommendation for a US dollar and traded bond etf that holds short term bonds of around 2 year duration that can be held for 12 to 24 months that would benefit from a thesis that interest rates will fall during the next 12 to 18 months. I have never held bonds, have US cash and would like to on a lower risk basis park current money market funds into a bond etf that preferably does not pay dividends but can appreciate capital based on a combination of shorter term bonds gradually coming due and interest rates falling. Thank you for providing some direction and suggestions since I feel rather lost in this area of investing.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Can you recommend a good high-quality corporate bond ETF(s) that has an attractive current yield? Preferably U.S., but I'd be interested in a Canadian one as well.
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BMO Mid Corporate Bond Index ETF (ZCM)
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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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Invesco Preferred ETF (PGX)
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iShares U.S. Preferred Stock (PFF)
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Vanguard Short-Term Bond ETF (BSV)
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BMO US Preferred Share Index ETF (ZUP.U)
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BMO US Preferred Share Index ETF (ZUP)
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Vanguard Short-Term Government Bond ETF (VGSH)
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Vanguard Short-Term Corporate Bond ETF (VCSH)
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iShares 1-3 Year Credit Bond ETF (IGSB)
Q: Hi 5iResearch team
I am in the process of doing re-weighting. I know the above etfs. The US bond etf (VGSH) has very low interest yield compared to the CAD ones (XSB, ZCS, and ZCM).
1. Are there other US bond etfs that are similar to the above CAD ones in terms of yield and risk?
2. ZUP is in CAD$ and US$. Can you please recommend two more (CAD or US) etfs that are similar to ZUP in terms of yield and risk?
Thank you for the great service.
I am in the process of doing re-weighting. I know the above etfs. The US bond etf (VGSH) has very low interest yield compared to the CAD ones (XSB, ZCS, and ZCM).
1. Are there other US bond etfs that are similar to the above CAD ones in terms of yield and risk?
2. ZUP is in CAD$ and US$. Can you please recommend two more (CAD or US) etfs that are similar to ZUP in terms of yield and risk?
Thank you for the great service.
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Miscellaneous (MISC)
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Vanguard Short-Term Corporate Bond ETF (VCSH)
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iShares 1-3 Year Credit Bond ETF (IGSB)
Q: I have some US GIC's that have matured and my advisor at RBC is recommending the RBC US Short-term Corporate Bond Fund as interest rates have declined so much for GIC's.
Would you consider this to be a good move or is there something else I should be considering.
Would you consider this to be a good move or is there something else I should be considering.