iShares 1-10 Corp Bond Fund (CBH.TO)

Buy 1/2 CBH and 1/2 CLG. Favours the laddered approach, so your money isn't maturing all at once or for quite a while.

Where to put $25,000 in an RRSP? This is a 1-10-year corporate ladder bond ETF iShares (CBH-T) that he would recommend. You’ll get a yield higher than a GIC. It has a really diverse portfolio of securities. (Also See Top Picks for XHY-T)

(A Top Pick Feb 11/15. Up 0.94%.) Likes this because it is diversified, and you are not guessing where interest rates are going. He likes the 10 year laddered, because the average yield pickup from 6 to 10 years has been 100 basis points over the last 25 years.

1-to-10 year corporate bond ladder. He prefers individual bonds, rather than funds, especially mutual funds. For those people who don’t have the money, the desire, or the access to bonds to do it with individual bonds, then this windows the same thing. There are a lot of bank bonds in this. The rationale between a 1 to 10 year ladder, is because the yield pickup from 5 to 10 years has averaged over 1% for the last 20 years. You benefit when long-term rates fall as well as when long-term rates rise.

Laddered corporate bond exposure. CBO-T 1-five-year ladder or CBH-T 1-10 year ladder? He prefers the 1-10 year ladder because for one thing, the yield spread between 5 and 10 year bonds has averaged over 1% for the last 25 years so if you stop at 5 years, you are giving up a lot of extra yield. Also, you can diversify more by credit. Five-year is really too short.