Hank Cunningham iShares 1-10 Corp Bond Fund CBH-T COMMENT May 06, 2013

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.

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.

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.