Horizons CDN Select Universe Bond ETF (HBB.TO)

The Horizons CDN Select Universe Bond ETF (HBB-T) is a compelling option for investors seeking tax efficiency without the necessity of current income. Due to its structure within Horizons’ corporate class, this ETF does not distribute income, which allows for better compounding benefits over time, as returns come solely in the form of capital gains realized upon the sale. For those analyzing the financial viability of this ETF, a break-even analysis reveals that if the after-tax returns exceed 40 basis points a year, the tax efficiency offered makes it a more attractive choice compared to other options that do not provide similar benefits. Additionally, the evaluation might vary depending on the investor's tax bracket, underscoring the importance of personal financial circumstances in the decision-making process. Overall, it stands out as an advantageous fixed income investment for those prioritizing tax-efficient growth.