
TSE:XCB
This summary was created by AI, based on 3 opinions in the last 12 months.
The iShares Cdn Corp Bond ETF (XCB-T) offers exposure to a diversified basket of corporate bonds within the Canadian market. However, experts highlight concerns regarding the current state of bonds as an asset class, especially considering the prevailing government debt and deficits in Canada and the US. Many believe that bonds may struggle to keep pace with inflation, particularly in this phase of the economic cycle. For a 68-year-old retired individual with a well-diversified portfolio, investing in XCB-T can provide additional yield compared to government bonds, but it comes with heightened credit and interest rate risks due to tight credit spreads. Alternative options, like ZST, may be more appropriate for those seeking greater safety.
What is the basic difference between the Horizons Active Corporation Bond (HAB-T) and iShares DEX All Corporate Bond (XCB-T) ETFs? He is more familiar with the XCB. He knows they are both fine. Doesn’t know enough about HAB to give you a real contrast. This one is Corporate bonds in Canada, so it is very broadly diversified. Reasonably low cost. He would feel that the one with a lower cost is the better product.
Has done very well. Will depend on where interest rates are going. These are high quality bonds and will act little bit closer to what long-term government bonds are going to do. If you are a believer that interest rates will remain low for some time, you get a good yield of around 3.8%-4%. If rates start to move up, then you have to be careful.
They are relatively active with managing these things. They have managed the problem of bonds having to be bought at premium prices and then they mature at a loss. Likes this one. XSB-T is also good. They also had very little capital losses from maturing bonds.