
TSE:XCB
This summary was created by AI, based on 2 opinions in the last 12 months.
The iShares Canadian Corporate Bond ETF (XCB-T) is currently facing challenges due to global issues related to government debt and rising deficits in both Canada and the U.S. Experts express concerns that bonds may struggle to surpass the rate of inflation moving forward. For a 68-year-old retiree with a robust portfolio, the ETF provides exposure to a wide range of corporate bonds but carries noticeable interest rate and credit risks in today's market. Given the tight credit spreads, the additional yield compared to government bonds might not fully justify the inherent risks. Some experts suggest exploring alternatives, like ZST, for more stability in a conservative investment strategy.
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.