
TSE:XCB
This summary was created by AI, based on 2 opinions in the last 12 months.
The iShares Cdn Corp Bond ETF (XCB-T) faces significant challenges in the current economic landscape, particularly regarding corporate bonds. Experts express concerns about the overall bond market, emphasizing the potential difficulties in generating returns that outpace inflation. The ETF offers a diversified selection of Canadian corporate bonds, which do present some interest rate risk. While it may serve as a source of additional yield for investors, especially those transitioning funds from equities, the tight credit spreads imply that investors might not be adequately compensated for the associated credit risks. Consequently, caution is advised, especially for those seeking safer investment strategies, with a recommendation to consider alternatives such as ZST for increased 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.