Opinions Joey Mack
iShares Canadian Real Return Bond Index ETFXRB.TOSELLJan 09, 2012
iUnits Real Return Bond ETF. The real driver for real return bonds in the last year has been the fall in interest rates. This one is a basket of long bonds with the shortest being too 2021 out 2041 or 2046. Low coupon so have a higher sensitivity to interest rates, to the upside this year. If you own, try to reduce your exposure. Once long-term interest rates start to rise, these are going to sell off faster than anything else in the bond market.
Joey MackUnknown
$25.71
Stock price when the opinion was issued
$23.03
As of Jun 10, 2026. Market Open.
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BUY
You're better off owning XRB than XSTP. It's liquid. Even though inflation's come off a bit, it remains sticky, and this one should do well.
Paul Gardner, CFAOwned
E.T.F.'s
PAST TOP PICK
(A Top Pick Jul 16/21, Down 15%) You get a real-return bond that will perform linked to the inflation rate. As inflation rises, this will yield more. However, this holds very long-duration bonds (over 15 years), rising rates overwhelmed the inflation coupon on the bonds, so that created a serious decline. See top picks for an alternative.
Mike PhilbrickOwned
E.T.F.'s
PAST TOP PICK
(A Top Pick Apr 08/21, Down 7%) Underlying bonds are illiquid and tied to a high duration. Should do better this year, as long rates will stay stable or drop, but inflation will be sticky.
Paul Gardner, CFAOwned
E.T.F.'s
DON'T BUY
COMMENT
Real return bonds are all about anticipating what future inflation is going to be. The additional payment you get is relative to actual inflation expectation. How much is priced in matters. Unloaded in December since he though inflation expectations were priced in. There is a short term buying opportunity now that it has come off a little. Need alternatives for fixed income.
E.T.F.'s
PAST TOP PICK
(A Top Pick Apr 08/21, Up 4%) Protects you from inflation. Good for DIY investors, as the underlying bonds themselves are so illiquid. Great way to get into the bond market. Believes inflation is transitory, but not with high conviction, so he's happy to own this.
Paul Gardner, CFAOwned
E.T.F.'s
TOP PICK
Inflation-indexed bonds, benefits from higher inflation. We're seeing higher inflation rates. Best way to get into the inflation market. Higher inflation will be negative on nominal bonds. Great defensive posture in the bond space.
Paul Gardner, CFAOwned
E.T.F.'s
TOP PICK
Real returns in mind. These bonds get an adjustment up in their base on the bond. It grows by the rate of CPI inflation. The inflation being hedged is in the consumer price index so must be mindful of which inflation you are trying to hedge.
Mike PhilbrickOwned
E.T.F.'s
TOP PICK
Inflation indexed bonds. Inflation will run hot for at least another 12-18 months. Fees are incredibly low, high liquidity. Benefits from inflation increases. Can't know what's going to happen long term, but you will benefit in the short term from this type of investment. Yield is 1.6%.
Paul Gardner, CFAOwned
E.T.F.'s
COMMENT
This ETF holds Canadian Real Return Bonds with a formula tied to inflation rates. Its price will reflect the view on inflation. The bonds have long terms to maturity (about 15 years), which gives it higher interest rate risk. A one percent interest rate increase can change the value by 15%. This leads to it being more volatile. A good hedge to rising inflation though.
E.T.F.'s
COMMENT
A Real Return Bond is a way to hedge against inflation. Given that we don’t have a lot of inflation and he doesn’t see any in the future, it is not one he would recommend. This one has done very well because it is a very focused portfolio on long bonds. As interest rates in general have gone down, this ETF has had double-digit returns.
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