John Hood
iShares DEX Short Term Bond
XSB-T
BUY
Feb 11, 2020
Some bond ETFs. Can invest $50K It's fine. It holds quality short-term bonds. both federal and provincial. He's owned this many times. He doesn't know ZCS. Also consider ZAG which holds short-, mid- and long-term bonds. If rates stay flat or decline, ZAG will do well. If you have $50K, buy two or three of these ETFs to spread the risk. Check the duration and credit rating of each.
One of the largest and cheapest bond ETFs in Canada. The duration is just over 2 years. He thinks the short term duration are much lower risk.
MER 0.17% Yield 2.38%
A short-term bond ETF, low risk? XSB is fine, though it pays only a 2.3% yield. It's okay to park cash in this, holding government and corporate bonds. But you can go long to get a pick-up, as long you don't see rates rising. Also consider AGG-T.
Some bond ETFs. Can invest $50K Also consider ZAG which holds short-, mid- and long-term bonds. If rates stay flat or decline, ZAG will do well. If you have $50K, buy two or three of these ETFs to spread the risk. Check the duration and credit rating of each.
XSB, ZUB, NRGI. For the U.S. he recommends a more integrated portfolio approach such as XUM. Seek a low volatility portfolio in case of growth shock which is bad for banks and oil and gas
The Canadian short-term bond index, really. A very old ETF. It holds investment-grade bonds from the government and large companies and the companies won't default. Safe. This plays defence. It won't make a lot of money. Yields 2%, MER 1%.
Last November it was about being cautious and taking advantage of short-term rates. We're in a new world, getting 4-5% in safe T-bills. This was about being safe and getting cash while sitting and waiting.
Look at your portfolio and make sure you're balanced appropriately. Do you have enough fixed income? If a 20% decline in the TSX or S&P, how does that make you feel? Still likes it as first line of defense in portfolio diversification.
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Some bond ETFs. Can invest $50K It's fine. It holds quality short-term bonds. both federal and provincial. He's owned this many times. He doesn't know ZCS. Also consider ZAG which holds short-, mid- and long-term bonds. If rates stay flat or decline, ZAG will do well. If you have $50K, buy two or three of these ETFs to spread the risk. Check the duration and credit rating of each.