Mike PhilbrickiShares DEX Short Term BondXSB.TOTOP PICKNov 15, 2022

This short-term corporate bond index gives you a laddered approach to fixed income. BMO also has one.

But with just a little bit of work you can look through those ETFs, see the holdings, and structure your own portfolio to meet your needs. Say in Year 1 of retirement, you think you'll need $50k. So you buy $50k of a 1-year corporate bond. And you get a high-quality bond without paying the costs of the ETF. For the average person, that's not actually a huge amount of work to do.

Buy bonds for some sort of safety in a portfolio, and also as a counterweight during growth shocks. With those shocks, stocks tend to go down and bonds tend to go up. The higher a bond is in the capital structure (such as a government bond), the better it does.

See his Top Picks, but if you want to go shorter try this ETF. Yield is in the 3% range.

Likely that interest rates are coming down. BOC overnight lending rate is 2.75% right now and headed lower. Short-duration bonds are just going to yield less and less, and you can't enhance that yield without taking on more risk. More risk involves either extending bond duration or buying lower credit quality (and that's a big risk with markets the way they are today). Yield spreads widen when we get volatility. When a low-quality bond starts to yield more, that means its price goes down. 

So he likes the short-duration aspect of this ETF. He's used it himself for cash management. You won't make the kind of returns you made in the past. To get a higher yield, you may want to diversify into preferred shares or some very high-quality equities.

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.

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.

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.

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.

The fixed income of people's portfolios is severely impaired. In this ETF the distribution is the coupon earned and not the yield to maturity. The distribution is higher. He would prefer short term corporate bonds, XCB-T.