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TSE:XSB
This summary was created by AI, based on 2 opinions in the last 12 months.
The iShares DEX Short Term Bond ETF (XSB-T) is viewed positively by experts who recommend it as a strategic addition to a retirement portfolio, particularly for those approaching retirement with a heavy equity focus. The fund offers a laddered approach to fixed income, providing a buffer against market volatility through a diverse selection of short-term corporate bonds. Experts highlight the importance of fixed income in managing risk, especially during periods of market shocks, where bonds often serve as a stabilizing force. Additionally, the ETF yields around 3%, which is seen as attractive for generating monthly cash flow. Overall, there are recommendations to consider alternative investments in quality corporate bonds directly, but the ETF remains a favorable option for those seeking convenience and lower risk.
In his institutional mandates, he has to have a minimum of 30% in fixed income, and he is not particularly positive on bond returns over the next 12-18 months, as he expects longer-term interest rates to start rising. In his case, he has 7.5%, and 30% is in the short-term bond index XSB-T. He is using that to reduce the duration of that bond portfolio. In this case, about half the bond portfolio is in the US in the fixed income market, with the other half being in Canada split evenly between the bond index XBB and XSB on the short term.