
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 as an effective solution for those approaching retirement who are looking to balance their predominantly equity-heavy portfolios with a fixed income component. Reviewers suggest that this ETF provides a structured, laddered approach to investing in corporate bonds, which can enhance cash flow through monthly distributions and reduce overall portfolio risk. The ETF's yield is noted to be around 3%, offering a reasonable income stream without the high costs associated with managing a private bond portfolio. Moreover, during market volatility, bonds traditionally act as a stabilizing force, contrasting with the performance of equities, especially in growth shocks. For those with a specific cash requirement in mind, experts recommend considering specific short-term bonds directly as an alternative to ETFs, which may better suit individual financial needs.
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.