Stockchase Opinions

David CockfieldiShares Core Canadian Short Term Corp Bond Index ETFXSH.TOTOP PICKAug 15, 2014

It doesn’t have a huge range of trading. Yield is okay at about 3%. Short-term pays you less than 1% on an after-tax basis, so this is not a bad place to park your money.

$19.94

Stock price when the opinion was issued

E.T.F.'s
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WEAK BUY
Alternative to money market funds?

Another name you could look at for slightly higher returns than money market funds.

BUY
In a rising rate environment, you might want to stick to a shorter term. XSH is a short-term, corporate, investment-grade ETF. Had drawdowns, but not as bad as a typical aggregate bond or high-yield ETF.
TOP PICK
An ETF that holds short-term bank papers that are hard to buy individually. An alternative to not earning any money in a bank account. The fact that it shot up was a warning that it markets were in trouble.
HOLD
A core iShares offering. It has only a 0.1% MER. It holds Canadian and foreign Canadian-denominated bonds (Maple bonds). It offers some diversification, but it will not shoot the lights out. It is short duration and high quality holdings and acts as a good defensive holding. This is fine for most Canadian investors.
TOP PICK
It’s really not a bond fund. A place to park your money with yield just under 2%. You’re not exposed to a major sell-off in fixed income. If you’re cautious as he is, it’s a good play.
TOP PICK
Invests mostly in bank papers. A good place to park money for short-term. Better than just sitting on cash. The ETF is pretty liquid so you can sell it whenever. Boring but at a reasonable price and yield.
TOP PICK
It's short term bank paper. It's a good place to park your money, with a yield around 2.8% that is paid monthly. It's up todays although the market is down.
TOP PICK
This ETF is bank paper, 2-3 year paper. It pays out monthly. A good place to park your money. Yield = 2.8% : expense ratio = 0.9%
COMMENT
You use this to park your cash. Not a long-term investment. This is for the short-term. Has very small price swings. If central banks raise rates, XSH will trend down.
COMMENT
This is short-term corporate bonds. As credit risk increases with higher market volatility along with interest rates going up, this has lost some value.
PAST TOP PICK

(A Top Pick Aug 12/14. Up 3.9%.) This is short bonds and at that time he was suggesting holding cash. Very liquid, so you use it as your cash reserve.