-
Enbridge Inc. (ENB)
-
Fortis Inc. (FTS)
-
iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
-
iShares Core Canadian Universe Bond Index ETF (XBB)
-
PIMCO Monthly Income Fund (Canada) (PMIF)
Q: My question is what to do with my legacy fixed-income holdings.
I've been holding the above ETFs after being advised by 5i's portfolio analysis services to increase fixed-income holdings. Holdings are in registered accounts at a 25% weight combined.
They have all lost capital value over the past 5 years, however with distributions, they have returned approximately zero or flat over the last 5 years, I view this as a loss due to the inflation over this time.
What would 5i suggest I do with these fixed-income holdings moving forward? Should I hold for ballast or sell and move funds into dividend growers like Utilities or Pipelines eg. FTS, ALA, GEI, TRP, etc.)? The bond investments have put a drag on my investment returns.
Please advise your thoughts and wisdom, Thank you.
I've been holding the above ETFs after being advised by 5i's portfolio analysis services to increase fixed-income holdings. Holdings are in registered accounts at a 25% weight combined.
They have all lost capital value over the past 5 years, however with distributions, they have returned approximately zero or flat over the last 5 years, I view this as a loss due to the inflation over this time.
What would 5i suggest I do with these fixed-income holdings moving forward? Should I hold for ballast or sell and move funds into dividend growers like Utilities or Pipelines eg. FTS, ALA, GEI, TRP, etc.)? The bond investments have put a drag on my investment returns.
Please advise your thoughts and wisdom, Thank you.
-
iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
-
iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
-
iShares Core Canadian Universe Bond Index ETF (XBB)
-
iShares Core Canadian Long Term Bond Index ETF (XLB)
Q: Dear 5i team.
As I read through the recent Q's on the merits of owning laddered bond funds vs long bond funds (CLF/CBO vs XBB/XLB) couple of f/ups for you. Assuming rates have peaked, and downward is the consensus:
1) What is the upside for CLF vs XLB for example. How much of a move in bond prices would you estimate for each 50 BP move? (can you do same exercise assuming rates move higher?)
2) Since you like both XBB/XLB for long bond exposure, can both be owned, or should one be sufficient?
Many thanks for your help to understand the risk/reward here.
As I read through the recent Q's on the merits of owning laddered bond funds vs long bond funds (CLF/CBO vs XBB/XLB) couple of f/ups for you. Assuming rates have peaked, and downward is the consensus:
1) What is the upside for CLF vs XLB for example. How much of a move in bond prices would you estimate for each 50 BP move? (can you do same exercise assuming rates move higher?)
2) Since you like both XBB/XLB for long bond exposure, can both be owned, or should one be sufficient?
Many thanks for your help to understand the risk/reward here.
-
iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
-
iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
-
iShares Core Canadian Universe Bond Index ETF (XBB)
-
iShares Core Canadian Long Term Bond Index ETF (XLB)
Q: Hello
I have equal amounts in CLO and CLF. Wondering if it might be a good idea to swap one of these for the longer term XLB Bond Fund to hopefully play the downturn in interest rates? If so which would you swap and why? Is there a safer trade with equal potential with less risk then XLB?
Thanks
Jeff
I have equal amounts in CLO and CLF. Wondering if it might be a good idea to swap one of these for the longer term XLB Bond Fund to hopefully play the downturn in interest rates? If so which would you swap and why? Is there a safer trade with equal potential with less risk then XLB?
Thanks
Jeff