Q: What is your opinion on this bond ETF? Have owned this in an RSP for a very long time on a DRIP plan which has been extremely disappointing. Would you continue holding? Continue with the DRIP?...or just dump it and move to, say, a laddered GIC scheme. Thanks Ron

Q: Hello 5i
We currently hold CBO, CLF & XRB at 25/25/50% all as long term holdings in a slight loss position. I believe we are currently at (or very near) peak interest rates. Do you have any suggestions to bond replacements that might be better positioned to capture rate reductions for these holdings. (not accounting for the bonus of tax loss selling)
Again many thanks
Les

Q: Hi, further to your reply on real return bonds to Alex on April 28th, I am trying to understand the return I could expect to receive on XRB from the underlying bonds vs. the inflation component.

For XRB, Blackrock currently shows the weighted average coupon at 2.33% and the the weighted YTM (coupon plus amortized realized gain/loss) at 3.43%. My understanding is that YTM is the true measure of bond return. If I bought this ETF could I theoretically expect to receive a 3.43% return from the underlying bonds in addition to an annual principal increase from inflation. So if inflation averaged 3% per year could I expect 3.43% YTM plus 3% inflation principal increase = 6.43% total annual return. Is that generally how it would work? Also would the annual principal increase just be added to the NAV of the ETF?

Thanks.