Q: Since long duration bonds have more sensitivity to interest rate movements and interest rates are expected to decline next year does it make more sense to invest in a long term bond ETF? And since I expect interest rates to fall further in Canada does it make more sense to go with a Canadian ETF? Which ones would you recommend?
5i Research Answer:
Certainly the thesis makes sense, but keep in mind if one is wrong then interest rate leverage will work the opposite way. In Canada we would suggest XLB.