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  5. XLB: For a long term investor with a focus on dividend paying companies or fund/ETF's are fixed income types appropriate for a T. [iShares Core Canadian Long Term Bond Index ETF]
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Investment Q&A

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Q: For a long term investor with a focus on dividend paying companies or fund/ETF's are fixed income types appropriate for a T.F.S.A.? If so can you suggest 2-3 fixed income products?

Thank you- Jim
Asked by James on July 26, 2024
5i Research Answer:

While we cannot personalize responses, fixed income ETFs can be a good option for investors seeking a conservative investment, alongside a decent yield. Fixed income products have traditionally been known to be uncorrelated to the broader equities market, and thus diversification into bonds is seen as having a positive impact to the overall risk and return of a portfolio. However, for investors with a long-term time horizon and a moderate risk tolerance level, bonds may be overly conservative. 

For fixed income, we like aggregate bonds, alongside long-term bonds. For these purposes we like: AGG, VAB, and XLB.