Investment Q&A

The pros and cons are quite offsetting. With open-ended ETF's, one does not have to worry about reinvesting as new bonds are constantly being added to the portfolio. This reduces reinvestment risk where investors have to worry less about a bond maturing and then entering into a new, lower yield option. This risk is amplified in an investment like RBB where the fund closes at maturity. The no maturity ETF also acts as a con as invetsors by not have one set maturity date where principal is returned to them, making these option less predictable and harder to plan around. On the GIC point that is true, and if one was focused on liquidity, a HISA etf like CASH or PSA would also make sense. The counterpoint would be that a fund like RQQ should get generate higher returns than a GIC.