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iShares Core Canadian Government Bond Index ETF (XGB)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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iShares 7-10 Year Treasury Bond ETF (IEF)
Q: If you were going to build my bond portion (40% +/-) portion of my portfolio using ETFs, how would you build that? Is there one ETF that provides a broad mix of corporate / municipal / provincial / federal, a broad laddering of periods, a mix of risk, a mix of regions, etc? Or would you build it using multiple ETFs that specialize in specific products?
5i Research Answer:
We would use a combination of general and specialized bond funds. XBB and XGB could be the starting point for general Canadian government coverage. CBO and CVD could be added for corporates and convertibles. XHY and IEF for US exposure. The allocations should be based on personal goals and preferences.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.