- iShares Core Canadian Short Term Bond Index ETF (XSB)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares Core Canadian Long Term Bond Index ETF (XLB)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Building the bond part of my investments. What proportion would you allocate to each of the four indicated. 2-What is the difference between XSB and XBB? 3- Do you consider OK to allocate some XHY as a bond equivalent?
Thanks for your great service.
Yves
Thanks for your great service.
Yves
5i Research Answer:
Allocations need to be highly personal, but WE might use (for the bond portion only): XLB 30%, XSB 10%, XBB 45%, XHY 15%. XSB is a short term bond fund with duration at 2.6 years. XBB is a more diversified fund with more rate exposure, at a duration of 7.6 years. We are quite comfortable with XHY.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.