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  5. XLB: Building the bond part of my investments. [iShares Core Canadian Long Term Bond Index ETF]
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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
Asked by Yves on October 23, 2024
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.