Q: Given the expected economic/market conditions over the next 5+ year horizon, if you were to look into your crystal ball, would XBB be a good solid bond fund to hold for one’s safer investments ?
5i Research Answer:
Yes, we think so. Its diversified holdings and 7.7 years' average duration should see it do fairly well if interest rates decline as expected. It is not risk-free as there is some rate leverage here, but we would consider it a conservative fund overall. Indicated yield is 3.34%. 75% of its portfolio is government bonds.