Investment Q&A

Keep in mind risk profile will change here; bond funds can go down (in 2022 it was ugly as rates rose). Equity funds of course are also riskier than 'cash'. A balanced fund such as VBAL might be worth a look. While indicated yield is only 1.56%, the fund is up 15% this year with its 60% equity exposure adding torque. A diversified bond fund such as XBB is another option. Indicated yield 3.36%, YTD 2.79%. Another potential is a covered call bond fund, such as HPYT. These sell call options on their bond holdings, resulting in very high income. Indicated yield is 17.63%, YTD -3.69%. They are not perfect and carry some risks, but have done well on a net basis so far (a relatively new product in Canada). VGV we would consider quite a safe bond fund. Indicated yield 3.30%, YTD 2.43%.