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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)
Q: I currently own HXY in my RRIF account and have been in a lost position for quite some time. It is a 8% holding in my RRIF. If I decide to sell what would you replace this ETF with?
5i Research Answer:
XHY suffered in 2022 along with nearly all bond funds. But, it is now up 8.18% in 2024 and we would not really consider it a sell, considering the prospects for lower interest rates. But, we think XBB could be an alternative. This would be a switch back to Canada bonds and away from corporates into more Government bonds (75%). Thus, likely a bit safer, but at a cost of lower yield.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.