-
iShares Core Canadian Short Term Bond Index ETF (XSB)
-
iShares Core Canadian Long Term Bond Index ETF (XLB)
-
Global X Cash Maximizer Corporate Class ETF (HSAV)
Q: Hi Peter, looking for a suggestion of where to park $400k (from a house sale) for the next 1 year. Besides GICs and Cash ETFs is there a slightly higher risk play you would consider at this time if it was your own money ? Thank you, Paul
5i Research Answer:
Keeping in mind that a single year is a short period of time and any thing outside of cash or safer instruments like a GIC will carry some risk (as well as considering the marginal benefits of taking that risk), a short-term bond ETF could be another area to look at. With the general trend of rates in Canada, they should have some sort of tailwind behind them from a capital perspective as well.
XLB offers a 3.6% yield and XSB is at a 3% yield. HSAV is an option for maybe more tax effective 'income'.