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iShares Core Canadian Long Term Bond Index ETF (XLB)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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iShares 7-10 Year Treasury Bond ETF (IEF)
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Vanguard Total Bond Market ETF (BND)
Q: As per Tom Czitron in today's Globe:
An index ETF of long-term bonds should perform well, especially one with U.S. bonds but with the currency hedged back to Canadian dollars.
Please comment Mr. Czitron' point and name your favorite ETFs if there are such any available currently.
Thanks
Yves
An index ETF of long-term bonds should perform well, especially one with U.S. bonds but with the currency hedged back to Canadian dollars.
Please comment Mr. Czitron' point and name your favorite ETFs if there are such any available currently.
Thanks
Yves
5i Research Answer:
US bonds should do well on the assumption that rates will continue to slowly decline. In addition, if the US dollar is stronger than the C$ then Canadian investors will benefit with unhedged products. For long term bond exposure, TLT has the most leverage to rates (both ways). XHY is a high yield corporate US bond fund. GOVT is a fund of safe US treasuries. IEF is medium-term bonds. BND is a diversified US bond ETF.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.