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  5. XLB: For long term investment what would be a neutral proportion of bonds in terms of distribution among these 4 or are there better options? [iShares Core Canadian Long Term Bond Index ETF]
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Q: For long term investment what would be a neutral proportion of bonds in terms of distribution among these 4 or are there better options? Currently sitting on 17% cash which I intend to redeploy in stocks when we have better clarity, 36% XBB, 26% XLB, 12% XHY and 9$ XSB for 100% of my bond/cash portfolio.
Thank you.
Yves
Asked by Yves on March 18, 2025
5i Research Answer:

We would see a higher weighting to XSB and XBB if investors are conservative. But we think all can be owned. If one believes interest rates will fall and is willing to take on rate risk then XLB could be allocated a larger proportion (we would not go beyond 20%). 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.

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