-
iShares Core Canadian Short Term Bond Index ETF (XSB)
-
iShares Core Canadian Long Term Bond Index ETF (XLB)
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Thank you
XHY has a yield of 6.1%, and since its inception in 2010, it has a total return CAGR (annualized return) of 4.6%. If concerns of a recession, liquidity concerns, and other risks arise, we could see XHY decline in price, as investors demand a higher yield to compensate for the risk. This is primarily why its price has been declining recently, but if these concerns abate, we could see the price rise. For more potential upside, we feel long-term bonds (XLB) can outperform in a declining interest rate environment, but XHY has performed relatively well against short-term bonds (XSB) and long-term bonds (XLB). We think for an investor looking for yield, and is willing to take on some risk that XHY looks interesting here.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.