Bond etf canada

Bond etf canada DEFAULT

Bond ETFs give you the chance to invest in a variety of bonds while adding more income to your bottom line. 

As the stock market saw a drastic selloff frenzy due to the COVID-19 pandemic, bond ETFs may be a safer investment for investor capital.

According to a report from the National Bank of Canada Financial Markets, bond ETFs continued trading at a high volume during the market crash in March 2020. 

Despite a discount on prices, the report said that the discounts are not going to affect long-term investors. Canadians are flocking to bond ETFs for the security they offer. 

Here is a guide to 20 of the best bond ETFs in Canada you can consider in 2020.

What is a Bond ETF?

To consider investing in bond ETFs, it would help understanding what they are a little better. Bond ETFs are similar to regular ETFs, but they exclusively invest in bonds. 

Bond ETFs are passively managed and trade similarly to stock ETFs on the stock exchange. They hold a portfolio of bonds with different particular strategies.

Bond ETFs make benchmark bond indices more accessible to ordinary investors. They trade on a centralized exchange rather than over the counter, unlike individual bonds. 

Bond ETFs effectively allow investors the ease and transparency that comes with stock trading. Bond ETFs are also more liquid than mutual funds or individual bonds. Investors have the option of trading them if the underlying bond market is not performing well.

They pay interest in the form of monthly dividends to investors. Any capital gains made by the ETFs are paid to investors through annual dividends.

Note that many of the below include U.S ETFs as well, to provide some diversity in your choice as many Canadians like to invest in the U.S

Best Short-Term Bond ETF in Canada

Government of Canada Marketable Bonds - Average Yield - 1 to 3 Year

Short-term bond ETFs reduce the exposure of risk to your capital but they offer you the possibility of an adequate return on your investment. They traditionally take one to three years to mature. Due to a closer maturity date, there is a smaller chance of being adversely affected by interest rate hikes or other similar events. It also constitutes a lower credit risk.

Here are a few short-term bond ETFs you can consider:

1. iShares Core Canadian Short-Term Bond Index ETF (XSB)

  • Market Symbol: XSB
  • Average Duration: 2.7 years
  • Yield to Maturity: 2.7%
  • Assets Under Management: $2.2 billion

The bond ETF seeks to provide income by recreating the performance of the FTSE Canada Short-Term Overall Bond Index net of expenses.

2. BMO Short Corporate Bond Index ETF (ZCS)

  • Market Symbol: ZCS
  • Average Duration: 2.8 years
  • Yield to Maturity: 2%
  • Assets Under Management: $1.2 billion

The Bond ETF has been designed to replicate the performance of the FTSE TMX Canada Short-Term Corporate Bond Index net of expenses. It offers investors the advantage of corporate bonds over government bonds or portfolios that mix government and corporate debt. 

3. Vanguard Canadian Short-Term Bond Index ETF (VSB)

  • Market Symbol: VSB
  • Average Duration: 2.7 years
  • Yield to Maturity: 1.9%
  • Assets Under Management: $1.1 billion

Vanguard Canadian Short-Term Bond Index ETF seeks to track the performance of the Bloomberg Barclays Capital Global Aggregate Canadian Government/Credit 1-5 year Float Adjusted Bond Index. It primarily invests in public, investment-grade fixed-income securities issued in Canada.

4. Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC)

  • Market Symbol: VSC
  • Average Duration: 2.8 years
  • Yield to Maturity: 2.3%
  • Assets Under Management: $1.2 billion

The Vanguard Canadian Short-Term Corporate Bond Index ETF seeks to replicate the performance of the Canadian credit bond index with a short-term dollar-weighted average maturity. It is currently tracking the Bloomberg Barclays Global Aggregate Canadian Credit 1-5 Year Float Adjusted Bond Index. It primarily invests in public, investment-grade non-government fixed income securities issued in Canada.

Related Reading: Best ETFs in Canada

Best High-Yield Bond ETFs

High-yield bond ETFs invest in corporate bonds that come with a lower credit rating. These are considered to be bonds that are below investment grade or even called “junk” bonds. 

While the name suggests something very negative, it does not necessarily indicate the type of returns that your investment can realize with them. The higher-risk involved does offer higher returns than funds that invest in bonds with lower yields in both government and corporate sectors.

There is a more substantial risk of default among the issuing companies – hence the high-return/high-risk scenario. There are thousands of companies represented in the funds. Defaults can lower the overall return on high-yield bond ETFs.

5. iShares iBoxx $ High Yield Corporate Bond ETF (HYG) (USD Only)

  • Market Symbol: HYG (USD Only)
  • Average Duration: 2.81 years
  • Yield to Maturity: 5.58%
  • Assets Under Management: $18.01 billion

It was the first mover in the high-yield corporate bond market. It has long been one of the most significant and liquid junk bond ETFs. Its core exposure through the iBoxx index it tracks is solid, and it covers the most liquid segment of the junk bond market.

6. SPDR Barclays High Yield Bond ETF (JNK) (USD Only)

  • Market Symbol: JNK (USD Only)
  • Average Duration: 3.07 years
  • Yield to Maturity: 5.88%
  • Assets Under Management: $9.69 billion

SPDR Barclays High Yield Bond ETF is a significant and popular corporate bond fund. This ETF has a portfolio that is among the broadest in its segment. The fund trades well and it has a substantial asset base. It competes most directly with HYG, which is also substantial and liquid itself.

7. Invesco Senior Loan (BKLN) (USD Only)

  • Market Symbol: BKN (USD Only)
  • Average Duration: 5.15 years
  • Yield to Maturity: 5.99%
  • Assets Under Management: $3.81 billion

The Invesco Senior Loan ETF is based on the S&P/LSTA U.S. Leveraged Loan 100 Index. The fund normally invests at least 80% of its total assets in the component securities that the index consists of. The index is designed to track the market-weighted performance of the largest institutional leveraged loans. These are loans based on market weighting, spreads, and interest payments.

8. iShares Broad USD High Yield Corporate Bond ETF

  • Market Symbol: USHY (USD Only)
  • Average Duration: 5.50 years
  • Yield to Maturity: 5.92%
  • Assets Under Management: $4.45 billion

Made for long-term investors, this bond ETF offers investors cheap exposure to the US high-yield corporate bond market. Compared to HYG and JNK, it holds twice as many issues from more than twice as many issuers. It holds securities primarily from smaller issuers which increases its potential for yield.

Related Reading: Vanguard Canada Overview

Best Corporate Bond ETFs

These are the bond ETFs issued by companies with investment grade credit ratings. The bonds in corporate bond ETFs can be issued by corporations from a wide array of industries.

9. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) (USD Only)

  • Market Symbol: LQD (USD Only)
  • Average Duration: 13.70 years
  • Yield to Maturity: 2.98%
  • Assets Under Management: $46.22 billion

LQD is one of the most popular corporate bond ETFs with massive liquidity and substantial assets under management. It is reputed for its broad portfolio of bonds from the Markit iBoxx USD Liquid Investment Grade Index, whose underlying liquidity might contribute to tight tracking and subdued discounts. LQD only selects bonds that have at least three years to maturity.

10. Vanguard Short-Term Corporate Bond ETF (VCSH) (USD Only)

  • Market Symbol: VCSH (USD Only)
  • Average Duration: 2.64 years
  • Yield to Maturity: 2.20%
  • Assets Under Management: $24.08 billion

VCSH is a short-term corporate bond that matures within 1-5 years. It seeks to track the performance of a market-weighted corporate bond index with a short-term dollar-weighted average maturity. The fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays US 1-5 Year Corporate Bond Index.

11. Vanguard Intermediate-Term Corporate Bond ETF (VCIT) (USD Only)

  • Market Symbol: VCIT (USD Only)
  • Average Duration: 6.14 years
  • Yield to Maturity: 2.73%
  • Assets Under Management: $27.40 billion

The investment seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity.

The fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays US 1-5 Year Corporate Bond Index. The index includes US dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, financial, and utility companies.

12. iShares Canadian Bond Index ETF (XCB)

  • Market Symbol: XCB
  • Average Duration: 9.12 years
  • Yield to Maturity: 2.59%
  • Assets Under Management: $1.85 billion

The iShares Canadian Corporate Bond Index ETF seeks to provide income. It invests in the Index Shares underlying the FTSE T<X Canada All Corporate Bond Index.

Related Reading: Best Investments in Canada

Best Global Bond ETF in Canada

Global bond ETFs provide exposure to fixed-income securities from around the world. These ETFs invest in bonds that can include both government-issued and corporate bonds. Depending on the ETF, there might be a preference in terms of time to maturity for the bond as well as the desired yield. Most of these are also attempting to take advantage of changing interest rates and currency values to improve returns.

13. Invesco Global Short Term High Yield Bond ETF (PGHY) (USD Only)

  • Market Symbol: PGHY (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $181.86 million

The Invesco Global Short Term High Yield Bond ETF is based on the DB Global Short Maturity High Yield Bond Index. It invests at least 80% of its total assets in US and foreign short-term non-investment grade bonds that the index consists of. The index provider chooses bonds issued by corporations, sovereign, sub-sovereign, or quasi-government entities.

14. First Trust SSI Strategic Convertible Securities ETF (FCVT) (USD Only)

  • Market Symbol: FCVT (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $149.85 million

The First Trust SSI Strategic Convertible Securities ETF invests at least 80% of its net assets in a portfolio of US and foreign convertible securities. The fund may also invest in convertible securities of any credit quality, including unrated securities and below investment grade securities with effective or final maturities of any length.

15. First Trust Institutional Preferred Securities and Income ETF (FPEI) (USD Only)

  • Market Symbol: FPEI (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $254.1 million

The First Trust Institutional Preferred Securities and Income Exchange Traded Fund seeks a high level of current income by investing in institutional preferred and income-producing debt securities. It uses a multivariate approach, screening companies on several fundamental equity characteristics, including historical and expected rates of earnings growth.

16. Anfield Universal Fixed Income ETF (AFIF) (USD Only)

  • Market Symbol: AFIF (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $89.00 million

Anfield Universal Fixed Income ETF is an actively managed bond ETF that holds a wide array of fixed income securities. The fund invests across several sectors, markets, maturities, and credit ratings. The fund typically holds securities of issuers with a range of credit ratings and stable or improving fundamentals.

Related Reading:Best Real Estate Investments in Canada

Best Emerging Market Bond ETFs in Canada

An Emerging Market Bond ETF consists of fixed income debt issues from countries that have developing economies. These can include government and corporate-issued bonds in Asia, Latin America, Africa, and other countries. 

The emerging market bonds usually offer higher returns as opposed to traditional bonds because they are riskier than the bonds from developed countries. The fact that developing countries tend to grow much quicker also contributes to higher potential returns.

They allow investors to diversify positions in emerging market bonds like a mutual fund, but it trades like a stock. If the underlying bonds in the ETF perform well, the ETF does as well.

17. iShares JPMorgan USD Emerging Markets Bond ETF (EMB)

  • Market Symbol: EMB (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $12.06 billion

iShares JPMorgan USD Emerging Markets Bond ETF tracks an index of US dollar-denominated sovereign debt issued by emerging market countries with more than $1 billion outstanding and at least two years remaining in maturity. The fund typically favors longer maturities and tends to lean toward relatively higher risk. It offers substantial liquidity, making it a strong pick for traders.

18. SPDR Bloomberg Barclays Capital Emerging Markets Local Bond ETF (EBND) (USD Only)

  • Market Symbol: AFIF (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $870.33 million

SPDR Bloomberg Barclays Capital Emerging Markets Local Bond ETF tracks a market value-weighted index of fixed-rate, local currency sovereign debt from emerging markets. The exclusion of the ultra short term end of the market makes it a relatively incomplete view of the broad market.

19. Invesco Emerging Markets Sovereign Debt Portfolio (PCY) (USD Only)

  • Market Symbol: PCY (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $2.59 billion

This bond ETF targets US dollar-denominated emerging market sovereign debt with at least three years to maturity. Its underlying index imposes additional liquidity and relative value screens that set it apart from other US dollar-denominated funds.

20. Vanguard Emerging Markets Government Bond ETF (VWOB) (USD Only)

  • Market Symbol: VWOB (USD Only)
  • Average Duration: N/A
  • Yield to Maturity: N/A
  • Assets Under Management: $1.46 billion

Vanguard Emerging Markets Government Bond ETF limits its scope to US dollar-denominated emerging market debt. Investors can avoid any direct impact from currency volatilities. Avoiding locally denominated issues limits the impact of currency volatilities on portfolio returns.

How to Buy Bond ETFs in Canada

My favourite and the cheapest ways to buy ETFs in Canada are the following:

To learn more, read my breakdown of the best trading platforms in Canada here.

Conclusion

Just like stocks, bond ETFs also have ticker symbols that you can use to place a trade. Before you buy one, you should know that bond ETFs are also typically tied to an underlying index and seek to track the performance of that index. 

Many times, a bond fund will have investments in many of the same entities that the underlying index fund has.

If you’re new to investing and want to learn more, check out my guide on how to start investing in Canada.

best bond etfs in canada

Check Out These Posts:

Sours: https://wealthawesome.com/best-bond-etf-canada/

Bond ETFs are popular and it’s important to understand why.

While you may not need or want bonds in your portfolio today, one day you will consider it and it’s important to understand what is available and what will fit in your strategy.

What Are Bonds?

Bonds represent a fixed income vehicle for investors. It’s a promise from an entity (corporate, government, municipal, …) to pay you interest for a certain time of time for a certain amount of money.

In short, it’s a loan with fixed parameters. As it happens, there is also a secondary market for bonds when it trades and is usually priced according to interest rates.

With that said, bonds don’t lose money when you keep them to maturity. The dilema investors have to assess is if their money is better with a GIC or a bond.

DISCLOSURE: Please note that links to merchants mentioned within this post might be using an affiliate link. Using an affiliate link means that, at zero cost to you, I might earn a commission if you buy something through that affiliate link.

What Is A Bond ETF?

A bond ETF is an equity investment (the ETF) that focuses on investing in bonds as the underlying investment. The ETF could also invest in other bond ETFs.

Take the Vanguard Global Aggregate Bond Index ETF (VGAB ETF), it invests in 2 Bond ETFs (VBU ETF and VBG ETF). In turn, being that VBU is a CAD-Hedged fund for currency, it directly invest in BND. That’s 3 layers of ETFs before you actually invest in bonds.

ETFs trade like stock on the stock market. Investors bid on the ETF at a specific price and that’s what drives the price of the ETF during the day. Read this to understand the pricing of an ETF as opposed to the NAV (Net Asset Value).

During the trading day, there can be a variation in price vs NAV. Here is another explanation on how the price of an ETF and NAV can be adjusted to avoid a divergence between the ETF price and the NAV.

Investors can end up making an ETF overvalued or undervalued temporarily during trading hours as you are at the mercy of the market pricing. During the Covid-19 pandemic, most bond ETFs were negatively impacted even as bond ETFs were seen as safe havens.

Going back to what a bond is, bond ETFs are not as safe as the actual bonds for your capital. It’s easier to access bond ETFs and have a fixed-income representation but the value is still bouncing around as per the secondary bond market.

The Best Bond ETFs

Instead of making it simple to select a bond ETF, we now have many options to chose from … In fact, too many options that can cause confusion on what bond ETF to buy. Let me simplify the selection for you.

The principle, as an investor when looking for fixed-income representation, is to have the least amount of fluctuation. It’s not about building wealth but protecting it.

  • The return should be equal to the income receive. Growth is not important with bonds.
  • Have the least amount of fees.
  • Invest directly in the bond coupons as much as possible.
  • Invest in Canadian bonds only and avoid any currency impact.

The table is sorted by returns since inception. As pointed out, we want the least amount of variance over time so we want a low performance which is counter-intuitive.

Based on the data identified, the best Bond ETF is the one with a near 3% return since inception and an appropriate yield based on the holdings.

My pick is VGV – Vanguard Canadian Government Bond Index ETF.

  • It focuses on high quality bonds from the government.
  • Has little fluctuations in performance.
  • Pays a decent yield compared to GICs and interest rates.
  • Only down side is the trade volume as it is relatively small with a lower trade volume than others.

The iShares CBO ETF and iShares CLF ETF are close second and third.

Mark from My Own Advisor picks VAB – Canadian Aggregate Bond Index ETF and it is also a good choice and has higher trading volume and higher net asset if that’s important.

What’s the pattern? Those are the least perfmorming Bond ETFs.

Why Not Choose The Best Performing Bond ETF?

Simple, bonds are a fixed income investment with no fluctuation in value. Yes, there is a secondary market but the purpose of a bond is to earn interest, just like a GIC but with different guarantees.

When you buy a bond ETF, you swap the interests for distribution and the guaranteed value at maturity is gone. It’s the same as investing in real estate vs REITs. Both have real estate as underlying assets but the generated income changes.

As such, the best performing ETF is also the riskiest ETF, and that is not what an investor should be focused on when investing in bond ETFs since you are looking for stability.

Interest rates will also have an impact on the following:

  • REIT ETFs will be impacted as they are for income
  • Bond ETFs will be impacted as they are for safety and need to keep up with interest
  • Bonds on the secondary market will be impacted the same way as bond ETFs
  • Bonds held to maturity will not be impacted.

The reason for the secondary market and the adjustment in value is if interest rates rise faster than what the bonds can pay, the investor has to make a decision on losing value on the bond and recovering it with higher interest rate investments.

If you still think that returns are important with bonds, than it means you believe in the strategy to predict interest rate movement and where governments will go with their interest rates. Interest rate prediction is very complicated and not a strategy I want to learn.

Last but not least, if you want performance, a Bond ETF is the last place to look …

How Bonds Fit In Your Portfolio

Why do you invest in bonds? It’s not to get rich.

You buy bonds for 1 of 2 reasons.

  • You want to balance risk which means you want to minimize the swing in your portfolio when stocks move negatively. Just know that the more bonds you hold, the safer you feel but the less your portfolio grows. The financial industry tries to have a rule around matching your bonds holding with your age but that’s too much in my opinion but you do what you need to sleep at night.
  • You want a cash equivalent as part of your withdrawal strategy. It’s like a retirement bucket strategy. From stocks, to bonds, to cash. For example, you might want 5% of your portfolio in bonds while you have 2 years of cash. It gives you a very safe cushion to withdraw from your portfolio when the market drops. It means you avoid selling stocks at the wrong time.

How To Buy Bond ETFs

It’s a lot easier to buy bond ETFs than buying bonds separately which is why they are much more popular.

To buy a bond ETF, you need a discount broker as ETFs trade like stocks on a stock exchange for ETFs. You specify the number of shares you want to buy from the selected ETF and whether you want to pay the market price or you enter the price you want to pay.

I usually put a limit order using the market price just to avoid any blip from trading algorithm.

As it happens, there are many discount brokers that offer access to free ETFs and you should use a discount broker with free ETFs if you can. Questrade is one of those discount brokers with free ETFs.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.

Tags RetirementSours: https://dividendearner.com/best-bond-etf-canada/
  1. Mlp fusion generator
  2. Minecraft head list
  3. 1998 corvette reviews
  4. Russian fluffy dog

Canadian investors have been flocking to fixed-income exchange-traded funds – a major driver of record growth in ETF assets in Canada in 2019 and so far this year – seeking safety amid fears of global economic instability.

Bonds are traditionally used to diversify portfolios, and ETFs are a popular vehicle given their asset mix, low fees and transparency.

The Globe and Mail asked three experts for their recommendations on the best fixed-income ETF strategies and to pick some interesting Canadian bond ETFs in today’s market:

Story continues below advertisement

John Hood, president and portfolio manager, J.C. Hood Investment Counsel

Bonds act as a “seatbelt for the overall portfolio,” although many investors look exclusively at their yield, “and that’s exactly the wrong thing to do,” John Hood says. “Never trust yield,” he says. “It’s an incomplete story.”

Instead, Mr. Hood recommends that investors consider yield-to-maturity, and believes it’s often best to opt for short-duration bonds of less than three years.

“If you’ve got a longer-term bond, it’s going to pay you more, but if interest rates go up, it’s going to get killed,” Mr. Hood says.

Another important factor is credit-worthiness. Mr. Hood looks for ETFs with bonds rated BBB or higher and avoids those outside of North America, which can be hit by currency fluctuations and political instability.

The pick: BMO Aggregate Bond Index ETF (ZAG-T)

This fund has a combination of short-, medium- and long-term holdings, so that “if the rates go up, the long-term bonds will be weakened, but the short-term bonds will do better,” he says. ZAG includes federal, provincial and corporate bonds. Mr. Hood appreciates its rock-bottom cost, with a management expense ratio (MER) of just 0.09 per cent, “and the credit quality is there.”

The pick: BMO Ultra Short Term Bond ETF (ZST-T)

As its name suggests, ZST has extremely limited durations, with exposure to a diversified mix of fixed-income asset classes that have a term-to-maturity of less than one year or reset dates within one year. ZST currently holds investment-grade corporate bonds, so there’s low default risk, Mr. Hood says, and the MER is a modest 0.17 per cent.

Yves Rebetez, chief investment officer, Pascal Financial

Yves Rebetez, former managing director of ETF Insight, a website dedicated to the Canadian ETF space, doesn’t see a lot of risk-reward coming from the fixed-income category, “absent positioning for negative interest rates coming to North America, which I neither expect nor would cheer.”

Story continues below advertisement

That leaves him looking at ETFs that are floating-rate, have short durations, have “meaningful” assets under management (several hundred million dollars in assets) or are actively managed (to mitigate credit risk and interest-rate risk.) He doesn’t hold any at the moment.

The pick: Horizons Active Floating Rate Bond ETF (HFR-T)

HFR uses derivatives to generate more income as interest rates rise, which removes bonds’ traditional risk of experiencing losses as yields increase. It has an MER of 0.46 per cent and invests primarily in a portfolio of Canadian debt securities, hedging the portfolio’s interest-rate risk to generally maintain a portfolio duration of less than two years.

The pick: iShares 1-5 Year Laddered Government Bond ETF (CLF-T)

This ETF has a laddered bond structure that “allows this fund to effectively reload duration with the passage of time,” Mr. Rebetez says. It has an MER of 0.17 per cent. Laddered government bonds have significantly lower interest-rate risk than the traditional bond benchmark, he says, leaving investors significantly less exposed to rising rates than the broader bond index.

David Kletz, vice-president and portfolio manager, Forstrong Global Asset Management

Bond ETFs have many advantages for the average retail investor, David Kletz points out, such as liquidity, a diversity of exposure and a lower cost than buying and selling individual bonds. Those who rotated to fixed-income ETFs last year appeared to be pivoting back to equities at the start of 2020, he says, given the more encouraging geo-political backdrop. Still, Forstrong remains invested in fixed-income ETFs, including his two picks, which are tilted toward corporate exposure and short-duration bonds.

The pick: Vanguard Canadian Short-Term Corporate Bond ETF (VSC-T)

An anticipated stabilization of the global manufacturing sector should mean good things for corporate bonds, Mr. Kletz says. But he says it’s best to stay with short-duration funds such as VSC, in case global growth spurs interest-rate hikes that hit yields. The MER is 0.11 per cent.

The pick: CI First Asset High Interest Savings ETF (CSAV-T)

“It’s not traditional fixed-income by any means,” Mr. Kletz says, but the growth of capital in high-interest savings ETFs has been “astonishing.” This fund, with an MER of 0.15 per cent, has no interest-rate risk and a relatively attractive yield. It’s currently invested in high-interest deposit accounts in five major Canadian banks. CSAV launched in June, 2019, and now has about $1.6-billion in assets. “It might have been one of the most successful launches in Canadian history,” Mr. Kletz says.

Sours: https://www.theglobeandmail.com/investing/markets/etfs/article-six-canadian-bond-etfs-for-investors-to-hold-amid-market-volatility/

Diversify with fixed income etfs

Disclosure

RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. and iShares ETFs managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in exchange-traded funds (ETFs). Please read the relevant prospectus before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

The information and opinions herein are provided for informational purposes only and should not be relied upon as the basis for your investment decisions.

XBB, XCB, XFR, XGB, XHB, XLB, XQB, XRB, XSB, XSH and XSQ (collectively, the “iShares ETFs”) are not in any way sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group). The LSE Group does not accept any liability whatsoever to any person arising out of the use of the iShares Funds or the underlying data.

“FTSE®” and “FTSE Russell®” are trademarks of the relevant LSE Group company and are used by any other LSE Group company under license.

CBH, CBO, CLF, CLG and CVD (collectively, the “iShares ETFs”) are not in any way sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group). The LSE Group does not accept any liability whatsoever to any person arising out of the use of the iShares Funds or the underlying data.

“FTSE®” and “FTSE Russell®” are trademarks of the relevant LSE Group company and are used by any other LSE Group company under license.

Markit®” and “iBoxx®” are registered trademarks of Markit Group Limited and Markit Indices Limited (formerly named International Index Company Limited), respectively. XHY and XIG are permitted to use the applicable marks pursuant to a license agreement between Markit Indices Limited and BlackRock Institutional Trust Company, N.A., an affiliate of BlackRock Asset Management Canada Limited, which has sublicensed the use of those trademarks to BlackRock Asset Management Canada Limited. XHY and XIG are not sponsored, sold or promoted by Markit Indices Limited and it makes no representation, condition, warranty or recommendation regarding the advisability of investing in XHY and XIG.

The links in the footer under the heading “Investor Information” below relate to RBC Global Asset Management Inc. For information about BlackRock Asset Management Canada Limited and its affiliates, please visit www.blackrock.com/ca.

What can fixed income ETFs do for you?

Sours: https://www.rbcgam.com/en/ca/products/etfs/etf-investment-strategies/diversify-with-fixed-income-etfs

Etf canada bond

1 The ETF is subadvised by Invesco Advisors, Inc.  The portfolio management team comprised of Matthew Brill CFA; Todd Schomberg, CFA; Michael Hyman MBA; Avi Hooper CFA is part of Invesco Fixed Income.

2 IFI is a unit comprising Invesco Senior Secured Management, Inc. of New York, U.S.; Invesco Advisers, Inc. of Atlanta, U.S.; Invesco Asset Management Ltd. of London, U.K and Invesco Canada Ltd. of Toronto, Canada.

3 Invesco ESG Canadian Core Plus Bond ETF Fund (formerly Invesco Tactical Bond Fund) (the “Fund”) invests in Invesco ESG Canadian Core Plus Bond ETF (formerly Invesco Tactical Bond ETF) (“BESG”). The Fund and BESG changed their investment objectives and strategies on October 30, 2020. 

4 Series F is available only to eligible investors who have fee-based accounts with their Dealer and whose Dealer has signed an Invesco Series F Dealer agreement with Invesco Canada. Sales charges and trailing commissions are not payable for Series F units/shares; however investors may pay other fees to their Dealer for investment advice and other services. Other series’ performance and star ratings will differ due to fees and expenses.

There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units.

Most Invesco ETFs seek to replicate, before fees and expenses, the performance of the applicable Index, and are not actively managed. This means that the Sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the Index regardless of whether the financial condition of one or more issuers of securities in the Index deteriorates. In contrast, if an Invesco ETF is actively managed, then the Sub-advisor has discretion to adjust that Invesco ETF’s holdings in accordance with the ETF’s investment objectives and strategies.

Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. The views and opinions expressed are those of the authors at the time of publication, are based on current market conditions and are subject to change without notice.  These opinions may differ from those of other Invesco investment professionals.  There is no guarantee that these views will come to pass.

Commissions, management fees and expenses may all be associated with investments in mutual funds and exchange-traded funds (ETFs). Trailing commissions may be associated with investments in mutual funds. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at www.invesco.ca.

INVESTORS PLEASE NOTE: The information on this site does not constitute a recommendation or any investment strategy or product for a particular investor.  Investors should consult their financial advisor before making any investment decisions. 

Sours: https://www.invesco.com/can/en/capabilities/why-esg/invesco-esg-canadian-core-plus-bond-etf.html
3 Rules for Investing in Bond ETFs

iShares Core Canadian Universe Bond Index ETF

Review the MSCI methodology behind the Sustainability Characteristics and Business Involvement metrics: 1ESG Ratings; 2Index Carbon Footprint Metrics; 3Business Involvement Screening Research; 4ESG Screened Index Methodology; 5ESG Controversies

For funds with an investment objective that include the integration of ESG criteria, there may be corporate actions or other situations that may cause the fund or index to passively hold securities that may not comply with ESG criteria. Please refer to the fund’s prospectus for more information. The screening applied by the fund's index provider may include revenue thresholds set by the index provider. The information displayed on this website may not include all of the screens that apply to the relevant index or the relevant fund. These screens are described in more detail in the fund’s prospectus, other fund documents, and the relevant index methodology document.

Certain information contained herein (the “Information”) has been provided by MSCI ESG Research LLC, a RIA under the Investment Advisers Act of 1940, and may include data from its affiliates (including MSCI Inc. and its subsidiaries (“MSCI”)), or third party suppliers (each an “Information Provider”), and it may not be reproduced or redisseminated in whole or in part without prior written permission. The Information has not been submitted to, nor received approval from, the US SEC or any other regulatory body. The Information may not be used to create any derivative works, or in connection with, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. Neither MSCI ESG Research nor any Information Party makes any representations or express or implied warranties (which are expressly disclaimed), nor shall they incur liability for any errors or omissions in the Information, or for any damages related thereto. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.

Index history does not represent trades that have actually been executed and therefore may under or over compensate for the impact, if any, of certain market factors, such as illiquidity. No representation is being made that an actual investment in accordance with the above will or is likely to achieve profits or losses similar to the index history. Indexes are unmanaged and do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in an investable product. An index’s performance is not illustrative of an investable product’s performance. Indexes are not securities in which direct investments can be made.

Important information about the iShares® Funds

iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in exchange-traded funds (ETFs). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

Index returns are denominated in Canadian Dollars for all funds, except XIG and XHY. For XIG and XHY, index returns shown are denominated in U.S. Dollars. Fund returns are denominated in Canadian Dollars for all iShares ETFs. For iShares ETFs offering U.S. Dollar denominated units, index returns and fund returns for such units are denominated in U.S. Dollars.

Although BlackRock Asset Management Canada Limited (together with its affiliates, “BlackRock”) shall obtain data from sources that BlackRock considers reliable, all data contained herein is provided “as is” and BlackRock makes no representation or warranty of any kind, either express or implied, with respect to such data, the timeliness thereof, the results to be obtained by the use thereof or any other matter. BlackRock expressly disclaims any and all implied warranties, including without limitation, warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose.

Index-related risks

In order to meet its investment objective, each iShares® fund will seek to achieve a return which reflects the return of its benchmark index as published by the relevant index provider. While index providers do provide descriptions of what each benchmark index is designed to achieve, index providers do not generally provide any warranty or accept any liability in relation to the quality, accuracy or completeness of data in respect of their benchmark indices, nor any guarantee that the published indices will be in line with their described benchmark index methodologies. Errors in respect of the quality, accuracy and completeness of the data may occur from time to time.

In addition, apart from scheduled rebalances, index providers may carry out additional ad hoc rebalances to their benchmark indices in order to, for example, correct an error in the selection of index constituents. Where the benchmark index of a fund is rebalanced and the fund in turn rebalances its portfolio to bring it in line with its benchmark index, any transaction costs arising from such portfolio rebalancing will be borne by the fund and, by extension, its unitholders.

Therefore, errors and additional ad hoc rebalances carried out by an index provider to a fund’s benchmark index may increase the costs of the fund.

There is no assurance that a fund’s benchmark index will continue to be calculated and published on the basis described in the fund’s prospectus or that it will not be amended significantly. The past performance of each benchmark index is not a guide to future performance.

MSCI is a trademark of MSCI, Inc. (“MSCI”). The ETF is permitted to use the MSCI mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the Index. BlackRock Institutional Trust Company, N.A. has sublicensed the use of this trademark to BlackRock. The ETF is not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in the ETF.

The iShares Fund is not in any way sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group). The LSE Group does not accept any liability whatsoever to any person arising out of the use of the iShares Fund or the underlying data. “FTSE®” and “FTSE Russell®” are trademarks of the relevant LSE Group company and are used by any other LSE Group company under license.

Prior to November 15, 2005, the investment objective of each of XIC, XSB (formerly, XGV), XSP and XIN was to replicate, to the extent possible, the performance of, respectively: S&P®/TSX® 60 Capped Index; the return of a bond issued by the Government of Canada with a five-year term to maturity; S&P 500 Index; and MSCI EAFE Index. Prior to December 2004, the investment objective of XBB (formerly XGX) was to replicate the return of a bond issued by the Government of Canada with a ten-year term to maturity. Prior to December 15, 2006, the investment objective of XGD was to replicate the return of the S&P/TSX Capped Gold Index. Consequently, performance prior to November 15, 2005 for XIC, XSB, XSP and XIN, prior to December 16, 2004 for XBB and prior to December 15, 2006 for XGD may have been materially different than it would have been under the current respective investment objectives. Inception date is the date of the first subscription for units of the fund and the first calculation of net asset value per unit.

iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission.

EIIiH0221C/S-1534211

Sours: https://www.blackrock.com/ca/investors/en/products/239493/ishares-canadian-universe-bond-index-etf

Similar news:

Highest{{ bestWorstdisplayDate(bestWorstBest['1Yr'].end) }}{{ displayNumber(bestWorstBest['1Yr'].value) }}{{ bestWorstdisplayDate(bestWorstBest['3Yr'].end) }}{{ displayNumber(bestWorstBest['3Yr'].value) }}{{ bestWorstdisplayDate(bestWorstBest['5Yr'].end) }}{{ displayNumber(bestWorstBest['5Yr'].value) }}Lowest{{ bestWorstdisplayDate(bestWorstWorst['1Yr'].end) }}{{ displayNumber(bestWorstWorst['1Yr'].value) }}{{ bestWorstdisplayDate(bestWorstWorst['3Yr'].end) }}{{ displayNumber(bestWorstWorst['3Yr'].value) }}{{ bestWorstdisplayDate(bestWorstWorst['5Yr'].end) }}{{ displayNumber(bestWorstWorst['5Yr'].value) }}Average-{{ displayNumber(bestWorstcalculateAnnualized(bestWorstaverage(bestWorstAvg['1Yr']),1)) }}-{{ displayNumber(bestWorstcalculateAnnualized(bestWorstaverage(bestWorstAvg['3Yr']),3)) }}-{{ displayNumber(bestWorstcalculateAnnualized(bestWorstaverage(bestWorstAvg['5Yr']),5)) }}No. of periods-{{ bestWorstAvg['1Yr'].length }}-{{ bestWorstAvg['3Yr'].length }}-{{ bestWorstAvg['5Yr'].length }}% positive-{{ displayNumber(bestWorstpercentOfPositive(bestWorstAvg['1Yr'])) }}-{{ displayNumber(bestWorstpercentOfPositive(bestWorstAvg['3Yr'])) }}-{{ displayNumber(bestWorstpercentOfPositive(bestWorstAvg['5Yr'])) }}
Sours: https://www.rbcgam.com/en/ca/products/etfs/RLB/detail


1405 1406 1407 1408 1409