ISHARES DEX UNIVERSE BOND INDEX FUND $31.03 (Toronto symbol XBB; buy or sell through brokers) mirrors the performance of the DEX Universe Bond Index. The 833 bonds in the portfolio have an average term-to-maturity of 10.03 years. The fund’s MER is 0.33%.
The bonds in the index are 68.2% government and 31.8% corporate.
The fund yields 3.0%, compared to the Short-Term Bond Fund’s 2.5%. Its yield-to-maturity is 2.37%, 0.80% above the Short-Term Fund. That reflects the added risk of holding long-term bonds.
iShares DEX Universe Bond Fund is a buy for safety-conscious investors who can accept that risk.