Q: Dear Pat: Can you please explain how real return bonds work? Also, are they worth investing in, especially the iShares Canadian Real Return Bond Index ETF and the iShares Floating Rate Index ETF? Thanks.

A: Real-return bonds pay you a rate of return that’s adjusted for inflation.

Here’s how they work:

When a real-return bond is issued, the level of the consumer price index (CPI) on that date is applied to the bond. After that, both the principal and interest payments… Read More

How to choose the best investments for children

How to choose the best investments for children

Traditionally, there have been several options for parents and grandparents looking to make investments for children. But here’s how to choose the best investments for children in 2019.
Taking the time to pick the right investments for children and grandchildren is a worthwhile endeavour. If the child is under… Read More

Selecting the best Canadian funds for your portfolio

Selecting the best Canadian funds for your portfolio

The best Canadian funds are ETFs or specialized mutual funds that aim to equal the performance of a Canadian market index
Canadian funds, specifically, index funds, are among the better financial innovations to come along in the past few decades.

The best Canadian funds do show better long-run… Read More

The Best Conservative ETFs Will Follow These Investment Rules

The Best Conservative ETFs Will Follow These Investment Rules

Exchange traded funds can offer lower-risk, steady returns, and low management fees. But you need to choose wisely, and focus on the best conservative ETFs
We still feel that investors will profit the most with a well-balanced portfolio of high-quality individual stocks, but ETFs can also… Read More

How to Buy International Stocks to enhance and diversify your portfolio

How to Buy International Stocks to enhance and diversify your portfolio

For Canadian investors wondering how to buy international stocks, ADRs and international ETFs may be a safer option than picking individual overseas stocks
We believe most investors could benefit from holding some foreign and international investments in their portfolios for added diversification. And growing markets like… Read More

Corporate-Class Mutual Funds: What to Know Before Investing

Corporate-Class Mutual Funds: What to Know Before Investing

Corporate-class mutual funds let you switch between funds without having to pay capital gains taxes right away. But there are reasons why regular mutual funds, as well as ETFs, make better investments
Corporate class, or “tax-advantaged,” mutual funds are classes of funds that let you switch… Read More