Here’s two bond ETFs if you need them

Article Excerpt

The Bank of Canada increased its benchmark interest rate in January 2018 from 1.00% to 1.25%. That’s because the Canadian economy is growing and unemployment is low. Inflation has also moved up, to 2.1% in November 2017. We continue to caution against investing in bonds. Today’s still-low interest rates make them unattractive, and rising interest rates will push down their future value. However, if you need stable income and want to hold bonds, these funds offer lower fees and high-quality holdings. ISHARES CORE CANADIAN SHORT-TERM BOND INDEX ETF $27.28 (Toronto symbol XSB; buy or sell through brokers) mirrors the FTSE TMX Canada Short- Term Bond Index. That index consists of investment-grade government and corporate bonds with one- to five-year terms. It holds 496 bonds with an average term to maturity of 2.88 years. The bonds are 68.1% government and 31.9% corporate. In May 2017, the fund dropped its MER to 0.09% from 0.28%. The iShares Canadian Short-Term Bond Index Fund yields 2.4%;…

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