Vanguard Canadian Aggregate Bond Index ETF
VAB.TO (TSX)
Vanguard Canadian Aggregate Bond Index ETF (VAB) offers a well-constructed portfolio of investment-grade Canadian bonds with an impressively low expense ratio of just 0.09%. With a dividend yield of 3.33%, this ETF provides reliable monthly income for investors, although it has returned only 1.23% over the past year and suffered a -14.66% decline over the last five years.
Pros:
- Tracks a broad Canadian bond index
- Low expense ratio of 0.09%
Cons:
- Negative 5-year return
- Potentially lower yields compared to other investments
The Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) may be suitable for conservative investors seeking income through exposure to a diversified portfolio of investment-grade Canadian bonds, particularly those who prioritize low fees and monthly dividend payments. However, potential investors should carefully consider the recent lackluster performance over both the short and long term before making an investment decision.