Vanguard Canadian Aggregate Bond Index ETF
VAB.TO (TSX)
The Vanguard Canadian Aggregate Bond Index ETF (VAB) offers a cost-effective way to gain exposure to a broad range of Canadian investment-grade bonds, with a low management expense ratio of 0.09%. Although it has faced a -0.69% return over the past year and a -14.57% return over five years, it remains an attractive option for those seeking reliable monthly income, currently delivering a dividend yield of 3.33%. VAB's strong credit quality is reflected in its holdings, with 44.2% rated AAA and 35.4% rated AA, providing a solid foundation for investors concerned about market risks.
Pros:
- Cost-effective exposure to aggregate market
- Tracks broad Canadian investment-grade bonds
Cons:
- Negative 1-year and 5-year returns
- Market risk due to economic trends
The Vanguard Canadian Aggregate Bond Index ETF (VAB.TO) may be suitable for conservative investors looking for regular income through a diversified portfolio of high-quality Canadian bonds, particularly those who prioritize stability over aggressive capital appreciation. However, potential investors should be cautious of its recent performance trends and consider their risk tolerance and investment horizon before committing.