iShares Core Canadian Universe Bond Index ETF
XBB.TO (TSX)
The iShares Core Canadian Universe Bond Index ETF (XBB) is an attractive option for investors seeking a diversified fixed-income portfolio. With $9 billion in assets under management, it tracks the FTSE Canada Universe Bond Index, encompassing a wide array of high-quality government and corporate bonds, and offers a dividend yield of 3.39%. While the 1-year return stands at 1.11% and the 5-year return is -14.79%, the ETF's consistent monthly payouts make it a solid choice for income-oriented investors.
Pros:
- Broad exposure to investment-grade debt securities
- High assets under management
Cons:
- Negative 5-year return
- Sensitivity to interest rate changes
The iShares Core Canadian Universe Bond Index ETF (XBB.TO) may be suitable for income-focused investors seeking exposure to a diversified portfolio of high-quality bonds, despite its recent performance reflecting challenges in the fixed-income market. With a reasonable dividend yield of 3.39%, it can serve as a stable income source, although potential investors should consider the historical returns when evaluating its fit within their broader investment strategy.