Earning a Silver Morningstar rating, the iShares Core Canadian Universe Bond ETF (XBB) tracks the FTSE Canada Universe Bond Index, focusing on a wide array of investment-grade bonds. Currently, it offers a dividend yield of 3.38%, although it has experienced a 1-year return of -0.81% and a more significant decline of -14.56% over the past five years. With low volatility, XBB may appeal to investors seeking stability in their bond investments despite its recent performance challenges.
Pros:
- Silver-rated by Morningstar
- Comprehensive investment-grade bonds exposure
Cons:
- Negative 1-year and 5-year returns
- Market volatility risk
The iShares Core Canadian Universe Bond ETF (XBB) may be suitable for conservative investors seeking a diversified exposure to investment-grade bonds with a focus on stability rather than high returns, particularly in a low-volatility environment. However, potential investors should consider its recent underperformance and weigh this against their individual risk tolerance and investment objectives.