iShares Core Canadian Short Term Bond Index ETF
XSB.TO (TSX)
Ideal for investors seeking low-cost exposure to Canadian investment-grade bonds, the iShares Core Canadian Short Term Bond Index ETF (XSB) offers monthly distributions and has a strong historical performance. With a dividend yield of 3.15%, it has delivered a 1.27% return over the past year, although its five-year performance reflects a decline of 4.25%. This ETF focuses on bonds with maturities of 1-5 years, making it a strategic option for those looking to balance risk and yield.
Pros:
- Low-cost exposure to Canadian investment-grade bonds
- Monthly distributions
Cons:
- Negative 5-year return
- Limited growth potential in a low-interest-rate environment
The iShares Core Canadian Short Term Bond Index ETF (XSB.TO) is suitable for conservative investors seeking low-cost exposure to Canadian investment-grade bonds with a focus on capital preservation and steady income through monthly distributions. While it offers a current dividend yield of 3.15%, potential investors should be mindful of its recent performance trajectory, particularly the negative return over the last five years, which may influence long-term investment strategies.