Hey Chris, I have some VSC and VSB. They’re down a little but nothing the monthly dividends haven’t compensated for. Will they recover and should I hold tight? Also, I have more money to throw at bonds to balance my portfolio. Do you have any thoughts on good options? I use Questrade and Wealthsimple. Cheers!
If you believe in the ETFs long term then yes, you should hold tight. I like to take a long term approach to investing for ETFs. Check out BMO ZAG for a good bond option.
I have a question about XRB as well. I do not totally understand yet how bonds work, or what maturity dates are. But with growing concerns about hyper inflation coming, and potentially interest rates rising as well, i'm trying to figure out how to protect my money against this. In the US I believe the bonds they use to protect against this are called TIPS (Treasury Insured Protected Securities), and in Canada they are called ILB's (Inflation Linked Bonds). My understanding about an ILB is that if you invested say $1000 with the interest rate being 2%, and inflation ends up being higher (4%), than your total amount invested automatically adjusts with the inflation rate. So now your holdings would actually be $1040 with the 2% being paid on that. Is that correct? Is that how XRB works, and would it be a potentially safe place to put my money if i'm worried about the inflation rate getting out of control? Thanks for any input you can provide.
It's not exactly how XRB works. It still fluctuates due to market conditions (see Year to date return, it's down over 5% this year) If you're looking for an inflation hedge with an ETF here are some potential strategies: www.theglobeandmail.com/investing/article-seven-etfs-to-help-tame-an-expected-rise-in-inflation/
Hey :) If you believe in (=fear) inflation, bonds are NOT suitable for you. Bond is like you're borrowing money to someone. While the money loses its values during inflatio, this SOMEONE still owes you the same amount of money :(
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can you ever get your principal back with a bond ETF, since maturity dates vary within the ETF?
You can buy and sell a bond ETF at any time really, and get your principal back. That's the beauty of an ETF. Though it may fluctuated in value depending on what you invested in.
@@WealthAwesome Hey, so it's a little over a year later , the markets are a little nuts anticipating rate increases , would you change any of your pics ?
![[DRIP] ‘CLIK CLAK’ PREVIEW](http://i.ytimg.com/vi/bcxkcOSbpac/mqdefault.jpg)
Hey Chris, I have some VSC and VSB. They’re down a little but nothing the monthly dividends haven’t compensated for. Will they recover and should I hold tight? Also, I have more money to throw at bonds to balance my portfolio. Do you have any thoughts on good options? I use Questrade and Wealthsimple. Cheers!
If you believe in the ETFs long term then yes, you should hold tight. I like to take a long term approach to investing for ETFs. Check out BMO ZAG for a good bond option.
Title is a bit misleading. you should consider changing it. thanks for the video though.
Yeah I realize it has some american bond etfs in there, if that's what you mean. I'll be more clear about it in my next update, thanks!
I have a question about XRB as well. I do not totally understand yet how bonds work, or what maturity dates are. But with growing concerns about hyper inflation coming, and potentially interest rates rising as well, i'm trying to figure out how to protect my money against this. In the US I believe the bonds they use to protect against this are called TIPS (Treasury Insured Protected Securities), and in Canada they are called ILB's (Inflation Linked Bonds). My understanding about an ILB is that if you invested say $1000 with the interest rate being 2%, and inflation ends up being higher (4%), than your total amount invested automatically adjusts with the inflation rate. So now your holdings would actually be $1040 with the 2% being paid on that. Is that correct? Is that how XRB works, and would it be a potentially safe place to put my money if i'm worried about the inflation rate getting out of control? Thanks for any input you can provide.
It's not exactly how XRB works. It still fluctuates due to market conditions (see Year to date return, it's down over 5% this year) If you're looking for an inflation hedge with an ETF here are some potential strategies: www.theglobeandmail.com/investing/article-seven-etfs-to-help-tame-an-expected-rise-in-inflation/
Hey :) If you believe in (=fear) inflation, bonds are NOT suitable for you. Bond is like you're borrowing money to someone. While the money loses its values during inflatio, this SOMEONE still owes you the same amount of money :(
can you ever get your principal back with a bond ETF, since maturity dates vary within the ETF?
You can buy and sell a bond ETF at any time really, and get your principal back. That's the beauty of an ETF. Though it may fluctuated in value depending on what you invested in.
Great vid, thank you!
Glad you liked it!
@@WealthAwesome Hey, so it's a little over a year later , the markets are a little nuts anticipating rate increases , would you change any of your pics ?
I guess there are no T bill etfs?
A lot of these are NOT Canadian ETFs! Hell, only a few of what you listed even are tradable on a Canadian exchange.
Please see this updated list: wealthawesome.com/best-bond-etf-canada/
These are not all Canadian ETFs...
Sorry I realized that was confusing, in my follow up video to this I will only include CAD traded ones.
I like how all those ETF lost 10% within a year.
Uh yeah, they are all bond ETFs ..