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Hi guys,
Just wondering what your thoughts on an alternatives to XBB (MER 0.33). Haven't really touched my portfolio in a while, and figured it may be a good idea in the long run to switch to a lower MER bond etf. Did some quick calculations and the savings over 20 years could be considerable.

Currently held in a couch potato (wife and myself).

I was looking at either XQB (MER 0.12) or VAB. Any thoughts/reasons on why to choose one over the other?
I'm leaning towards VAB as it seems more similar to XBB. The average duration of VAB is the longest followed by XBB and then XQB. Does this matter if I'm a long term investor (plan to retire in 20-25yrs)?
 

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Registered
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17 Posts
Hi guys,
Just wondering what your thoughts on an alternatives to XBB (MER 0.33). Haven't really touched my portfolio in a while, and figured it may be a good idea in the long run to switch to a lower MER bond etf. Did some quick calculations and the savings over 20 years could be considerable.

Currently held in a couch potato (wife and myself).

I was looking at either XQB (MER 0.12) or VAB. Any thoughts/reasons on why to choose one over the other?
I'm leaning towards VAB as it seems more similar to XBB. The average duration of VAB is the longest followed by XBB and then XQB. Does this matter if I'm a long term investor (plan to retire in 20-25yrs)?
Hi feebz. I hold and recommend VSB. It has an MER of just 0.15%. This is a short term bond index and would reduce volatility in a retirement fund since long-term bonds are more highly correlated with equities. I would start with a 10% bond ETF allocation and increase as you get closer to retirement. Cheers!

Slinger
 
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