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Discussion Starter #1
Hi All,

What do you think is the best short term bond ETF? So far I've been looking at iShares, BMO, and Claymore

For iShares, I am holding XSB.TO , corporate and government bonds, 0.25%

For Claymore:
CLF.TO - 1-5 year government bonds, 0.15%
CBO.TO - 1-5 year corporate bonds, 0.25%

For BMO:
ZFS.TO - short term federal 0.2%
ZPS.TO - short term provincial 0.25%
ZCS.TO - short term corporate 0.3%
 

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Today's investing style?

In our local paper I was reading the investment column and a phrase jumped out at me. Sometimes the complex ideas can be summarized in a "snapshot" phrase and this one is it for me. "You will not be able to make money with money for the next decade." Opinions?
 

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Too bad I didn't get enough replies.

I wonder if it's worth chasing the distribution for this. It may be safer to chase it than chasing other stocks. I only think of these types of ETFs when the market is down though
 

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Too bad I didn't get enough replies.

I wonder if it's worth chasing the distribution for this. It may be safer to chase it than chasing other stocks.
Yield chasing may or may not work out for you depending on what happens to the yield curve when short term rates start rising consistently.
Long term yields are not always higher than short term yields.
So you may find yourself switching in and out of bond ETFs.

Regarding your question, I took a quick look at the holdings of XSB.
It seems to hold a varied mix of high quality govt. and corporate bonds.
It's well diversified in each type i.e. within govt. it holds federal, provincial, munis and in corporates, it's got the safe chartered bank bonds as well as some mortgage and other higher yield A or lower bonds.

I don't see any reason to go chasing other ETFs if all you want is some short-term bond exposure in your portfolio.
 
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