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Which Bond ETF Is The Preferred One To Invest $17,000 on Mon July 6/09

3377 Views 2 Replies 3 Participants Last post by  Sampson
My 5 year old Maple Trust GIC @ 4.55% matures for $17,000 on July 6/09.
I would like to reinvest proceeds in an ETF & note iShares & Claymore present a few choices & am looking for the highest return over next 5 years or so. I've recently retired in my late 60's.
Would I go far wrong in putting 50% in Claymore CBO 1-5 year laddered Corp ETF and 50% in Claymore CPB preferred shares ETF to boost returns? My asset allocation is currently 50% dividend stocks & income trusts and 50% bonds. Need quick suggestions for Monday ! Thank U.
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Can you handle the added risk? If so go for it. Corporates and preferreds (equity not bonds btw) are not boring old bonds, they come with substantial risk... though typically less than income trusts (aka smallcap resource equity with unsustainable business models).
My 5 year old Maple Trust GIC @ 4.55% matures for $17,000 on July 6/09.
The previous comment highlights the most important factor - risk.

You have to ask yourself why you are more comfortable with risk now than you were 5 years ago. Has something changed in your life that allows you to be able to eat a loss on your investments? If so then bonds, equities and other asset classes might be a better fit over GIC's.

I personally would not go for that 50:50 mix of the two holdings (but I'm not retired so its easy for me to say).
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