[FinancialJungle]

Hi, I'm looking to park some money over the next 6 to 18 months.

The investment doesn't have to be ultra safe, but -5% is roughly my maximum acceptable regret. The most suitable investment I can find is iShares CDN Short Bond Index Fund (XSB.) Do you have other recommendations? Unfortunately this sits outside of registered accounts. Thanks.

 

[CanadianCapitalist]

Hi, I'm looking to park some money over the next 6 to 18 months.

The investment doesn't have to be ultra safe, but -5% is roughly my maximum acceptable regret. The most suitable investment I can find is iShares CDN Short Bond Index Fund (XSB.) Do you have other recommendations? Unfortunately this sits outside of registered accounts. Thanks.

I'm sure you've thought of this but why not a cashable GIC? Ally.ca offers a 1-year cashable GIC at 1.75%. Depending on how much of your yield trading commissions chew up, you might do better than XSB with a cashable GIC.

 

[FinancialJungle]

Thanks, CC.

 

[ssimps]

Hi, I'm looking to park some money over the next 6 to 18 months.

The investment doesn't have to be ultra safe, but -5% is roughly my maximum acceptable regret. The most suitable investment I can find is iShares CDN Short Bond Index Fund (XSB.) Do you have other recommendations? Unfortunately this sits outside of registered accounts. Thanks.

Also have a look at CLF and CBO, both have lower MERs than XSB I think, and the NAV to markey price % difference seems to often be less than ishare funds in my experience.

If it is non-registered, maybe take a look at CAB, higher MER (.3+.4=.7), but the tax benefits may be worth it. That's what the company claims at least.

BTW, I do not work for either company and these could be totally wrong suggestions.

 

[HaroldCrump]

If it is non-registered, maybe take a look at CAB, higher MER (.3+.4=.7), but the tax benefits may be worth it. That's what the company claims at least.

Maybe off-topic, but can you explain what the risks are of holding forward contracts in the CAB vs holding a straight ETF that owns the bonds themselves like XBB or TD eSeries DEX Bond Index.
I understand the "benefit" of capital gains vs income for tax purposes, but there must be risks of forward contracts, no?

 

[Smac20]

I like nce717 because it has a zero % front end. It's great for short term holdings.

 

[ssimps]

Maybe off-topic, but can you explain what the risks are of holding forward contracts in the CAB vs holding a straight ETF that owns the bonds themselves like XBB or TD eSeries DEX Bond Index.
I understand the "benefit" of capital gains vs income for tax purposes, but there must be risks of forward contracts, no?

I'm not able to answer that; I think recall another thread on this forum about CAB where there was some discussion of those risks.

Edit: found it: http://canadianmoneyforum.com/showthread.php?t=1351&highlight=claymore

 

[ssimps]

I like nce717 because it has a zero % front end. It's great for short term holdings.

Looks good for a mutual fund. Has 2.65 MER though, so with a 7% yield your really looking at about 4.35% (using my simple minded math). Seems about 50% of yield in 08 was straight income.

Also, it seems to have dropped by 25% or so in 2008, so may be more risky than the poster wants. Has done well this year though, but what hasn't?

Still interesting fund that I will keep an eye on.