Topic: How To Invest

ISHARES CANADIAN UNIVERSE BOND INDEX ETF $31.87

ISHARES CANADIAN UNIVERSE BOND INDEX ETF $31.87 (Toronto symbol XBB; buy or sell through brokers) mirrors the performance of the Canadian Universe Bond Index. The 957 bonds in the portfolio have an average term to maturity of 10.26 years. The fund’s MER is 0.33%.

The bonds in the index are 72.0% government and 28.0% corporate.

The fund yields 2.8%, compared to the Short-Term Bond Fund’s 2.4%. Its yield to maturity is 1.96%, 0.75 percentage points above the Short-Term Fund. That reflects the added risk of long-term bonds.

iShares Canadian Universe Bond ETF is a buy for safety-conscious investors who can accept that risk.

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