RBC Gets Back to Basics With New ETFs
When RBC entered the ETF marketplace back in 2011, it tested the waters with a family of specialized bond ETFs. Since then they’ve created a number of equity ETFs, all with active strategies. However, [...]
Bond Basics 1: Why Bond Prices Fall When Rates Rise
Bonds have a reputation for being conservative, even boring. But no one ever accused them of being easy to understand. I get a steady stream of emails and blog comments about bonds, and they reveal th [...]
The Real Problem With Inflation-Protected Bonds
When I announced my stripped-down model portfolios at the beginning of last year, one of the asset classes I dropped was real-return bonds (RRBs). Part of the reason was simplicity: it’s easier to man [...]
The Curious Case of the BMO Discount Bond ETF
When the BMO Discount Bond Index ETF (ZDB) was launched back in February 2014, it was unique: the first broad-market ETF in Canada made up primarily of bonds trading below their par value. By avoiding [...]
The Trouble With Bashing Bond Indexes
In my last post, I looked at a tired criticism of traditional equity index funds. Similar arguments have been made against fixed-income index funds, most recently in a blog post called The Trouble Wit [...]
How Changing Interest Rates Affect Fixed Income
It’s been a tough few months for bonds. Since early February, the yield on Government of Canada five-year bonds has climbed from 0.59% to about 1.07%, and 10-year bonds yielding 1.24% have ticked up t [...]
Should You Replace Bonds With Cash?
Not many investors are enthusiastic about bonds these days, and it’s hard to blame them. While rates have ticked up in the last few weeks, they’re still so low that even some sophisticated investors h [...]
Ask the Spud: GICs vs. Bond Funds
Q: I would appreciate it if you could write an article contrasting the advantages and disadvantages of holding bond funds versus GICs. – A.R. All of my model Couch Potato portfolios include bond funds [...]
When Discount Bonds Are Hard to Find
Everyone loves a discount, but if you’re buying bonds these days you may be out of luck. Just over a year ago, the BMO Discount Bond (ZDB) was launched as a tax-efficient alternative to traditional bo [...]
Which Bond ETF Is Most Tax-Efficient?
Back in September, my colleague Justin Bender and I published a white paper entitled After-Tax Returns: How to estimate the impact of taxes on ETF performance. Justin has now updated his Excel calcula [...]
