XBB vs XSB Annual Returns

XBB vs. XSB

Written by Vicky at Vix Money. I personally hold both XBB and XSB (I told you my portfolio is messy!), and I am curious to see how they stack up against each other. XSB, iShares DEX Short Term Bond Index Fund, seeks to replicate the performance of the DEX Short Term Bond Index. It was introduced on November 20, 2000, and holds bonds that are issued domestically in Canada by all levels of government (federal, provincial and municipal) as well as corporate bonds. The main difference between XSB and ...

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Why Should I Invest in Bonds? Part-1

These days, bonds are getting a bad name. Stock markets are off to a tremendous start in 2012, dividend stocks are outperforming, and not surprisingly investors are losing their confidence in government issued bonds. There are three main reasons why investors are spooked with bonds. First and foremost, are the sovereign debt woes in Europe and the antics of the U.S. government to raise the debt ceiling, which sent ripples around world markets last August. Second is the global and record low interest ...

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The Safety of Short Term Bonds – Part 2

In a previous post, The Safety of Short Term Bonds, I pointed out  the merits of holding short-term government bonds in a balanced portfolio. The underlying reason for doing so, is short-term bonds are an ideal hedge against stock market volatility. Short term bonds generally move in the opposite direction of the stock market – in other words they are inversely correlated. As investors, we saw this effect over the last three weeks as markets declined, and bond funds and bond ETFs gained value. ...

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The Safety of Short Term Bonds – Part 1

Bond funds have been out of favour these days, especially with the threat of rising interest rates. With dividend stocks paying juicy yields, and returning phenomenal capital appreciation, investors have been reluctant to purchase fixed income securities. Investors forget that when times are good, that all of that can change on a dime! This week the TSX and S&P 500 are already showing signs of a correction, with some dividend stocks off 10% from their highs. This should be a reminder to investors ...

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