Advertisement
A bond ladder is when you have a small number of bonds with successive maturity dates.
Q: Several recent issues of MoneySense refer to bond ladders. Does the TD Canadian Bond Index e-Series use this laddering strategy?
—Rick Shantz, Cambridge, Ont.
A: No. The TD e-Series fund you mentioned does not use a bond laddering strategy. Instead it replicates the performance of the DEX Universe Bond Index, says Scott Sullivan of TD Asset Management. A bond ladder is when you have a small number of bonds with successive maturity dates, usually ranging from one to five years. When one bond matures the proceeds are used to purchase a new five-year bond, mitigating interest rate risk. While the TD fund doesn’t work this way there are a number of ETFs on the market that do. For example, iShares has four different laddered bond products and Invesco’s PowerShares has one too.
Bruce Sellery is a frequent guest on financial television shows and author of Moolala. Do you have your own personal question? Write to Bruce at [email protected]
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
If you’re looking for a financial advisor or planner, learning about their credentials can help you choose the right...
Nvidia doubles revenue in one year, Canadian inflation moves in the wrong direction, Target misses badly, Walmart beats earnings...
Here’s how to get your free ticket to attend the MoneyShow virtual expo.
Nvidia beats earnings expectations as investors eye demand for Blackwell AI chips.
Nvidia is Wall Street’s most valuable company. How it got there, by the numbers.
The world’s biggest cryptocurrency topped USD$98,000 on Nov. 21. As it inches ever closer to six figures, investors wonder:...
Practical advice on how to build your retirement savings for employees at mid-career, the self-employed, single parents and more.
Canada’s inflation rate rose to 2% last month, up from 1.6% in September, but a December interest-rate cut is...
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.