# CBO vs. CLF vs. XSB - which one would you choose?



## Financial Cents (Jul 22, 2010)

With some of the advantages that come from keeping your bonds "short", my questions to the forum are:

1) If you had to choose one or a small blend of short-term bonds for your portfolio, which ETF (CBO, CLF, or XSB) would you choose and why?

Alternatively, 

2) Would you forget any of these ETFs and go with other products instead? If so, which ones and why?


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## larry81 (Nov 22, 2010)

Financial Cents said:


> With some of the advantages that come from keeping your bonds "short", my questions to the forum are:
> 
> 1) If you had to choose one or a small blend of short-term bonds for your portfolio, which ETF (CBO, CLF, or XSB) would you choose and why?
> 
> ...


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## dubmac (Jan 9, 2011)

I like Claymore (CBO) because I can DRIP it...PH&N you can probably re-invest as well, but I haven't heard anything about DRIP options with XSB. Also, check out NEXGEN Tax Managed Bond Fund - I use it - it's expensive, but earned 5 stars and producing good results...


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## andrewf (Mar 1, 2010)

Another short-term ETF with better yield is CSD from Claymore (high yield). It has duration of under a year.

Strongly consider GICs. The yield is pretty competitive with no downside risk.


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## Financial Cents (Jul 22, 2010)

larry81 said:


>


Thanks larry, good feedback. PH&N is a very well-run company.

@dubmac - I need to confirm that with TDW. I think I can DRIP it (CBO) with them, for sure synthetically in my RRSP.


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## Financial Cents (Jul 22, 2010)

andrewf said:


> Another short-term ETF with better yield is CSD from Claymore (high yield). It has duration of under a year.
> 
> Strongly consider GICs. The yield is pretty competitive with no downside risk.


Thanks andrew, will strongly consider. You're not a fan of the ETF bond ladders? Pretty low fees for CLF in particular and decent distribution, I recall about $0.07/unit monthly.


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## andrewf (Mar 1, 2010)

I like bond ETFs in principle, but in practice the yield isn't there. CLF, the government bond ETF, yields 1.8%. You can get a better rate in a daily savings account, much less GICs.


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## dubmac (Jan 9, 2011)

@andrewf...
I ladder GIC's. I've noticed that 5 yr rates are around 3.05-3.10 presently - down from 3.25-3.50 a few weeks ago. Any idea when these rates will go up in the next 4-6 weeks preferably? or it is a mugs game (unpredictable)? thx in adv.
@Howrd..is JKNW also SPDR Lehman High Yield Bond (ETF)?


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## I'm Howard (Oct 13, 2010)

I hold XCB but also have 15% in JNKM why bother with Government Debt, the yield is lower than corporates??

I do not Trade, these are stricly for Ca$h Flow, I don't care what the building is worth as long as the Rent gets paid.


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## andrewf (Mar 1, 2010)

dubmac, everyone's been waiting for rates to go up, and they keep falling. Even if BoC raises rates, there is no guarantee that 5 year rates will rise in lockstep.


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## Financial Cents (Jul 22, 2010)

This is the VERY annoying thing. I've heard since 2007 that "rates are going up, rates are going up"! 

The reality is, nobody knows.

I'm sure they will stay low for years to come. Seems the government is focused on spending and borrowing.


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