# ETF BOND allocation for a retirement portfolio



## leoc2 (Dec 28, 2010)

How would you allocate your bond portfolio? I am thinking of the following.
50% in real return bonds (XRB).
25% in short term government bonds (VSB).
25% in short term corporate bonds (CBO).

Comments???


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## andrewf (Mar 1, 2010)

I think that real return bond allocation is too high. And because RRBs have high duration, RRB bond funds are going to be massacred if/when yields rise.

Also, consider replacing the government bond allocation with GICs. They are backed by the government so are equivalent in credit and generally yield more.


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## Eder (Feb 16, 2011)

I recently dumped my bond ETF ( It was all XBB). I was concerned that a bond ETF really doesn't reflect fixed income. The ETF had been quite volatile in the last few years (compared to GIC and 5 year bonds).


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