This question was asked on the USA members site in regards to USA Bonds and Bond ETFs. However I felt it would be of interest to Canada members as there is a lot to like about Canadian Bonds as well as Canadian Bond ETFs. I have adjusted the article somewhat to reflect on Canadian specific material.
30% of my entire portfolio is always in and out of Bonds. Bonds can provide good returns if they are traded although many analysts believe the many years of good returns from bonds is coming to an end thanks to 6 years of interest rates at pretty well zero. I am not so sure about that. Perhaps for those who buy bonds and then simply hold them far into the future, returns may be smaller but for those who trade in bonds I believe there are still good profits but investors have to also be realistic about the amount of returns they can earn.
The Canadian Edition of this question is 2500 words in length as I look at other aspects of creating Canadian laddered bond portfolios and then delved into how I trade the XBB ETF. This article is an expansion then of the US Members article but designed for Canadian investors.
Bond ETFs Versus Buying Bonds Directly – Canadian Edition
FullyInformed Canada Members can directly access this bond investing article here or they can sign in to the Canada members site here. Non-members can join FullyInformed Canada here or read the benefits of being a member.