Typical knowledge would have you ever consider that an funding portfolio is 60% equities and 40% bonds—at the least as a place to begin. Nicely, that pondering is altering.
For starters: Bonds was thought of stable and protected. And whereas skilled portfolio managers nonetheless see them as a technique to offset downturns within the fairness markets, bond returns haven’t been nice, to place it mildly, since early 2020, and even plummeted into damaging territory early in 2021.
One other actuality is that buyers who wish to embody mounted earnings alongside their development investments now produce other choices.
On this video, MoneySense’s Editor-in-Chief, Sandra Martin, discusses how bond ETFs can supply professionally curated publicity to a spread of bonds, and how you can choose which bond ETFs suit your wants.
Watch: MoneySense – BMO ETFs – Sandra Martin – Incomes Earnings with ETFs