How Bond ETFs Can Help During Big Market Selloffs

stock market bondsA well-known maxim in the world of investing is that to get a good read on the outlook for equities, you need look no further than the bond market.

Gauging from all the latest hoopla in the world of bonds, greater caution looks to be in order. Stocks are no longer cheap, normalization in the U.S. is on the horizon, and the deflationary risks stemming from an earlier oil price crash appear to have subsided.

Some believe we have never before been more sensitive to higher interest rates, which is undeniably true, both due to the math associated with bonds and the egregious debt levels the world over. That said, given the recent bond selloff, you’d swear we’d already witnessed a cycle of rate hikes and were headed straight into a bruising recession.  Read More…

This article has 9 Comments

  1. John W.

    Never fully grasped why there was a connection to the bond market and investing. Interesting read. Thanks!

  2. Dequan Rokenbrod

    Because it is an ETF what kind of expense is associated with it? Or is it 0%?

  3. Nasir S.

    A relatively safe way to start getting your feet wet in the market is through bond investing. That is how i started.

  4. Jarret Putney

    Curious. This may sound dumb but what are the tax implications of selling bonds? And what if done inside a TFSA vs a RRSP? TIA

  5. Marty

    The yields on bond ETFs havent been all that impressive as of late. It's nice to see they are back in the news as of late but i havent considered them in a few years.

  6. Dario D.

    It's been 10 years now and im still a proud owner of the iShares High Yield Income Index.

  7. Avery S.

    Safest form of holdings one can get. When diversifying one should always include a collection of these.

  8. Clinton

    Can Bond ETFs contain US government paper too or just Canadian?

  9. Kordell C

    I'm looking at the ETF bonds in the chart and i see most average at least 4% yield.

    Anyone remember when most savings accounts offered that? 🙂

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