This is the first RBC Target Maturity Corporate Bond
ETF to mature, and while this type of fund is still relatively new to Canadian investors, it has demonstrated the potential to deliver attractive income to meet investor needs over a defined period of time," said Mark Neill, head of RBC ETFs.
There is no doubt that the corporate bond
market will only grow in size and in importance to individual investors.
The iShares $ Short Duration Corporate Bond
UCITS ETF enables investors to participate in the performance of highly liquid, investment grade corporate bonds
denominated in US dollars.
It is currently anticipated that, during the three months following the closing of the Reorganization, redemptions of the Corporate Bond
Fund shares issued to shareholders of the Fund in the Reorganization will be subject to a redemption fee of two percent (2%).
Many PEP investors, nervous that the stock market is looking dangerously high, are putting their money into corporate bond
PEPs in the hope of getting a higher tax-free income for much less risk than with a unit trust PEP invested in shares.
The proceeds from RQB may be invested into a subsequent maturity of an RBC Target Maturity Corporate Bond
ETF or utilized in a ladder strategy to help manage interest rate and reinvestment risk.
Claymore BulletShares Corporate Bond
ETFs offer investors benefits relative to investing in individual corporate bonds
and most other fixed income investment products including immediate diversification, exchange-traded liquidity, professional management, and access to corporate bonds
that may otherwise be unavailable.
Municipal and corporate bonds
showed smaller but solid gains.
The sterling-denominated corporate bond
market has grown from pounds 14bn in 1990 to more than pounds 250bn today.
526bn of corporate bonds
under the scheme, while it has bought just GBP437.
Shepler says that CBF was instrumental last year in passing the temporary fix on the 30-year Treasury bond issue, since "the composite corporate bond
rate we advocated was eventually passed by Congress and signed by the President.
Returns on corporate bond
investments (UK and overseas) have turned negative and fallen sharply, relative to Government bonds, resulting in a risk of locking in lower returns relative to Government bonds.