Conventional wisdom would have you believe that an investment portfolio is 60% equities and 40% bonds—at least as a starting point. Well, that thinking is changing.
For starters: Bonds used to be considered solid and safe. And while professional portfolio managers still see them as a way to offset downturns in the equity markets, bond returns haven’t been great, to put it mildly, since early 2020, and even plummeted into negative territory early in 2021.
Another reality is that investors who want to include fixed income alongside their growth investments now have other options.
In this video, MoneySense’s Editor-in-Chief, Sandra Martin, discusses how bond ETFs can offer professionally curated exposure to a range of bonds, and how to select which bond ETFs fit your needs.Watch: MoneySense – BMO ETFs – Sandra Martin – Earning Income with ETFs