We now have a new option for our bond investments. It is called the iUnits Canadian Bond Broad Market Index fund (TSX: XBB) and will track the performace of the Scotia Capital Universe Bond Index. The MER is only 0.30%, interest income will be distributed quarterly and the index currently yields about 4.04%.
I am going to seriously consider the new iBond index fund for the bond portion of our portfolio. Currently, the bond portion of our portfolio is in cash because I am expecting bond yields to rise (and prices to fall). I’ve been wrong so far this year as the SC Universe Index has increased 7.38%. It is a good illustration that market timing rarely works.

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  1. More accurately, it is a good illustration that you were wrong as opposed to one that disproves timing strategies. Timing strategies always work when you are right. The difficulty is not in timing, it is being right.