iShares Core Canadian Long Term Bond Index ETF (TSX: XLB)

Long-term bonds have greater profit potential when interest rates fall, but we haven’t seen the full effect of that yet. The fund gained 9.34% in 2023 but is up only 1.81% so far in 2024. That’s because the inverted yield curve we experienced pushed short-term rates higher than long-term ones. When rates began to drop, short-term bond funds benefitted more as a result. The balance is shifting, however, and I expect a better performance from this fund going forward. - Gordon Pape