Canada Bond

Canada bond mutual funds and ETFs invest the majority of their assets... Canada bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Canada. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Canadian Dollar. Depending on their mandate, a Canada bond mutual fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Nonfinancial corporations are the largest issuers of debt in Canada, at 113% of GDP as of 2022. Governments are also major issuers, at 104% of GDP as of 2024. Investors purchase Canada bond mutual funds and ETFs to get both capital growth and income. These funds can vary significantly in terms of risk. A fund that exclusively invests in short-term Canadian federal government debt is likely to be more conservative than a fund that only invests in long-term provincial government bonds, for example. Last Updated: 11/27/2024 View more View less

Canada bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Canada. These funds can be actively or passively managed and may... Canada bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Canada. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Canadian Dollar. Depending on their mandate, a Canada bond mutual fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Nonfinancial corporations are the largest issuers of debt in Canada, at 113% of GDP as of 2022. Governments are also major issuers, at 104% of GDP as of 2024. Investors purchase Canada bond mutual funds and ETFs to get both capital growth and income. These funds can vary significantly in terms of risk. A fund that exclusively invests in short-term Canadian federal government debt is likely to be more conservative than a fund that only invests in long-term provincial government bonds, for example. Last Updated: 11/27/2024 View more View less