iShares Canadian Real Return Bond Index ETF (XRB:CA)
The investment objective of the ETF is to provide inflation-adjusted interest income by replicating, to the extent possible, the performance of the FTSE TMX Canada Real Return Bond Index, net of expenses. The Index is a market capitalization-weighted index consisting of a broadly diversified range which may include any or all of federal, provincial, corporate and municipal bonds.
The investment strategy of the ETF is to invest in a regularly rebalanced portfolio of bonds, selected by BlackRock Canada from time to time, that closely matches the characteristics of the Index.
IFM Investment Tip:
Most investors buy Real Return Bonds (individual, ETF, Mutual Funds) because they are seeking to protect their savings from the negative impact of inflation. What they do not realize is that Real Return Bonds typically have very long maturity dates which has a greater impact on the bond's market values than the actual inflation protection feature. This ETF has an average Bond Duration equal to 15.49 years, which translates into a 15.49% change in market price for every 1% change in interest rates. This suggests that if interest rates were to rise 1.0%, this ETF's market price could decline by 15.49%.
Also, should inflation turn negative, unlike their American counter parts, Canadian Real Return Bonds would be subject to a negative value adjustment. For more detail, see our section on Real Return Bonds.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- FTSE TMX Canada Real Return Bond Index
- Asset Category
- Fixed Income Investments
- Average Duration
- 14.65 Years (September 30, 2017)
- Average Maturity
- 17.88 Years (September 30, 2017)
- Date Established
- December 15, 2005
- Annual Management Fee
- 0.35% Plus 0.04% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.00% (2016)
- Management Expense Ratio (MER)
- 0.39% (2016)
- Additional Performance Fee(s)
- Yes - In 2016, the ETF had a yield equal to 3.05% net of Return of Capital (ROC) payments.
- Distribution Dates
- Semi-Annual - In December and June
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Rebalancing Frequency
- Portfolio Turnover Ratio
- Was 5.57% in 2016, 5.91% in 2015, 8.40% in 2014, 8.75% in 2013, 12.37% in 2012, 17.08% in 2011 & 20.71% in 2010.
- Simplified Prospectus
- Last Updated