Investing

Real Return Bond .. Any Good?

  • Last Updated:
  • Sep 23rd, 2014 6:20 pm
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Deal Addict
Jan 7, 2014
2722 posts
549 upvotes
Manitoba

Real Return Bond .. Any Good?

Folks,
(If this has been answered elsewhere , will appreciate if you can point me to it)

Else .. I am interested in knowing your views on Real Return Bonds like the following
https://www.tdassetmanagement.com/fundD ... Management

The Canadian Couch potato normally suggests the Bonds to be 40% of your portfolio but for the complete couch potato portfolio it deducts 10% from the Bonds and put this 10% to the Real Return Bonds.

Any benefits other than further risk mitigation. Any takes on the said TD fund.

TIA
2 replies
Newbie
Aug 4, 2014
49 posts
10 upvotes
Calgary, AB
The best time to invest in Real Return Bonds (Canada) or Treasure Inflation Protected Securities (TIPS) is when inflation is low.
Deal Fanatic
User avatar
Apr 29, 2008
8012 posts
4748 upvotes
Montreal
Asker123 wrote: Any takes on the said TD fund.

TIA
MER
1.49% MER as of December 31, 2013

= Junk.

(Way too high cost for a fixed-income fund.... and way too high in general)

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You should look at ETFS for real return bonds instead if you are interested in such bonds.

( I have no opinion on those )

Example I found:
BMO Real Return Bond Index ETF

http://www.etfs.bmo.com/bmo-etfs/glance?fundId=80005
Maximum Annual Management Fee 0.250%


iShares Canadian Real Return Bond Index ETF
Management Expense Ratio (MER) 0.39%

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