Gyroscopic Investing

I am adding an allocation of short-duration but high-yield bonds to my VP for a little bit of fun.

https://www.blackrock.com/ca/individual ... income-etf

The above is my ETF of choice. The fund is primarily invested in U.S. domiciled companies with the U.S. dollar exposure hedged back to the Canadian dollar. The average duration is 2.5 years with the credit quality in the BB to CCC range. Average yield to maturity is nearly 7%.

Interestingly, despite being actively managed, it has a nearly identical MER to Blackrock's passive high-yield funds (50 - 60 bps range). Curious.

Bring on the spicy bond investing!

My overall VP is now currently half in these high-yield bonds and the other half in stocks. The stock portion consists of value and small cap value picks.

i use fidelity high yield fund. 20% of my non pp is in it

Smith1776 wrote: ↑Sat May 16, 2020 5:55 pm My overall VP is now currently half in these high-yield bonds and the other half in stocks. The stock portion consists of value and small cap value picks.

Value in the VP? These days? I sense that someone is a glutton for punishment haha.

As a Graham/Buffett disciple I will stand on the value hill and die on it.