Waldo Bezuidenhout
Ryan Ehmann
James Excell
Steph Hudema
Outline
• History and Advantages
• iShares Scotia Capital Short Term Bond
Index Fund
• iShares CDN Real Return Bond Index
Fund
• iShares Scotia Capital Universe Bond
Index Fund
History of iShares
• iShares is the brand name of ETFs by
Barclays Global Investors
• Offers investors the advantages of both
stocks and index funds
• iShares is the largest issuer of ETFs in
the world
5 Advantages of iShares
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Low cost
Tax efficiency
Transparency and risk management
Liquidity
Modularity
iShares Scotia Capital Short
Term Bond Index Fund
XSB
Overview
• Seeks to provide interest income
• Fund invests in a portfolio of bonds that
closely matches the characteristics of the
Short Term Bond Index
• Consists of a diversified range of
Canadian government and corporate
bonds
• Determined By Scotia Bank
Aimed Towards
• Investors seeking diversified exposure to
the Canadian bond market
• Alternative to holding individual bonds
• Provides broad exposure to a portfolio of
short term bonds
• Provides regular rebalancing without the
costs of individual trades
• Investing in Canada
Performance
• Fund:
• Index:
• Category:
iShares CDN Short Term Bond Index
S&P/TSX Canadian Bond Short Term
Canadian Short Duration Fixed Income
iShares CDN Real Return Bond
Index Fund (XRB)
What is it?
• Stock listed on the TSX that provides income
by replication of the Scotia Capital Real
Return Bond Index.
• Fixed income fund index
• Usually semi annual distribution of income
through dividends or reinvestment plan.
• Annual fee of 0.35%
iShares CDN Real Return Bond
Index Fund (XRB)
Real Return Bonds:
• Amount you receive back is the inflation
adjusted equivalent of the principle
amount invested.
• Aimed at people who are less
concerned with “how much” and more
concerned with “what it will buy”
Holdings
10 Bonds
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24.89% CANADA GOVT REAL RETURN
23.36% CANADA 4.25% 12/1/26 (FTIPS)
21.18% CANADA GOVT REAL RETURN L256
18.21% CANADA GOVT REAL RETURN
3.17% QUEBEC (PROVINCE OF)
2.75% QUEBEC PROV
2.50% ONTARIO
2.00% QUEBEC PROV
1.22% QUEBEC PROV
0.31% MANITOBA PROV
Cumulative performance Difference (1 Yr):
Fund Return (1Yr):
Index Return (1Yr):
0.25%
-2.27%
-2.02%
iShares Scotia Capital Universe
Bond Index Fund
• Trades on the TSX: XBB
• Based on the Scotia Capital Universe
Bond Index
iShares Scotia Capital Universe
Bond Index Fund
Scotia Capital Universe Bond Index
• Started in December 1979
• Broadest measure of Canadian bond
market
• Includes more than 990 bonds
• Government and corporate bonds
• Market value $651 billion
iShares Scotia Capital Universe
Bond Index Fund
Average Annualized Return
• 1 year – 3.80%
• 2 year – 5.94%
• 3 year – 6.78%
Thanks for letting us BOND with
you!
Any questions?