THE YIELD SHIELD: PREFERRED SHARES

Here is the article.

When you’re accumulating, bonds’ job is to reduce portfolio volatility because they tend to move in opposite directions with equities. However, with interest rates so low, as an income-producing asset, they don’t pay too well. As of the time of this writing, the Canadian Vanguard Bond ETF VAB has a 12-month trailing yield of 2.8%. Not only that, with interest rates on the rise, we can expect bond prices to get lower over time, which double-sucks. So what should we use instead?