Using the Right Yield Data for Bond ETFs
Wednesday, October 14th, 2009
Larry MacDonald submits:
A previous post on bond ETFs elicited requests to explain why it is important to look at the yield-to-maturity instead of the yield quoted on financial portals like Yahoo Finance. Just why, for example, is it misleading to use Yahoo Finance’s quote of 4% on the iShares Canadian Short-Term Bond ETF [TSX:(XSB)] when iShares.ca’s website quotes the yield to maturity at 2.1%.
