In an RESP Portfolio what do you think of holding in the fixed income portion only Short Term Corporate Bonds ?
My Daughter is still young and she won't be using her RESP before years, I was then thinking of including in the fixed income portion of her RESP portfolio only Short Term Corporate Bonds (Using an ETF such as VSC or ZCS)
Logic behind this thought is that Short Term Corporate Bonds appear to be me as a “good compromise” in an environment of low yields and volatility. They offer better yield than regular Short term bonds and are of course less risky than equities
However, when I compare performance vs Yield over time between a Short Term Corporate Bonds ETF (VSC For example) and a regular Short Term ETF Bond (VSB), I can see that yield difference between VSC and VSB is lower than performance reached (regular Short Term ETF Bond will perform better than Short Term Corporate Bonds ETF and variance in performance will beat variance in yield)
So I am not sure anymore about this thought
Thanks for your help