Sunday, August 24, 2014

Recent Purchase

I have not put money into my TFSA in quite a while. I had slightly over $200 in cash sitting in this account and not making money off it. So I decide to put it to work while taking advantage of commission free ETFs offered by my broker.

I purchased 11 shares of Claymore 1-5 Yr Laddered Corporation Bond ETF, with ticker symbol CBO on the Toronto Stock Exchange.  I just had to pay $0.04 in fees. The commissions are free to buy but ECN fees still apply. The distribution of the ETF is almost entirely interest, which means it is taxed at the marginal rate. There might be some capital gains. Since it is in my TFSA, it will not be taxed.

The entry yield on my purchase is approximately 4.28%.  The distribution yield will fluctuate month to month but I should receive approximately $0.75 per month. This is nothing to write home about but not the money is working for me instead of sitting there collecting 0 % interest.

Disclosure: Long CBO


     I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.  Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk


  1. Hi IP,

    75 cents is more than 0 cents, as you say. I am truly a believer in 'every little helps' and 'look after the pennies and the pounds will look after themselves'. I have plenty of holdings like your recent ETF bond purchase above, as I do not have much to spare, so I have to accrue small bits and pieces where I can. Thankfully, I too can do so without fees in my retirement account.

    I also decided to nominate you for a Liebster award, as I would like to find out more about you and your story. Please check the rules of acceptance on my recent post:

    Best Wishes,


  2. Great bond fund as my mother inlaw holds quite a bit of it as well and I would consider it as well if i were into bonds. I like the high quality laddered approach for some good yield and saftery of the ladder.

    Grind on!

    1. Asset-Grinder,

      I do not plan to make this a large position at this time but it allows the cash that was sitting in the account to "work" instead of sitting there making 0% money for me. To be honest, if a few of the dividend ETF's were lower in price I likely would of purchase one of them as they would appreciate in price also.