The XTB Maturity Ladder portfolio has one XTB maturing each year. It is very popular among advisers and for good reason as it:
- Delivers all the benefits of owning XTBs directly
- Provides a regular and reliable cash flow
- Is a buy and hold to maturity strategy providing flexibility for the investor when cash flows are paid
- Has the characteristic of regularly maturing bonds which creates a different risk metric for portfolio construction. Many advisers and their clients find this feature attractive in a portfolio.
In implementing this strategy, advisers and their clients need to decide what to do with XTB proceeds as the underlying bonds mature. Do you take the money or re-invest?