June 01, 2026
Cash Is a Snooze – FSB Is What You May Want to Choose
For investors and advisors, cash is no longer doing the heavy lifting it once did. Money market yields have retreated materially from the elevated levels seen at the peak of the interest rate cycle in the period between 2022 and 2024. Investors are seeking an alternative place to park capital—one that offers enhanced stability amid tumultuous markets.
CI Enhanced Short Duration Bond ETF (FSB) is one solution to consider. Structured to always maintain a duration of under two years, the fund carries low interest-rate sensitivity, reducing the likelihood of being adversely affected during periods of extreme rate volatility. Here are five compelling proof points to support the case for FSB in a diversified portfolio.
1. Resilience through 2022: A real-world stress test
Typically, it’s prudent to hold a mix of stocks and bonds, as they tend to have different risk/return profiles that can help mitigate the overall impact of market volatility. However, this low correlation between asset classes doesn’t always hold. For instance, the rapid interest rate hiking cycle of 2022—driven by both the Bank of Canada and the U.S. Federal Reserve—caused equity/bond correlations to turn positive, leading to widespread drawdowns across traditional asset classes. In this challenging environment, FSB demonstrated notable resilience. While many bond funds experienced a significant decline, FSB’s drawdown was comparatively modest. Even within the short-term bond segment, FSB’s downside remained shallower than its peers. It’s an outcome worth noting as interest rate volatility could be on the rise in these challenging macroeconomic and geopolitical conditions.
2022 PERFORMANCE: CI ENHANCED SHORT DURATION BOND FUND (ETF SERIES) VS COMPETITORS
PerformanceL January 1, 2022 – December 31, 2022
Source: Morningstar Research Inc., as of December 31, 2022.
2. Consistent protection during major index drawdowns
To evaluate downside protection even further, and a decoupling from adverse moves in equity markets, we examined nine of the worst monthly drawdowns for both the S&P 500 TR CAD Index and the S&P/TSX Composite TR CAD Index during FSB’s lifetime. In all nine months, FSB strongly outperformed, providing meaningful capital protection when broad markets experienced significant stress. This type of relative outperformance by FSB is noteworthy as market volatility persists.
Protection Against Broad Market Drawdowns
| 2020-03 | 2020-02 | 2022-04 | 2018-12 | 2022-06 | 2019-05 | 2022-12 | 2025-03 | 2018-10 | |
|---|---|---|---|---|---|---|---|---|---|
| CI Enhanced Short Duration Bond ETF (FSB) | -0.66 | 0.19 | -0.96 | -0.13 | -1.38 | 0.21 | 0.19 | 0.03 | -0.13 |
| S&P 500 TR CAD | -7.06 | -6.86 | -6.60 | -6.52 | -6.43 | -5.89 | -5.81 | -5.72 | -5.35 |
| Relative Performance | 6.40 | 7.05 | 5.64 | 6.39 | 5.05 | 6.10 | 6.00 | 5.75 | 5.22 |
| Outperformance in 100% of the worst 9 months in the S&P 500. Cumulative outperformance of 53.6%. | |||||||||
| 2020-03 | 2022-06 | 2018-10 | 2020-02 | 2018-12 | 2022-04 | 2023-05 | 2022-12 | 2026-03 | |
|---|---|---|---|---|---|---|---|---|---|
| CI Enhanced Short Duration Bond ETF (FSB) | -0.66 | 1.38 | -0.13 | 0.19 | -0.13 | -0.96 | -0.20 | 0.19 | -0.37 |
| S&P/TSX Composite TR CAD | -17.38 | -8.71 | -6.27 | -5.90 | -5.40 | -4.96 | -4.95 | -4.90 | -4.32 |
| Relative Performance | 16.72 | 7.33 | 6.14 | 6.09 | 5.27 | 4.00 | 4.75 | 5.09 | 3.95 |
| Outperformance in 100% of the worst 9 months in the TSX. Cumulative outperformance of 59.3%. | |||||||||
| Source: Morningstar Research Inc., as of April 30, 2026. CI Marret Short Duration High Yield Fund merger into the CI Enhanced Short Duration Bond Fund was implemented after the close of business on April 8, 2022. The performance shown for CI Enhanced Short Duration Bond Fund includes the performance of the terminating fund prior to this date. FOR ADVISOR USE ONLY – NOT DISTRIBUTED TO CLIENTS | |||||||||
3. A higher bar: Outperforming in bond market drawdowns
In addition to the strong relative performance of FSB that we witnessed when equity markets declined (see above), noted relative outperformance compared to fixed income category peers in periods of market drawdown solidifies the compelling case for FSB.
Evaluating each month from FSB’s inception on September 7, 2017 through April 8, 2022, during which its Morningstar category—Global Core Plus Fixed Income—experienced a drawdown, the results are clear: over that period, FSB outperformed its category in every month the category posted a negative return. This held true for every such month during the evaluation period.
This is capital preservation. This is what FSB is designed to do.
FSB Outperforms in Drawdown Environments
| CI Enhanced Short Duration Bond ETF (FSB) | Global Core Plus Fixed Income | Relative Performance | |
|---|---|---|---|
| 2017-12 | 0.19 | -0.91 | 1.10 |
| 2018-01 | 0.19 | -0.40 | 0.59 |
| 2018-04 | 0.25 | -1.02 | 1.27 |
| 2018-05 | 0.04 | -0.26 | 0.30 |
| 2018-07 | 0.48 | -0.09 | 0.57 |
| 2018-08 | 0.14 | -0.30 | 0.44 |
| 2018-09 | 0.22 | -0.60 | 0.82 |
| 2018-10 | -0.13 | -0.34 | 0.21 |
| 2019-09 | 0.05 | -0.63 | 0.68 |
| 2019-12 | 0.18 | -0.31 | 0.49 |
| 2020-03 | -0.66 | -3.38 | 2.72 |
| 2020-08 | 0.14 | -1.02 | 1.16 |
| 2020-10 | 0.08 | -0.21 | 0.29 |
| 2021-01 | -0.01 | -0.57 | 0.56 |
| 2021-02 | -0.13 | -1.62 | 1.49 |
| 2021-03 | 0.04 | -1.32 | 1.36 |
| 2021-05 | 0.06 | -0.02 | 0.08 |
| 2021-09 | 0.00 | -0.94 | 0.94 |
| 2021-10 | -0.07 | -1.09 | 1.02 |
| 2022-01 | -0.45 | -1.61 | 1.16 |
| 2022-02 | -0.26 | -1.42 | 1.16 |
| 2022-03 | -0.37 | -2.22 | 1.85 |
| 2022-04 | -0.96 | -2.74 | 1.78 |
| 2022-05 | 0.10 | -0.59 | 0.69 |
| 2022-06 | -1.38 | -2.47 | 1.09 |
| 2022-08 | -0.64 | -1.25 | 0.61 |
| 2022-09 | -0.82 | -2.07 | 1.25 |
| 2022-10 | 0.24 | -0.87 | 1.11 |
| 2022-12 | 0.19 | -0.21 | 0.40 |
| 2023-02 | -0.41 | -1.31 | 0.90 |
| 2023-05 | -0.20 | -1.02 | 0.82 |
| 2023-06 | -0.07 | -0.42 | 0.35 |
| 2023-08 | 0.33 | -0.00 | 0.33 |
| 2023-09 | -0.21 | -2.03 | 1.82 |
| 2023-10 | 0.12 | -0.20 | 0.32 |
| 2024-01 | 0.19 | -0.11 | 0.30 |
| 2024-02 | 0.12 | -0.26 | 0.38 |
| 2024-04 | -0.15 | -1.47 | 1.32 |
| 2024-10 | 0.01 | -1.04 | 1.05 |
| 2024-12 | 0.11 | -0.73 | 0.84 |
| 2025-03 | 0.03 | -0.45 | 0.48 |
| 2025-04 | 0.10 | -0.62 | 0.72 |
| 2025-05 | 0.47 | -0.11 | 0.58 |
| 2025-07 | 0.16 | -0.02 | 0.18 |
| 2025-12 | 0.06 | -0.71 | 0.77 |
| 2026-03 | -0.37 | -1.71 | 1.34 |
| Outperformance in 100% of the worst months in its category. Cumulative outperformance of 39.70%. | |||
| This table shows every month that FSB’s category Global Core Plus Fixed Income had a drawdown, since common inception (September 7, 2017), and compares against FSB’s performance in those months. CI Marret Short Duration High Yield Fund merger into the CI Enhanced Short Duration Bond Fund was implemented after the close of business on April 8, 2022. The performance shown for CI Enhanced Short Duration Bond Fund includes the performance of the terminating fund prior to this date. FOR ADVISOR USE ONLY – NOT FOR DISTRIBUTION TO INVESTORS Source: Morningstar Research Inc., as of April 30, 2026. | |||
4. Improved performance since peak interest rates
Looking at the 3-year trailing returns (rolled monthly) for FSB, every data point is positive. As markets priced in interest rate cuts, and with the Bank of Canada beginning its easing cycle in June 2024, FSB has shown a clear and consistent uptrend in performance.
ROLLING RETURNS
Rolling Window: 3 Years 1 Month shift &mndash; Calculation Benchmark: FTSE Canada Universe Bond
A comparison against CI High Interest Savings Fund also shows that FSB is outperforming the HISA category since peak interest rates, a gap that has been widening.
CI ENHANCED SHORT DURATION BOND FUND (FSB) OUTPERFORMING HISA SINCE PEAK BANK OF CANADA INTEREST RATES
Time period: 7/11/2023 to 4/30/2026. Currency: CAD. Source data: Total return.
Source: Morningstar Research Inc., as of April 30, 2026, using daily returs since 7/11/2023.
5. Lower volatility, higher efficiency: FSB’s distinct advantage
Everywhere we look, the data speaks for itself: across every measurement window in the table below, FSB shows meaningfully lower volatility than comparable short‑duration funds. It’s something many investors in today’s high-volatility market environment will likely be drawn to.
| Trailing Standard Deviation | 6 Month | YTD | 1 Year | 2 Year | 3 Year | 5 Year | Common Start |
|---|---|---|---|---|---|---|---|
| CI Enhanced Short Duration Bond ETF | 0.91 | 0.72 | 3.32 | 4.30 | 3.95 | 1.84 | 2.55 |
| Russell Inv Short Term Income Pool Fund | 1.53 | 0.10 | 1.90 | 4.45 | 4.24 | 2.46 | 1.96 |
| Fidelity Canadian Short-Term Bond Fund | 1.88 | 0.21 | 2.10 | 4.63 | 4.03 | 3.09 | 2.01 |
| Mackenzie Canadian Short-term Income Fund | 1.60 | 0.23 | 2.57 | 5.11 | 4.40 | 2.67 | 2.18 |
| PH&N Short Term Bond & Mortgage Fund | 1.52 | 0.24 | 2.27 | 4.73 | 3.94 | 1.98 | 2.09 |
| Source: Morningstar Research Inc., as at April 30, 2026. *Common inception date FSB is September 7, 2017. | |||||||
The bottom line
In today’s difficult environment—where cash yields are fading and real returns are slipping—remaining parked in cash comes with a growing opportunity cost. FSB offers a low‑volatility, higher‑value path forward: stable, efficient and designed as an alternative to holding cash. If there was a moment to move excess cash off the sidelines and into a solution designed to protect and perform, we believe that moment is now—for investors considering how to deploy excess cash, FSB is an option worth evaluating.
| Fund Name | Ticker | Fund Code | Morningstar Rating Overall | MGMT. Fee (%) | 6-Month | YTD | 1-Year | 2-Year | 3-Year | 5-Year | Since Inception |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CI Enhanced Short Duration Bond Fund (Series ETF) | FSB | QQQQ | 0.60 | 0.9 | 0.72 | 3.3 | 4.3 | 4.0 | 2.6 | 2.6 | |
| CI Enhanced Short Duration Bond Fund (Series F) | CIG4136 | QQQQ | 0.60 | 0.8 | 0.7 | 3.3 | 4.2 | 3.8 | 2.5 | 2.4 | |
| Source: Morningstar Research Inc., as at April 30, 2026. | |||||||||||
| Standard Performance Table | 1 Year | 3 Year | 5 Year | 10 Year | Common Inception | Inception Date | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| CI Enhanced Short Duration Bond ETF | 3.3 | 4.0 | 2.6 | -- | 2.6 | 2017-09-07 | |||||
| iShares Core Canadian ST Corporate Bond ETF | 3.4 | 5.4 | 2.7 | 2.8 | 2.8 | 2011-09-13 | |||||
| BMO Short Corporate Bond ETF | 3.4 | 5.4 | 2.7 | 2.8 | 2.7 | 2009-10-20 | |||||
| Vanguard Canadian Short-Term Corporate Bond ETF | 3.3 | 5.2 | 2.7 | 2.7 | 2.7 | 2012-11-02 | |||||
| PH&N Short Term Bond & Mortgage Fund F | 2.3 | 3.9 | 2.0 | 2.1 | 2.1 | 2007-06-29 | |||||
| Fidelity Canadian Short Term Bond Fund Series F | 2.1 | 4.0 | 1.9 | 1.9 | 2.0 | 2000-10-10 | |||||
| Mackenzie Canadian Short-term Income Fund Series F | 2.6 | 4.4 | 1.89 | 2.32 | 2.18 | 2006-11-24 | |||||
| Russel Inv Short Term Income Pool Series F | 1.9 | 4.2 | 1.94 | 1.98 | 1.96 | 2012-08-22 | |||||
| Dynamic Short Term Bond Fund Series F | 3.1 | 3.1 | 2.81 | 2.50 | 2.20 | 2010-01-11 | |||||
| FTSE Canada Short Corporate TR | 3.6 | 5.5 | 2.56 | 2.90 | 3.14 | 2010-01-04 | |||||
| Source: Morningstar, as at April 30th, 2026. | |||||||||||
About the Author
The Investment Advisory team is a specialized group within CI Global Asset Management, organized by asset class coverage and focused on providing product expertise and strategic guidance across CI GAM’s advised and sub advised strategies. The team works closely with Portfolio Management, the Distribution team, and institutional partners to refine product positioning and deliver actionable, competitive insights for advisors and investors. With deep expertise in investment strategy, the team supports the continued growth of CI GAM’s investment solutions.
IMPORTANT DISCLAIMERS
FOR ADVISOR USE ONLY. No portion of this communication may be reproduced or distributed to clients as it may not comply with Sales Communications requirements.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund and exchange-traded fund (ETF) investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compound total returns net of fees and expenses payable by the fund (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds and ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
This document is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Market conditions may change which may impact the information contained in this document. All charts and illustrations in this document are for illustrative purposes only. They are not intended to predict or project investment results. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.
The author and/or a member of their immediate family may hold specific holdings/securities discussed in this document. Any opinion or information provided are solely those of the author and does not constitute investment advice or an endorsement or recommendation of any entity or security discussed or provided by CI Global Asset Management.
Certain statements in this document are forward-looking. Forward- looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management and the portfolio manager believe to be reasonable assumptions, neither CI Global Asset Management nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document. Certain names, words, titles, phrases, logos, icons, graphics, or designs in this document may constitute trade names, registered or unregistered trademarks or service marks of CI Investments Inc., its subsidiaries, or affiliates, used with permission. All other marks are the property of their respective owners and are used with permission.
The comparison presented is intended to illustrate the mutual fund’s historical performance as compared with the historical performance of widely quoted market indices or a weighted blend of widely quoted market indices or another investment fund. There are various important differences that may exist between the mutual fund and the stated indices or investment fund, that may affect the performance of each. The objectives and strategies of the mutual fund result in holdings that do not necessarily reflect the constituents of and their weights within the comparable indices or investment fund. Indices are unmanaged and their returns do not include any sales charges or fees. It is not possible to invest directly in market indices.
©2026 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The CI Exchange-Traded funds (ETFs) are managed by CI Global Asset Management, a wholly-owned subsidiary of CI Financial Corp. CI Global Asset Management is a registered business name of CI Investments Inc. ©CI Investments Inc. 2026. All rights reserved.
