The fund is passively managed and tracks an index of Canadian bonds from both government and corporate issuers. This includes domestic issued bonds and global issued bonds as long as they are denominated in CAD. To be eligible for inclusion in the index, these bonds must meet market capitalization and liquidity requirements and must also have an effective time to maturity of not less than 12 months. Only securities rated investment grade (at least BBB-) are included in the index. Individual components are then selected and weighted from the eligible universe according to their respective market value. Take note that certain securities are not included, such as repackaged bonds, convertibles, mortgage backed and other asset backed securities, inflation-linked securities, or defaulted securities. Rebalancing occurs on a quarterly basis.