Q: I'm thinking about buying these funds on a recommendation from a friend. Can you give me your thoughts on them? I'm looking for some exposure to some bond funds as interest rates start to drop.
5i Research Answer:
RBF has the lower fee at 0.50% vs. LYZ at 0.90%. RBF also has a much larger asset base at $23.86B vs. LYZ at $14.09B. The strategies are slightly different where LYZ is more geographically diverse with 77% of investments in Canada vs. RBF at 94%. Given that Canada has already begun its rate cutting cycle, we would lean RBF here in addition to the lower fee and higher asset base.