Q: How do these corporate bonds compare. I was considering a 2% position.
Do you prefer one over the other, or a 1-1.5% position in both.
Thank you
Do you prefer one over the other, or a 1-1.5% position in both.
Thank you
5i Research Answer:
XHY invests in US high yield bonds; ZLC is 99.5% Canada. Thus, we think the diversification here makes sense and we would prefer owning both for general bond exposure. ZLC has $433M in assets, fees are 0.33% and one-year return 9.22%. XHY is $418M, 0.56% fees, and one-year 10.56% XHY has better long term performance, partly due to currency moves.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.