Q: Curious what you think about CROP.U. Is this something you would recommend? If so how much of your fixed income portfolio should it represent?
5i Research Answer:
CROP.U is an actively managed ETF that primarily makes credit investments. It does not use leverage but does use a variety of instruments and hedge-fund like strategies to manage exposures. The fee is high at 0.85% due to the active nature of it but it is quite liquid at $655M in net assets. It pays a high yield at 5.70% and we think it is an interesting credit opportunity which we think could be a good allocation to the fixed income portion of ones portolio. We cannot advise on specific allocations.