Q: I use ZAG as fixed income ETF for my RRSP following standard recommendations. am i missing out by only using a Canadian ETF? Is there an ETF in CAD that would include US or global content?
5i Research Answer:
We think how 'deep in the weeds' an investor gets on fixed income allocations comes down to a bit of a personal choice and also depends on what they are trying to achieve in the portfolio. The more important thing is simply having some level of fixed income exposure. We don't have any issue with ZAG and having a bit more geographic diversification into US fixed income probably wouldn't hurt but we also wouldn't view it as a critical issue in a portfolio in most cases. XAW can be suggested for an 'ex Canada' ETF that will provide some outside Canada exposure.