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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have been following the stock market, daily, for a half dozen years. And I never fail to be impressed at how brutal the market can be when a company fails to meet expectations. Today's 'victim du jour' is ZCL. Although it's not included in your current portfolio choices, my impression is that it's a decent company. After 2017 Q3 it was hammered with a 20% drop in stock price. Then gradually gained ground through to yesterday's 2018 Q1 report. An approximate 10% drop, as a result. What I've learned, and appreciate, from following 5i, is the importance of not catastrophizing after a bad quarter -- but to take a much longer view -- and to remain with what has been a reliable dividend payor throughout.
Read Answer Asked by RANDALL on May 07, 2018
Q: Could you explain exactly what these two ETFs invest in? On their respective websites it appears as if ZFH is largely in government bonds or treasuries of some type (the scary term CDS shows up here), while MFT refers to "bank loans". Both indicate low to moderate risk, while at the same time showing virtually all investments rated at BB or less - below investment grade.
How do these ETFs compare to ZHY or XHY in terms of safety of principle and dividend sustainability?
Thank-you
Read Answer Asked by grant on May 03, 2018