Q: In February, I was adding to my fixed income and believing that interest rates would not go any lower, purchased ZFH. It, like so many other holdings, has been hammered. It now looks to me that rates probably are not going up, for an extended time. If that is correct, is there any chance that ZFH will recover when the market calms down and equity prices begin to improve? Thanks for your excellent service.
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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.
- BMO Floating Rate High Yield ETF (ZFH)
- Global X Canadian Select Universe Bond Index Corporate Class ETF (HBB)
- Mackenzie Floating Rate Income ETF (MFT)
- Senior Secured Floating Rate Loan Fund (FRL.UN)
- PIMCO Global Income Opportunities Fund (PGI.UN)
Q: When I compare MFT (that I own) and FRL.UN with ZFH and PGI.UN I don't understand why the former don't perform as well as the latter. What can explain that and what would be the best bond ETF (low volatility and reasonable yield) to own within a registered and non registered account. Also, do you know a bond ETF giving mostly capital gain for a non registered account to reduce the income in interest.
Q: Is ZFH a reasonably safe holding for the income part of a portfolio? What sort of factors will impact its price? and its distributions?
thanks for your good service.
thanks for your good service.
Q: if you had to choose which position to add to, which would you choose and why?
Q: I hold both XBB and ZFH in my RRSP. Is there an advantage to holding both or should I consolidate in ZFH? ... or to another fund which you can suggest?
I need to add a greater bond exposure and want to ensure I'm not simply doubling up.
Thanks,
Ron
I need to add a greater bond exposure and want to ensure I'm not simply doubling up.
Thanks,
Ron
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
How do these ETFs compare to ZHY or XHY in terms of safety of principle and dividend sustainability?
Thank-you
- BMO Floating Rate High Yield ETF (ZFH)
- Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR)
- Mackenzie Floating Rate Income ETF (MFT)
Q: In regards to Floating Rate High Yield ETF products such as ZFH and MFT is there one ETF product in this category that you would consider less risk than the others?
Thanks Ken
Thanks Ken
Q: Can you explain the difference between MFT and ZFH ? Joe
Q: Is this a good time in the cycle to go with this?
SP chart looks good technically to me, what portion of your fixed income weighing could go for it?
Any other thoughts?
Your service is wise and most valuable...
SP chart looks good technically to me, what portion of your fixed income weighing could go for it?
Any other thoughts?
Your service is wise and most valuable...
- BMO Floating Rate High Yield ETF (ZFH)
- BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY)
Q: BMO has a risk rating for ZYH and ZFH of low to medium for each of
these etfs.Would you agree with this assessment? Joe
these etfs.Would you agree with this assessment? Joe