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.
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.
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.
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
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?
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...