Opinions
John Hood
HAP Floating Rate Bond ETF
HFR-T
PAST TOP PICK
May 11, 2017
$10.080
Stock price when the opinion was issued
E.T.F.'s
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COMMENT
He has recommended this before, but it too was hit hard when the market declined. He asked one of the big bond desks about liquidity issues and when they said it was drying up, he sold out. What people need to understand is that bonds trade over the counter, not through an exchange. When the liquidity drives up, this negatively impacts bond values.
E.T.F.'s
DON'T BUY
It holds ultra-short term investment-grade bonds. MER is 40 basic points. The chart was smooth pre-COVID, then plunged 20% during the sell-off, then recovered. When times are calm, they act like bonds. When risk spikes in a crisis, there's volatility. This falls in line with your equities. He's surprised this had this much of a correction. Something to be aware of. This isn't sovereign debt. Consider sovereign instead.
E.T.F.'s
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(Top Pick Jan 19/16, Up 5%) He went into buy it for the return. It never changes price much. It yields about 2%. A complicated structure but he likes putting money there.