
TSE:XHY
This summary was created by AI, based on 1 opinions in the last 12 months.
Experts suggest that iShares US High Yield Bond Index ETF (XHY) is a suitable investment for those anticipating rate cuts and slower economic growth. In a scenario where investors are willing to accept risks associated with the business cycle, XHY is seen as a viable option to achieve higher income. Contrastingly, they recommend ZLC or XLB for individuals desiring more stability amidst potential economic uncertainties. Overall, XHY appears to be a compelling choice for income-seeking investors looking to diversify into high-yield bonds, especially during periods of softer growth. As always, potential investors should carefully evaluate their risk tolerance and investment goals before making a decision.
Because governments are holding interest rates down, high yield is attracting people. Investors are looking at high yield investing as a replacement for equity investing. 6.5% yield is the lowest in history in high yield bonds. It makes sense in a registered account if you want equity market risk. ZHY-T is an alternative. Both give you exposure to a similar basket of companies, which are the worst credit rated companies out there. The pension funds need these yields and this will play out for the next couple of years.
(A Top Pick Jan 9/12. Up 9.45%.) Still likes them.