Hank Cunningham BMO Aggregate Bond Index ZAG-T DON'T BUY Feb 27, 2024

Good exposure to Canada bond market.
Safe and defensive name.
Not much upside.

Owns shares in ETF.
Good mix of bonds. 
Would recommenced buying.
Believes interest rates will turn down which is good.
Expecting capital appreciation going forward.
Planning a 5-7% return within next 12 months.

Holds all Canadian bonds--federal, provincial, corporate. All quality bonds. Start here if you want bond exposure.

With rates coming down, bonds are seemingly back in favour. He likes shorter- to medium- (7-10 years) duration bonds. This ETF follows that strategy. You'll see some performance if rates continue to move lower. Decent yield of 3.6+%.

If you want something without duration risk, you could look at shorter-term bonds with a floating rate. Shorter-term yields are higher than long at this point. But you won't get that lift if bond yields come down.

Good for investors looking for broad bond exposure. Good diversified holdings. Not the best for TFSA (better for growth stocks), but good for registered accounts (RRSP). 

Canadian benchmark bond ETF. About 30% corporate bond exposure. Very cheap. Largest fixed income ETF in Canada now. 7-year average duration, so a better opportunity now than 1-2 years ago. Works for portfolio ballast. He recommends "barbelling" it in with some shorter-term fixed income exposure ETFs such as CASH or ZMMK.

74% government bonds in Canada, rest in investment-grade corporate. Likes bonds at this stage, with interest rates calming and starting to come down. There will be small upticks pushing down the price of bonds, but up 6.6% in last 3 months. With yield plus potential for capital appreciation, makes sense to have as core part of your portfolio. Yield is 3.5%.

BMO has good products, though he's not overly familiar with this one. He prefers individual bonds. So, depending on your situation, he'd recommend selling and putting together a nice portfolio of individual, shorter-term bonds.

It holds all Canadian bonds, including corporate. Canadian interest rates have already fallen, and he expects inflation to be sticky. So longer-term duration bonds won't fall as much as they already have. He doesn't like duration as an asset class.