Larry Berman CFA, CMT, CTA BMO Floating Rate Hi Yield ETF ZFH-T SELL Mar 03, 2025

4.9% yield. Holds exposure to a high yield index so you get a high yield return. There are risks. It is very similar to the volatility of the market.

ZFH-T is exposure to short-term high yield credit using a swap strategy to mitigate the interest rate risk. You still get credit risk. ZHY trade more like equities than bonds. People are seeking the higher yields. A floating rate note mitigates the interest rate risk only.

Not a good option if we head into recession. Would not recommend buying. Not a good defensive name. Products are too complex for average investor. 

They use a derivative structure to get pure credit exposure, but credit spreads are tight. However, it mitigates the interest rate risk.

He owns a similar one. You are getting the distribution but the asset value is sliding.

It shouldn't have that rating. It's a pure credit play, netting out the interest rate risk, and has a low standard deviation. But it pays a high yield, so maybe it get a higher risk rating. There's a little more risk here among ETFs, but not high risk like an equity.

We would be comfortable with ZFH. Floating rate bonds, of course, may see lower distributions if rates fall, but do offer protection in the opposite scenario. Indicated yield is 5.64% and one year return +8.48%. We would consider it a solid, fairly conservative ETF for income. Fees are 0.45%. 
Unlock Premium - Try 5i Free

We would be comfortable with ZFH. Floating rate bonds, of course, may see lower distributions if rates fall, but do offer protection in the opposite scenario. Indicated yield is 5.64% and one year return +8.48%. We would consider it a solid, fairly conservative ETF for income. Fees are 0.45%.
Unlock Premium - Try 5i Free