Opinions
David Cockfield
BMO Mid-Term US IG Corp Bond Index
ZIC-T
DON'T BUY
May 18, 2017
$19.670
Stock price when the opinion was issued
E.T.F.'s
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COMMENT
This is investment-grade corporate bonds in the US. The yield is basically 60%-70% higher than on Canadian corporates. What he likes about US investment-grade corporates is the array of underlying credits. In Canada, it is roughly 50% of the corporate bond market which are financials. In the US, you get a broader array of industries.
E.T.F.'s
He would avoid most of the fixed income ETF’s at this time. There are some potential rate changes in the US. The returns are significantly lower than what you would get by simply buying a high-quality dividend paying Canadian ETF.