Opinions
Larry Berman CFA, CMT, CTA
BMO High Yield US Corporate Bond Index ETF
ZJK-T
DON'T BUY
Nov 19, 2018
ZJK-T vs. ZHY-T. High yield is a sexy name for junk bonds. They are the worst quality bonds. In a downturn these companies will not be able to pay back their bond holders first. If equities fall 20%, high yield bonds fall 13%. There is more risk for a portfolio.
$19.570
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
RISKY
Have seen an expansion in the spreads, which means the credit risk has caused the bonds to deteriorate in price. Second-largest high-yield ETF in Canada. MER is 61 bps. Acts more like equity because of the types of companies that tend to issue high-yield debt, but it has more yield too. While it is riskier, you have a better entry point here.
E.T.F.'s
Advertising