Stockchase Opinions

Mike Philbrick BMO High Yield US Corporate Bond Index ETF ZJK-T RISKY Apr 11, 2025

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.

$18.120

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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.
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It has a fixed distribution and is making up some of that by returning capital. He would stick with MFT in the same space.