Stockchase InsightsBMO Monthly Income ETFZMI.TOHOLDMar 26, 2025

Prefers it to ZST. ZMI has equity market risk and more volatility, but long run will outperform.

ZMI gives more more diversified exposure (stocks with covered calls, high dividends, prefs, fixed incomes). CACB is corporate bonds, which he doesn't recommend now. The equity component of ZMI gives value for 2026. 

Quality product that is good for many investors. Has a nicely balanced asset base. Good for income seekers as well. Would recommend buying. 

Good for defensive investors. Safe dividends. Very low management fee. Good for RRSP. Includes equity growth in this product as well. 

The bond markets are impaired and will be for a while. Low interest rates are here to stay. Income focused ETFs with exposure to bonds will not return 4-5%. Are you getting return of capital or yield? Must look into the structure where the returns are coming from. Both are similar. Both ZMI and XTR give you exposure to diversified income. All fixed income has negative return after inflation.

A safe monthly income for a retiree without the worry about market swings? On any monthly income vehicle, you have to be very careful. If this had existed in 2008, it would’ve dropped about 20%-25%. Also, make sure it is run by a real well-run ETF provider and make sure you look at what is underneath it all.

Canada is likely to underperform for the next 5 years compared to the global market so you have to diversify. Just this one is not enough.

This was a little bit controversial because it was including a lot of “return of capital” rather than “return on capital” because of some of the investments they had. They have changed this in the last few months so it is a more straightforward ETF. Nothing wrong with it. It has a whole bunch of different products in it and now it is fine.