BMO Ultra Short-Term Bond (ZST.TO) Buy, Sell…

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BMO Ultra Short-Term Bond (ZST.TO)

49.09

-0.02 (0.04%)

as of Jul 8, 2026, 4:36:20 pm Market Open.

64 watching

Investor Insights

Jul 8, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

BMO Ultra Short-Term Bond (ZST-T) is largely regarded as a defensive income-generating ETF focused on short-term investment grade Canadian corporate bonds with maturities under one year. It is perceived as a money market equivalent, providing enhanced yields over traditional government T-bills while maintaining a low risk profile. Experts highlight its steady yield of around 2.2%-2.47% and emphasize its resilience during challenging market periods. However, it's crucial for investors to consider their tax situation, as gains in a taxable account are treated as income. Overall, ZST is seen as an effective solution for those seeking a safe investment with better returns than standard money market funds.

Consensus

Positive

Valuation

Fair Value

Similar

ZMMK

BUY

This hold short-term corporate bonds which yield a little more than the government equivalent, safe. You assume a little credit risk, not much

BUY

A corporate bond money market fund maturing under a year and is good for parking cash.

BUY

Parking cash with safety.

An enhanced money market yield for short-term exposure. It's money market, but corporate bonds, so a slightly higher yield. Not a HISA, but similar to one.

BUY

An ETF to park money and pays a good dividend. It has a little credit risk, but exposes you to corporate bonds for year, so it acts like a money market fund in a sense. However, it pays you a little more yield by 20-30 basis points.

BUY

Nothing wrong with it. Duration risk issue with longer-term bonds, but these are short term. A good quality bond portfolio.

WEAK BUY

Fixed income ETF for the next 2-5 years.

Not a fan of the bond market here and where yields are. But if you do need to rebalance, try this one. He likes it a lot, and it'll do you well for the next few years.

However, he'd suggest looking at the bonds in some of the ETFS and going out and actually buying the bonds. This way you avoid the management fee, and you can customize your outcomes better in terms of a laddered bond portfolio.

HOLD

Effect of lower CAD?

A short-term money market ETF is not going to be impacted by currency volatility. They're Canadian plays in Canada. Even though the BOC is a lot more aggressive in terms of cutting rates because the Canadian economy is significantly weaker than that of the US.

BUY

ZMMK and ZST are his two favourite BMO ETFs for money market exposure. He uses both in the bond fund he manages. Which one you chose depends on your risk tolerance. Both are excellent, look at both.

BUY

Something safe to generate a nice income.

If you're looking for something safe, for 1-2 years and aside from GICs, he'd recommend ZST or ZST.L (this version accumulates the units). Yield would be ~4.9-5%. Very safe, very short-term with 3-4 month, investment-grade corporate bonds. Inexpensive. A way to get a diversified basket of bonds.

BUY ON WEAKNESS

Corporate bonds that are maturing in a year or less. Total returns including yield equates to a healthy return. Good defensive name for investors.

BUY

It holds all investment-grade bonds, cheap cost at 15 basis points, and lasts only for a two-year duration.

COMMENT

These are very defensive short-term investments. Big assets manage these ETFs. ZST has a higher short-term yield although it is more risky. The risk is off-set by the term being very short.

DON'T BUY

It's been treading water for many years. He holds little cash and urges anyone to take on more risk and invest. There are several ETFs like this out there.

BUY

Short-term outlook for ZAG, XBB, SXB, PMIF-- broad bond exposure ETFs? Better to look at HISA-like, ETFs, like ZST, which are like money market funds with high-income/yield above 2%. These (the ETFs the caller mentions) still carry some duration risk. He'd much rather be in a money market-like EFT fund.

COMMENT

It buys bonds under 1-year maturity (but these bonds had a higher coupon many years ago, say 5% when yields were much higher). You still get that 5% coupon, but when that bond falls within a year, it becomes like a money market instrument with the bond likely trading at 1.03%--losing $3 in capital. So, there's a natural erosion, because all the bonds in the index have been premium ones, meaning the ETF is buying them above par. So, what you earn in fixed income is yield to maturity, not the coupon.

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BMO Ultra Short-Term Bond (ZST.TO)