TSE:ZST

BMO Ultra Short-Term Bond (ZST.TO)

49.09
+0.01 (0.01%)
as of Jun 10, 2026, 7:59:01 pm Market Open.
64 watching
0
Investor Insights
star iconJun 11, 2026, 12:00 am

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

BMO Ultra Short-Term Bond (ZST-T) is a low-MER ETF predominantly investing in investment-grade Canadian corporate bonds with maturities under one year. It provides a competitive yield compared to traditional money market funds, making it a safe, defensive holding in the current market environment. Many experts suggest it behaves like a money market security while offering better yields than Canadian T-bills. However, it is essential to consider the tax implications, as gains are treated as income in a taxable account. Overall, it is recommended for investors seeking safety, moderate income, and capital preservation rather than significant capital gains.

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Consensus
Positive
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Valuation
Fair Value
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TOP PICK
Super-conservative growth, a slow, steady guaranteed return. It holds 43% banks. The chart is steadily upward. Defensive.
BUY

A low-risk ETF for a TFSA? Two (both being top picks today). FLCI (a past pick) is medium-risk, consisting of medium-risk corporate bonds lasting 5-7 years. The most conservative is ZST.L which holds short-term bonds of 2.5% growth annually, slow, low but steady.

TOP PICK
He likes it to park money on it. Cheap. Very short term (less than a year) and investment grade. Paying around 3%. Comfortable place to be.
BUY
Park cash here for 6 months? Yes, it's good to do that, because interest rates are stable. Even if rates move, any losses you suffer will be very small.
BUY
It's an enhanced money market fund. The coupon distribution is actually higher than the yield to maturity so the price comes down. The price stabilized and he started buying it. There are no capital gains, however.
TOP PICK
He likes this better than bond mutual funds as the MER is more attractive. It is very short term duration and investment grade corporates with very low 15 bps MER. Yield (12 month) 3.5%.
COMMENT

This has lagged, because basically you are holding T-bills and equal-end type instruments. When you’re starting at 1%, there is not much room for price appreciation. This is more of a cash alternative as opposed to a bond alternative.

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