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

BMO Ultra Short-Term Bond (ZST.TO)

49.07

+0.02 (0.04%)

as of Sep 29, 2026, 7:59:59 pm Market Open.

66 watching

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.

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.

Showing 31 to 40 of 40 entries

Most Recent Experts

Colin Cieszynski

SIA Wealth Management

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

Paul Harris, CFA

Harris Douglas Asset Management

Jim Cramer - Mad Money

CNBC

Larry Berman CFA, CMT, CTA

ETF Capital Management Inc.

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

BMO Ultra Short-Term Bond (ZST.TO)