BMO Ultra Short-Term Bond (ZST.TO)

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.