Larry Berman CFA, CMT, CTA BMO 2015 Corporate Bond Maturity ZXB-T COMMENT Feb 02, 2015

Basically this has a bunch of bonds that are essentially maturing in 2015, which they roll into T-bills. It’s almost like having the actual bond but you have a little bit more diversification.

BMO 2015 Corporate Bond Target Maturity ETF. Another category of bonds. It is not a ladder. Like a bond there is a fixed maturity date.

(A Top Pick September 17/12. Up 1.59%.) Likes this. To avoid the issue of premium priced bonds, as they roll into the next year, they start rolling out of those bonds and going into T-bills.

(Top Pick Oct 26/12, Up 1.53%) You are trying to avoid having bonds which were bought at a premium so when they mature you get a loss.