This summary was created by AI, based on 2 opinions in the last 12 months.
Experts are highlighting the diversified nature of iShares Diversified Monthly Income ETF, with a broad basket of equities and fixed income. However, concerns are raised about the bond portion and its vulnerability to potential inflation. Additionally, the impact of bank rate cuts is considered already priced into the balanced ETF, leading to limited upside potential.
Banks are cutting rates, which is a tailwind, but the market has already priced it into balanced ETFs like this. So, there's limited upside.
The bond markets are impaired and will be for a while. Low interest rates are here to stay. Income focused ETFs with exposure to bonds will not return 4-5%. Are you getting return of capital or yield? Must look into the structure where the returns are coming from. Both are similar. Both ZMI and XTR give you exposure to diversified income. All fixed income has negative return after inflation.
Does iShares collect an MER from all the other ETFs held within XTR? He's asked Blackrock this and, no, they're not double-dipping. Generally speaking, there's no question that MERs of ETFs will continue to decrease because of of competition among ETF compnaies. It's amazing how far they've fallen just in the past few years.
He loves the ETF because it gives you a balanced fund, is diversified, and has 20% US exposure in the high yield market. It yields about 5.5% to 6% so you are getting a payout of capital. You have to think about bond yields and credit risk and how they might increase. Think of it as a Canadian balanced fund. He prefers ZWC-T because it is covered call premium and not payout of capital that gets the yield up to where it is.
It is an actively managed income product. It is important to consider total returns over a period of time. It is designed to be a yield product. The managers have done well in navigating global market sell offs.
For short term holding? An interesting ETF, because it is quite seasoned and has a significant amount of assets. Historically, its origins were income trusts. This is an ETF of ETF’s, so if you really look at its sub holdings and go into its true underlyings, it has asset classes from all around the world. A good, one-time ticket for putting cash to work where you want yield. Dividend yield of 5.3%.
For revenue and safety of capital? A good holding, diversified and everything. Looking at the bigger picture with retirees facing an income crisis, he would favour a different approach. Rather than trying to source income from North America into domestic, he would favour looking further afield for income opportunities, and assemble a portfolio with a diversified yield. It could be an emerging market debt, a high dividend yielding country ETF. He launched this in 2008 and it has been a highly effective strategy.
You are looking for monthly income if you are buying something like this. If you own this, he would balance this with a couple of other positions, a covered call ETF on Canadian banks such as (ZWB-T) and ones on the Canadian utilities such as (ZWU-T).
iShares Diversified Monthly Income ETF is a Canadian stock, trading under the symbol XTR-T on the Toronto Stock Exchange (XTR-CT). It is usually referred to as TSX:XTR or XTR-T
In the last year, 2 stock analysts published opinions about XTR-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for iShares Diversified Monthly Income ETF.
iShares Diversified Monthly Income ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for iShares Diversified Monthly Income ETF.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered iShares Diversified Monthly Income ETF In the last year. It is a trending stock that is worth watching.
On 2024-12-13, iShares Diversified Monthly Income ETF (XTR-T) stock closed at a price of $11.36.
Broad basket of equities and fixed income. The one thing to keep an eye on is the bond portion. If we start to see inflation rear up again (because of US spending and tariffs), you might want to take your bond duration down, which you can't do with this ETF. Yield ~4.25%.