BMO Short Term Provincial Bond ETF

ZPS-T

Analysis and Opinions about ZPS-T

Signal
Opinion
Expert
WEAK BUY
WEAK BUY
February 10, 2020
Short provincial ETF. With Provincial bonds you get a little bit of pickup vs. Federal. He prefers ZPL-T for long provincials as opposed to short. He wants more long bond exposure.
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Short provincial ETF. With Provincial bonds you get a little bit of pickup vs. Federal. He prefers ZPL-T for long provincials as opposed to short. He wants more long bond exposure.
COMMENT
COMMENT
August 20, 2019
When rates go up, bonds prices fall, and vice-versa. Because this is on the short end of the spectrum it's less sensitive. BMO has a grade of 9 products for the 3 major exposures (corporate, provincial and federal bonds) and the 3 major terms lengths (short-term 0-5 years, medium-term 5-10, and long-term 10 and above). BMO's aggregate bonds until recently, ZAG, was made up by mixing those 9 products, they've started to unwrap that and now they owns the bonds directly. You need to look at the yields to maturity and total return chart. Many bonds are trading at a premium of their par-value, and if this ETF is rolling those bonds its net asset value is going to decate over time even if you are collecting a coupon that compensates you for that. So not very tax-efficient. ZPS is probably one of the better ones since it doesn't have those medium or long-term bonds. Provincial bonds are in between, they have medium risk in the world of fixed-income investing. For a core bond holding you might want to have ZAG which has a 7-8 year duration and mix in a little bit of the short-term. Maybe a little too sensitive to interests rate but not the case if you are banking on them falling and you want to participate in the price appreciation.
Show full opinionHide full opinion
When rates go up, bonds prices fall, and vice-versa. Because this is on the short end of the spectrum it's less sensitive. BMO has a grade of 9 products for the 3 major exposures (corporate, provincial and federal bonds) and the 3 major terms lengths (short-term 0-5 years, medium-term 5-10, and long-term 10 and above). BMO's aggregate bonds until recently, ZAG, was made up by mixing those 9 products, they've started to unwrap that and now they owns the bonds directly. You need to look at the yields to maturity and total return chart. Many bonds are trading at a premium of their par-value, and if this ETF is rolling those bonds its net asset value is going to decate over time even if you are collecting a coupon that compensates you for that. So not very tax-efficient. ZPS is probably one of the better ones since it doesn't have those medium or long-term bonds. Provincial bonds are in between, they have medium risk in the world of fixed-income investing. For a core bond holding you might want to have ZAG which has a 7-8 year duration and mix in a little bit of the short-term. Maybe a little too sensitive to interests rate but not the case if you are banking on them falling and you want to participate in the price appreciation.
COMMENT
COMMENT
November 17, 2009
Short Term Provincial Bond ETF. Safer than corporate and more zip than federal but not significantly so. He would still prefer the corporate side.
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Short Term Provincial Bond ETF. Safer than corporate and more zip than federal but not significantly so. He would still prefer the corporate side.
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BMO Short Term Provincial Bond ETF(ZPS-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for BMO Short Term Provincial Bond ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO Short Term Provincial Bond ETF(ZPS-T) Frequently Asked Questions

What is BMO Short Term Provincial Bond ETF stock symbol?

BMO Short Term Provincial Bond ETF is a Canadian stock, trading under the symbol ZPS-T on the Toronto Stock Exchange (ZPS-CT). It is usually referred to as TSX:ZPS or ZPS-T

Is BMO Short Term Provincial Bond ETF a buy or a sell?

In the last year, 1 stock analyst published opinions about ZPS-T. 1 analyst recommended to BUY the stock. 0 analyst recommended to SELL the stock. The latest stock analyst recommendation is WEAK BUY. Read the latest stock experts' ratings for BMO Short Term Provincial Bond ETF.

Is BMO Short Term Provincial Bond ETF a good investment or a top pick?

BMO Short Term Provincial Bond ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO Short Term Provincial Bond ETF.

Why is BMO Short Term Provincial Bond ETF stock dropping?

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.

Is BMO Short Term Provincial Bond ETF worth watching?

In the last year, there was no coverage of BMO Short Term Provincial Bond ETF published on Stockchase.

What is BMO Short Term Provincial Bond ETF stock price?

On 2020-04-08, BMO Short Term Provincial Bond ETF (ZPS-T) stock closed at a price of $13.43.