BMO HighYield Corp Bond US Hedge to CAD ETF

ZHY-T

Analysis and Opinions about ZHY-T

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
July 23, 2019
Strategically the US high yield market and investment grade markets have been competing closely on yields. He is waiting to see better yields in the high yield space. It may take another year to go. The rates are just too low to go into at this time given the higher risk of default. He would be a buyer on a substantial sell off.
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Strategically the US high yield market and investment grade markets have been competing closely on yields. He is waiting to see better yields in the high yield space. It may take another year to go. The rates are just too low to go into at this time given the higher risk of default. He would be a buyer on a substantial sell off.
SHORT
SHORT
July 22, 2019
Strategy to hold this forever in a TFSA and RRIF and bought it for the yield. Will this strategy continue to work? It's not actively managed, but tracks a high-yield index. If there's a default, the ETF would kick out that bond. A massive credit bubble is building, and ZHY is a basket of the worst-quality bonds which pays a higher yield. The 5-6% yield is attractive, but this gives you equity-like exposure, so in a downtown this will fall hard, like 25-30%. However, it won't drop as far as market indices.
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Strategy to hold this forever in a TFSA and RRIF and bought it for the yield. Will this strategy continue to work? It's not actively managed, but tracks a high-yield index. If there's a default, the ETF would kick out that bond. A massive credit bubble is building, and ZHY is a basket of the worst-quality bonds which pays a higher yield. The 5-6% yield is attractive, but this gives you equity-like exposure, so in a downtown this will fall hard, like 25-30%. However, it won't drop as far as market indices.
COMMENT
COMMENT
July 15, 2019
In his TFSA for income. The prinicipal should be there upon maturity of each bond unless the issuer is in trouble. If the ETF is actively managed, this impact should be minimal. ZHY is exposed to the USD. The bond yields have been an attractive 5-6%. This trades like a stock, containing equity-like holdings. High-yield bonds are the basket of the worst corporations with poor balance sheets. The growth part of a TFSA should not be investing for yield. Hard to say if ZHY is appropriate in this context. But in a bear market, you'll lose 20% of value here.
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In his TFSA for income. The prinicipal should be there upon maturity of each bond unless the issuer is in trouble. If the ETF is actively managed, this impact should be minimal. ZHY is exposed to the USD. The bond yields have been an attractive 5-6%. This trades like a stock, containing equity-like holdings. High-yield bonds are the basket of the worst corporations with poor balance sheets. The growth part of a TFSA should not be investing for yield. Hard to say if ZHY is appropriate in this context. But in a bear market, you'll lose 20% of value here.
COMMENT
COMMENT
June 24, 2019
High yield bonds are an equity part of your portfolio even though they pay a dividend. It is a basket of the worst quality balance sheets in corporate North America. It is very high risk from a price perspective. The realized default rate even in the great recession was about 10% or so. So when the bonds do go bad, it is about 10% of the companies that are affected. So long as you think about it as an equity-like risk, then he has no issue with it. He has no issue with holding it indefinitely. This one is hedged to the Canadian dollar.
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High yield bonds are an equity part of your portfolio even though they pay a dividend. It is a basket of the worst quality balance sheets in corporate North America. It is very high risk from a price perspective. The realized default rate even in the great recession was about 10% or so. So when the bonds do go bad, it is about 10% of the companies that are affected. So long as you think about it as an equity-like risk, then he has no issue with it. He has no issue with holding it indefinitely. This one is hedged to the Canadian dollar.
DON'T BUY
DON'T BUY
November 19, 2018
ZJK-T vs. ZHY-T. High yield is a sexy name for junk bonds. They are the worst quality bonds. In a downturn these companies will not be able to pay back their bond holders first. If equities fall 20%, high yield bonds fall 13%. There is more risk for a portfolio.
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ZJK-T vs. ZHY-T. High yield is a sexy name for junk bonds. They are the worst quality bonds. In a downturn these companies will not be able to pay back their bond holders first. If equities fall 20%, high yield bonds fall 13%. There is more risk for a portfolio.
COMMENT
COMMENT
January 19, 2018

Which fund would you recommend for high-yield bonds? You are always dealing with US bonds in this. He would probably look at the ZHY as well as the XHY. You have to remember that you are not getting the same premium for high-yield that you used to. He would rather buy a Covered Call. He is not a big fan of high-yield stuff.

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Which fund would you recommend for high-yield bonds? You are always dealing with US bonds in this. He would probably look at the ZHY as well as the XHY. You have to remember that you are not getting the same premium for high-yield that you used to. He would rather buy a Covered Call. He is not a big fan of high-yield stuff.

DON'T BUY
DON'T BUY
June 26, 2017

ZEF-T vs. ZHY-T. The question is credit risk. You have emerging market risk with ZEF-T and so you get extra yield. When you do the correlation of the higher yield, they trade more like an equity than a bond. ZEF-T is an equity type risk, where as ZHY-T is more like fixed income. He does not think it is the time to step into either of these.

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ZEF-T vs. ZHY-T. The question is credit risk. You have emerging market risk with ZEF-T and so you get extra yield. When you do the correlation of the higher yield, they trade more like an equity than a bond. ZEF-T is an equity type risk, where as ZHY-T is more like fixed income. He does not think it is the time to step into either of these.

SELL
SELL
August 29, 2016

Don’t invest in it because it is ‘high yield’. You are investing in the worst companies that have not defaulted yet. There is more risk in these bonds. When the economy turns down, these companies will struggle. It will trade like equities. He thinks markets are much closer to a top than a bottom.

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Don’t invest in it because it is ‘high yield’. You are investing in the worst companies that have not defaulted yet. There is more risk in these bonds. When the economy turns down, these companies will struggle. It will trade like equities. He thinks markets are much closer to a top than a bottom.

COMMENT
COMMENT
April 25, 2016

Probably a good way to get exposure to the high-yield market, because it is extremely opaque. He currently has around a 10% weight in high-yield debt in his private client portfolios. High-yield in general has a strong risk adjusted return over a 5, 10, 20 year timeframe as an asset class.

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Probably a good way to get exposure to the high-yield market, because it is extremely opaque. He currently has around a 10% weight in high-yield debt in his private client portfolios. High-yield in general has a strong risk adjusted return over a 5, 10, 20 year timeframe as an asset class.

COMMENT
COMMENT
October 21, 2015

On the return on high-yield bonds, which he doesn’t like very much, you have to evaluate them as you would an equity as opposed to a bond. This is because of the default risks.

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On the return on high-yield bonds, which he doesn’t like very much, you have to evaluate them as you would an equity as opposed to a bond. This is because of the default risks.

WATCH
WATCH
February 23, 2015

High yield bonds with a currency hedge. He has no exposure right now. It is a nice yield, but with 20% of US fracking business in the high yield index, he stays out. He thinks this will re-test the levels from last year and that would be an okay time to step into it.

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High yield bonds with a currency hedge. He has no exposure right now. It is a nice yield, but with 20% of US fracking business in the high yield index, he stays out. He thinks this will re-test the levels from last year and that would be an okay time to step into it.

COMMENT
COMMENT
January 27, 2015

Like all high-yield markets, this is not about price appreciation, which is why this has probably traded sideways. However, while it has been trading sideways, it has been paying you about a 6% yield. This is an income strategy. 6% is a pretty good return compared to what the bond market has done in the last 5 years.

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Like all high-yield markets, this is not about price appreciation, which is why this has probably traded sideways. However, while it has been trading sideways, it has been paying you about a 6% yield. This is an income strategy. 6% is a pretty good return compared to what the bond market has done in the last 5 years.

COMMENT
COMMENT
November 5, 2014

BMO US High Dividend Covered Call (ZWH-T) or BMO High Yield Corp Bond US Hedge to Cdn (ZHY-T)? Corporate bonds are probably going to be riskier than covered calls. Covered calls gives you the guaranteed income and are more stable with regards to the underlying investments. The corporations are going to be giving a higher return if the market remains benign, but you are taking a risk in case we have a hike or there's a credit crunch with regards to those corporations. You don't need the hedging these days because the Cdn$ is, if anything, dropping. If you could get it with an un-hedged version, it would be better still. If he really had to choose, he would select the Covered Call.

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BMO US High Dividend Covered Call (ZWH-T) or BMO High Yield Corp Bond US Hedge to Cdn (ZHY-T)? Corporate bonds are probably going to be riskier than covered calls. Covered calls gives you the guaranteed income and are more stable with regards to the underlying investments. The corporations are going to be giving a higher return if the market remains benign, but you are taking a risk in case we have a hike or there's a credit crunch with regards to those corporations. You don't need the hedging these days because the Cdn$ is, if anything, dropping. If you could get it with an un-hedged version, it would be better still. If he really had to choose, he would select the Covered Call.

COMMENT
COMMENT
July 7, 2014

BMO US High Dividend (ZWH-T) or BMO High Yield Corp Bond US Hedge to CAD (ZHY-T)? He would grudgingly prefer the ZWH, but he really doesn’t like any products that are traditional income interest rate sensitive.

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BMO US High Dividend (ZWH-T) or BMO High Yield Corp Bond US Hedge to CAD (ZHY-T)? He would grudgingly prefer the ZWH, but he really doesn’t like any products that are traditional income interest rate sensitive.

HOLD
HOLD
November 22, 2013

This is a high yield fund so rising interest rates are not going to impact it that much. High yields are much more correlated to equity market performance than it is to bond market performance. This one should do okay. 6.3% yield.

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This is a high yield fund so rising interest rates are not going to impact it that much. High yields are much more correlated to equity market performance than it is to bond market performance. This one should do okay. 6.3% yield.

Showing 1 to 15 of 23 entries

BMO HighYield Corp Bond US Hedge to CAD ETF(ZHY-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 2

Stockchase rating for BMO HighYield Corp Bond US Hedge to CAD 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 HighYield Corp Bond US Hedge to CAD ETF(ZHY-T) Frequently Asked Questions

What is BMO HighYield Corp Bond US Hedge to CAD ETF stock symbol?

BMO HighYield Corp Bond US Hedge to CAD ETF is a Canadian stock, trading under the symbol ZHY-T on the Toronto Stock Exchange (ZHY-CT). It is usually referred to as TSX:ZHY or ZHY-T

Is BMO HighYield Corp Bond US Hedge to CAD ETF a buy or a sell?

In the last year, 2 stock analyst published opinions about ZHY-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is BUY on WEAKNESS. Read the latest stock experts' ratings for BMO HighYield Corp Bond US Hedge to CAD ETF.

Is BMO HighYield Corp Bond US Hedge to CAD ETF a good investment or a top pick?

BMO HighYield Corp Bond US Hedge to CAD ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO HighYield Corp Bond US Hedge to CAD ETF.

Why is BMO HighYield Corp Bond US Hedge to CAD 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 HighYield Corp Bond US Hedge to CAD ETF worth watching?

2 stock analyst on Stockchase covered BMO HighYield Corp Bond US Hedge to CAD ETF In the last year. It is a trending stock that is worth watching.

What is BMO HighYield Corp Bond US Hedge to CAD ETF stock price?

On 2020-05-29, BMO HighYield Corp Bond US Hedge to CAD ETF (ZHY-T) stock closed at a price of $12.52.