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Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

The BMO Floating Rate Hi Yield ETF (ZFH-T) has received mixed reviews from experts regarding its risk profile and performance. While one expert believes it has an unjustifiably high-risk rating, pointing out its low standard deviation and pure credit play nature, others express concerns about the asset value declining despite steady distribution yields. The fund's performance tends to benefit from rising yield environments, with a current earning rate of approximately 5.5%. However, there are warnings about the tight credit spreads, indicating potential risks, especially during economic downturns. Experts suggest that while the fund mitigates interest rate risk, investors should consider alternatives such as private mortgage companies for better diversification and yield protection.

Consensus
Mixed
Valuation
Fair Value
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We would be comfortable with ZFH. Floating rate bonds, of course, may see lower distributions if rates fall, but do offer protection in the opposite scenario. Indicated yield is 5.64% and one year return +8.48%. We would consider it a solid, fairly conservative ETF for income. Fees are 0.45%.
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HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We would be comfortable with ZFH. Floating rate bonds, of course, may see lower distributions if rates fall, but do offer protection in the opposite scenario. Indicated yield is 5.64% and one year return +8.48%. We would consider it a solid, fairly conservative ETF for income. Fees are 0.45%. 
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BUY
Has a high-risk rating

It shouldn't have that rating. It's a pure credit play, netting out the interest rate risk, and has a low standard deviation. But it pays a high yield, so maybe it get a higher risk rating. There's a little more risk here among ETFs, but not high risk like an equity.

COMMENT

He owns a similar one. You are getting the distribution but the asset value is sliding.

SELL

Floating rate notes tend to do very well in general when yields are rising. No price change over the last 5 years, but you're earning about 5.5% right now. Doesn't love that credit spreads are really tight, and that this brings the risk of high yield. This fund won't protect you from widening credit spread in a hard landing, so you have more risk than you think.

Have a look at private mortgage companies and residential exposure -- better protection, diversification, and yield.

BUY

They use a derivative structure to get pure credit exposure, but credit spreads are tight. However, it mitigates the interest rate risk.

DON'T BUY

Not a good option if we head into recession. Would not recommend buying. Not a good defensive name. Products are too complex for average investor. 

COMMENT

ZFH-T is exposure to short-term high yield credit using a swap strategy to mitigate the interest rate risk. You still get credit risk. ZHY trade more like equities than bonds. People are seeking the higher yields. A floating rate note mitigates the interest rate risk only.

COMMENT
The general rules is that if you think interest rates will rise, you want exposure to floating rate bonds. You may see some movement in terms of the bond markets pushing yields higher. However, the world probably works only in a low interest rate environment right now in the short term.
COMMENT

4.9% yield. Holds exposure to a high yield index so you get a high yield return. There are risks. It is very similar to the volatility of the market.

COMMENT

Floating rate gives you the resetability when interest rates change. It is a good way to mitigate the downside when interest rates change, although he does not see them changing over the next year or so. You are getting a lower return on this one as well. There are a lot of pros and cons – it depends on the investor’s situation.

DON'T BUY

Floating rate high yield. Chart is almost flat. You are waiting for central banks. You will wait for another year. It is dead money for a while.

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BMO Floating Rate Hi Yield ETF(ZFH-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 7

Stockchase rating for BMO Floating Rate Hi Yield 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 Floating Rate Hi Yield ETF(ZFH-T) Frequently Asked Questions

What is BMO Floating Rate Hi Yield ETF stock symbol?

BMO Floating Rate Hi Yield ETF is a Canadian stock, trading under the symbol ZFH-T on the Toronto Stock Exchange (ZFH-CT). It is usually referred to as TSX:ZFH or ZFH-T

Is BMO Floating Rate Hi Yield ETF a buy or a sell?

In the last year, 7 stock analysts published opinions about ZFH-T. 3 analysts 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 BMO Floating Rate Hi Yield ETF.

Is BMO Floating Rate Hi Yield ETF a good investment or a top pick?

BMO Floating Rate Hi Yield ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO Floating Rate Hi Yield ETF.

Why is BMO Floating Rate Hi Yield 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 Floating Rate Hi Yield ETF worth watching?

7 stock analysts on Stockchase covered BMO Floating Rate Hi Yield ETF In the last year. It is a trending stock that is worth watching.

What is BMO Floating Rate Hi Yield ETF stock price?

On 2025-04-01, BMO Floating Rate Hi Yield ETF (ZFH-T) stock closed at a price of $14.62.