BMO Ultra Short-Term Bond

ZST-T

Analysis and Opinions about ZST-T

Signal
Opinion
Expert
COMMENT
COMMENT
December 20, 2019
These are very defensive short-term investments. Big assets manage these ETFs. ZST has a higher short-term yield although it is more risky. The risk is off-set by the term being very short.
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These are very defensive short-term investments. Big assets manage these ETFs. ZST has a higher short-term yield although it is more risky. The risk is off-set by the term being very short.
DON'T BUY
DON'T BUY
December 17, 2019
It's been treading water for many years. He holds little cash and urges anyone to take on more risk and invest. There are several ETFs like this out there.
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It's been treading water for many years. He holds little cash and urges anyone to take on more risk and invest. There are several ETFs like this out there.
BUY
BUY
November 25, 2019
Short-term outlook for ZAG, XBB, SXB, PMIF-- broad bond exposure ETFs? Better to look at HISA-like, ETFs, like ZST, which are like money market funds with high-income/yield above 2%. These (the ETFs the caller mentions) still carry some duration risk. He'd much rather be in a money market-like EFT fund.
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Short-term outlook for ZAG, XBB, SXB, PMIF-- broad bond exposure ETFs? Better to look at HISA-like, ETFs, like ZST, which are like money market funds with high-income/yield above 2%. These (the ETFs the caller mentions) still carry some duration risk. He'd much rather be in a money market-like EFT fund.
COMMENT
COMMENT
November 25, 2019
It buys bonds under 1-year maturity (but these bonds had a higher coupon many years ago, say 5% when yields were much higher). You still get that 5% coupon, but when that bond falls within a year, it becomes like a money market instrument with the bond likely trading at 1.03%--losing $3 in capital. So, there's a natural erosion, because all the bonds in the index have been premium ones, meaning the ETF is buying them above par. So, what you earn in fixed income is yield to maturity, not the coupon.
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It buys bonds under 1-year maturity (but these bonds had a higher coupon many years ago, say 5% when yields were much higher). You still get that 5% coupon, but when that bond falls within a year, it becomes like a money market instrument with the bond likely trading at 1.03%--losing $3 in capital. So, there's a natural erosion, because all the bonds in the index have been premium ones, meaning the ETF is buying them above par. So, what you earn in fixed income is yield to maturity, not the coupon.
TOP PICK
TOP PICK
September 17, 2019
Super-conservative growth, a slow, steady guaranteed return. It holds 43% banks. The chart is steadily upward. Defensive.
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Super-conservative growth, a slow, steady guaranteed return. It holds 43% banks. The chart is steadily upward. Defensive.
BUY
BUY
September 17, 2019

A low-risk ETF for a TFSA? Two (both being top picks today). FLCI (a past pick) is medium-risk, consisting of medium-risk corporate bonds lasting 5-7 years. The most conservative is ZST.L which holds short-term bonds of 2.5% growth annually, slow, low but steady.

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A low-risk ETF for a TFSA? Two (both being top picks today). FLCI (a past pick) is medium-risk, consisting of medium-risk corporate bonds lasting 5-7 years. The most conservative is ZST.L which holds short-term bonds of 2.5% growth annually, slow, low but steady.

TOP PICK
TOP PICK
June 3, 2019
He likes it to park money on it. Cheap. Very short term (less than a year) and investment grade. Paying around 3%. Comfortable place to be.
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He likes it to park money on it. Cheap. Very short term (less than a year) and investment grade. Paying around 3%. Comfortable place to be.
BUY
BUY
April 16, 2019
Park cash here for 6 months? Yes, it's good to do that, because interest rates are stable. Even if rates move, any losses you suffer will be very small.
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Park cash here for 6 months? Yes, it's good to do that, because interest rates are stable. Even if rates move, any losses you suffer will be very small.
BUY
BUY
April 15, 2019
It's an enhanced money market fund. The coupon distribution is actually higher than the yield to maturity so the price comes down. The price stabilized and he started buying it. There are no capital gains, however.
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It's an enhanced money market fund. The coupon distribution is actually higher than the yield to maturity so the price comes down. The price stabilized and he started buying it. There are no capital gains, however.
TOP PICK
TOP PICK
January 2, 2019
He likes this better than bond mutual funds as the MER is more attractive. It is very short term duration and investment grade corporates with very low 15 bps MER. Yield (12 month) 3.5%.
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He likes this better than bond mutual funds as the MER is more attractive. It is very short term duration and investment grade corporates with very low 15 bps MER. Yield (12 month) 3.5%.
COMMENT
COMMENT
January 27, 2015

This has lagged, because basically you are holding T-bills and equal-end type instruments. When you’re starting at 1%, there is not much room for price appreciation. This is more of a cash alternative as opposed to a bond alternative.

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This has lagged, because basically you are holding T-bills and equal-end type instruments. When you’re starting at 1%, there is not much room for price appreciation. This is more of a cash alternative as opposed to a bond alternative.

Joey Mack

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Price
$56.020
Owned
Unknown
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