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3 Must Have Safe Stocks to Play DefensiveThis summary was created by AI, based on 1 opinions in the last 12 months.
The BMO Aggregate Bond Index (ZAG-T) is a comprehensive fund that provides exposure to a diverse range of Canadian bonds, including corporate debt. Experts have noted that Canadian interest rates have already seen declines, which might suggest that the impact of further rate cuts on the longer-duration bonds could be limited, mitigating potential losses. There is a shared concern about the allure of duration as an asset class, especially given the expectation of persistent inflation, which could hinder significant gains in bonds with longer maturities. This sentiment implies a cautious approach to investing in duration and suggests that investors should evaluate their positions in light of current economic indicators.
74% government bonds in Canada, rest in investment-grade corporate. Likes bonds at this stage, with interest rates calming and starting to come down. There will be small upticks pushing down the price of bonds, but up 6.6% in last 3 months. With yield plus potential for capital appreciation, makes sense to have as core part of your portfolio. Yield is 3.5%.
Canadian benchmark bond ETF. About 30% corporate bond exposure. Very cheap. Largest fixed income ETF in Canada now. 7-year average duration, so a better opportunity now than 1-2 years ago. Works for portfolio ballast. He recommends "barbelling" it in with some shorter-term fixed income exposure ETFs such as CASH or ZMMK.
With rates coming down, bonds are seemingly back in favour. He likes shorter- to medium- (7-10 years) duration bonds. This ETF follows that strategy. You'll see some performance if rates continue to move lower. Decent yield of 3.6+%.
If you want something without duration risk, you could look at shorter-term bonds with a floating rate. Shorter-term yields are higher than long at this point. But you won't get that lift if bond yields come down.
BMO Aggregate Bond Index is a Canadian stock, trading under the symbol ZAG-T on the Toronto Stock Exchange (ZAG-CT). It is usually referred to as TSX:ZAG or ZAG-T
In the last year, 3 stock analysts published opinions about ZAG-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 BMO Aggregate Bond Index.
BMO Aggregate Bond Index was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO Aggregate Bond Index.
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.
3 stock analysts on Stockchase covered BMO Aggregate Bond Index In the last year. It is a trending stock that is worth watching.
On 2025-04-11, BMO Aggregate Bond Index (ZAG-T) stock closed at a price of $13.765.
It holds all Canadian bonds, including corporate. Canadian interest rates have already fallen, and he expects inflation to be sticky. So longer-term duration bonds won't fall as much as they already have. He doesn't like duration as an asset class.