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  5. ZAG: In a registered account as a single long term etf for bonds is hyi an acceptable choice over zag? [BMO Aggregate Bond Index ETF]
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Q: In a registered account as a single long term etf for bonds is hyi an acceptable choice over zag? If interest rates go furhther up or down, is there more risk with hyi? These are currently showing monthly distributions of HYI: 6.72% and ZAG: 3.56%.
Retired investor...
Asked by Boyd on June 26, 2023
5i Research Answer:

We would prefer ZAG over HYI. ZAG offers a more diversified portfolio with varying degrees of maturity and creditworthiness. HYI will likely outperform ZAG when interest rates stall or decrease and vice versa when interest rates increase. Considering nothing else in the portfolio, we would side with ZAG. 

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