Q: Peter; I’ve read the replies on both- what is the difference between the two - XCB seems to have performed better over the year. Thanks.
Rod
Rod
5i Research Answer:
The main difference is duration. XCB focuses on long term corporate bonds and ZLC is more balanced. Duration on XCB is close to 12 years; ZLC is below six years. The performance difference makes sense as long bonds are more sensitive to interest rates, and higher rates are not good for long duration bonds.