Q: I currently own ZAG in a RRSP and wonder if you would add to this ETF at this time, I have a 3.5% weight. and looking at increasing to 6%.
Thanks
Thanks
5i Research Answer:
We can't comment on personal position sizes, but consider ZAG to be a good bond ETF, which should be able to perform better in a lower interest rate environment. It has not done much this year, but has an indicated yield of 3.62% and low fees. Aveage duration is ~7 years, so it should have decent upside leverage as rates fall. With 75% government bond exposure we would also consider it relatively safe.