-
BMO Mid Corporate Bond Index ETF (ZCM)
-
BMO Mid Provincial Bond Index ETF (ZMP)
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
-
iShares 20+ Year Treasury Bond ETF (TLT)
Q: I am slowly working on reducing my exposure to the US$ given the recent commentary and negative sentiment. I am also questioning bond exposures given the Trump administrations decisions recently and hiccups it has been causing in the bond market. I have ensured the downside risk on long bonds and would like your take on the following:
1) If Trump causes crisis in the bond market which bond market and ETF would be least likely to be disrupted?
2) What is your take on the short and medium term risks to the bond market with Trumps economic non-strategy?
3) Is it a more reasoned decision to reduce bond exposures in favour of investing in shares of stable Canadian or European companies?
Thanks very much,
Dave
1) If Trump causes crisis in the bond market which bond market and ETF would be least likely to be disrupted?
2) What is your take on the short and medium term risks to the bond market with Trumps economic non-strategy?
3) Is it a more reasoned decision to reduce bond exposures in favour of investing in shares of stable Canadian or European companies?
Thanks very much,
Dave
5i Research Answer:
1) Of the list, ZMP would likely handle disruption best, being Canadian provincial obligations....
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.