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BMO Low Volatility Canadian Equity ETF (ZLB)
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BMO Ultra Short-Term Bond ETF (ZST)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Hello, which fixed income: ETF/Bond/GIC investments would work best under current economic conditions of lower rates coming from the US FEDS and Canada.? And, do you suggest staying short or long? .. Of course the lowest possible risk.
Thanks
Carlo
Thanks
Carlo
5i Research Answer:
Under expected conditions (lower rates but still with inflation concerns) the lowest risk ETF of those listed would be ZST, followed by XBB, XHY and ZLB. We would side with staying on the short end of the curve. Investors may give up a bit of upside with this, but if inflation does pick up they will be more protected if rates do not fall.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.