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BMO Floating Rate High Yield ETF (ZFH $15.07)
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BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY $11.23)
Q: Do you prefer ZFH or ZHY ?
5i Research Answer:
It is a call on rates, but ZHY 'should' do better if rates fall and corporate bond spreads tighten up. Meanwhile, ZFH could see lower interest earned as rates fall due to its floating rate positioning. So we would prefer ZHY today.