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BMO Mid-Term US IG Corporate Bond Index ETF (ZIC $19.10)
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Lysander-Canso Broad Corporate Bond Fund Series A (LYZ811A $11.14)
Q: Hi,
Can you please comment on this fund and suggest any alternatives in the ETF world with similar exposure but perhaps lower fees? If a similar ETF exists, what would you recommend?
Thank you. Michael
Can you please comment on this fund and suggest any alternatives in the ETF world with similar exposure but perhaps lower fees? If a similar ETF exists, what would you recommend?
Thank you. Michael
5i Research Answer:
LYZ811A has fees of 1.43%, about $350M in assets, and invests in a diversified portfolio of corporate bonds with decent ratings. It is 85.4% invested in the US right now so there is currency exposure here. Average duration is 5.6 years. Five year annualized is 2.8%, since-inception return is 3.5%. It lost money in 2018 (0.5%) and 2022 (4.1%) like many bond funds did. There are many US-traded alternatives, but if one wants a Canadian listed ETF then ZIC looks the most similar. Duration is very close. It is all US but LYZ is not really a global fund. Performance has been similar but ZIC has significantly lower fees of 0.28% which should result in better performance over time.