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BMO Long Corporate Bond Index ETF (ZLC $15.20)
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iShares Core Canadian Long Term Bond Index ETF (XLB $18.64)
Q: XLB and ZLC are my primary bond holdings. With the rather abrupt steepening of the yield curve, would you recommend selling both of these and replacing them with shorter term funds ? If so, which funds would you recommend ?
Thanks,
Mark
Thanks,
Mark
5i Research Answer:
We are still OK with some long bond exposure, but we would prefer more diversity. Much will depend on one's weightings, but we think replacing one with XBB could make sense, and will allow for better diversification in the fixed income arena.