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  5. ZLC: Hello 5i Guys I have GIC maturing soon and looking for substitute as rates are too low. [BMO Long Corporate Bond Index ETF]
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Q: Hello 5i Guys

I have GIC maturing soon and looking for substitute as rates are too low.

I've looked at ZCS and ZLC as replacement.

I understand Bond funds are not without risk compared to GCI

But do these 2 Bonds funds look like suitable (Low Risk) investments rather than a low rate GIC?

Thanks as ever
Ken
Asked by Kenneth on January 13, 2026
5i Research Answer:

ZCS yes, ZLC no. ZCS focuses on short term corporate bonds. Shorter maturities lessen rate sensitivity and the fund has been fairly stable. But ZLC is long term and more sensitive to rates, and is down 0.66% as a five year performance metric. It could do much better if rates fall, but we would not equate it with a GIC at all.  

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