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Global X Canadian Select Universe Bond Index Corporate Class ETF (HBB $50.26)
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BMO Short Corporate Bond Index ETF (ZCS.L $25.76)
Q: Could you help me to understand ZCS.L - accumulating units - ie. the nature and merits of " accumulating units ".
From the BMO web-site , this ETF appears to be identical to ZCS -their S/T Corporate Bond ETF except that distributions are made only annually .
Is this correct ?
Is this the only difference ?
For someone who does not need / want the income from ZCS's monthly distribution but just some FI allocation , is this a better option ?
Chart suggests so .
And would it also be a better option in this respect than HBB which makes no distributions but has a much longer ( undesired ) duration ?
Thank-you for the clarifications
From the BMO web-site , this ETF appears to be identical to ZCS -their S/T Corporate Bond ETF except that distributions are made only annually .
Is this correct ?
Is this the only difference ?
For someone who does not need / want the income from ZCS's monthly distribution but just some FI allocation , is this a better option ?
Chart suggests so .
And would it also be a better option in this respect than HBB which makes no distributions but has a much longer ( undesired ) duration ?
Thank-you for the clarifications
5i Research Answer:
Yes, that is the only difference. Accumulating units enhance compounding through automatic reinvestment, reduce transaction costs from manual DRIP setups, and offer cleaner performance tracking without interim cash flows. They suit buy-and-hold investors prioritizing total return over income needs. It is different than HBB in terms of portfolio make up, but also has performed significantly better and we would consider it better today.