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  5. ZMU: For a conservative investor with a 50/50 portfolio (seeking a 4% yield), what percentage of Fixed Income would you place in short and medium term US corporate Bonds? [BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF]

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Q: For a conservative investor with a 50/50 portfolio (seeking a 4% yield), what percentage of Fixed Income would you place in short and medium term US corporate Bonds? US PCE is stuck at 3%, while Canadian inflation is almost at target. My thesis is this presents a decent opportunity if there is any improvement in American inflation...while Canadian Bonds already have lower inflation priced in. Even if I'm wrong, does it still makes sense to have some US Bonds for diversification? Thanks as always.
Asked by Curtis on February 24, 2026
5i Research Answer:
We think US bonds can help with diversification. Of course, this diversifies currency as well....
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