Q: Hello,
Can I please get your opinion of Evolve Canadian Aggregate Bond Enhanced Yld Fund ETF (AGG). Thank you
Dave
Can I please get your opinion of Evolve Canadian Aggregate Bond Enhanced Yld Fund ETF (AGG). Thank you
Dave
5i Research Answer:
AGG is a small ($52M) covered call bond fund. Fees are 0.60%. Yield 6.32% but one-year return 1.54%. It is 98% Canada and 74% government bonds. We have nothing against its holdings nor strategy, but it is small and has a short performance history. Bonds should do well if rates fall, but recent events could also hurt the sector if inflation rises with oil. Thus, we would see no big rush to buy this today and we would prefer to see how it performs in a different market environment.