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  5. ZAG: I hold 2 bond funds in my RSP, ZAG and BND. [BMO Aggregate Bond Index ETF]
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Q: I hold 2 bond funds in my RSP, ZAG and BND. Both bought last summer after a GIC matured and I didn't want to lock in funds again at that time. Both ETFs are slightly under water on the stock price, and getting worse. Interest payments don't do much more than make me even. With a low yield (esp. ZAG), market movements can be a killer and has me thinking a money market type fund might have been better, despite lower yields still. I know you seem to think rates will be coming down - which I assume will be a plus - but the market seems to be pointing the other way. Questions:
1) would you continue to hold these funds
2) do these complement each other, which was my thinking
3) do you see either of these funds changing their monthly payments
4) are there better alternatives
Thank-you
Asked by grant on March 10, 2026
5i Research Answer:

With bonds, we would focus long-term and also that they help diversify and balance a total portfolio. In a good market, they can be frustrating to hold, but in a bad market they are often much more appreciated. They also offer a source of cash to reinvest if/when that bad market comes. Overall, we think fixed incom typically has a place in a portfolio.

On BND and ZAG, these are diversified bond funds that we wouldn't be too concerned with. 

ZAG covers the Canadian space and BND cover US, so we do think they are complimentary and make sense 'together'. 

The monthly payment can change over time but we would not expect material shifts here. 

If wanting something with a bit more yield, it could make sense to add in something like CPD or XHY with the caveat that they are higher risk. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD, XHY.

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