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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: A comment on ZST. The annual distribution looks good indeed at around 3.7%, but the weighted average yield to maturity is reported as 1.49% and the annualized performance is just 1.63% over the last three years. This asset has lost around 2% on its price every year. And capital losses yield lower tax benefits than taxable other income gains. One can do better on a net basis with a GIC.
Read Answer Asked by Philip on June 01, 2017
Q: Hi - I recently came into some cash - and am looking for a safe place to park it and hopefully earn a little more than a GIC. This ETF was in Rob Carrick's column in Globe&Mail a few weeks back - it has a dividend of approx 3.7%. I am wondering what the downside is.. I know it is interest rate sensitive, also trading is light. What are your thoughts and do you have any other recommendation?
Read Answer Asked by Julia on June 01, 2017