Q: Hello,
I own ZCS (ETF) for the fixed income portion of my portfolio and I was wondering if I should diversify in other names. Is there a specific risk of owning only one ETF for a large portion of a portfolio. I understand that ZCS is diversified in various names and sectors and uses DEX Short Corp. Bonds as benchmark. Would you have suggestions ? I know about CBO which seems OK. I prefer to stay in the short / medium term (5 year max) as I feel the risk/reward for long bonds is not very attractive if the interest rates do go up. I tried to find a low fee mortgage fund without success and my interest in government bonds is very limted (returns are too low).
I would appreciate your thoughts and thank you for offering a great service. Regards, Pierre
I own ZCS (ETF) for the fixed income portion of my portfolio and I was wondering if I should diversify in other names. Is there a specific risk of owning only one ETF for a large portion of a portfolio. I understand that ZCS is diversified in various names and sectors and uses DEX Short Corp. Bonds as benchmark. Would you have suggestions ? I know about CBO which seems OK. I prefer to stay in the short / medium term (5 year max) as I feel the risk/reward for long bonds is not very attractive if the interest rates do go up. I tried to find a low fee mortgage fund without success and my interest in government bonds is very limted (returns are too low).
I would appreciate your thoughts and thank you for offering a great service. Regards, Pierre