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Opinions Tyler Mordy
BMO Ultra Short-Term BondZST.TODON'T BUYDec 17, 2019
It's been treading water for many years. He holds little cash and urges anyone to take on more risk and invest. There are several ETFs like this out there.
Tyler MordyUnknown
$50.89
Stock price when the opinion was issued
$49.12
As of Jun 19, 2026. Market Open.
E.T.F.'s
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BUY
Short-term outlook for ZAG, XBB, SXB, PMIF-- broad bond exposure ETFs? Better to look at HISA-like, ETFs, like ZST, which are like money market funds with high-income/yield above 2%. These (the ETFs the caller mentions) still carry some duration risk. He'd much rather be in a money market-like EFT fund.
E.T.F.'s
COMMENT
It buys bonds under 1-year maturity (but these bonds had a higher coupon many years ago, say 5% when yields were much higher). You still get that 5% coupon, but when that bond falls within a year, it becomes like a money market instrument with the bond likely trading at 1.03%--losing $3 in capital. So, there's a natural erosion, because all the bonds in the index have been premium ones, meaning the ETF is buying them above par. So, what you earn in fixed income is yield to maturity, not the coupon.
E.T.F.'s
TOP PICK
Super-conservative growth, a slow, steady guaranteed return. It holds 43% banks. The chart is steadily upward. Defensive.
John DeGoeyOwned
E.T.F.'s
TOP PICK
He likes it to park money on it. Cheap. Very short term (less than a year) and investment grade. Paying around 3%. Comfortable place to be.
John HoodOwned
E.T.F.'s
TOP PICK
He likes this better than bond mutual funds as the MER is more attractive. It is very short term duration and investment grade corporates with very low 15 bps MER. Yield (12 month) 3.5%.
John HoodOwned
E.T.F.'s
