These ETFs offer you a range of yield and risk

Article Excerpt

Here, we continue our look at fixed-income ETFs that provide investors with reasonable income in this low-interest-rate environment. Below, you’ll find funds focused on the Canadian universe of top-quality bonds from federal, provincial and corporate issuers. All of them pay fluctuating monthly distributions, but investors should be aware that their unit prices can go up or down with interest rates as well as the quality of the underlying corporate issuers. That will invariably impact your total return. BMO AGGREGATE BOND INDEX ETF $16.45 (Toronto symbol ZAG; TSINetwork ETF Rating: Conservative; Market cap: $5.1 billion) invests in a broad spectrum of Canadian bonds issued by federal and provincial governments, as well as corporations. Bonds with a term to maturity longer than one year qualify for inclusion. The fund holds its bonds until they have only one year left to maturity or are downgraded by rating agencies to below investment grade. Through the ETF, you directly invest in individual bonds, as well as other fixed-income ETFs…

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