What Is ZDB?
BMO Discount Bond Index ETF has been designed to replicate, to the extent possible, the performance of the FTSE Canada Universe Discount Bond Index™, net of expenses. The Fund invests in a variety of debt securities primarily with a term to maturity greater than one year. The Fund invests in bonds with a coupon rate equal or less than 1.4 times the yield to maturity of the security. Securities held in the Index are a broad measure of the Canadian investment-grade fixed income market consisting of Federal, Provincial and Corporate bonds.
Set it, forget it, let compounding do the heavy lifting. 💪