Do you have an opinion on owning BMO’s ZAG Bond ETF in the current economy?

Sorry to hijack the thread. All my bond ETFs including ZAG are down since rates started rising. I will not need these funds for at least five years. My plan is to continue to hold the bond ETFs and DRIP the distributions. Does this sound like a decent plan?

I think a fund like ZAG will come into play eventually for sure. Once we've witnessed the top in terms of rates, you'll likely start to see some stability in terms of bonds and other fixed income investments. And, when we start to see rate cuts, you'll likely see some increased demand for bonds, which should cause yields to drop and prices to rise. A fund like ZAG should benefit.

However, it all depends on when rates have topped and are expected to come down. With inflation still sticking around in the high 3% range, it is unlikely, but still possible, that rates continue to go upwards in an attempt to get inflation down. If that's the case, there will be more pressure on something like ZAG.

Solid fund, but I'd be looking for some sort of reassurance the rate cycle is over.