Security: BMO Long-Term US Treasury Bond Fund ETF
Country / Currency: Canada
Portfolios: Greedy Grower & Retired Grower
Account Preference: registered account
Portfolio Category & Quantity: Fixed Income
- Purchase Amount: 2.2% of portfolio holdings
- Grower: Pre-purchase 19% of portfolio is made up of Fixed Income; Post purchase = 21.2% Fixed Income
- Retired: Pre-purchase 17%; Post 19.2%
Order: Limit – Buy order / Units @ $55.34 [Buy under $58.11]
Now we wait to see the order fill…
An ALERT UPDATE will be issued when the order fills
- LONG U.S. FEDERAL GOVERNMENT (TREASURY) BOND ETF – FIXED INCOME
- Dividend or Yield = 2.6%
- Duration 18 years
- MER = 0.23%
Potential Future Action:
- The Greedy Farmer expects to place another order after the U.S. Fed meetings, mid week
- The expected hold period is 12 – 18 MONTHS
- 5% of $1,000,000.00 is $5,000.00
- The Greedy Farmer often splits stock purchases between registered and non-registered accounts to give more flexibility in managing tax, this will be indicated by a “T” – TFSA, “R” – RRSP, “UR” – US RRSP, or “C” – CASH in the account type column of the portfolio. In this case, I am reasonably confident in the position so will invest in a registered account.
- Long bonds are inherently risky as a small interest rate change creates a large price change.
- The price of this holding will increase if U.S. government long dated bond yields fall
- The price of this holding will increase if the Canadian dollar falls
- The two above situations may act in opposition to each other in the short term
Good Investing & Stay Greedy!
I should remind you, I remain proudly greedy while investing and do my best to give back to the community during other activities. In no way does being a Greedy Investor make you less able to be charitable, philanthropic, kind, helpful, generous, even nice in all your other activities. Being a greedy investor actually allows you to be more charitable! For more of my thoughts on this topic and ESG Investing, select the My Philosophy tab.