Investment Q&A

Q: A current Globe article by Kevin Foley discussed "short-term investment grade prospectus credit funds" as a place to park cash that pays significantly more than money-market funds. Here are some highlights from the article:

-- A representative group of five of these credit funds averaged 6.3 per cent annually over the last three years and 5.0 per cent annually over five years., besting the usual funds by something like 2.5 %.
-- They buy an investment grade corporate bond and simultaneously short sell a government bond of the same tenor to eliminate the interest rate risk, thereby isolating the credit spread.
-- The average annualized standard deviation across this representative group of funds is 2.25 per cent - less than half the 5.18 per cent of the FTSE Canada Universe Bond Index, which most Canadians consider safe and not volatile.

In the article he does not make specific recommendations, just putting forth this list from the CIFSC:
https://www.cifsc.org/alternative-credit-focused/

I would appreciate your comments on this as a place to park cash, and wonder if there are any on this list that you might prefer, or if there are any to stay away from. Any reasoning for your choices would be most welcome.

Thanks!

Q: Hi! I recently sold a property in order to access regular income from the proceeds. I'd like to make 3% on an investment that pays on a monthly basis, and that has some potential for growth. If paying out on a monthly basis is too limiting, I can bridge for a quarterly dividend. I'd love to get your suggestions. Thanks!

Q: good evening,

All my investments are in north america, can you suggest ETF's in USD, no dividends, to cover other geographies that you deem fit to invest in at this time.

Many Thanks for all these years of profitable investing.
Growth has been amazing even with mistakes I made. Been hoarding way to much cash and thinking of using more ETF's to free up some time.

Thanks again! Been quite a journey! When you've been through the meat grinder repeatedly not as scary anymore. LOL
NEVER would've made it this far without 5i.

Q: Are Funds in the Alternative Credit Focused category a good and safe substitute for money market funds?

Q: I am trying to understand what's going on with HHL this year. It's the worst performing ETF in my portfolio, down 12% YTD, almost double the drop of the US-listed VHT which is in my taxable portfolio. HHL is held in RRSP, so no capital loss :( I am wondering whether to keep it for the income, or drop it and buy another healthcare ETF hoping that the healthcare will eventually recover and ETF like VHT will likely recover faster than HHL. Due to underperforming healthcare ETFs, my portfolio allocation in healthcare is now down to 6.5% from the 8% target. Any suggestions/thoughts?

Q: For international exposure in my portfolio - what would you consider the best ETF's for this. I presently own VEU (at around 10% of the portfolio) as I already have about 35% of portfolio in the US. Are there better options to get international exposure? What percentage of international exposure outside the US would be a good target?
Thanks for all your insights.

Q: My international holdings (ex-US) currently include positions in Germany, broader Europe, and Japan. I am specifically considering initiating or adding to positions in China-focused ETFs, such as MCHI (MSCI China), FXI (FTSE China 50), and KWEB (China Internet).
I would appreciate your perspective on the following:
- Geopolitical Stability: Given what appears to be a more predictable and stable global posture from China relative to the current erratic US Administration , do you view Chinese equities as a viable "hedge" or a diversifying force against U.S. domestic policy risk?
- Trump is to meet Xi in Beijing May 14-15. Given the erratic nature of relations, is it more prudent to initiate positions now while valuations are compressed—particularly in KWEB, which remains down ~17% YTD—or wait for clarity following the meeting?
- ETF Selection: Between the broad exposure of MCHI, the large-cap/SOE focus of FXI, and the tech-heavy KWEB, which vehicle do you prefer for a 12-to-24 month horizon? Furthermore, are there other US-listed China ETFs (e.g., ASHR for A-shares) that you believe offer better risk-adjusted exposure? :ao:

Q: I need to move most of my investment funds to high yielding stocks or funds. I am thinking in terms of managed ETF’s that pay elevated dividends, I also know they generate these via covered calls.

I already own JEPQ and previously JEPI. I would appreciate a list of 10 similar investments (if you can find that many) that have solid game plans and management to continue to deliver the same level of dividend for the next 3 - 5 years.

Thanks.

Q: Hi
I just saw a question regarding bonds. It is probably evident that I don[t understand bonds very well. But, I was wondering why you would recommend xbb rather than something like xsb. I know one is short term and one mid term, but I don't knowwhen to use each one
thanks

Q: What are your thoughts on ORBX ETF as a method to invest in this area. I already have a slightly underweight position in MDA Space Ltd and was looking to increase exposure in this sector and diversify more. Would there be a better alternative to achieve this? Either a couple of other stocks or a better ETF focused on this sector? Any thoughts?

Q: Thoughts about DRAM etf?

Q: REMX and REXC Could you compare these two, and is there a preferred one?

Q: In your opinion do you think TQCD and XDIV are tax efficient enough to hold in a CAD NonReg account? They appear to outperform XIU and VCE.

Q: Hello, I have a small position in above 3 ETFs. Since my portfolio is ~ 60% stocks and I am 73, I am searching for a couple CDN and US bond ETFs . I was looking @ XHY but you have issued a sell ..
How about 2-3 corporate and 2-3 Government US and CDN ETF's, please.?
Thank you
Carlo

Q: I’d appreciate your opinion on the iShares MSCI South Korea ETF (EWY). I suspect I may have missed a good entry point for the S Korean market as EWY is up nearly 70% YTD as of early May, hitting record highs above $160.
This rally appears to be a "perfect storm" driven by the global semiconductor cycle and South Korean companies (notably Samsung and SK Hynix). Although a little late, before initiating a position in EWY and/or its major components, I ask your insight on:
- Technical Extension: With EWY trading significantly above its 50-day and 200-day moving averages and the RSI signaling overbought territory, do you view this as a "blow-off top" or the start of a multi-year re-rating?
- Structural Reforms: To what extent is the government's "Corporate Value-Up Program" and the reduction in the "Korea Discount" providing a permanent floor for valuations? Is this a structural inflection point that justifies buying even at these levels?
- Risk/Reward: Would you consider the high momentum but "expensive" EWY over ETFs covering other regions, e.g. China or India?
- Outlook: For a minimum 2–3-year hold, is it more likely than not that I will see a significant pullback (10-15%) before further upside, or does the AI tailwind make waiting for a "dip" in South Korean AI-related companies a losing strategy?
I am not keen on chasing performance, but I recognize the demographic and technological strength of South Korea, especially after recently attending a med and science conference there. Would you initiate a modest position now, or is EWY a "wait for a pullback" candidate in your thinking? :ao:

Q: 2:15 PM 5/5/2026

Hello Peter.

I was quite interested to read Joseph's question today, May 5th and to study your answers and recommendations. It brought my attention the Hamilton Covered Call "MAX" ETFs which have attractive yields.

We have owned large positions in Canadian banks and utilities for decades mainly for the divided income but have never ventured to try covered calls on them so I was interested in HMAX and UMAX as a way of easing into this strategy to watch and learn about it without getting into the complexities of trading. We have always been buy-and-hold forever investors.

Questions

1. You said "Our covered call exposure is specifically to add tax-deferred income (ROC distributions)" so could you give some details on just what the distributions are and how they are taxed.... dividends, ROC, other?. Do the dividend incomes on the shares in the funds flow directly to the owner [me] as part of the distributions of the fund shares.

2. I presume that HMAX and UMAX are all Canadian for income tax purposes. Does this apply also to EMAX which is 79.7% in US? I do not want to own US stocks with all the taxation complexities and T1135.

3. Could you suggest a Canadian Covered Call ETF focused just on Canadian pipelines, midstream, and oil and gas production

Thank you........... Paul K.

Q: Hello 5i,

We have a combined position of 2% with XBM (25%), MP, 25%) and REMX (50%). Is there a stock or ETF that should be added to this suite as we may be light on copper, nickel, cobalt, or other minerals for battery and AI growth. If we were to increase the combined position to 3% or 4%, would you increase one more over the others?

Thank you
D&J

Q: hello 5i:
could you do a head to head comparison of SPYI (knowing you hold) and QDVO please.
From the perpective of a retired, moderate risk investor. I note there are no questions on QDVO.
thanks
Paul L

Q: Is there any nasdaq 100 or s and p 500 index or etf that can be bought in a tfsa account to avoid withholding tax ?Ty

Q: For a short time horizon - are there any strategies besides GICs, Government t-bills, HISAs, MMFs or Interest ETFs that you would consider?