Investment Q&A

Q: I have been gifted this bond ETF in a margin account. I know little about bonds, and wondered if I should keep this ETF or if there is another bond ETF that you would recommend in this challenging economic climate? Thanks for all your guidance during these unprecedented times.

Q: I am looking to add some bond exposure. I had a look at TLT and XHY.

Here is my own personal view on the economy:

- Interest rates could eventually flatline or even fall later in 2023.

- The economy has a somewhat elevated risk of going into a recession.

- The interest rate hikes have a risk of causing "something to break", possibly triggering a black swan event.

Under the above scenarios I am guessing XHY is not a good option considering the individual ratings of the bonds within this ETF, correct?

I don't necessarily want to invest in preparation for a black swan event that may or may not happen, however I want to prepare a bit for that possibility. If that were to happen I would guess that investors would tend to migrate towards the USD. Would that be beneficial for TLT?

Are there better options?

Q: Happy New Year to all at 5i!!!!! I have both of these ETFs in an unregistered account. I have held them for a while. XWD seems to be out performing XEF. I am tidying up my portfolio and am contemplating conglomerating XEF with XWD, and I would welcome your thoughts on this move.

Cheers,
Tamara

Q: Good morning and happy holidays to the whole 5i team. If you were looking to invest in the potential of India having an economic push like China had what ETF's or companies would you consider and what account would you hold them in? I am thinking long term.

Thank you

Q: We have been keeping in cash the proceed of the sale of a condo. what would you suggest for a conservative growth ETF in canadian currency. That would represent 10% of our equities holdings. Looking for more growth than yield, as this would be in a non registered account. We would like something all in one, as I do not want to add more names to the list of equities we have.

Q: Can you please provide your preferred Emerging Markets ex. China ETFs that are available in Canada? Two names will be sufficient.

Thanks as always for your expertise.

Q: I must be missing something
You state
PSU.U has an AUM of $476M, an MER of 0.17%, monthly distributions with an annual yield of 4.5%,

But the profile shows a yield of 1.8

Q: US stocks in my RRSP: I strongly believe that 2023 shall be another year with high volatility, for numerous reasons (world economy ,geostrategic factors,debts,China
slowdown,etc..).In this perspective,I increased the proportion of US covered call ETF using call options on 100% of portfolio in order to : 1) reduce volatility et 2) maintain significant dividends during this coming period.When the market will stabilise ,I will reduce the % of these ETF in order to increase the % of Cies stocks and of "conventional ETFs".Please comment this strategy ,plus your point of vue will be appreciated since I know that "no one can predict the future" ! regards,J-Y

Q: What is the best ETF as savings account for US dollars?

Q: I completed the Portfolio Analytics Tool and uploaded my own holdings. It suggested I should invest in 30 percent fixed income - I’ve spent my investment years in the equity market - any suggestions for this asset class such as which bonds, what terms, etc… ?

Q: Regarding the T1135 form, my understanding is that by owning both ILF (U.S. ETF) and Vale (ADR), they would need to be declared (i.e. not exempt from reporting) above the $100,000 threshold correct? I believe this is true unless they are held within an RRSP or a TFSA, in which case both would be exempt.

On the other hand, ETF's with foreign holdings that are created by Canadian institutions such as the BMO's ZEM would also be exempt from reporting, even if that one was held within an open account.

If the above is true, is there a Canadian-based alternative to the ILF ETF ? I would like to have some exposure to Latin America. ZEM, for instance, has holdings I'm not really interested in.

Q: CAN I HAVE YOUR THOUGHTS ON VTIP.US

Q: On 5i website the yield for CASH:ca is indicated as 2.298% whereas the Horizons website indicates 4.78% gross yield. Could you please explain the discrepancy of ~2.5%.
Thank you

Q: I have held BEP preferred shares in an RSP for quite awhile and done well with them, but have concern over the potential new US tax implications. Despite the company assurances, I think I would sleep better just being out of BEP. After the dividend this month, my plan is to sell the shares. I am looking at ZPR, which has a somewhat similar yield, and would be much easier to trade. What do you think of ZPR and its dividend sustainability? Recognizing that preferreds have not done too well overall, would you prefer to move into something else?

As an aside, apparently the US attack on limited partnerships includes those held in an RSP. Isn't there a tax treaty that prevents this?

Thank-you, Grant

Q: Strategy Question

If I had 200 - 300 000 in savings meant for a home purchase down payment in the next 1-3 years. I would be in the highest tax bracket. Besides GIC's what do you suggest parking this money in, what are safe and tax efficient alternatives.

Q: Can you DRIP the etf XIU?
Thanks
Dave

Q: Hello 5i. Accepting the premise that stocks are going to enter a bear market, how do you expect commodities to perform? It seems they are generally inversely correlated?

If one wanted to invest on this theory, what commodity ETFs would you recommend?

Thanks! And Happy New Year.

Q: I received a Dividend Distribution Reminder from RBC regarding a NNRG dividend...$4.18/share. Ex-div date of Dec 29/22 and payment date of Jan 09/23. I've kept the email and reread it several times.

I would have expected the share price to drop roughly $4/share on Dec 29, but I have seen no share price movement anywhere near that level.

Can you shed some light on this? I have gone to Eric's website and see no dividend notifications. Could this be a mistake somewhere in the RBC system (doubtful)? Or...is there a chance I might receive the cash equivalent of the dividend on Jan 09/23 (I know...pipe dream)?

Confused...thanks for your help...Steve

Q: Hello 5i,
Can you explain what looks like a 20%+ drop in price on Dec.28 for KRBN? I haven’t seen any news for such a large drop.
Thank you
Dave

Q: My portfolio tracking analysis suggested I purchase fixed income assets - as much as 30 percent. Do you have any suggestions where to start - as I’ve always traded in equities. Are there corporate bonds I should purchase if so what timeline? Or simply ETFs which would be preferred and which ones?