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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Could a covered call fund on a major index ever stop paying dividends? I realize they could plunge 50% or more in value. Thank you.
Read Answer Asked by Jerry on March 19, 2020
Q: Thank You for continuing to be the voice of reason for the amateur like me!!

What ETF's are best for 5-10 year hold for the following markets
US S&P, UK, Germany, China, Russia, Asia (general), South America (general), Africa (general). Looking to take advantage of weakness and average in.
Read Answer Asked by Lorne on March 19, 2020
Q: Dear 5i
With the recent chaos in the markets i had gone to mostly cash but kept the bond ETF`s ( CLF , CBO , XBB , ZAG ) , only to watch them go down quite a bit as well . It's a bit concerning to think that i was well protected to the down side ( at least i thought i was ) , only to see bonds go down . You would think with interest rates going down ( generally good for bonds ) bond yields going down that bond prices typically go up . But such haven`t been the case . In light of all this should i be temporarily reducing my bond exposure or is the worse over do you think for dropping bond prices ?
Would appreciate your insight .
Thanks
Bill C.
Read Answer Asked by Bill on March 18, 2020
Q: XRB is 100% government bonds and is now trading at a substantial discount to NAV. How can this be as the bonds are all government issue and (hopfully) the government is not going to default? Is this another case of dumping anything for cash or is something else happening? Would you enter a small position here as hedge against inflation down the road?
Read Answer Asked by Ronald on March 18, 2020
Q: Hello,
Please comment on my logic based on relative beta's :

If I sell my holdings of XTR and buy equal amount of ZRE, in theory, is there more of a chance that in a market recovery, the overall return for ZRE will be higher simply because it fell more and can therefore rise more?

Or is that too simplistic considering there are so many moving parts?

Many thanks!
Read Answer Asked by Arzoo on March 18, 2020
Q: Would you have any recommendations for individual corporate bonds with decent yield to maturity for up to a 7-year term? Based on my research, yield remains low for decent quality. Thank you!
Read Answer Asked by Pierre on March 18, 2020
Q: Hello,

I am already knee deep in BMO covered call ETF's and down 20% - 30%.

I can dollar cost down and buy more , take the high yield and wait for price to rise
OR
Sell and move on (to what?)

I believe 5i is wary about buying covered call options during a crash due to limited upside potential.

What could I do at this stage to get income of an equivalent yield and possible upside?

Cheers
Read Answer Asked by Arzoo on March 18, 2020
Q: Can you explain the difference and which etf is which? I’m seeing conflicting info. I assume one is CAD hedged? If I think the USD rally has just about ran it’s course which should I buy? Thanks
Read Answer Asked by Scott on March 18, 2020
Q: I hear that those who make covered call ETF(s) are having a problem with the level of volatility. Do you understand what that means and whether that could cause some less liquid ones to dissapear, perhaps under a condition in their prospectus? I suppose black swan events like this one can make complicated products even more complicated to manage. Thank you.
Read Answer Asked by Matt on March 17, 2020
Q: Please recommend a CAD unhedged US tech ETF and CAD unhedged US industrial ETF or any ETF which has a combination of both and would you buy at this time? Long term hold (10+ years) and medium to high risk. Thanks.
Read Answer Asked by K on March 17, 2020
Q: The ETF Portfolios tend to indicate a preference for CDN Hedged ETF's. (XQQ; XHC). Do you still prefer CDN Hedged ETFs today? Can you suggest non-hedged alternatives?
Read Answer Asked by Joyce on March 17, 2020
Q: A friend tells me she has a mutual fund that attracts a capital gains tax every year even though she hasn't sold any units. I understand how that happens but I'm wondering: are there any equity mutual funds out there that won't attract capital gains tax (or losses) every year?
Read Answer Asked by Fred on March 17, 2020
Q: Hi there, just a follow up to my previous question. You mentioned a good strategy to get back into the market was to buy a 5% tranche on a 5% dip in the QQQ. If purchasing in Canada in a registered account, would ZQQ/ZNQ be good choices? Also, would you be doing 50/50 ZQQ/ZNQ split? Thank you!
Read Answer Asked by Michael on March 17, 2020
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