Investment Q&A

Q: ..thinking American midterm elections may be a catalyst if Dems win and dampen the economic momentum (and associated rate increases) going forward...under that scenario do you think utilities would be a good place for relative safety, yield and a possible rebound? thanks.

Q: Please comment on my perspective below. Am I wrong?

A bond matures and you get a known amount of principal back (on top of the distributions paid out along the way). As such it provides a safety component in your portfolio. The safety comes from NOT being at the mercy of the market (all you have to do is wait till it matures).

A bond ETF does not do this. The principal you put into it is eternally at the mercy of the current market price of that ETF. Even when any bond matures, the ETF just goes out and buys more bonds at current market prices. Therefore it does not return a known amount of principal as a bond would. The whole concept of "maturity" or "yield to maturity" disappears. So these ETFs are a lot more like equities than bonds. If people are following advice about the percentage to allocate between bonds and equities, in my opinion it is a mistake to treat the bond ETFs as in the bond category.

(The exception to the above being "target date bond etfs which do mature and return your principal").

Q: Is this a good time to invest in Biotechnology?
What do think about the IBB ETF?
Thank you.

Q: How do I buy bonds? Can I achieve the same goal through ETFs?

Q: Hi All at 5i! I am working at establishing a more stable portion to my portfolio in the form of bond and preferred ETFs. I require four that pay me a dividend and have so far chosen CPD, XHY and CBO and would welcome a fourth ( or more) suggestion. Could you please help me with this. Cheers, Tamara

Q: I am considering holding VFV and XQQ in my personal unregistered accounts because they produce dividends. I could borrow money to invest in them and write off the interest. On the other hand, would it make sense to put HXS and HXQ in my passive corporation (no active income) as these two produce only capital gains and no distributions? Is there a big difference in dividends earned in a passive corp vs
personally? Also all of these will not count towards the T1135 limit. Any thoughts?

Q: I am considering adding these two to my non-registered account. This would be in CDN $ and no tax T1135 forms. My question is what year end tax paperwork do these products have? such as ROC, T3, T5. I'm guessing they have T5's which is fine, but I sold my REITS in my non-registered accounts due to the late paperwork. I do not want to repeat this mess.

Q: I'm retired and have no fixed income in my portfolio.
I would like to switch about 15% of my investments into fixed income. I have read all the questions regarding MFT but am looking for a few more ideas with as much return as is prudently possible.
I spend time in the U.S., so an idea or two there would be a great help, as well.
Thank you, in advance.

Q: Best Cdn oil company to own if oil increases over $100?

Q: Hi,

I've got about 6k in my kids' RESP and would like to take advantage of the current market conditions to deploy the cash.

The RESP currently holds BAM (@13%), Sentry US Growth Mutual fund (@ 38%), Invesco Global fund (@30%) with cash making up the difference (@ 20%).

I'd like to add a tech position and would like your opinion on whether to buy a hedged ETF or un-hedged - specifically XQQ or QQQ, or other? This account is a buy and hold with a long term (10 yr +) horizon.

Thx.

Q: Hello 5i Team,

For international emerging market exposure, I hold some funds in the Ishares India Index ETF, which has been brutalized of late, (along with other emerging market equities). I'm slightly above water on this holding at the moment, but the trend line is down. Do you think there is decent chance of recovery in the medium term, or is it time to bail. Thanks.

Brad

Q: It seems like FLOT, MFT have not seen the dramatic price drop as XBB and CBO even though XBB and CBO have the lower yield. Could you comment as to why? For new money in the present market what would you suggest? Thanks for your service.

Q: Does Horizons or similar company have a tax deferred ETF that would be similar to VGG. I understand HXS does for US exposure, though I am interested in one that focuses on dividends which are only taxed as capital gains once the stock is sold. Thank you for your service.

Q: Good Day to you All
Would you consider this ETF as a good place to be in the present stock market
thanks in advance for your advice georges

Q: Given current valuation of US market, from risk/reward perspective I wonder if European market is more attractive to invest (Brexit impact?)If yes, which sector or names you recommend, are there any etfs (I prefer hydged to CAD)?

Thanks,

Q: What's your view of continuing to hold VIG in the near to medium term? I'm thinking there could be an increasing amount of pressure on it and its constituent companies as higher bond yields are actually materializing and are making VIG's 1.84% dividend look anemic by comparison. Is there an alternative holding/strategy you might recommend in its place during this period?

Q: Given the recent declines in prices for these two ETF's, would this be a good time to buy in? An which would you prefer?

Q: Looking for fixed income exposure (Canadian). One or two ETFs if possible. What impact should we expect of rising rates on these ETFs? Thanks.

Q: Would this be a suitable ETF to begin a TFSA for a young person just established in a job? They have student debt and other expenses to focus on, but I would like to give them a bit of a start on saving/investing with a small TFSA.

Q: Do Vanguard's Canadian products require the filing of CRA 1135 form?