Investment Q&A

Q: Good afternoon 5i staff
Just a brief addendum to my previous question regarding short or long term bond etf’s are best for today. Many say that Canada’s inflation rate is already rising and that Trump’s policies will push inflation. What I was interested in is why you don’t believe the narrative that we will be facing an inflationary environment.
Thanks

Q: In a recent article in the G&M on bonds + div stocks - a commenter suggested -

"Find yourself a fixed income credit fund, without exposure to rates."

What do you think of this suggestion? Can you offer examples?

Thanks
Mark

Q: Good afternoon 5i staff
To a question concerning the possibility of inflation and David Rosenberg’s reaction to that, you said:

For Canada, we like XSB, and for the US we like SHY.

I hope I am not quoting you out of context here. But, I was wondering whether you were saying that ´supposing ‘ an inflationary environment, we would choose these. Or, whether you meant that we would be facing an inflationary environment and these would be the best choice. In other words, in your opinion, which would be the best choice for today for a permanent allotment to bond funds, short term or longer, such as xsb and agg.?
Thanks

Q: As I am retiring, I am thinking about allocating a certain portion (25%) to long real return bonds. Right now, they go for approximately 2% over inflation.

What are the downsides of real return bonds?

Also, there a floor, meaning that in deflation is it possible to end up owing them money?

Q: I am concerned about the height of the stock markets and am in the process of reducing my equity holdings. If there is a correction or bear market next year, then I would want to be able to invest again at some point.

With the cash that becomes available from the sale of equities, what would you recommend as an investment? I am looking for something that is extremely safe, can be sold at any time (which eliminates a GIC for consideration) and gives me a bit of yield/gain. Are there any ETFs which fit this bill?

Thank you for this wonderful service.

Q: For short term treasuries in a USD RRSP, is VGSH a good choice, or are there better ?

Q: What are your thoughts on this one for a purchase now. Interested in the dividend but want capital protection as well. I don't mind if Dividend fluctuates but would like it above 6%. Would you be a buyer at this time ?

Q: Looking to park cash for 2 to 3 years in a low volatility etf with a decent distribution. I am looking at above mentioned etf and would appreciate your analysis or do you have other recommendations? Thanx.

Q: Hello. David Rosenberg is recommending a move to cash and, I think, short duration treasuries (per Globe article published today). What are the best investment vehicles for short term treasuries? And what do you think of his current opinion?

Thanks!

Q: How will the SGOV monthly dividend be taxed in a RRSP? Is an investment in SGOV essentially as safe as a GIC without the loss of flexibility to cash out? If not, what is an alternative for stashing US dollars with a similar return.

Q: Hello
I have a position here, they announced a bond issue at 9.5%. I’m not sure how this sets up growth and also 9.5 seems high?
Thankyou

Q: Dear 5i team.

CBIL appears to have very limited history as inception appears to be April/23.

Can you please provide your best guess on how this may perform in times of interest rate volitility?

Appreciate your help as always.

Q: is this bond etf safe if the US stock market retreats or is there risk with its corporate bond portfolio ?

Q: Hello, I am looking at these 3 ETFs to park my cash, now that short term interest rates have come down and ETFs like PSA or HSAV have much less attractive rates than 6 months ago. Can you highlight the main differences between MNY, CBIL and CMR and sort these by increasing risk level? FYI, CMR will add asset-backed paper to its portfolio sometime next year. Thanks!

Q: How is this etf looking in todays fixed income environment for possible safer investment.With US dollars which will be needed in cash a year down the road.

Q: Good afternoon - the recent runup in equities has me looking to re-balance and add more bond exposure. I currently have positions in XLB, XBB and HYG. Can you suggest bond positions ( likely ETF's) in Canada and the US, please? Just add to the existing Canadian positions? What about HYG? Time to move?

Many thanks

al

Q: CBIL holds Canadian treasury bills and TDB2913 is a money market mutual fund. It looks to me CBIL is safer with basically the same yield am I missing anything? Thanks

Q: I’m trying to understand the risk I’m up against with investments in CASH and UCSH.U. Both have significant holdings in Scotiabank and National Bank investments. My portfolio percentage positions in these two is quite significant.

- Do you have options for better diversification of my cash holdings?

- In the event of “something going off the rails”, what impact does this have on an investor of these two investments like me in the event of a bail-in of either Scotiabank or National Bank because of these holdings within the two ETF's?

Q: As a general rule do most bond funds have a set philosophy about duration or do they simply employ funds based on what they think makes sense at that particular time?

Thank you

Q: Hello 5i,
We have CDN and US funds in our RRSP’s and TFSA’s, no pensions, income is CPP and OAS only, + RRSP withdraws.

We are looking at placing funds needed for the next 3 years into less volatile environment with a yield of 4%-5%. We have laddered GIC's and PSA for CDN funds and are looking for something similar in US funds. Our equities (stocks and ETF's) would remain in place though each year we would sell some stocks and purchase short-term ETF’s to retain a 3-year comfort zone. This allows us to retain higher risk equities in a longer time-frame in case of a large drawback.

Some examples we found were IGSB, BIL, VGLT, VCIT, VCSH, AGG, IEF. Do you have any recommendations? What are your thoughts on long-term Treasuries with a Trump win? Dump and run?

Thank you for your service.

D&J