Investment Q&A

Q: I am looking to park some cash for a while but have it relatively easily accessible. I understand that these ETF’s are not CDIC insurable but other than that what is the downside/risk of these ETFs and which one would you consider the best? Also I noticed that these etf’s are trading above their set value…$50.14. Under what circumstances would they trade back to their $50.00 value?

Q: Hi 5i,

May I have your current take on this ETF?

Thank you

Q: Dear 5i team.
As I read through the recent Q's on the merits of owning laddered bond funds vs long bond funds (CLF/CBO vs XBB/XLB) couple of f/ups for you. Assuming rates have peaked, and downward is the consensus:
1) What is the upside for CLF vs XLB for example. How much of a move in bond prices would you estimate for each 50 BP move? (can you do same exercise assuming rates move higher?)
2) Since you like both XBB/XLB for long bond exposure, can both be owned, or should one be sufficient?

Many thanks for your help to understand the risk/reward here.

Q: Given the Jan. 31 regulatory changes, is there any risk to buying cash, psa, etc. now as opposed to later? Thanks.

Q: What would you recommend a young couple hold in an FHSA to get some growth better than an ISA? Looking at a potentially short hold of under 1 year.

Q: Tax Q - Are distributions from a money market ETF like ZMMK taxed as income or dividends?

If it's income, are there any tax differences in picking the Canadian ZMMK vs BIL, which is a US name?

Q: Good morning,

I'm in search of a Low to Medium risk Monthly Income fund that will provide a an additional and reliable income stream for next 15 to 20 years with no legacy issue. The amount to be invested is $100,000 and I'm looking at taking out $600 per month for the next 15 to 20 years.

Q1. Of the two Monthly funds mentioned, which would you recommend and why?

Q2. Would you kindly recommend your best mutual fund idea for a monthly income fund?

Q3. Would the purchase of an annuity be a better option?

Thank you and I will await your sage recommendation for a Monthly Income Fund.

Q: These two have me scratching my head. I invested a few months back, believing that lower interest rates were likely ahead in 2024 and longer bonds would do well. After a decent start, they are drifting downwards which doesn't make much sense when no one seems to see higher rates headed our way. Is it de-risking going on, and other investments look better? Am I missing something here or is it just a case of having patience with the plan? Also, Happy New Year to all of you at 5i. al

Q: I am thinking of adding some HSUV.U to my cash account to earn interest on some U.S. cash that I hold. Do you think that this is a good time to purchase this fund, or is it selling at a premium now, and would it be better to wait? Also can you confirm that the gains are taxed as capital gains in Canada, and is there U.S. withholding tax on the gains? Also, can you suggest a better option with better tax treatment?

Q: On Dec 28 you responded to a question from Cal about covered call bond funds, and made a recommendation as he requested. However, in your comments I got the impression that you felt now may not be the right time to buy this type of fund due to the potential for higher bond prices and lower yields over the coming months. Looking at the 2 noted above, and assuming rates do start to slide down a bit, what would you expect to happen to the ETF price and the distribution? Would you be a buyer today?
Thank-you

Q: Regarding CASH and similar etfs:
Couldn’t the price fall if/when interest rates decrease?
I realize that in such a scenario the price may fall below NAV, but potential buyers may not care until the price falls low enough for the yield to be attractive. In this way, it seems as if they could trade similar to a long bond. If so they could hardly be considered cash alternatives. Your help in understanding this, please.

Q: Morning 5i;
If you have for an example $50K in a PSA or HISA account and you have that same amount on the 30th of the month ie x-dividend date you will get the full amount of the interest payment the next month a few days later . My question is if you had of taken out say $5k after the first two weeks of the month say the 15th , do you receive any interest payment on that $5k for the first 15 days that it was in the account OR do you only receive an interest payment based on whats in the account on the 3oth ?
Thanks
Bill C

Q: Happy Holidays,
I have a question about tax efficiency on HISA ETF investments in non-registered accounts. Do the dividends received from these ETFs qualify for any dividends tax credits? Or are they being treated as interest income, such as GIC, which will be subject to the usual marginal tax rates?

Thank you,

Q: Hello, can you recommend a USD money market fund that can be purchased on the NYSE? I hold ZMMK in my CA portfolio and looking for a US$ equal. Thank you.

Q: This ETF has been trading sideways for the last 3 months. With a 5.5% yield, isn’t this stock supposed to gradually increase? I understand there’s a slight premium associated with this ETF, but it’s not really moving much at all

Q: my position in XLB:CA has almost recovered to break even. i am adjusting my behaviour in investing to try to avoid betting on conditions such as rising , falling, or staying near current for longer. I am getting the feeling from comments that long bonds are a play on rates dropping. If this is true, i would rather be positioned in bonds for more balanced risk/return regardless of rates. Any suggestions ?
Many thanks for your great service!

Q: Hi 5i - could you imagine the excitement for all these years, mine and all members? Only blessings for you, Peter, and your 2 families : Lara and the kids, and all your office.

Now about the pain caused by SCHP and QTIP (down after 2 years 16% and 22%) No one understood how on the earth, instead to protect against the inflation, they never did what they were supposed to do.

I found this info:

BlackRock does offer ETFs that hold TIPS to maturity. For example, iShares iBonds Oct 2028 Term TIPS ETF (IBIE) owns nothing other than TIPS maturing in 2028. And the ETF will hold those TIPS until they mature, and then the fund will liquidate, distributing cash to shareholders. So it works very similarly to just buying 2028 TIPS on your own and holding to maturity.

This for a 72 ys in RIFF.

Apart the AUM small, small volume, what do you think?

Thanks for ever.

Q: this is a gold rated etf with morningstar, but if relied on for retirement income , what are chances the distributions could drop well below the current stated 6.4 %

Q: Rick Reider is managing BRTR a new income etf. Does it pay a dividend or does it operate as a total return instrument? Are there any income etf's trading in the US that instead of paying a dividend provide capital gains instead similar in result to the corporate class structure from Horizons? Lastly does Horizons have any US dollar income etf with a corporate class structure and if so would you recommend it? Thank you.

Q: Since long duration bonds have more sensitivity to interest rate movements and interest rates are expected to decline next year does it make more sense to invest in a long term bond ETF? And since I expect interest rates to fall further in Canada does it make more sense to go with a Canadian ETF? Which ones would you recommend?