Investment Q&A

Q: I have part of my portolio in a self-managed account and another part in wealthsimple's roboadvisor. My fee only Financial planner said that he does not like the bonds in the roboadvisor which has an equal amount of ZFL (long bond) and WSGB (average duration of 5 years). It is not possible to change the percentage of ZFL to WSGB in a roboadvisor. Although I have really appreciated the service from the roboadvisor (I can have phone calls with a wealthsimple advisor) and love their platform, I am considering moving out of the roboadvisor because it is impossible to change the distribution of long to short bonds. In my self-directed account I hold ZAG - an aggregate bond. My question is: how does an equal distribution of ZFL and WSGB compare to an aggregate bond such as ZAG? Am I exposing myself to much longer duration in the roboadvisor compared to the self-directed account?

Q: Please recommend the best fund for sitting on US cash. Thx.

Q: Morning Peter & Team,

Please recommend a minimal risk minimal volatility minimal fee ETF that will generate a good dividend? I am looking at liquidity within 6 months.

Thanks for all you do.

gm

Q: Hi, can you provide your current thoughts on Long term US treasuries. TLT is down 2.5% so far today. Thanks
Mike

Q: Hello 5i team,
You recommended in a previous question TUHY instead of HYI (being terminated in March of this year). I also have XHY in my TFSA. Is not TUHY and XHY almost the same except that XHY is CAD-hedged and is larger in market cap?

I am wondering which one has Canadian high yield bond exposure as well as US? Or is it that there is not much coverage in CAN in general?

Andrew

Q: Tom Czitron had an interesting article in the Globe and Mail for January 30. Would you agree with his thesis? He concluded with this paragraph: "This year may prove to be a wild ride for financial markets. An increasingly volatile global political situation adds to the appeal of North American bonds, and mid-term government bonds may be a relatively headache free place to be. A good way to gain exposure is the BMO Mid Provincial Bond Index ETF. It covers a promising area of the yield curve with some extra yield and no corporate credit risk." The ETF he recommended is ZMP.

We have decided to allocate 80% to equities, and 20% to bonds, and would appreciate your views on ZMP being part of our fixed income holdings.

Thanks for your insight.

Q: Hello 5i team,
I received notice that Horizon will be canceling certain ETFs including HYI affective March 20 2024. Can you give me other ETFs that are equivalent?
Andrew

Q: Hello. I am reaching out to express my interest in acquiring some corporate bond contracts for supplementary income. Specifically, I am considering the Genworth Mortgage Insurance corporate bond with an expiry in 2027 and a yield of 5.6%, graded A.

Could you please provide insights into the risk associated with this particular company? I find that Genworth Mortgage Insurance is the sole bond issuer within the high-yield bonds category with an A-grade quality.

I appreciate your expertise and assistance in guiding me through this decision.

Thank you

Q: Good Morning
I would like to invest some of the proceeds from a recent sale in my RIFF into a bond etf I would like a dividend in the 5% range that would also provide some room for growth.
could you provide 2 bond etf that would meet that criteria
Thks
Marcel

Q: Would XSB be a suitable holding for an 18-month holding period in a RESP?

Q: HI,

What is a good time to sell these units/ETFs? To lock in the distribution of that month's interest? I am looking at taking some cash off these and be ready to deploy the capital. Not in a rush. But want to be prepared.

Q: Good morning,
Happy New Year to the team !
This question is on structured notes (maturity monitored barrier ??) for an 89 yr old.
My 89 yr old aunt, who is in ill health, with a substantial, relatively well-balanced portfolio, (26% in Canadian banks), she reinvests dividends. Her advisor is suggesting investing in a 7-year auto callable note securities - maturity monitored barrier - linked to the Solactive Canada Bank 40 AR index. His reasoning: for portfolio diversification.
Due to her age, and the complexity of the investment (i.e. hard to understand all the nuances/outcomes) I am uncomfortable in agreeing with his suggestion.
Would you recommend such an investment to an 89-year-old in ill health, who's pension covers all her expenses?

Can you give your comments on structured notes.

Deduct the number of points you think is necessary.

Kind Regards,

Élaine

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