Investment Q&A

Q: I only hold bond positions in these two funds totalling 4.5% of my portfolio. After exiting a couple of equity positions I have a high cash position and was thinking of adding to my bond position. How would you distribute bond investments among
1] less than 5 years
2] 5 to 20 years and
3] over 20 years

Thanks

Q: Was reviewing the 5i Income Portfolio and the type of bond funds in portfolio. Then was looking at the dividend payments on the two ETFs, the convertible bond (which is in the portfolio) is double of the laddered bond (which isn't in portfolio). Are convertible bond funds considered a much higher risk over laddered bond fund?

Q: Hello
Just read the Aug ETF publication. Can you give 5i s thoughts on the above bond position comparison?

Q: I had these shares in a non self directed RRSP account.
Can you please tell me what you know about these shares. I am down about 75% this year.
I have just transferred to a self directed account.
Is it ok for income? Do you think I should sell?
Thank you

Q: Re Gary's question on the 28th re place to park some money. I have a TD Investment Savings Account TDB8150 that has no fees, units are $10. each and the current rate is 2.25 % interest calculated and paid monthly. I opted to reinvvest the monthly interest for more units. Easy access to funds and I also use it for excess cash in my registered accounts. Interest is increased on a reg basis as rates change. I highly recommend it. Hereis a link to the page
https://www.td.com/ca/en/asset-management/additional-solutions/

Q: I've got a 10&% loss in XSH. Is there an alternative ETF I can buy after selling this?

Q: With all the market turmoil I would like to park some funds. I am considering money market or GICs. I invest through TD Waterhouse. What would your recommendation be?

Q: I am 80 and I have 85 k in my TFSA . Iam looking to invest in Fix income . What would you suggest ?

Q: Hi 5i,

Looking for your top 2 or 3 fixed income recommendations for the market we're in, and where you feel we may be headed in the next 12-24 months. Looking for some bond ETFs, preferably Canadian listed.

Criteria is primarily capital preservation with some return to blunt the impact of inflation, and of course liquidity. I want to hold dry powder for buying opportunities I believe will come with recession, but I hate the idea of sitting in cash.

Thanks!

Q: What are your updated thoughts on OBE? I have a partial position and planned to increase to a full position until their news release today. In such a strong oil and gas environment, why does a company need to commit to an 11.95% interest rate on 5 year notes. Am I missing something, OBE scores well on a number of metrics that I monitor so I thought they would be able to negotiate a better interest rate.

Q: Rather than buy TIP directly, I am leaning towards buying XSTP and/or XSTH. Given that they are only 15% correlated (no doubt due to the CAD-hedged aspect of XSTH) I am leaning towards buying both. What is your perspective on this scenario for an income portfolio given the current state of U.S./CAD dollar exchange rates?

Q: Now that i can get a GIC of over 4% what would be the advantage of owning HFR over a GIC ladder.

Q: I like TIP for its dividend and excellent lack of correlation to the rest of my portfolio. However, will its dividend and covered call income potential make up for its immediate seemingly dubious short and intermediate-term growth prospects? Thanks!

Q: Hi 5i, What is your current read on the attractiveness of investing in TLT? I assume it would be best to hold in a registered account but you could please confirm. If acquiring just one bond fund today, would this be your preferred choice, and/or is there a comparable CDN bond fund worth considering? Thanks.

Q: The Globe just had an interesting piece by a RY high yield bond fund manager and I'm curious about your thoughts on the gain potential which assumes inflation is defeated in a year or two. I am reluctant to pay fund fees again so if there is an ETF you can suggest which deals with corporate bonds it would be appreciated. thanks Al

Q: Could you kindly give me your view on the above two funds with respect to their yields and capital preservation going forward 1-2 years.
Thank you

Q: I would like to add my two cents to your comments to Cal about TD semi-annual pay step up extendible notes, having bought into one of these many years ago. First, these are not too far removed from a GIC, as they are next to impossible to cash/sell until maturity. Second, the moment rates move against TD (ie down in this case), they will call the note as quickly as permitted. Your 3-year note might become a 1-year note if it is to TD's advantage. Lastly, these are not covered by CDIC and are subject to bail-in, unlike a GIC. Doubtful that would happen, but be aware. . . In my view, if you are willing to lock-in for 3 years, go with a GIC, which actually has better 3-year rates and you know exactly where you stand.

Q: I have been holding a legacy position in preferred shares, both corporate and CPD ETF, as the bulwark of our fixed income allocation. I have never been a fan of. pref shares and wonder if this is a good time to sell and replace with a laddered GIC strategy. Is there an ETF that does this well, in your opinion. I have also been reading about GIC's offered by SLF and others. Would they be better and if so, how does one purchase them? Thank you for the calm you project to your subscribers.

al

Q: Is it too early to move some cash to a bond etf.
Which would you suggest in Canada and US.

Q: Hi,
I find it useful for me to monitor certain ETF ratios as a way of seeing whether or not rotation is taking place - such as: IWF:IWD - to see if growth is being favoured over value, as an example.
I have a harder time understanding the concept of 'credit spread' with regards to the bond market and am wondering if there might be a pair of ETF's that could be used in a similar way to show a ratio that indicates whether or not corporate or junk bonds are being favoured - possibly LQD:JNK?
Is looking at a ratio such as this a good way to track it? Would it be better to just monitor the difference, as a percentage, between the two ETF's over time?
I'm open to your wise counsel, as this isn't an area I have any expertise in - and I am finding it hard to educate myself on it with any confidence in some of what I am reading on the wilds of the internet.
If you feel this is something to benefit others, feel free to make it public.
Thank you,
Dawn