Investment Q&A

Q: In regards to CPD or just pref's in general. They have sold off a lot over the past month. Fair to say they have priced rate increases in and are now forecasting a slowdown and rates going lower? Would a partial switch to a TLT-US make some sense here if that is the thesis?

Q: You recently commented that ZRR could represent a defense against inflation and rising interest rates. If this is true, then as we are now dealing with inflation and rising rates, why is ZRR's 1 year chart falling steadily? What am I missing? Thanks for a great service.

Q: Yesterday you suggested the above entities for possible inflation protection for my current cash positions. I have looked at their summaries but don't understand how they work. Can you please explain in layman's terms? As always, I appreciate your inputs. Al

Q: Like many 5i customers my bond ETF's have been whacked over the last 6 months or so. I bailed on a couple of them in January (good move as it turns out) but am still exposed in my RRSP. Bonds still seem to be dropping but yields in general are up to the 3.5% range. My question is "with inflation running at around 6% at what point will the numbers (yield/market value bottom) make sense to start buying bonds again"?

Q: What is your suggestion for bonds or a bond fund in this market climate? Thanks

Q: All my fixed income is in XCB,XRB and VAB. All are held in tax sheltered RSPs and distributions are in DRIP programs. My question is " would you continue with the DRIP programs as I have to start withdrawals in 5 years when I turn 71? " These bond ETFs are all in serious down trends.

Q: good morning.this is due dec 31 2022 could i receive shares instead of cash. would they cost 2.75.how many would i get for each 1000 worth.thank you brian w

Q: II am 14% in the hole with ZAG. Should I throw in the towel and add to a blue chip good paying dividend equity or just stay, Funds are not needed with a 5 to 10 year outlook. Value investor with a balanced portfolio in all 11 sectors age 76 with good pensions.
Stanley

Q: Could you check out for me if CIA pays DIV. I bought some CIA and in the profile it says it dose not pay div. but when I heard their promotion they said they did . ???
Jim.

Q: Hi,
Would you be reluctant to maintain more than $100K invested in a Canadian financial institution because of the cap on CDIC insurance?

I recently transferred a bunch of dough to Tangerine as its HISA is paying 2%.

I'm not concerned but should I be?

Thanks,
Robert

Q: I am wondering about a rebound from the current level with XHY? Do you see it recovering from the loss this year and is it a good time to buy?

Q: Regarding XHY in the 5i Income Portfolio: Is XHY a hold or a buy at this time with a yield of about 4.90%? Is there any US withholding tax in an RRSP holding XHY?
Thanks!

Q: How does one purchase Canadian real return government issue bonds and do you recommend them in this inflationary environment?

Q: For the safe side of a portfolio, would you put money into a short term bond ETFs (BSV, XSB) or a high interest savings account today (EQ Bank 1.5%)?
Thanks

Q: Hello Team.. As interest rates climb my strategy is to slowly buy into bond funds (now in cash).. maybe ZAG or XSH. For example at 3.48 % for ZAG, that's a reasonable dividend and the rate hikes have barely begun. My question is -although the unit price of the fund will decrease "is the payout stable or increasing" as maturing bonds are replaced at higher yields.Steady buying at lower unit prices (and higher dividend)could help kill the pain of the early buying-what do you think.( 71 year old income investor soon to be starting RIF withdrawals) Thank you yet again..best regards Gary

Q: Pls share your thoughts on this small young actively managed ETF that seeks to provide protection against rising interest rates... Considering for up to 3.5% of the 30% fixed income allocation in my RRSP.
Thank you

Q: For investors seeking to capitalize directly on what looks to be an impending rate hike bonanza through the end of this year (and possibly into 2023), what options are there to look at?

TTT (US) seems like the only decent option but it only offers exposure to longer term rates (20y) which could take a while to respond to higher rates on the short end. Any options you can provide me to investigate are greatly appreciated. Thanks.

Q: Between January and March of last year (13-16 months ago) I sold my bond holdings in ZAG and CLF and moved the money into the short-term bond fund ZST. As a capital preservation strategy it limited the downside from rising interest rates. ZST is down 2%, while CLF is down 6% and ZAG 9%. I saw an analyst on BNN this morning recommend it is time to start easing back into longer term bonds. It feels a bit early to me. Won't the short term bond funds benefit first from rising rates while the longer term funds will continue to decline? If capital preservation and rate of return are weighted about 50/50, what do you think of moving back into longer term bond funds at this time and would you do it gradually?

Q: Hi 5i
Due to unfortunate domestic circumstances my son has just had to sell his house. His net share after the dust clears is $80,000. He has signed a lease on a rental for one year, but plans to buy a new place of his own after the year is up. He has a good job, and all his expenses for the year ahead will be taken care of by salary. His intent is to use the 80k and whatever growth / income it can generate over the coming year to put down on a new home.
My thought is he should put half into BNS and half into ENB and then forget about it for the year and let the money do some work.
But I'd really like to know, based on the facts above, what you would do if you were in his shoes?
Thanks 5i - I will value your response. $75,500 of the $80k could go into a TFSA - he has that room.
Peter

Q: The general rise in interest rates continued during the first quarter of 2022, continuing its pressure on the price of fixed income securities.
I would like to have your opinion.
Is it a good idea to buy fixed income indices right now like the Canadian Bond Index or the Canadian Real Return Bond Index or the High Yield Bond Index? What kind of return can we expect?