Investment Q&A

Q: I am considering dipping my toe into the bond market via ETFs. I know the market is forward-looking as it pertains to equities but does the same hold true in the same way for bonds? Would pricing for XLB, for example, have likely already factored in expected rate increases for the next couple of months or do bonds tend to reprice only after the fact?

Appreciate your insight.

Paul F.

Q: UTWO:US and UTEN:US are ETFs of US Treasury bills: UTEN of US ten-year treasury bills, UTWO of the two-year. Both ScotiaiTRADE and RBC-DI make it difficult to buy US T-bills hence my interest in bond ETFs. Would you recommend — at THIS time— an ETF that holds’ 2 year and 10-year T-bills? ETF.com describes these as single-bond passively managed ETFs. RBC-DI shows UTEN:us has a yield of approximately 4.8 % pa and about 2.1 % on UTWO TODAY. For comparison, 2.5% is the approximate yield on US Money Market funds.

Is it worth buying either one or both of the above-noted bond ETFs? I am sure you have better ideas than the above ETFs, so would appreciate your suggestions of instruments that are better than the ones I have noted above.

Q: I have some cash on hand that i will invest in a GIC or deposit into a high interest savings account. With interest rates expected to risewould you suggest putting the cash into a GIC (1 year term) or a high interest savings account? Please provide your reasons for selecting a GIC or HISA. Are there other safe investments that will provide a reasonable rate of return? I am considering a 1 year term for a GIC. Would you suggest a different term for a GIC? I do not need the cash for the next few years.

Q: I'm looking for somewhere to put my cash for 8-12 months (looking to buy a house at that time) as the savings account rates are too low. What would you suggest? Would GICs be my best option?

Q: Hello Peter & team,

Please recommend the best option to park some cash for the next 6 months. Treasury bill ETF???? Minimum risk ETF with a good dividend???

Thanks for all you do

gm

Q: Hello,

Regarding your recent blog-very nice one!

Could you provide some stock/bond suggestions
For the examples provided,

-companies expected to grow at 50% over the next year
- solid growth companies
-small cap
-suggested corporate bonds long term.

Thanks very much.

Shyam

Q: Hi 5i Team,

In your recent article you highlighted that it would be a good time to start stepping into purchasing bonds. I am in my late-30’s so I have a longer term investment horizon and a medium to high risk tolerance. I have never purchased bonds in the past so what would be the best approach to purchasing bonds (ie. is it best to buy an ETF or individual bonds) to capitalize on the current depressed pricing?

Do you see this as being a long term trade or a purchase that should be exited when the conditions begin to reverse?

Thanks in advance,
Jon

Q: In the present interest rate environment and going forward 6- 12 months, which ETF is preferable i.e. XHY, PFIA, MFT, ZHY, XSB,XBB OR PYF? Would you choose 1 or a combination?

Thanks for your service!

Q: Hi Team: I have USA $ in my RBC di rrsp account. Where would be the best place to park this money for a year maximum and have my principle guaranteed and still accumulate profit.
Thanks for your time. --- Jane

Q: I want to buy some bonds for capital gain. Looking at a TD bond 1.128% matures Dec 9/25. Buy at 89.0161. Special term " bail-in ". What is bail-in?

Other option is Gov Can 0.25% matures Mar 1/26. Buy at 89.3995 with no special terms.

Is bail-in good or bad? What is the better choice? Thank you

Q: Is it time to move on from this investment. Seems to want to continue down. Thx James

Q: Hello, some members ask about ideas where to park cash for a while. I find that Tangerine Canada is pretty good. As of today the interest rate on GICs for 90 days is 1.50%, 180 days is 3.70%, 270 days is 4.25% and one year is 4,70%. All the best,

Q: Can you recommend some fixed income products? Either directly purchasable bonds, GICs, or funds that look set to benefit from current rates and expected future hikes.

Q: Hi 5i team,

I am feeling BOC will stop raising the interest rate at one point. Is this a good time to start accumulating this name?

thanks,

Q: In your experience, do Canadian bank-owned online brokers such as RBC-DI or iTRADE allow individual investors to buy US T-Bills for registered OR non-registered investments accounts. If yes, how does one find the symbols for 3 month, and 2 years T-bills? If you have the symbols, please tell us, as brokers seem reluctant to.

Q: As a place to park some us cash, how do you feel about this etf

Q: Hi Peter,

Thanks for your insights at the MoneyShow last week. You mentioned Long Term Bonds as a viable investment option in the current market environment. Can you explain the rational? Also provide some recommendations for ETS (CAD currency preferred) or specific bond and or bond fund.

Thanks for your continued guidance during this bear market opportunity,
Angelo

Q: After reading your answer to a question on TIP and STIP on March 29, I invested in these two inflation-protected bond ETFs, however, their performance to date was extremely poor and I am down about 10%. Can you please explain why these "inflation protected" securities behave so poorly in the current high inflation environment? Aren't they specifically designed for situations like we have these days?

Q: Hi Peter, do you have any preference for a 1-3 month US T-bill Fund for US Cash ?
Thank you.

Q: To the 5I gang,for long therm income holding, which will be your pick or combination of it ?

Tnx . Dan