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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: 11:06 AM 10/19/2019

I am trying to compare PSA to TDB8150

My problem is I have already $100K in TDB8150 in my Cash acct and would like to put additional cash funds somewhere, ideally with CDIC protection. I have no more room in TFSA and RRIF accounts. So I am wondering if it is ok to just exceed the $100K amount in TDB8150 since PSA is not CDIC insured anyway. I am not interested in GICs or T-bills as these are not really liquid. Do you have any suggestions? The difference between TDB8150's 1.6% and PSA's 2.14% [or 1.74%?] seems trivial at this time when safety of principal is paramount.

I am very confused about PSA because Yahoo! gives the following data on PSA;
Net Assets 2.1B
Yield 2.16%
YTD Daily Total Return 1.74%
Beta (3Y Monthly) 0.00
Expense Ratio (net) 0.15%
Inception Date 2013-10-15

Does the yield vary from 2.16% ? I see on Aug 06 19 you said PSA has a "2.37% indicated yield", not the 2.16% mentioned in Yahoo. Why does Yahoo indicate a YTD Daily Total Return of "only" 1.74%. What yield do I actually get?

The price of PSA starts each month at $50.00 and rises in 9 or 10 steps a cent at a time during the month to end the month at $50.09 or $50.10 then drops back to $50.00 at the start of the next month. Are the earnings [interest] accumulated during the month and only paid out at month end? Is the payment in cash to one's brokerage account or are more units issued or the cash reinvested?

Thank you.......... Paul K



Read Answer Asked by Paul on October 22, 2019
Q: Hi. Given the current market and economic situation, what is your opinion of ZWC as part of an income portfolio for the next 12 months. I had thought of using both ZWC and XDV to generate some income. Thanks
Read Answer Asked by John on October 21, 2019
Q: it seems to me that a good place to have bond ETF is in an RRSP. do you agree? currently I have about have of my wife's RRSP in VSC and the rest is in cash right now. i was thinking that I would place the remainder in another bond ETF with low management fee and with perhaps a more aggressive posture. Does this make sense and what other bond ETF would you recommend? thanks.
Read Answer Asked by Stuart on October 21, 2019
Q: I'm looking to put some money away in a safe mix of ETF's (likely fixed income) with a desire to earn around 3% over the next 12 months, given overall market risks and conditions what would you suggest. thanks for your advice.
Read Answer Asked by Curtis on October 11, 2019
Q: Hello team,

Just a follow up on 5i answer on Sam's inquiry about buying exchange traded US pay
PSU.U. The list you provided of possible brokers that will allow you to buy the product included TD. I use TD Webbroker for online trading, and they have conflicting offerings and won't let me purchase. The TD previous trade you saw yesterday was most likely Institutional.

Stephen
Read Answer Asked by Stephen on October 08, 2019
Q: Hi there
I am looking to invest 30% of my TFSA portfolio in a bond ETF . The remaining 70% are in dividend stocks (mainly in financial institutions). Would you please suggest what bonds ETF or any other fixed income option should I be considering? The goal is to protect my principal amount.
Thank you
Read Answer Asked by A on October 04, 2019
Q: I am re-balancing our portfolio and find I am sitting on 30K cash which balances out my cash/fixed income portion of my portfolio. My question is what 3 or 4 fixed income or bond ETFs would you suggest I entertain dropping my cash into ?

Thanks,
John
Read Answer Asked by John on October 03, 2019
Q: Have too much cash in my U.S. dollar account please suggest somewhere I can park it.
Read Answer Asked by Richard on September 30, 2019
Q: Hi 5i, View the current oulook for fixed income products in Canada being rather abysmal. What are your views of emerging markets. There seems to be a play for emerging market bond markets now that the US is tightening rates and the US dollar is weakening. I am looking at some ishare etf products (USD funds) that invest in EM bonds. You always said we should hold some bonds and some foreign investments in our portfolio. Your thoughts?
Read Answer Asked by pietro on September 30, 2019
Q: Yesterday I asked for a recommendation for US fixed income and you suggested tlt. I have to say that I don’t have a good understanding of fixed income. So I was wondering if you could tell me why this particular etf is your choice in this environment? I suppose I am asking for a course on fixed income, a large request. So, if there is some resource you could direct me to, that would be fine.
Thanks
Read Answer Asked by joseph on September 27, 2019
Q: Could you pls recommend a couple of US Bond Funds ETFs which can be purchased in Canadian dollars. They do not need to be hedged, Thanks
Read Answer Asked by gary on September 25, 2019
Q: I am selling my home and moving, have not yet found a new place to live, so I will have a lot of cash to park for an unknown length of time. My plan would be to do a high interest savings account at Oaktree or buy the purpose ETF. My wife will kill me if I lose any capital…
Do you have any better ideas?
Thanks!
Read Answer Asked by Nick on September 24, 2019
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