Investment Q&A

Q: Can you explain when I look at the profile on XTR and look at the charts the 1,3,5 and 20 year charts all show if you held this you would have lost money on share price.
Are the charts accurate? Are the dividends making up for the share price drop?

Thanks

Q: Gentlemen,
I use Implicity to park money actual interest 2.4%
https://www.implicity.ca/Rates/
Regards

Q: Just a comment on your response to Alexandra question of this morning, EQ bank has one of the highest interest rate (2.35%) on high interest saving accounts with many perks like free bill payments ,e-transfers and CDIC guarantee up to 100K per account.

Q: WHAT IS PRO AND CONS OF HAVING CASH IN PREMIUM MONY FUND OF TD OR HIGH SAVING ACCOUNT OF TD AND HOE EACH INSURED ?
THANK YOU
EBRAHIM

Q: There are plenty of forecasts telling us that bond yields are declining and may go to zero.
If they continue to decline , what does this mean and how can an investor take advantage of this. Your Asset Allocator tells me I need to move $500,000 into fixed income to balance my portfolio, which is predominantly equities.
Do I go to a bond fund , or actual bonds? If so what would you recommend? If bonds what type and term? I will hold for min 5 - 10 years.

Thanks and take as many credits as you wish.

Q: Just read the piece on negative interest rates and this question occurred to me. If monetary authorities control interest rates what leverage do bond the "bond vigilantes" have as long as a country doesn't borrow in a foreign currency?
Also, why is it that if rates rise from 1% to3% on a 10 year T-bond you loose 16% but if they rise from -1% to 1% you lose 20%? (see Cullen Roche July 26/19)
Not sure if this is your area of expertise but other members might know.
Thanks
Mike

Q: I just noticed that 60% of ZAG’s holdings are other BMO bond ETFs, and the rest are direct bonds. I am wondering about the implications of this of MER, yield, and taxation.

In the BMO documentation for ZAG, they note “as ZAG is a fund of fund, the management fees charged are reduced by those accrued in the underlying funds,” which I find confusing. ZAG’s MER is 0.09%, but the underlying ETFs have MERs ranging from 0.11% to 0.33%. Is the 0.09% MER in addition to the MER paid to the underlying ETFs, or is it just 0.09%?

Does the ‘fund of funds’ characteristic of ZAG mean there are taxation issues in terms of it’s dividends being eligible dividends in Canada?

Are the dividends considered eligible dividends or interest?

Thanks again,

Fed

Q: Good day 5i team: recently I have increasd my weight in ZST .and have felt that in the when not if correction ensuse think it may offer reasonable downside protection.can you advise on any alternative that might be better not counting high interest savings. Tks and all the best Larry

Q: Could I please have your opinion of this ETF as part of a fixed income portfolio.
Thank You
Gerry

Q: I am looking to hold some cash for 6-12 months. My broker - RBC Direct Investing - does not allow me to purchase PSA or CSAV. Would you consider HFR to be reasonably safe, or do you have another suggestion? I am somewhat reluctant to change brokers, but maybe I should.

Q: For safety of income and income, what would be your preference between XUT and a bond ETF? Thanks, Bill

Q: Good morning,
How would the drop in US interest rates effect this Canadian ETF and would this ETF be a good add to my existing XBB VAB for long term stability in an RRSP. I am retired and mostly follow the Conservative ETF portfolio from ETF and Mutual Fund 5i

Thanks
Carl

Q: Ray Dalio and David Rosenberg to opinions i highly respect sure paint a gloomy picture of the next 10-20 years.
Rays suggested Portfolio weightings 7.5% Gold 7.5% other Commodities, 40% Long term bonds and 15% Intermediate bonds 30% stocks and 7.5% other.
My question is on Bonds, Specifically Govt treasuries , this would be the TLT correct?
and wouldn't Govt treasuries be seen as much safer than say the XLB which are municipal bonds, I have heard some fund managers on BNN say they wouldn't touch an Ontario provincial bond because of the provinces Debt. So that being said is there a version of the TLT that is available for me to buy?
Thanks Gord

Q: Can i have your opinion on this ETF please, also if you can tell me the yield. Do you think this will outperform a GIC over 3 years ?
Thanks Gord

Q: how do exchange traded bonds work? do they pay interest semi annually? do they have a maturity date? do they have a credit rating? do you like the ag growth issue or the Cargojet issue? thanks for your input Richard

Q: Peter,

Is the rate reset spread on preferreds only good until the reset date? If so, do companies tend to renew at a similar spread or can it vary greatly?

Thank you

Paul

Q: Hello,

A recent answer mentioned no-fee GIC's. I'm puzzled. We have several GIC's and with various companies. The yearly statements we now get from our advisor (statements that are supposed to be more transparent about fees) says every one pays a fee to our advisor. The GIC rates are net of these fees of course but, in my opinion, these are fees and all are pretty big percentages when compared against the net GIC pay-out. Your thoughts? Thanks.

Q: Good afternoon - Our collective family portfolio ( wife and I, retired) is roughly 40% fixed income comprised solely of GICs and Pref Shares. Our pref shares are with solid companies but given the lack of appetite for PShares the total value has been slowly deteriorating. This is something you have commented on in recent months and I’m wondering if and when we should bail and if we do, where then do we invest the proceed? Thanks

Q: As I mentioned earlier I have held 1800 units PSB in a corporate account since 2013 - 6 years. I failed to mention that I am paying management fees of 1%. I require a fixed income fund for this portfolio. Would appreciate any suggestions you have. Does this fund have a MER?

Q: Hello,
I purchased this fund in 2013. Holding it in a corporate account.
Annual income is in the range of $1000.
How is this taxed?
Don't need the cash, however is this a sell?