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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: Good afternoon 5I.
Today Chris had a question regarding where to put his money from his home sale. You guy suggested a one year GIC that's paying 2.15 %.
My question is who is offering this GIC?

Thanks
Read Answer Asked by Stephen on September 09, 2020
Q: I've just sold my house, and the cheque has been deposited into my Investorline non-registered account. Not quite sure what to do with it for the next few months. I've read the comments on PSA, and you've suggested money market funds too. I don't know anything much about them - is that something you buy online, or through Investorline? What would be your recommendation?
Thank you
Read Answer Asked by chris on September 09, 2020
Q: hi 5i. i bought a gov of canada rr bond dec1 2026 it was worth 24000 at issue it market value now is $ 50,010 does the value drop down to 24000 on dec1 2026 thanks as always brian
Read Answer Asked by brian on September 02, 2020
Q: What is your opinion on using VCIP as a 'slightly riskier than cash' investment vehicle for a holding period of 6-12 months? It is obviously riskier than HISAs/GICs/PSA, but do you think it is riskier than XSB/VSB/HFR? There is an equity component to VCIP, but given its greater diversification compared to XSB/VSB/HFR, I wonder if, paradoxically, it might actually be 'safer'. I note that when the pandemic hit, even VSB/HFR fell quite precipitously. Would you advocate a mix of VCIP/VSB/HFR instead? If so, how would you weight the three? Thank you.
Read Answer Asked by Walter on August 28, 2020
Q: Good morning 5i. I am considering "parking" about 10% of my portfolio in "cash equivalents". Are CVD and CPD your preferences in this case as I see they pay out roughly 5% which seems a reasonable risk/reward scenario? Are there other options or recommendations that you might consider? Thank you in advance.
Read Answer Asked by Peter on August 25, 2020
Q: I am very green when it comes to the purchase of bonds. Please help me understand the following transactions. I bought 26000 units at 101.275 for a yield of 4.25%. My understanding is that I paid $26,331 and I will get $26,000 at maturity. In the mean time I will collect the yield. Right? or...
The second transaction is when I bought 25,000 units at 99.25 for a yield of 2.58%. How much principal will I get at maturity?
Thanks for you welcomed answer.
Yves
Read Answer Asked by Yves on August 24, 2020
Q: I would like to park some cash, with the eventual purchase of a residence and am interested in more than GIC's and I understand that this will entail more risk, though less than equity risk. What do you think of MFT, XHY, PYF, PSA, HFR and PMIF and would you split them in equal percentages?
Thanks for your service
Read Answer Asked by Ozzie on August 21, 2020
Q: I have a GIC maturing today in my RRSP. I am looking for an alternative fixed income choice as all GIC rates are now again abysmal. Any suggestions or would it be just as well to take a high dividend yield from one of the Canadian banks, telcos or utilities?
Read Answer Asked by JEFF on August 12, 2020
Q: I listened to a commentary where the analyst was suggesting one have a bond fund, in this case US, which receives income in a foreign [non-US] currency and then the fund converts that to USD. As the USD depreciates from QE relative to other currencies [if this happens in reality] the inflow to the bond fund will be worth more in USD. Is that a logical approach and would Vanguard’s BNDX be an appropriate? Even if the above is a stretch would holding some of one’s bond allocation in BNDX be prudent?

Thank you.
Read Answer Asked by Ronald on July 31, 2020
Q: TD securities is offering a structured note product TD GDXJ ETF autocallable coupon notes It is linked to the junior gold sector
Could you explain how this note works and what are the downsides and upsides to this note I am thinking of purchasing some
Thank you for your response
Paul W
Read Answer Asked by Paul on July 29, 2020
Q: Looking for a low volatility money market fund for a short term to 3 year hold. What would you recommend please?
Read Answer Asked by Joel on July 28, 2020
Q: Hi 5iTeam,
I noticed that when the markets pulled back in early to mid March this year, both bond ETFs: XLB (approx. -28%) and XSB (approx -9%), pulled back as well although there were no movements in interest rates. I would think that these bond ETFs are a good proxy for cash, then what would investors' reason be for selling? Your comments on this would be much appreciated.
Cheers,
Read Answer Asked by Harry on July 17, 2020
Q: I am planning to increase my bond exposure in my RIF and have looked at VBU. I already have Canadian bond exposure. This is a hedged fund. Is this, as a hedged fund, appropriate for my RIF? Is there an unhedged equivalent? Do you have other funds I should review?

Thanks
Read Answer Asked by Ronald on July 17, 2020
Q: Hi,
This is about parking one's cash.

I know I have "slightly" less cash than Mr. Warren Buffet :))

But whenever I read that people like him have 134 BILLION dollars in cash or other Mega rich people sitting on the sidelines with literally hundreds of Millions of dollars, I have always wondered where these ultra rich people park their money?!
We the ordinary folks are struggling to get 0.65%. The same for them too?

Your answers have always suggested GICs, High Interest Savings Account and ETFs like PSA and very rarely Income ETFS/Mutual funds.

Any new suggestions?
Read Answer Asked by Savalai on July 15, 2020
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