Investment Q&A

Q: I asked a question about these holding in February. I noted on CNBC this morning that they had an article entitled "Jamie Dimon warns of ‘some kind of bond crisis’ ahead as global debt risks build".

If we do get some form of Bond crisis/alert what will be the impact on these 3 ETF's? I have held them for several years and I'm up maybe 5% overall over that time. Probably 2% on an annualized basis. In total, they represent about 14% of my holdings. Given I've held them so long I am fearful I would be selling just as they could possibly turn around. Any thoughts on the outlook for the balance of 2026 for these 3? Factoring in all the geopolitical/debt issues in the world, If you owned them would you be a seller? Would you sell all of them or simply reduce by XX% across the board. If selling, in what order would you sell and why?

Q: What would your advice be for someone who wants to "park" some money in an ETF or other vehicle, to not lose any significant value over the next 6-12 months, while still earning a 5%+, return? Are there relatively safe options besides cash or a GIC that could retain most of their value in a downturn? Do you have any ideas using these criteria? Thank you as always.

Q: I've noticed 5i has had some rather negative comments on HBND { yield 11.8% } lately . Is HPYT { yield 18.25% } essentially the same product ? ..... And does 5i hold the same negative views toward it ? .... What effect on unit price would the end of the war have ? Thanks for your terrific service ......

Q: I am ~ 25% underwater with BCE and Telus; the former has cut its dividend and the latter is expected to follow suit. What is your opinion on selling both holdings and buying HBND for about twice the dividend income. I realize this is purely an income play and no capital gains are likely.

Q: Hello,

Can I please get your view on Hamilton U S Bond Yield Maximizer ETF Class E (HBND). Thank you!

Dave

Q: I asked about these 3 ETF's in May of 2025. As I noted, I purchased these with a view to moving away from equities. I am retired and interested in dividend income. Has much changed since your answer in May 25 ? Would you continue to hold through 2026 and just take the healthy dividends ? Or is more capital depreciation likely in 2026? If you could only keep 2, which would they be?

Q: Early last year we invested 25% of our cash into the listed ETF's. We have another 50% of our cash in GIC's and 25% in an assortment of stocks. As you know they pay good dividends and we experienced good capitol gains growth on some of them last year, others were up marginally. We are looking at these as long term holds for income and would just like your thoughts on our choices. Would you recommend a different mix of ETF's.
Thanks Ron

Q: Hello 5i team,
I have held HBND since Feb 24 and it has been on a steady slow decline (along with the payout) ever since. I think you mentioned that lower interest rates are always better for this ETF. In light of the US lowering there rates in the coming year, will this be good for HBND?

Net assets is currently 212 M according to there website. Do you have any knowledge if this is growing? I am asking this because although the payout is decreasing, it is still pretty good and would not want this ETF to close down like what happened to HYI.

Thank You,
Andrew

Q: Is it advisable to sell HBND for a tax loss (down 13%) before year end?
If inflation looms or bond vigilantes are at work, long-term bond yields could go up from here.
Appreciate your thoughts

Q: One of these will have to go as I need the funds. Which one, or should I just decrease each one. Thanks and greetings. Peter.

Q: What are your thoughts on the prospects of this ETF?
Is it worth holding? What other suggestions might you have?

Q: I purchased these with a view to moving away from equities. I am retired and interested in dividend income. While capital appreciation would be nice, ensuring limited capital losses is more critical. I'm getting a healthy monthly income from all 3 but based on recent adjustment by RBC Direct it seems some of that is ROC ... so it's an inflated dividend percentage as it is clear capital is eroding. Seems like I may have made a mistake ... down about 7% as I sit today since I purchased. When you consider ROC I'm down over 10% on my original purchase price. Not the end of the world, but what is it going to take to get the share price moving back up for these 3? Would you continue to hold ?

Q: Delete the last question; Harvest shows a truncated version - as though it has just been issued. The profile is very similar to that of HPYT so the new question is should these funds do well and what is the difference between them?

Q: A follow up question re HBND. The yield as you point out is quite high. I suspect that is due to the decrease in share price. If the price recovers will the dividend $ continue to be close to where they are now; and therefore providing the best of both worlds…. Some degree of safety, nice yield and a capital gain.

Q: Hi Peter et al,

You folks are very knowledgeable about Long Short Options and other hedging techniques. With that in mind, may I ask for your opinion about Simplify ETFs for income. I was impressed by Michael Greene's interview on Danny Moses' podcast.
(On the tape with Danny Moses).

Looked at his website and he seems to offer a lot of income generating ETFs based on solid instruments. (Bonds, Treasuries and Solid stocks). HIGH, BUCK, CRDT, AGGH etc.,

The MER seems reasonable. But only available in USD.

Worth dipping in? Which one would you as their best offering?

If you think there are better alternatives here in Canada or even in the US, please feel free to share your suggestions.

Many thanks.

Q: I went to a large cash position in my rrsp a few weeks ago, and now I’m interested in putting part of my retirement portfolio (I retired Jan 1) into high interest etfs that I can buy and forget while they generate income via yield. I’ve added a few I’ve been looking at to the ticker box. I’m looking at bond etf’s but I don’t fully understand when to get in and out of bonds - can an investor buy and forget? I’m also looking at covered call leveraged etf’s based on the S&P and Nasdaq indexes. I realize an investor has to have a strong stomach for the volatility associated with high interest leveraged etfs, but for purely an income vehicle, can you provide a few names based on the above criteria? Assuming about 10-15% positions, what percentage of a retirement portfolio would you invest in high interest etf’s, Hoping to generate 8-10% annually from the portfolio. The remainder of my portfolio is mid cap large cap US and Canadian equities. The usual suspects.

Q: Hello 5i team,
I currently have a balanced position in HBND in my TFSA for income (Using TFSA as an income source in general). Before HBND I used to have HYI as an asset class that used to track US high yield bonds, but was shut down last year. I have a few questions.

1)Is HBND an approximate substitute for HYI for this asset class?
2)Also HBND is not even a year old but do you have an idea of the NAV of the ETF?

HBND pays a decent amount monthly but I am not sure of the sustainability of the payout.


Thank You,
Andrew

Q: Thanks for your advice on greater than 10% covered call ETF's in a Trump tariff world .... Of the ones you { and the one I chose HPYT } I am leaning toward a combination of HBND and HPYT for bonds. UMAX for a non volatile stock ETF, and XYLD for US exposure .....

However I am not well versed on bonds . Could you explain the differences between the two ETF's ? I have noticed that they peaked in mid September and declined since. HPYT has declined by 10.65% and HBND by 12.66% ..... What market conditions account for the price action between September and now ? I have no idea what bond durations are or what the significance of a " long " bond is but I am curious why HBND has had the bigger decline of the two ? ..... If HPYT is the less volatile of the two I'm inclined to go for the juicier dividend ..... Please explain the differences between the two ETF's and what circumstances will effect one over the other ? ..... I'm inclined to make my bond ETF purchases now and my stock ETF purchases after the tariff announcements . Would you endorse this strategy ?

Also UMAX isn't really a utility ETF . It is Communication Services 23.2%, Pipelines 22.0%, Industrials 23.6%, and, Utilities 31.2% ..... Is this something I should consider ? Or do you still put it in a defensive category with a minimum of volatility potential ? ......{ I like the juicy 14% dividend but unsure how 5i evaluates it in a Trump tariff world } ..... Thanks for your terrific service ......

Q: I purchased these 4-6 months ago thinking I should diversify away from stocks and equity based ETF's. All 3 of them are down (from 3.5% to 8%). While they all pay a healthy dividend (~8% to ~ 18%), I am wondering if I should continue to hold. Can you tell me what it will take to get them improving in value (identify for each). And the likelihood of an improvement in value in the next 6-12 months. As well, if you recommend selling and moving on, in what order would you sell?

Q: I realize the higher the yield the higher the risk but I would like 5i's opinion of a few products. As a result of the American President's threats of tariffs which I feel are coming in thirty days I have been rebalancing . Canadian ETF's to American ETF's as well as the sale of tariff risk Canadian stocks . RRIF cash position currently { 30% } .... I would like to take some small positions in some greater than 10% covered call ETF's ..... These would be short term positions as I believe it will be 1 or 2 quarters before Mr Market realizes tariffs are a really bad idea ......

So which do you like better in a Trump world of tariffs ? A covered call bond ETF, a covered call treasury ETF, a covered call stock ETF ? I've been eyeballing HPYT for the simple reason that it appears to be at a low with a very high yield but I would like 5i's opinion. Could 5i list four or five ETF's which you feel would be good choices to play this theme ? It's okay if some of your choices are sub 10% ......{ I already own HYLD.U 6.9% position } And which sectors { bond, treasury, stock } would be the best choices in a Trump tariff world ? .... Thanks for your terrific service ......