Q: Both of these historically have gone down over their full length of time. Why is that? Do you think these are still good for a long term investment for an income investor and is this a good time to buy them? Thanks.
Read AnswerInvestment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares Convertible Bond Index ETF (CVD)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Hello Peter,
This question is relating to your holdings in your Income Model Portfolio. Are all the income declared from these investments qualify for dividends tax credits? Or are they treated as normal income like interest income from GICs and would be subject to our normal tax rate?
If it is taxed at our marginal rate, would you recommend holding these investments in a RRSP account?
Many thanks,
Roger
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Laddered Preferred Share Index ETF (ZPR)
Q: Hi Guys,
I want to add to my Preferred shares. I currently own ZPR.
Would you suggest adding to ZPR or add CPD as a new ETF for diversification. My main goal is income and safety of capital.
ZPR pays a 5.89% dividend ($.54) and CPD pays 5.45% ($.60). CPD's dividend seems to be a bit more volatile.
Thanks for the input.
John
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Aggregate Bond Index ETF (ZAG)
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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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PIMCO Monthly Income Fund (Canada) Series F (PMO205)
Q: hello 5i:
We hold the Pimco Monthly Income Fund as our sole Global Fixed Income contributor. We are not displeased with it, but wonder if you favour another ETF, or mutual fund, that could replace it, or complement it. We would probably expect at least a 4.5% distribution. Ideas?
thanks
Paul L
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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BMO Laddered Preferred Share Index ETF (ZPR.U)
Q: Hi Everyone at 5i!
I am a new retiree and hold these three ETFs as part of my income portfolio . They have all dropped in value , due to increased interest rates and the market in general. These are my really long term holds unless you foresee a problem with this idea.
Cheers,
Tamara
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
Q: Hi 5i,
Please provide your thoughts on Canadian Preferred shares versus Canadian Dividend Paying stocks? What are the pros and cons to each? If looking for higher dividends are Preferreds worth the risk?
Thanks!
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Laddered Preferred Share Index ETF (ZPR)
Q: what preferred shares ETFs would you recommend now and why? Would you recommend preferred shares over bonds right now?
thanks
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H&R Real Estate Investment Trust (HR.UN)
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Andrew Peller Limited/Andrew Peller Limitee Class A Non-voting Shares (ADW.A)
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares Core Canadian Short Term Bond Index ETF (XSB)
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Sprott Physical Gold Trust (PHYS)
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TD Global Technology Leaders Index ETF (TEC)
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Primaris Real Estate Investment Trust (PMZ.UN)
Q: I am currently down on the following stocks and etf's and am considering buying more in order to average down. Are there any of the following that you would not purchase at this time?
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United Rentals Inc. (URI)
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Canadian Imperial Bank Of Commerce (CM)
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BRP Inc. Subordinate Voting Shares (DOO)
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
Q: Now past 30 day tax loss period on the above securities previously sold. Was going to buy back to original weights.
1. buy back now
2. average in over next few months with some of these
3. replace some of these with other securities you might like better
Q: Can you comment on what you think is going on with the pref market. They had a great last year with them pricing in rate rises and now they look like they are doing the opposite with potential credit risks. Seems a bit overdone. Thoughts?
Read Answer-
iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Aggregate Bond Index ETF (ZAG)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
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Harvest Healthcare Leaders Income ETF (HHL)
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iShares Interest Rate Hedged High Yield Bond ETF (HYGH)
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iShares 1-3 Year Treasury Bond ETF (SHY)
Q: I am 80 and I have 85 k in my TFSA . Iam looking to invest in Fix income . What would you suggest ?
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Royal Bank of Canada (RY)
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Bank of Nova Scotia (The) (BNS)
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BCE Inc. (BCE)
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Sun Life Financial Inc. (SLF)
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TELUS Corporation (T)
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Fortis Inc. (FTS)
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Restaurant Brands International Inc. (QSR)
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Algonquin Power & Utilities Corp. (AQN)
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Transcontinental Inc. Class A Subordinate Voting Shares (TCL.A)
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Leon's Furniture Limited (LNF)
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Exchange Income Corporation (EIF)
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Equal Weight REITs Index ETF (ZRE)
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Nutrien Ltd. (NTR)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)
Q: In our unregistered, income account I recently sold LIF and have decided not to return to that stock after 30 days. Instead, planning to buy more of one or two of the existing stocks.
Since this is an income account, yield is important and also quite happy to see total account balance steadily increasing whilst tapping off the cash.
I need some help deciding which ones to add to, and have 3 criteria:
1. Best yield
2. Current portfolio weighting
3. Best value over next 5 to 10 years
1. From highest to lowest yield:
TCL.A, BCE, AQN, EIF, BNS, CPD, T, SLF, QSR, ZRE, RY, LNF, FTS, BEPC, NTR
2. From lowest to highest weighting:
ZRE, LNF, TCL.A, QSR, AQN, NTR, BEPC, SLF, CPD, T, BNS, EIF, BCE, RY, FTS
3. Can you please help me to rank these stocks from highest to lowest value / growth prospects, or if that is to big a task. Please recommend overall best 3 selections given my criteria.
Thanks,
Jim
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Aggregate Bond Index ETF (ZAG)
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Equal Weight REITs Index ETF (ZRE)
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BMO S&P 500 Index ETF (ZSP)
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iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Vanguard U.S. Dividend Appreciation Index ETF (VGG)
Q: Could you give me 7 diversified income etfs for 200000 rank them in order which ones you would pick up first etc. thanks
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Enbridge Inc. (ENB)
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TC Energy Corporation (TRP)
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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ECN Capital Corp. (ECN)
Q: Do you have any rate reset prefs that you think are worthwhile here? Thanks
Read AnswerQ: In regards to CPD or just pref's in general. They have sold off a lot over the past month. Fair to say they have priced rate increases in and are now forecasting a slowdown and rates going lower? Would a partial switch to a TLT-US make some sense here if that is the thesis?
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Laddered Preferred Share Index ETF (ZPR)
Q: I think I misunderstood your previous answers on ZPR to mean it was the better preferred ETF to be in considering it holds rate resets, which should go up as interest rates rise. However, your last answer indicated it holds significant long exposure preferreds, which would cause it to fall more heavily under the current environment?
To be clear, what is your best idea for a preferred ETF right now?
Q: Hi,
With interest rates going up, why isn't CPD also going up? I would have though the rate reset prefs would get better traction in a rising rate environment.
Thanks
Robert
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Aggregate Bond Index ETF (ZAG)
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iShares Core Canadian Short Term Bond Index ETF (XSB)
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iShares Floating Rate Index ETF (XFR)
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Purpose Floating Rate Income Fund (FLOT)
Q: Hello Team.. As interest rates climb my strategy is to slowly buy into bond funds (now in cash).. maybe ZAG or XSH. For example at 3.48 % for ZAG, that's a reasonable dividend and the rate hikes have barely begun. My question is -although the unit price of the fund will decrease "is the payout stable or increasing" as maturing bonds are replaced at higher yields.Steady buying at lower unit prices (and higher dividend)could help kill the pain of the early buying-what do you think.( 71 year old income investor soon to be starting RIF withdrawals) Thank you yet again..best regards Gary
Read AnswerQ: The preferred market is a little odd. CPD consists of 76% rate reset preferred yet is hurt by rising 5 year government rates. Which, of course, their future dividend is based off of. Do you have a feel for this and at what point does CPD become a buy given rising government of Canada bond rates?
Read Answer-
iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Aggregate Bond Index ETF (ZAG)
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iShares Core Canadian Universe Bond Index ETF (XBB)
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iShares Convertible Bond Index ETF (CVD)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Have these ETF's in my portfolio for at least 5 years. With the current interest rates environment... keep or swap? If swap which one? What would be a better option?
Thanks for your great service
Kevin