Investment Q&A

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

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!

Q: what preferred shares ETFs would you recommend now and why? Would you recommend preferred shares over bonds right now?
thanks

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?

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?

Q: I am 80 and I have 85 k in my TFSA . Iam looking to invest in Fix income . What would you suggest ?

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

Q: Could you give me 7 diversified income etfs for 200000 rank them in order which ones you would pick up first etc. thanks

Q: Do you have any rate reset prefs that you think are worthwhile here? Thanks

Q: 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?

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

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

Q: 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?

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

Q: I would like to add to these , but would rising interest rates be of concern. Thank You.

Q: Hello 5i,

I purchased these four funds in an income account in the summer/fall of last year. To date ZRE and CPD have hung in there, while the other two are slightly down overall including divs. Are these funds behaving the way you would expect for an income investor?

Q: It seems certain there will be several interest rate increases this year (and possibly more in 2023). That means fixed income will become more attractive. Please provide your outlook on this change and discuss how various fixed-income types (bonds, mortgages, mortgage-backed securities, consumer financing, etc.) will be affected and what opportunities for individual investors are likely to appear in the fixed-income sector as rates rise over the next 12-18 months.

Thank you,
IslandJohn

Q: I'm entering retirement and won't be adding much more new capital to savings and so capital preservation is paramount as I look at drawing down phase in the next 6 months. Right now I am still heavily exposed to the markets with about 85% equity exposure. I want to increase the amount of safety but am concerned with the loss of purchasing power and feel the old 60/40 rule isn't adequate anymore. The big dilemma in today's environment is that there really aren't a lot of alternatives to stocks for keeping up with inflation, but this involves capital risk. What balance do you think is more appropriate in this environment? I'm thinking around 75/25 while trying to keep around 12-18 months of expenses in high interest savings so one doesn't have to sell into a down market.

Are you aware of products offered in the market that may provide returns of 5-8% while being "fairly" safe for the capital invested?

Any suggestions on perhaps bond funds that offer returns that will at least keep pace with inflation after fees without undue manageable risk for capital safety?

Looking for any ideas..preferred shares ETF's? (know there is still some capital risk here). Thank you for your help and input.