Investment Q&A

Q: With inflation in Canada edging up, and concerns that tarriffs are inflationary, is it a good time to move to shorter duration bonds? The counter is that if a recession hits interst rates may decrease. What is your take on the timing of all this, and how best to position a bond portfolio?

Q: Canadian HISA accounts do not have such good yields anymore. And the income is taxed as interest. I was looking at my 2022, 2023 tax returns and the revenue from canadian ETF like ZAG, XSB, XLB was mostly ROC. If I’m not wrong, thus, much more tax efficient? Wouldn’t be a good idea to switch from HISA to XSB, XBB, etc to park money in the next few months?

Do you know if high-Yield ETFs are taxed the same way (ROC) ?
USD-HISA are more generous so the logic might be different.
Thanks.

Q: Hello,
I have a question about adding fixed income to a portfolio.
My registered portfolio is all equities, mostly large cap dividend payers and some growthier names thanks to 5i, reasonably well diversified, a little heavy on financials.
I am happy with the results and will be relying on it as my main source of retirement income in about 5 years.
I am thinking it is time to gradually add some fixed income, to decrease volatility somewhat and increase predictability, targeting a 70/30 equity/fixed income split over time.
Would like to keep it simple with ideally 2 ETFs, was thinking XBB or ZAG plus something else.
I see that the Canadian Money Saver portfolio uses XBB, CBO, CPD and XHY for fixed income.
What would you pair with XBB/ZAG in this scenario?
Is a US fixed income component a good idea?
What do you think of combining a passive bond universe ETF with an actively managed ETF/fund?

Thanks as always.

Q: ZAG holds more than 70% in government bonds (federal, provincial and municipal). Is there a similar American Aggregate Bond Index ETF listed in US?
Thanks!

Q: I use ZAG as fixed income ETF for my RRSP following standard recommendations. am i missing out by only using a Canadian ETF? Is there an ETF in CAD that would include US or global content?

Q: This is the bond portion of my portfolio. Would you recommend adding or swapping ETFs to enhance diversification and allocate funds to markets with optimal returns?

Q: In a best case scenario, I think 4 years of Donald Trump in power will be chaotic and discruptive in the US and globally. In a worst case, I believe the US is heading for internal unrest/violence, and the certain parts of the globe will be at war. If you were a 74 year old investor who has done well listening to 5i the last 2 years, how would you now hedge against these scenarios?

Q: Hi Gang
What are your 5 top Canadian income ETFs

Thanks Mike B

Q: I have these bond funds: PGF510, CVC, ZAG, XLB, along with mostly GIC's in my fixed income side of portfolio. Do these Bond funds pay interest the same as the GIC's or do they pay Dividends so I would get the Dividend Tax credit? All are in my margin account. Would any of these be worth adding to now that they have gone up somewhat? Thanks so much!

Q: Hello,

I need to increase the fixed income component of my portfolio. XBB and CBO make up 12% of my portfolio. Please suggest a few more CDN fixed income ETF's I could invest in. I am retired so a more conservative approach is what I am looking for.

Thanks for all your help.

Q: Which fund would you put more money into as I have only enough money for 1 ETF. I currently owned both in a RRSP and ZAG is in a lost position so could average down or add to VEE as the upsize looked better for this ETF than ZAG?

Thanks

Q: Bond ETF's like XLB have performed poorly in the face of peak interest rates and pending Fed rate cuts. Could you offer some insight as to why there has been recent weak demand for US treasuries, whether you see that trend continuing in the near term and at what point bonds may become a rewarding investment?

Q: As an older investor, I am considering a gradual move from mostly individual stocks to a fully ETF portfolio. My thinking is to allow management simplicity for my wife in the event of my death or disability. Seeking dividends predominately but also a representation of growth. Can you please suggest an array (portfolio) of ETFs that I could begin migrating towards? As always, your advice is appreciated. thank you

Q: I have these ETF's in my portfolio, although they are a small percentage. I am wanting to do a clean up of most of my partial holdings in individual stocks and purchase more ETF's. I was going to add VIG as well. Could any of these ETF's be replaced with better ones or not bother with them, and what others do you suggest to compliment them for an income investor who wants to see a little growth as well in a well diverse portfolio? Thanks.

Q: I currently own ZAG in a RRSP and wonder if you would add to this ETF at this time, I have a 3.5% weight. and looking at increasing to 6%.

Thanks

Q: I currently have equal weights in ZAG and VFV (about 6% each) and a fair chunk of "cash" for stability. Rate drops seem to be stalled, so ZAG is going nowhere fast. OTOH VFV is flying high and might have temporarily peaked. I don't want to lose out on the eventual bond bounce, but I wonder if I should dump ZAG to get the potential VFV upside. I realize this might be crystal ball territory.

Q: I have these in a robo managed portfolio and am down 25% on ZFL and 5.4% on ZAG and 8.2% on XSH.
Since it appears interest rates appear to be stabilizing should one hold on for a recovery or try a different strategy or different holdings. Perhaps maybe moving to GIC or HISA EFT or other holdings you may suggest. Or do you think the same recovery may be seen by continuing to hold?
This loss seems to be an issue with those that have to go managed funds and mutuals with a balanced EFT portfolio.
I am going to transfer from so called managed to my own managed EFT's to avoid the fees. Think I can do just as well (or poorly depending on how you look at it) but wondering if I should switch holdings when moving funds to self directed EFT's.
I do have a separate portfolio with individual stocks, so this is basically a portfolio to minimize management and time requirements.

Q: Hi. Which bond ETFs do you currently recommend? US or Canadian. Thank you.

Q: Do you think it is a good time to add bonds? It seems the most likely scenario's (slow growth with moderating inflation like now, or full blown recession) will be more favourable to bond investors than equity holders. What is the asset mix you would employ and do you favour longer bonds today? Thanks.

Q: We have 30% allocated in our registered accounts for fixed. (currently 10% each for CBO, ZAG and XBB) Are these the best options for today and the next year(s)? Also see XLB recommended recently and wondering if we should be adding or replacing any of the above?
Appreciate your opinion
Thanks Doug