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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: I own ZHY, XHY and ZEF bond ETFs. They do pay some income, but the capital is getting constantly depleted - I am 10% down on ZHY/XHY and 5% down on ZEF after holding them for many years. Is there a point of keeping these funds or should I get rid of them?

Read Answer Asked by Mirjana on August 26, 2021

Q: In a flat or a rising interest rate environment which ETF is preferable i.e XHY, PFIA, MFT, ZHY OR PYF?

Thanks for your service!

Read Answer Asked by Ozzie on July 12, 2021

Q: I am planning to allocate ~4% of my total investment portfolio (16% of my total fixed income allocation) to a high-yield bond ETF (within an RRSP) with a long time frame. Please comment on more mainstream selections like ZHY and HYG vs something like ANGL.

Read Answer Asked by David on December 02, 2020

Q: Hi Guys, I was thinking of putting this ETF in my TFSA for some monthly income. I was wondering if there would be a withholding tax applied if it is in a TFSA because of the US content. I there is do you know how much? If there is then perhaps this would be more suited in an RRSP. I'm retired and am looking for income. Thanks for your help.

Mike

Read Answer Asked by Michael on November 26, 2020

Q: Please rate these as BUY; HOLD; or IGNORE. My purpose, of course, is market down turn protection.

Read Answer Asked by Terry on August 26, 2019

Q: I hold about 12% of our fixed income in ZHY, the balance in ZAG. If we are heading into recession, default rates my rise but interest rates may fall. Does this holding make sense for a balanced (60/40) portfolio, retired investor living off the income. Capital preservation is important but volatility is expected and tolerable. Thanks for the fine service! Jim

Read Answer Asked by Jim on August 15, 2019

Q: ZHY: high yield bond fund. Sitting on a fair bit of cash in RIF & RRSP from accumulated dividends. Don't want to deploy into buying more shares (dividend growers) as I think there may be a buying opportunity in the near future: uncertain economy and interest rate policy. Mild recession - rates the same or may go down, and if no recession rates may go up again at some point. Each scenario will have an opposite effect of the price of this ETF. Best case please.

Read Answer Asked by James on April 03, 2019

Q: Hi 5i,

I need to create a fixed income allocation in my LIRA. Would you recommend an equal allocation to the following ETF's: CBO, XBB, ZEF, CPD and ZHY? If not what would you recommend for a fixed income etf position.

Thanks,

Read Answer Asked by Christopher on June 18, 2018

Q: Hi 5i,

Need to create a new fixed income/bond position in my portfolio. Looking to allocate holdings (equally?) across the following ETF's: CBO, XBB, ZEF, CPD, and ZHY. Would you recommend this as a good long term strategy or would there be a better ETF combination you'd recommend.

BTW loved your May issue in ETF Fund Update (etffundupdate.ca) on balancing sector allocation.

Read Answer Asked by Christopher on June 18, 2018

Q: Hi, I purchased this and ZHY in a few registered accounts for the yield and thinking they might be a little more immune to decline in a rising interest rate scenario. Now I'm not too sure. Should I sell or are the prices reflecting recent interest rate bumps?
Many thanks you guys do a great job!
Bob

Read Answer Asked by Robert on April 02, 2018

Q: I am an income investor seeking capital preservation over capital appreciation. I am thinking of purchasing some or all of these ETFs. Do they meet my requirements? How would a downward market correction affect these ETFs?
Thanks for your assistance

Read Answer Asked by Glen on January 03, 2018

Q: Peter and Team, I want to choose some ETFs for my mother in-laws RRIF and LIF. My approach is to be well diversified, looking for some dividend and a little growth to achieve btwn 5 to 10% annually. I plan to select Equal weights using ZLB,ZWB, ZDV FOR Canadian content and ZLH, ZWH, ZHY, and ZGI FOR US Content. Your opinion and any pitfalls or suggestions would be apprecuated.
Thanks, Steve.

Read Answer Asked by Stephen on December 01, 2016

Q: Hello Peter, I am looking for safe investment with dividends, I have ZEF in my portfolio, I would appreciate your help to rate the above, perhaps suggesting a couple better ones. Also, how would future interest rate increases effect their prises.
Many thanks, J.A.P. Burlington

Read Answer Asked by Joseph on July 11, 2016