Q: Would you say selling VAB and buying HBB would be a superficial loss in CRA's eyes? Or are they different enough? They do track different benchmarks (by title, at least).
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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.
- BMO Aggregate Bond Index ETF (ZAG)
- Horizons Cdn Select Universe Bond ETF (HBB)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- Vanguard Canadian Aggregate Bond Index ETF (VAB)
Q: I have 2 unregistered accounts and hold too much money in HISAs. I would like to invest more in Horizon's total return ETFs that pay no distributions. I have been looking at HBB but the chart looks nothing like similar Canadian bond etfs. Today, July 10th, HBB is trading at the same level it did 5 years ago but XBB is 13% lower today, VAB 13% lower and ZAG 15.2% lower. Can you explain this large difference? Should HBB now track in a similar way to XBB? Thanks!
- Horizons Cdn Select Universe Bond ETF (HBB)
- Horizons S&P 500 Index ETF (HXS)
- Horizons S&P/TSX 60 Index ETF (HXT)
- Horizons Intl Developed Markets Equity Index ETF (HXDM)
- Horizons Cash Maximizer ETF (HSAV)
- Horizons Emerging Markets Equity Index ETF (HXEM)
Q: For tax reasons, I want to buy some ETFs or stocks in my unregistered account, that pay little or no dividends. Which of the Horizon's total return ETFs would you recommend at this time? HSAV seems to be really unstable and I am concerned it could be a money loser in the short term. I read in the G & M that the manager of Langsford Wealth Counsel in Oakville has been buying HXDM with better valuation than the US. Thanks!
Q: Dear 5i,
In regards to Horizon's ETF; HBB.TO
There web site says the MER is 0.10% and the swap fee is
no more than 0.15%. Does this mean that %Gross Total Return gets
reduced somewhere between 0.10% and a maximum of 0.25%?
Are they any other fees other than trading fees I need to be aware of?
In regards to Horizon's ETF; HBB.TO
There web site says the MER is 0.10% and the swap fee is
no more than 0.15%. Does this mean that %Gross Total Return gets
reduced somewhere between 0.10% and a maximum of 0.25%?
Are they any other fees other than trading fees I need to be aware of?
Q: Can you comment on the makeup and duration of the bonds in this ETF? Is it comparable to XBB.
Q: Hello 5i Team
To increase my fixed income allocation, I need to add fixed income to my non-registered account.
I am looking at the Horizon Corporate Class ETFs, in particular the Horizons Cdn Select Universe Bond ETF (HBB) in comparison to BMO Discount Bond Index ETF (ZDB), BMO Aggregate Bond Index ETF (ZAG) and/or iShares Core Canadian Universe Bond Index ETF (XBB). I am not familiar with the concept of Corporate Class ETFs.
1 - Is HBB a reasonable alternate to the listed major bond funds?
2 - Please confirm HBB does not pay a distribution and that “income” is reinvested in units of the ETF resulting in potential increase capital gains in the future.
3 - What would be the impact of a future increase in capital gains inclusion rate (from 50 % to 75%) have on corporate class ETFs?
4 - Is there a minimum dollar amount where the corporate class ETFs start to make sense (i.e. is better to pay the tax on a distribution from XBB when the dollar amounts are relatively small)?
Thanks
To increase my fixed income allocation, I need to add fixed income to my non-registered account.
I am looking at the Horizon Corporate Class ETFs, in particular the Horizons Cdn Select Universe Bond ETF (HBB) in comparison to BMO Discount Bond Index ETF (ZDB), BMO Aggregate Bond Index ETF (ZAG) and/or iShares Core Canadian Universe Bond Index ETF (XBB). I am not familiar with the concept of Corporate Class ETFs.
1 - Is HBB a reasonable alternate to the listed major bond funds?
2 - Please confirm HBB does not pay a distribution and that “income” is reinvested in units of the ETF resulting in potential increase capital gains in the future.
3 - What would be the impact of a future increase in capital gains inclusion rate (from 50 % to 75%) have on corporate class ETFs?
4 - Is there a minimum dollar amount where the corporate class ETFs start to make sense (i.e. is better to pay the tax on a distribution from XBB when the dollar amounts are relatively small)?
Thanks
- Horizons Cdn Select Universe Bond ETF (HBB)
- iShares Core Canadian Short Term Bond Index ETF (XSB)
- Vanguard Canadian Aggregate Bond Index ETF (VAB)
- Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC)
Q: I sold my business and started investing last year. I am trying to build balanced portfolio and struggling with the bond portion. I don't want to buy individual bonds and was looking into something like HBB for unregistered portfolio and VAB and XSB for registered. Yet, I am very uneasy about buying bond ETFs in the near-zero interest rate environment - the rates can only go up (unless we end-up with negative rates here) and, obviously, bond ETFs will be going in the opposite direction. I was thinking about VSC but almost 35% of it are junk bonds, so no comfort there. With PSA now paying only 0.65%, I am really out of choices for the fixed income portion of my portfolio. Any suggestions (both for CDN and USD positions)? My time horizon is 10 years and I want something safe and tax efficient.
- Horizons Cdn Select Universe Bond ETF (HBB)
- Horizons S&P 500 Index ETF (HXS)
- Horizons S&P/TSX 60 Index ETF (HXT)
Q: I have a larger cash account with a 10+ year horizon and would like generate capital gains only and no significant dividends. I like the Horizon TRI funds but would also like to invest in some individual stocks. Could you recommend some good stock (or other ETFs) that pay out little or no dividends.
Thanks!
Grant
Thanks!
Grant
- Horizons Cdn Select Universe Bond ETF (HBB)
- Horizons S&P 500 Index ETF (HXS)
- Horizons S&P/TSX 60 Index ETF (HXT)
- Horizons Intl Developed Markets Equity Index ETF (HXDM)
Q: I have a non-registered account, with 8-10 years before the funds are needed. To minimize tax, we would like focus on 100% capital gains, if possible. Can you recommend some ETFs or individual stocks? We have been looking at Horizon's corporate class ETFs. Thanks for your continued excellent non-biased reports!! Grant
- BMO Floating Rate High Yield ETF (ZFH)
- Horizons Cdn Select Universe Bond ETF (HBB)
- Mackenzie Floating Rate Income ETF (MFT)
- Senior Secured Floating Rate Loan Fund (FRL.UN)
- PIMCO Global Income Opportunities Fund (PGI.UN)
Q: When I compare MFT (that I own) and FRL.UN with ZFH and PGI.UN I don't understand why the former don't perform as well as the latter. What can explain that and what would be the best bond ETF (low volatility and reasonable yield) to own within a registered and non registered account. Also, do you know a bond ETF giving mostly capital gain for a non registered account to reduce the income in interest.
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- Horizons Cdn Select Universe Bond ETF (HBB)
- iShares Convertible Bond Index ETF (CVD)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: I am looking to buy fixed income funds in my corporate account. What would be your top picks of the ones listed? What are the rate of return - fees? Thank you for your website.
Q: I have an existing bond allocation in ZAG in registered accounts. However, in order to maintain an appropriate asset allocation I need to start holding fixed income in a corporate cash account. Do you have any concerns using HBB for this purpose (e.g. size, liquidity, etc)?
Q: Could you tell me why HBB & HTB are trading close to their 52 week highs, whereas similar eft's are closer to their 52 week lows?
Thanks for your service
Thanks for your service
- Horizons Active Ultra-Short Term Investment Grade Bond ETF (HFR)
- Horizons Cdn Select Universe Bond ETF (HBB)
- Horizons US 7-10 Year Treasury Bond ETF (HTB)
- Purpose Premium Yield Fund (PYF)
- Mackenzie Floating Rate Income ETF (MFT)
Q: I am setting up a fixed income portfolio for 5 -10 years with little need for income. HISA @ 15%, HTB @ 5%, HBB @ 5%, PYF @ 5%, HFR @ 20%, MFT @ 50%. I would increase the Horizon's ETF percentages, but liquidity is low. Would you please comment on this set up. Thanks for your service.
Q: Hello 5i ! great work, nice upgrade to the web site ..
Do you know if ETF with "Total Return swap" like HBB are still "legit" for Revenue Canada ?
Do you know if ETF with "Total Return swap" like HBB are still "legit" for Revenue Canada ?
Q: What would your choice be between HBB and ZDB as a core bond holding in a non registered account? What are the differences in the risk profiles?
- Horizons Cdn Select Universe Bond ETF (HBB)
- Horizons S&P 500 Index ETF (HXS)
- Horizons S&P/TSX 60 Index ETF (HXT)
- Horizons US 7-10 Year Treasury Bond ETF (HTB)
- Mawer Balanced Fund Series A (MAW104)
- Horizons Europe 50 Index ETF (HXX)
Q: I have a sizeable position in the Mawer balanced fund in my non-registered account from the sale of house a couple years ago. I have treated this as a standalone portfolio so that should I decide to use the funds for a large purchase such as another house, I do not need to make a larger number of trades to rebalance my main portfolio.
As I do not anticipate using the funds for a number of years, I have been considering replacing MAW104 with Horizon's swap based ETFs to defer any taxable income and create a balanced portfolio from the 5 funds. My thought is that over a number of years the tax savings and reduced MER may outweigh the potential returns of the actively managed fund.
My main reservations in proceeding are the liquidity of these ETFs through an economic downturn or major market sell off, and with the solid long term returns of the MAW104 fund, is there really much upside in making the switch?
Appreciate your thoughts.
As I do not anticipate using the funds for a number of years, I have been considering replacing MAW104 with Horizon's swap based ETFs to defer any taxable income and create a balanced portfolio from the 5 funds. My thought is that over a number of years the tax savings and reduced MER may outweigh the potential returns of the actively managed fund.
My main reservations in proceeding are the liquidity of these ETFs through an economic downturn or major market sell off, and with the solid long term returns of the MAW104 fund, is there really much upside in making the switch?
Appreciate your thoughts.
Q: What are your thoughts on holding HBB as a bond holding in a margin account when the income is not currently required?
Q: Is HBB worth keeping in a rising rate environment? Since Trump took office the price has been on a slow steady decline.
Thanks!
Thanks!
Q: Total return index ETF; is it good ?