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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: Dear 5i team.
As I read through the recent Q's on the merits of owning laddered bond funds vs long bond funds (CLF/CBO vs XBB/XLB) couple of f/ups for you. Assuming rates have peaked, and downward is the consensus:
1) What is the upside for CLF vs XLB for example. How much of a move in bond prices would you estimate for each 50 BP move? (can you do same exercise assuming rates move higher?)
2) Since you like both XBB/XLB for long bond exposure, can both be owned, or should one be sufficient?

Many thanks for your help to understand the risk/reward here.
Read Answer Asked by Arthur on January 18, 2024
Q: In many of the investment articles I have been reading Bonds are being touted as a good investment in 2024. Do you agree? If yes, what Bond ETF's would you recommend?
Read Answer Asked by shirley on December 22, 2023
Q: Right now a large % of my portfolio is in TD 8150 money market paying 4.55%
If rates start to drop it will be hit right away---Some corporate bonds are paying over 5%---I like the liquidity of the 8150s and will continue being in fixed to perhaps a lesser extent---do you think I should lock in one of these corporate bonds for maybe50% of what I have in 8150s now?
Thanks
Peter
Read Answer Asked by peter on December 15, 2023
Q: Hello
I have equal amounts in CLO and CLF. Wondering if it might be a good idea to swap one of these for the longer term XLB Bond Fund to hopefully play the downturn in interest rates? If so which would you swap and why? Is there a safer trade with equal potential with less risk then XLB?
Thanks
Jeff
Read Answer Asked by JEFF on December 12, 2023
Q: It certainly feels as though we are seeing the beginning of a new bond bull after the roughest two years since the 1980s-early 1990s.
Please provide you opinion on the above, as well an any other bond etfs that you follow.
Can you please provide you opinion regarding a bull market..
Thanks in advance
Rick
Read Answer Asked by Rick on December 12, 2023
Q: Hello,

I am trying to determine whether tax loss selling would make sense in my current scenario. I have an over 20% weight position with CSU. I want to reduce this position which will trigger a large capital gain. Does is it make sense to sell my fixed income positions in CBO, XHY and VAB which will trigger a tax loss to help offset the CSU capital gain? I can also leave as is and hope the interest rate situation turns around in 2024?

Thanks for your help.
Read Answer Asked by Mauro on November 16, 2023
Q: I am thinking of buying a few short term, bonds 1 to 2 years maturity, that are presently discounted with a good credit rating
My thoughts are that with the capital appreciation of the bonds when they mature in 1 to 2 years plus the dividend I can achieve 10 to 12% return
What do you think of this ?
Can you make any suggestions as to three
possible bonds that will fulfil this criteria?
Thank you
Read Answer Asked by Indra on November 15, 2023
Q: Hi there, with all the buzz about fixed income, Gics, bonds etc. I feel like maybe I should be increasing my exposure in my RRSP. I am retired and definitely have a diversified portfolio more slanted toward div paying solid equity companies.

I know you can’t give personal advice but what might be a good way to tweak my portfolio to increase fixed income exposure for 5-10 years ie gic or bond ladder, ETFs, individual bonds or?

Or should I stay in dividends and forget about it?

Ok thank you!
Read Answer Asked by Robert on September 29, 2023
Q: Hello 5i, common question for you but I have very little bond exposure and was looking to start building a fixed income portfolio. Can you give me your current top 5 bond picks (assuming ETF's). This can be USA or Canada bonds.
Read Answer Asked by Dean on September 22, 2023
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
Read Answer Asked by Doug on September 18, 2023
Q: Hi- retired investor.
Bought these a while back for fixed income and am down 8% and 10% respectively. Could you explain why these have decreased while bond yields have increased?
Should I dump these and just convert to a 5% GIC or is there a light in view?
Thanks
Jeff
Read Answer Asked by JEFF on August 22, 2023
Q: Good morning,

With bond rates moving higher can you suggest your top 3 bond etf's to gain exposure at a low cost. Would holding these in a registered or cash account be best? As always thank you for your time
Read Answer Asked by Kolbi on July 17, 2023
Q: Hi 5i team,

I haven't put any money into fixed income yet. Do you have any suggestions for fixed income ETFs or other products worth looking into?

Thank you,
Matt

Read Answer Asked by Matt on June 22, 2023
Q: Question for the 5i team. I took over our investment accounts about 8 years ago and since then bonds were not particularly attractive. As bonds my be about to have their day in the sun I feel it may be time to consider adding them to our portfolio. I however lack the knowledge and experience to make informed decisions at this time. The first part of the question is, can you recommend any informative reading or sites that would be of benefit to a novice bond investor. The second part would be a quick summary of your outlook for bonds, longterm, short term, etc and opinion as to which bonds, ie treasuries, to junk, would offer high yield without excessive risk for young retirees. Thanks for all your helpful and sage advice.
Read Answer Asked by Robert on June 09, 2023
Q: Hello 5i
We currently hold CBO, CLF & XRB at 25/25/50% all as long term holdings in a slight loss position. I believe we are currently at (or very near) peak interest rates. Do you have any suggestions to bond replacements that might be better positioned to capture rate reductions for these holdings. (not accounting for the bonus of tax loss selling)
Again many thanks
Les
Read Answer Asked by Les on June 05, 2023
Q: How would you recommend adding a small/prudent amount of exposure to bonds in the current market environment?
Read Answer Asked by Patrick on April 21, 2023
Q: Hello, still seeing these bond etfs drifting downwards, these 4 are the fixed income portion of a well balanced portfolio, with investment savings offering just over 4% is it worth considering a move, these are in sheltered accounts. Thanks.
Read Answer Asked by Peter on March 23, 2023
Q: I am looking at adding a 15 to 20 percent bond component to my portfolio. From the mix of laddered, aggregate, short/long term and high yield ETF’s listed. Which would you recommend and why? Please let me know if you have other possible suggestions? Thank you
Read Answer Asked by Myron on March 02, 2023
Q: What are your favourite Canadian bond ETFs given the current circumstances and looking ahead a couple of years.
Thank you!
Read Answer Asked by Carlos on January 23, 2023