Investment Q&A

Q: I am surprised that the CBO etf is down almost 8% over the past few weeks. With rates decreasing I would have thought the fund would hold up better. Is the eft down as a result of credit/default risk? Is this fear justified? Are the holding of high quality or risky? Thanks for your insight.

Q: Just before the sharp downturn in market values I sold about 20% of my growth holdings.if I was looking to add a 2 - 3 names back what would be your top recommendations for good value on price and long term growth prospects?
Also, what was the reason for the decline in CBO price?

Q: I have these 3 ETFs in my RRSP for fixed income exposure. I am strongly considering selling CBO and CLF, down approximately 3% each, to raise funds to buy stocks that are, in my opinion, getting to really attractive valuations today. I'll keep XHY because it is down a bit more (11%) and will likely recover as things improve. Is this an acceptable strategy in times like these. 25+ years until retirement.

Thanks,
Jason

Q: I am a long time subscriber and an avid reader of the Q&A. Even with all I have learned, I am still having a difficult time understanding how to invest the fixed income portion of my portfolio. I want fixed income to provide portfolio stability by protecting on the downside while offering the possibility of capital gains along with some income.

I am a buy and hold investor on the equity side and I am comfortable deciding when to sell a company. However, the fixed income side seems to demand a more active approach - or does it? For example, you have been suggesting that interest rates seem likely to decline in the coming months so that would favour long term bonds. But for stability, or as an offset in case I am wrong, should I also hold short term notes? Should my fixed income portion be split 1/3, 1/3, 1/3 among cash, short term and long term and just left at that or is it necessary to continually monitor and adjust these weightings? Or is there one fund that does all that already?

Appreciate your insight.

Paul F.

Q: I currently have about 7 1/2 % of my RIF in bonds and would like to double that position - on the safer end . As a percent of total portfolio (Rif, non-Registered, TFSA) my holdings now are:
CBO <1%
CVD 1.1%
XHY 2.1%
ZAG 3.8%
Could you suggest what else to add or what adjustments to make to the above. Many thanks

Q: What would you recommend
To complement bond fund xlb
In my fix income portion of my portfolio
Thanks Sam

Q: Looking to increase my fixed income exposure. Currently hold CBO, XBB, and CPD (preferreds). Thinking of adding XHY in addition to these, would you recommend additional ETF's in this space to help diversify?

Q: Hi,

In your answer to James you suggested the following bond ETFS: XBB, XLB, XSB, CBO and/or XHY. I'm very interested in this as I'm trying to increase fixed income exposure.

What percentage would you suggest in each of the total bond portfolio? Also, unless I am missing something, CBO and XSB both appear to be the same thing, so why the need to own both?

Q: For the 40% bond allocation in my portfolio, what are your best thoughts?

Q: Hello 5i,
To clarify my previous question: I hold bonds at 40% for my fixed portion of my value blue chip dividend retirement portfolio.These include CBO $30,000 2.31%, XHY $25,000 1.86% and XLB 87.000 6.76%. I also hold a $60,000 5 year GIC ladder. I would like to change the CBO for VCB for more income and stability instead of watching CBO's constant descent into the nether regions of the market.
Is this consideration appropriate, should I just leave things alone or can you suggest a better alternative given what I already have?
Thank you
Stanley

Q: Hello 5i,
I am currently holding CBO at 2.3% portfolio weight. I would like to exchange it for XCB with higher yield and apparently not dropping like a rock as CBO has done. Would this be w worthwhile exercise, can you suggest a better alternative, or should I just leave things alone. I would be taking a $1,500 loss on $30,000 a holding.
Thank you for the great service
Stanley

Q: Hi
I am looking to add a bond etf to my portfolio. I am looking for something with a reasonable yield, that is defensive with some possible growth opportunities. Could you recommend the one that fits that those criterion or if you have a better choice, I would appreciate it. Thanks

Q: Hello 5i team,
My portfolios are mostly stocks and with a possible recession coming next year, I would like to purchase bond ETFs for both my CDN and U.S. portfolios. At this point would you recommend long or short or ultra short ETFs? and could you suggest a couple of each ( CDN and U.S)? Thanks Carlo

Q: it seems to me that a good place to have bond ETF is in an RRSP. do you agree? currently I have about have of my wife's RRSP in VSC and the rest is in cash right now. i was thinking that I would place the remainder in another bond ETF with low management fee and with perhaps a more aggressive posture. Does this make sense and what other bond ETF would you recommend? thanks.

Q: If I was to invest $400,000.00 into an all bond portfolio, could you suggest what bond securities you would invest the money? Thanks, Bill

Q: YOur site lists a yield of 2.67%, Issuer blackrock lists a Yield to maturity of 2.3%. which is more indicative of future total yield? With being able to get 2.3%, risk free, on saving at EQ Bank, why take risk in this bond ETF?

Q: I'm hearing caution about government bonds (inability to pay during recession) so what is your recommendation on corporate bonds, individually and ETF?

Q: Hi 5i
I purchased this etf for my mom. Can you tell me:
1) would 5i expect it to trade below its one year expected yield return from dec 31,2019 to dec 31 2020?
2) Mom’s capital position is currently underwater. What is 5is best guess for the closing price of each share dec 31, 2020?
3. I’m trying to assess the overall risk of the etf. How would this ETF do if a recession broke out in 2020?
4. Can you recommend a better replacement? Why is this better?
Thank you.

Q: Hello 5i Research...I have a very elderly family member who needs to re-structure her TFSA . Investment horizon may be under 3 years. GIC's are used in other accounts. We are looking for an ETF solution that will provide a decent level of capital safety and some monthly income (above GIC levels).
We were thinking a combo of XTR , CVD, CPD . XCB and CBO. Is there a one fund solution solution that you might endorse? What percentage split of funds might be appropriate in the current environment?

thanks/art

Q: Hello, my question is about CVD, CBO, CPD and XHY. I know you like these ETFs for income, and most of them are in the Income Portfolio. When one looks at their 5-year chart, one can see a downward trend for all of them. What will it take to change that to an upward trend? Would you invest in these ETFs today? Regarding XHY, the Fact Sheet says “Exposure to a broad range of U.S. high yield, non-investment grade corporate bonds, based on market-value weighting”, does the low quality of these bonds bother you? Thanks, Gervais