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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: Hi All at 5i! A quick question about tax loss selling. When would it be ideal to sell a stock at a loss to offset gains, considering that I want to buy the stock back. Would now be good? Or wait until Nov? Dec? Also, I own CBO at a loss at the moment. Considering that interest rates are going up, should I sell it now at a loss( to offset capital gains) and buy it back later? Cheers, Tamara
Read Answer Asked by Tamara on October 04, 2018
Q: ..please correct me if i'm wrong, but Canada seems to be a horrible place to put your money....with safety of principal first in mind, a desired yield of 4%, and an ever increasing risk of a market correction, what would you suggest for the next 6 - 12 months. thanks.
Read Answer Asked by Curtis on September 21, 2018
Q: Greetings to Team 5i:

If I am reading the data correctly these ETFs trade on fairly thin volume? It looks like it would not be unusual for them to trade 5k, 30k, and 20k shares respectively on any given day. I am new to direct/on-line investing and trying to figure out the best strategy to buy ETFs (or any equity) like these if the quantity you want to purchase approaches maybe 1/4 or 1/5 of the total shares typically traded in a day. Obviously I'd prefer not to get into a situation of an order getting filled over two days or only partially filled since the returns are meager enough without incurring two commissions or something. Is there a concern here, or a strategy that should be followed as to the type of order entered? Thanks as always for your guidance because I truly do continue to learn something new every day with 5i.
Read Answer Asked by Stephen R. on July 12, 2018
Q: Can you please provide a few bond ETF's that may react positively in a market correction to soften the blow to a portfolio? Thanks
Read Answer Asked by Graham on July 10, 2018
Q: I have 25% in fixed income in the above ETFs. In my TD account they are all showing a small negative return. Wouldn't cash be better or a GIC. I would really like to understand the logic of holding these rather than say a GIC. Thanks so much.
Read Answer Asked by Dan on June 18, 2018
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 5i. FI = Fixed Income

My (6) FI holdings with rough total returns (including MER & dividends) for period held (average ~ 1.5 years): CBO -1.3%, CPD +15.0%, HFR +1.7%, XBB -2.2%, XHY+5.5%, LQD -0.6%.

NOTE: LQD not selectable, so picked HYG for question above.

Question: I understand the reasoning behind having the above FI holdings in my portfolio, but holding CBO & XBB seems like a sure way to lose money. So why not move CBO & XBB holdings to HFR (and possibly also XHY) which at least returns me ~ +1.7% pretty reliably? Your opinion on my FI mix would also be appreciated.

Thank you for continued solid wise advice.
Read Answer Asked by Paul on April 10, 2018
Q: I currently hold this Bond Fund. I'm looking to add a bit more fixed income. This fund is well below NAV right now, has declined about 2.8% in the last year (most of this in the last month or 2), but has a nice yield of close to 6%. I am up on the year by 3% which seems fine to me, considering savings accounts pay .05% these days. Should I add to this one or are there others that might grow a bit in this environment? It seems most of them are well below NAV at the moment. Thank you!
Read Answer Asked by John on March 12, 2018
Q: Hello,
The return of these etfs has been lower than usual in 2017, I suppose mainly because of the increase in interest rate ? What annual return should we expect over the next few years for these 2 ? Which one is your favorite and/or would you have an alternative (risk adjusted return). Thank you !
Read Answer Asked by Pierre on March 07, 2018
Q: I keep reading the traditional fixed income portion of a portfolio that has been allocated to bonds in the past, is a bad idea as a long term investment going forward. With that being said, what type of investments/products would you suggest the average investor allocate the fixed income portion of their portfolio going forward?
Thanks
Read Answer Asked by Curtis on March 04, 2018
Q: I have 1583 shares of CBO @ $19.48 now at $18.43 (3% of portfolio). for a loss of $1664. Dividends are now $552 / yr. I also have 3881 shares of CLF @ $18.57, now $17.84 (6% of portfolio) for a loss of $2838. Dividends here are $1560 / yr. It seems that I am just reading water and I am getting worried of drowning as the ETF's keep dropping down a bottomless pit. I am 71 with 50/50 equity / fixed, the fixed including a GIC ladder and otherETF's. Should I stick with CLF and CBO or is there a more advantageous alternative.
thank you
Stanley
Read Answer Asked by STANLEY on February 27, 2018
Q: I am managing my 83 year-old mom’s TFSA ($64,000.00) and Investment Account ($25,000.00). She contributes $6000 yearly ($500.00 monthly) to the Investment account and $5,500.00 to the TFSA.

I am thinking of purchasing the Mawer Tax Effective Balanced Fund (MAW 105) which comprises 30% Canadian Fixed Income; 2.5% Global Fixed income, 7% Cash, and 60% Equities (Canadian, US, and Global) and a ETF Bond Fund such as Ishares CBO. What percent of each would you suggest I purchase of each or should I just purchase MAW 105. She doesn’t need the money for spending. Any other suggestions are greatly appreciated. Thanks. Susan

Read Answer Asked by Susan on February 20, 2018
Q: I am needing to increase the fixed income portion of my asset allocation after a good run by equities, which I thank you for. For fixed income I am using a mixture of GICs and the PHN Total Return Bond Fund (RBF1340) because it has a low MER. Would it be imprudent to add to a bond fund at this time of rising interest rates and is there a better one I should consider.
Read Answer Asked by jane on February 08, 2018
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