Investment Q&A

Q: Hi - I need to increase my fixed income allocation, Can you pls recommend some favorite ETFs issued in Cdn dollars. The assets can include US issues but no junk bonds please. Thanks for the help.

Q: I'm trying to guage the risk with CVD. Can you compare the risk profile to XBB and CBO.

Thanks,

Joe

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.

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

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.

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,

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.

Q: Hi 5i!
I'm searching for ideas to park cash and generate yield until it can be allocated to good opportunities. Looking for liquidity, stability, capital preservation for a better yield than a savings account. In canadian dollars.
A canadian dividend ETF perhaps?
Many Thanks! Have a good week-end!

Q: Could you please name a few monthly high dividend bond etfs the would protect form a down turn in the markets. Both canadian and us.

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.

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!

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 !

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

Q: Which Bond funds in Canada should increase in price and value as interest rates are increasing gradually...And which would you recommend the most for yield and increase?
Thanks

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

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

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.

Q: Can you recommend 2 or 3 bond funds in Canadian $ that would be the least volatile and offer a return for a 3 to 5 year hold? I would prefer one Canadian and one U.S. or international. This would be my sole fixed income holding. Thanx

Q: I have owned these Bond ETF's for the last few years and have seen the unit prices drift lower with the rising rate environment. If I had bought the bonds directly the maturity date would restore the capital. Does the same thing happen within the ETF's to the same effect? How doe s it play out over time?
Thanks
Paul

Q: In the current interest rate environment what bond ETF would you recommend as a core bond holding in an RRSP. Time frame would be long.