Investment Q&A

Q: All my fixed income is in XCB,XRB and VAB. All are held in tax sheltered RSPs and distributions are in DRIP programs. My question is " would you continue with the DRIP programs as I have to start withdrawals in 5 years when I turn 71? " These bond ETFs are all in serious down trends.

Q: I have held these three funds since early 2016 for the stability component (maintain capital and some income) in my portfolio. The annual MER's are .44, .86 and .84. respectively, I have series F in the PMO funds. Extra year end distributions for the PMO funds were nice but they stopped after 2018 year end.

Their total capital growth has been very modest, about 2-4% total over several years.

I am not too comfortable with the higher annual MER's.

Could you comment if I might see significant capital drop if interest rates go up? Also, could you recommend any different holding or stock that I may consider instead of these funds for stability and income?

Thank You.

Q: from your research does this company look decent im having a hard time getting reports lets say from td or raymond james or baystreet that would help a lot ....thanks .

Q: I own these two bond ETfs inside a balanced portfolio. My understanding as the bond yields rise the price goes down, along with the price of my dividend stocks. Seems like a double whammy. Im trying to figure out if there is anything I should do here. Happy to hold the bond ETFs and collect higher distributions. Your thoughts please.

Q: 5i, thank you again for all the great advice! I saw someone asking a question about these bond / high interest ETFs earlier today. Do you have other suggestions for bond / high interest ETFs? I have a longer investment horizon, but currently are 40% equity and 60% cash. I want to put some of this cash to work in a relatively safer manner.

Q: What are the best bond etfs to own in Canada and US in your opinion? Please provide several options in both countries. Thank You.

Q: Are there tsx listed etfs equiviant to TIP & LQD ? Thanks.

Q: HI TEAM
XHY IS APPROX 10% AND THE OTHER 3 ARE 30% EACH OF THE BOND PORTION OF MY PORTFOLIO, WHER WOULD YOU ADD FUNDS AS I NEED TO TOP UP MY BONDS

Q: Inspired by the news of Carnival putting out a 12.5% bond coupon, I wonder if this is an area to look into. Carnival may be a risky corporate bond, but I wonder if there are stronger companies caught in debt when the fall came that are offering good returns.

In short, is there an ETF which is focussed on high-grade corporate bonds and is this a good strategy?

I know you are not favourable toward the bond market, so is low-volatility equity funds (like ZLB) a good alternative?

Q: XCB is quite negative this morning. Problems with the BBB bond exposure in Canada ?

Q: Hi 5i Team,
I am considering to invest in high yield corporate bond.Would you recommend to invest in corporate bond than equity in this environment? Can you recommend few names?

Thank you,

Q: Many high quality bond ETFs are trading at substantial discounts to their NAV. How can this be as the ETF should be representing the value of the underlying bonds? Are bonds being sold so fast that the market makers just can not keep-up with the pace? If XCB and XRB return to their NAV value this could be a buying opportunity? Thanks Ron

Q: I Have held these bond etfs for a long time and they are down considerably. (-16 & -30% -9.00 % -5.16%)and still counting

My question is :
Do I have any reasonable reasonable expectation of ever recovering the capital if I hold them ?
Or I am reasonably safe in selling them and putting what is left in a better place ?

Q: Hello 5iResearch,

I have a couple requests:

1. Would you please send me your recommendations for two or three ETFs I could use for hedging against a recession/market correction but still get an annualized distribution yield of about 3%?

2. Could you please also let me know what your recommendation would be for a gold ETF?

Thank you,
Natasha

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: 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 5i team,
The price of the above shot up by 7% in the last 6 months; is that a reflection of the more accommodative stance of the Fed?
Thanks
Antoine

Q: I presently have Cdn cash in a savings account @ 1.95. I will not require these funds for at least 5 years. Can you suggest a strategy to increase rate of return, not taxed as interest, low fees and minimal risk. Please rate the above funds. Any other suggestions?

Q: Hello 5i team,
It seems to me that interest rates will remain low in the next year or so; in that context, would it be wise to invest in the above ETFs. I would be happy if I got a return of 2 or 3%.
Thanks,
Antoine

Q: I am retired and have significant positions in vsb and vab and both are valued less today than a couple of years ago.
I was thinking to sell one or both and purchase xhb and /or xcb and bep.un and/or ala.
I look forward to your comments. Thank-you