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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: If you were to sell any of the above, list in order your top 5 or 6. Or would you keep the portfolio as is for next 3 years.
Roy
Read Answer Asked by Roy on March 04, 2022
Q: Context: Sold CNQ after a long run up. Funds now to deploy into a locked in RSP about to be unlocked into an income stream. Currently have all blue chip dividend payers and am looking to offset risk by initiating a bond position. Looking for:
-CDN domiciled etf with NA and/or Global focus
-3% minimum yield
-High grade but willing to accept corporates for yield
-Prefer shorter term to maturity, to match future rate increases
-If not CDN domiciled, willing to look at US and willing to look at more than one to match criteria

Thank you!
Read Answer Asked by Harry on February 28, 2022
Q: I have some XSB. Could recommend a similar short term corporate bond

Roy
Read Answer Asked by Roy on February 28, 2022
Q: Portolio Analytics shows that I'm woefully short in fixed income. I am wholly unfamiliar with the category - is it as simple as shopping for the best GIC rate, or are there other, better options I should consider? Please give me some recommendations. Thanks.
Read Answer Asked by Ben on February 23, 2022
Q: I have used hfr to park cash for several years. With rates about to rise I want to park some additional cash there but wondering if there is/are other short-term note etfs you can recommend for comparison.

Thanks very much.

Mike
Read Answer Asked by Michael on February 17, 2022
Q: It seems certain there will be several interest rate increases this year (and possibly more in 2023). That means fixed income will become more attractive. Please provide your outlook on this change and discuss how various fixed-income types (bonds, mortgages, mortgage-backed securities, consumer financing, etc.) will be affected and what opportunities for individual investors are likely to appear in the fixed-income sector as rates rise over the next 12-18 months.

Thank you,
IslandJohn


Read Answer Asked by John on January 24, 2022
Q: I am trying to understand bond diversification better. I have a long term portfolio of mostly equity exposures and some XBB. Do you generally recommend further diversifying bond holdings? Eg to an inflation protected fund or more global exposure or specific maturity profile (eg shorter maturities)? If so could you recommend ETFs for diversification purposes?

I don’t want to over complicate things but also want diversification to different market scenarios in the spirit of an « all weather » portfolio. In particular real return bonds seem useful for this compared to XBB. I would be grateful for your thoughts. Thank you very much.
Read Answer Asked by Chris on January 11, 2022
Q: I have about 10% of my portfolio in these bond ETFs XBB 2%, CLF 4%, XSB 2%, XSH 1%, PMIF 1%. They have shown a negative performance recently with CLF down 7%. The coupon reduces the losses. Will increased interest rates improve their performance? An alternative is to reduce my exposure and buy something like BCE with a low beta and a better yield (5% +). I am 79 years old and have pension income. My portfolio is conservative holding a large proportion in banks, telecoms and utilities. I am looking for stocks, ETFs with a low beta and good yield..
Read Answer Asked by Donald on January 03, 2022
Q: Thanks for your comprehensive answer to my question on fixed income. Just a further clarification. I have often wondered about the usefulness of preferred shares. It seems to me that they are just as vulnerable as stocks, so why have them rather than stocks? I know that you get paid first if the company goes under. But I am not sure that is a big consideration in most cases.

Secondly, i wonder if you might suggest some symbols that correspond to such an arrangement for fixed income.
Thanks for the excellent service
Read Answer Asked by joseph on December 15, 2021
Q: hello
can you recommend what types of bonds should be held in a rising rate environment and can your recommend some ETFs?
thanks
Read Answer Asked by Mary on December 14, 2021
Q: I need to shore up my accounts with some fixed income (low risk) positions. All indications are that interest rates are likely to rise, which makes me nervous to hold bonds or bond funds. I am not sure where to turn - maybe Bond ETF's? I don't want to micromanage a specific bond portfolio either. Do you have any advice on the best approach? I am still 10-15 years from "retirement" (whatever that means), so my investment horizon is still pretty long term.

Thanks in advance
Read Answer Asked by Don on December 13, 2021
Q: What do you think of this for an RESP for two kids aged 3 and 5:

30% XSB
10% XIT
60% VEQT

Anything I should consider with this mix? Is it to late to get into XIT where its is already up so much?
Read Answer Asked by Carla on November 26, 2021
Q: Good morning 5i,
I need some fixed income. And I am paralyzed by the low rates I see. when I think of fixed income i tend to think of security and not growth. I know there are a number of people who put all kinds of things in fixed income, from high risk bonds to preferred shares. Where would 5i fall on this question? I was wondering what you thought a suitable fixed income component might look like for a retired person? as you can see by the symbol I added in the title, I am thinking short term bonds. But, i am open to suggestion. Could you suggest some bond etf's for the US and for Canada that would be appropriate for our current situation?
thanks
Read Answer Asked by joseph on November 22, 2021
Q: Hi 5i Research. I have all the above ETFs in my RRIF. Does it make sense to combine all of these ETFs into one. If so, would XSB be a suitable choice? Thanks very much. Ron
Read Answer Asked by Ronald on November 11, 2021
Q: Expectations of sooner-than-expected rate increases have pushed short-term yields higher in recent days. If so, interest rates could be headed up faster than thought, with dismal consequences for stock prices and real estate speculators. Can you suggest a Canadian Bond EFT that would be suitable during this period of inflation? Cheers.
Read Answer Asked by Ronnie on November 03, 2021
Q: The short duration bond ETFs like these have declined in last few months with possibility of increased rates. If these are held for five years, would there still be loss of principal, if interest rates stay higher than today. I was assuming if bonds are held to maturity, there is no loss of principal. Hopefully, my question makes sense.
Read Answer Asked by Sudhir on November 03, 2021
Q: Hi 5iResearch team
I am in the process of doing re-weighting. I know the above etfs. The US bond etf (VGSH) has very low interest yield compared to the CAD ones (XSB, ZCS, and ZCM).

1. Are there other US bond etfs that are similar to the above CAD ones in terms of yield and risk?

2. ZUP is in CAD$ and US$. Can you please recommend two more (CAD or US) etfs that are similar to ZUP in terms of yield and risk?

Thank you for the great service.
Read Answer Asked by Ahmed on October 14, 2021
Q: Which of QTIPS vs TIPS would you recommend given fees etc and how the US/CAD dollars would likely move in the event of longer term inflation? Any other bond investments that could provide better income and safety if 10-year yield continues to rise?
Read Answer Asked by John on October 04, 2021
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