Investment Q&A

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: For a balanced portfolio with the next 3-5 years in mind, what are your suggested weightings in preferreds, utilities and high yield bonds. Given low interest rates preferreds in particular seem like a place investors will go to seek higher yields with some opportunity for growth.

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: I have been following 5i advice for a few years now and it has served me well. Thanks! However, this is the first time I have had a question that I haven't seen an answer too in the forum; I some capital that I need to invest shorter term 1 - 1.5 years. Everything fixed pays next to nothing, so where should I be looking at this time? Bank stocks with a safe dividend? Other high dividend slow growth companies? If so, which would you recommend? Thanks, Dan

Q: Hi Folks,

I know your main focus is stocks, but if you have some cash to invest and you don't want it it equities, would you prefer XBB or XSB right now? Or is there another bond fund alternative I should look at for $CDN. This if for a long term hold.

Thank you. Michael

Thank you.

Q: Good morning 5i. I am considering "parking" about 10% of my portfolio in "cash equivalents". Are CVD and CPD your preferences in this case as I see they pay out roughly 5% which seems a reasonable risk/reward scenario? Are there other options or recommendations that you might consider? Thank you in advance.

Q: Will there be a correction before the election? Will it be as bad as the March one? No one knows for sure however many like me believe that a correction is coming and I was hoping you would have advice on where to park equity investments that I will have turned to cash. I do not intend to put it under my mattress or buy GIC’s. What are your thoughts on bond ETF’s like ZTL or so called sleep at night ETF’s like ZZZD. I would appreciate your advice on the above and suggestions on where to invest this cash in a safer investment until after the correction please. Thank you

Q: Hi 5iTeam,
I noticed that when the markets pulled back in early to mid March this year, both bond ETFs: XLB (approx. -28%) and XSB (approx -9%), pulled back as well although there were no movements in interest rates. I would think that these bond ETFs are a good proxy for cash, then what would investors' reason be for selling? Your comments on this would be much appreciated.
Cheers,

Q: I sold my business and started investing last year. I am trying to build balanced portfolio and struggling with the bond portion. I don't want to buy individual bonds and was looking into something like HBB for unregistered portfolio and VAB and XSB for registered. Yet, I am very uneasy about buying bond ETFs in the near-zero interest rate environment - the rates can only go up (unless we end-up with negative rates here) and, obviously, bond ETFs will be going in the opposite direction. I was thinking about VSC but almost 35% of it are junk bonds, so no comfort there. With PSA now paying only 0.65%, I am really out of choices for the fixed income portion of my portfolio. Any suggestions (both for CDN and USD positions)? My time horizon is 10 years and I want something safe and tax efficient.

Q: I have been keeping a lot of money out of the market for most of this year waiting for stability to return. Bonds seemed to be pretty much a pointless investment to me for the last few years but I've reconsidered. Putting a chunk of cash into a bond etf seems better than just leaving it in my account where it earns next to nothing. On the other hand, it's safe where it is. How safe are bond ETFs? I'm particularly thinking of bond ETFs which don't seem to bounce around much like BLV, VLB, and XLB, but which seem to have done well YTD.

Q: Hi, my question concerns slow repositioning of an actual 100 % dividend etf and stocks portfolio , for long term and retirement . Concerning the fact that various economical factors are now present for a future inflation (and then future interest raise in maybe 2 or 3 years ?): 1) what sectors will be safer, or even stay "safe" for dividends 2) what category of bond etf could be added to this portfolio , if indicated ? Many thanks ! JY

Q: Hello, can you make a comparison between these 2 etfs? I already have XBB, so my goal is to maintain a minimum 2% revenue stream in my RRSP and shorten the duration as well. Maybe you have another suggestion? Thanks.

Q: Morning, 5iTeam,

I am thinking taking a position in XLB and XSB. Would this move make a good pair trade in your opinion?
Cheers,

Q: Can you comment on these ETF's I presently hold in a corporate unregistered acct. I have a large amount in DVY.US - not sure why (previously with a FI ) Looking to update this portfolio based on present times. In At least a 5 year hold. Please take as many credits as needed.
Thanks so much.

Q: Hello 5i-
what do we do with Canadian $ in cash. We've got cpp, oas, work pensions : however, all of this can go down significantly too and we need to preserve for our later years.- - my ? is this: what shoud we do with xtra cash now? Should we buy usa $, usa stocks, etfs? thank you for your time

Q: Hi team
looking for an etf for real return bonds (short term) vs XSB which is also short term
what is the main difference in terms of safety and returns between the 2 ? it is meant to be in a RRSP
thanks
Michael

Q: How would you rank these bond funds. I sold FTB and bought PMIF but it is not performing well. Bond funds have not performed well due to the drop in interest rates. I am retired in my late 70’s.

Q: Would you have any recommendations for individual corporate bonds with decent yield to maturity for up to a 7-year term? Based on my research, yield remains low for decent quality. Thank you!

Q: Can I get your thoughts on this etf? It only has $34 million in net assets. I am looking for a government bond ETF with a 1 to 5 year bonds with a reasonable management fee. Trying to get a bit more yield than GICs while preserving my capital. Any other investments that can achieve this? Thanks for your suggestions.

Q: I'm a highly aggressive growth investor (thanks for your help). At 86 with too small a pension, its time for some fixed income. I've sold 25% of my equities. Where do you suggest I put this cash so I get some return? Thanks.