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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,
There are slim pickings for the retail corporate bond investor at the moment. I found a five year Ford Motor Credit bond with a BBB rating paying an effective yield of 3.55%.

Do you think the risk/return on this bond is reasonable? I am hesitant to buy it because of the history of the auto industry during recessions and the current state of personal debt in Canada.

Thank you. Michael
Read Answer Asked by Michael on January 27, 2020
Q: I'm looking for a safe place for cash with a decent yield. This could be for several months or several years. How would you compare ZSH to PSA? Is one better than the other? With uncertainty over interest rates, do you have any recommendations for the fixed income portion of an investment portfolio?
Read Answer Asked by Jack on January 21, 2020
Q: Looking to increase my fixed income exposure. Currently hold CBO, XBB, and CPD (preferreds). Thinking of adding XHY in addition to these, would you recommend additional ETF's in this space to help diversify?
Read Answer Asked by Patrick on December 05, 2019
Q: I start withdrawing from my RIF next year. At this point I have just under 6% in VSC, 5% in XBB, 2% in XHY and was thinking of adding some CBH for the longer term corporate bonds.

If you feel my thinking is correct what % limit would you set for CBH? I know there is more to my investments than what is listed here with BCE and ENB et al also held for their income stream but I want to get your thoughts.

Thank you,
Ron
Read Answer Asked by Ronald on December 02, 2019
Q: Hi,

In your answer to James you suggested the following bond ETFS: XBB, XLB, XSB, CBO and/or XHY. I'm very interested in this as I'm trying to increase fixed income exposure.

What percentage would you suggest in each of the total bond portfolio? Also, unless I am missing something, CBO and XSB both appear to be the same thing, so why the need to own both?
Read Answer Asked by Pamela on November 27, 2019
Q: Hi
I am looking to add a bond etf to my portfolio. I am looking for something with a reasonable yield, that is defensive with some possible growth opportunities. Could you recommend the one that fits that those criterion or if you have a better choice, I would appreciate it. Thanks
Read Answer Asked by Leonard on November 07, 2019
Q: Hello 5i team,
My portfolios are mostly stocks and with a possible recession coming next year, I would like to purchase bond ETFs for both my CDN and U.S. portfolios. At this point would you recommend long or short or ultra short ETFs? and could you suggest a couple of each ( CDN and U.S)? Thanks Carlo
Read Answer Asked by Carlo on October 31, 2019
Q: Within fixed income today, is it wise to move from longer term bonds into floating rate bonds...seems the longer bonds are beginning to slide while floating rates bonds are holding firm. both pay similar yields. thanks as always.
Read Answer Asked by Curtis on October 28, 2019
Q: Back in June 2011 we purchased Scotia Dividend Fund 6372205 no load @ 41.95 today it's at $68.80 for RESP for Granddaughter.Initial inv. 2,763.29 and today worth 4531.41.We will be visiting them next week.Usually receive div. in December.She has 2 years to go before graduating.Should we sell and buy bond fund XLB to make sure we don't lose any value that has built up.Tks
Read Answer Asked by Guy on October 25, 2019
Q: If I was to invest $400,000.00 into an all bond portfolio, could you suggest what bond securities you would invest the money? Thanks, Bill
Read Answer Asked by William J on October 07, 2019
Q: Hi 5i, View the current oulook for fixed income products in Canada being rather abysmal. What are your views of emerging markets. There seems to be a play for emerging market bond markets now that the US is tightening rates and the US dollar is weakening. I am looking at some ishare etf products (USD funds) that invest in EM bonds. You always said we should hold some bonds and some foreign investments in our portfolio. Your thoughts?
Read Answer Asked by pietro on September 30, 2019
Q: I currently own CPD in a taxable account at a loss position. With interest rates looking like they are going downwards would it be positive for preferred resets? Would you be okay with a switch from CPD to XBB at this time? I have CPD as part of my fixed income portfolio even though it is kind of a hybrid between equity and bond. Thanks for your insight
Read Answer Asked by Rudy on September 25, 2019
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