Investment Q&A

Q: I only hold bond positions in these two funds totalling 4.5% of my portfolio. After exiting a couple of equity positions I have a high cash position and was thinking of adding to my bond position. How would you distribute bond investments among
1] less than 5 years
2] 5 to 20 years and
3] over 20 years

Thanks

Q: What would be safe bond ETFs with decent dividends for the next 2 or 3 years.

Q: I have held XSB in my fixed income portion of my RRSP for a year now down 7% plus dividend. In your opinion with rates maybe peaking this year would a move to XLB or CBO make sense or just hold XSB. Will not be touching for 4 years.

Thanks

Q: There are emerging long bond bulls out there.Do you think XLB and TLT are good ways to invest in this theme?Would you wait for a more clear outlook on interest rates to buy these?

Q: Hi Guys
Is the yield starting to look tempting at 3.35% . If long term rates aren't moving much, doesn't that say the inflation fears might be a little over done ? and if not now, at what percentage yield on XLB would you purchase,
Thanks Gord

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

Q: Hello, I am looking for an answer to a difficult question about evaluation of risk for fixed income assets.
I understand that for a long time, it was anticipated that the long decline of interest rates and correlated bond rally has ground down and the current prevailing question surrounding interest rates is how fast they may rise.
With this in mind, could you please offer thoughts on the relative risk of bonds? How much downside potential is there, and is it justifiable to buy their low volatility, even if it is believed to be a (apparently) horrible investment with no future potential, just for those two percents of yield?
Your thoughts are greatly appreciated.

Q: Hi Guys
Just curious why last March during the big sell off, XLB traded down so far. I would have though during times of crises, people would run into buying Govt Treasuries for Safety.
Also, at what yield would people consider buying back into XLB, i think the current yield is around 3.3 % My current Portfolio weighting is 2.06% and I'm down 11% you think its a good idea to increase my position to around 4% at this time. I'm also about 40% in GICs , which should perform inversely .
thanks

Q: A small percentage of my portfolio is in XLB for all the reasons you have previously espoused. I am down about 10% over the past short while and I am wondering if I should go to a shorter duration fund - CBO perhaps - or just continue to ride it out with this one. Or any other suggestions.

Appreciate your insight.

Paul F.

Q: Hello 5i,
It was suggested that I switch from XLB, XSB, and VEE to ZAG and ZEM which I did. Lately I have seen on the daily watch report that XSB, XLB, and VEE are again mentioned as suggestions in many instances over the past few weeks. Should I switch back or maintain my positions in ZAG and ZEM?

Q: Hey,

What would be some stocks and ETFs to watch during this rotation?

Thanks

Q: As a follow-up to my question last week on interest rates up/down, please also advise which funds/ETFs perform best when interest rates move in either direction.

Thanks again.

Q: Is it time to start letting go of these long term bond ETF? Or do you see a role as part of a laddered portfolio? If so, what percentage of these long term bond holdings would you suggest at this point? Unless we have negative rates the only way is up? Not sure I believe that rates will be kept so low for much longer.
Thank-you.

Q: Hello 5i,
I have $21,000 in XSB and the same in XLB. Should I sell these and just get ZAG or does it really matter and stay as is?

Q: First a big thank you for the terrific returns we received in 2020 thanks to your stellar guidance (our largest holdings we first discovered through 5i -hello LSPD,XBC and WELL!). We gifted our kids memberships in December and praise your service to everyone. This is truly an invaluable service.
Now to the question, my brother is tired of paying high fees for his CIBC pension holdings. When I looked into this for him last year, some pools had MER in the 2% range! He’s moved the following into cash and is looking for lower fee/higher return alternatives in the following areas of his pension account:
-Imperial Canadian Dividend Income Pool
-Imperial Canadian Equity High Income Pool
-Imperial US Equity Pool
-Imperial International Equity Pool
-Imperial Short Term Bond Pool
-Imperial Long Term Bond Pool
Please charge as many questions as required.

Q: Hello, I am wondering what the estimated rate of return is for XLB? Is this a good choice for a RSP?

Q: I currently hold both ZHY and XLB for exposure to bonds. I am looking to consolidate into one. Can you suggest which is better for a long term bond position?

Q: Fixed Income portion of portfolio is 40% and some deposits came due so need to deploy that cash into fixed income. Thinking of putting 25% of the 40% FI into these two ETFs. I would appreciate your thoughts on this plan please. Alternatives are welcome. Thanks again.

Q: Rightly or wrongly, I believe a market downturn is coming with negative rates a possibility. I have raised cash by selling many of my equities. I'm not confident in the health of the corporate bond market but was wondering if you can suggest a government bond fund/ETF (US and/or Canadian government) or other government fixed income strategy that may benefit from negative rates?

Q: I just recently retired and within my portfolio have approx 60% in Bonds (As per above) - while these have been a great hedge against the equity holdings, I am considering either selling some of the bonds listed above - approx 10% and moving these monies into either high yield bonds - ie CHB or ZHY or if not into high yield bonds possibly a high yield dividend fund like XEI or ZWC or ?
While I would like to increase the income on these monies - do you think this is a good time to make this move?