Investment Q&A

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: Hello 5i,
I have the above ETF's in my TFSA as I believed the distribution is interest. I read in reports that distribution is dividend or "dividend interest") All quite confusing. In the TFSA's are also a GIC 5 year ladder, growth stocks (LSPD, LNF) and some high dividend paying equities. Should I journal the above ETF's to a non-registered account and refill the TFSA come January with more growth and GIC's or leave everything alone? I am 73 with a defined pension and 60/40 fixed / equity
Stanley

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: I would like to park some cash, with the eventual purchase of a residence and am interested in more than GIC's and I understand that this will entail more risk, though less than equity risk. What do you think of MFT, XHY, PYF, PSA, HFR and PMIF and would you split them in equal percentages?
Thanks for your service

Q: I have no exposure to fixed income and wanted to know if there are any other that you were preferred over this list? I am looking at buying all of these names each for a 5 % weight.

Thanks

Q: I have managed to recover my portfolio to my December balance and have decided to move to a more conservative position while these unprecedented times continue. I hold the above stocks at approximately 2.5% each and would like to move to a 20% total. Would you recommend adding to these positions, selling some and adding something different, or just adding new. I have a well balanced portfolio and am retired without a pension so secure income is preferred.

Q: I am 72 and retired. I have been building a part of my portfolio (58.4%) for the last three years with ETFs. Current holdings are (% weight of portfolio in brackets): zwh (10.5), zwu (9.1), zwc (8.5), mft (5.9), xtr (5.3), xhy (5.2), zwe (4.7), cdz (3.2), zdh (3.2) & zre (2.9). With 24.2% cash, I plan on slowly adding to these etfs. How would you do this? The remainder of my portfolio is in dividend paying Canadian large caps.
Thanks, Jim

Q: My income portfolio consisting of the above equities has taken quite a beating in the recent market downturn. Except for LB, there has been some recovery in prices, and so far dividends have been maintained. I have some excess cash to deploy, and would like your advice on whether to double down on some on my current investments, or your suggestions for other beaten down income investments. Thank you.

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: Hello to the team
How reliable are the divi. on this companies there are an integral part of my retirement,generally they are less 10 years in the market and being clobbered,should' i reduce some of these position and replace them with some exposure to US. like PDI or wait as long that the divi is there,i'm 76.
Thank You

Q: I have both these 2 ETF in a RRSP account but at a 3 % weight each.these 2 ETF. I will not need to start withdrawing for 10 years and wondered if I were to buy more for a 5% weight , buying 1 % now and then another 1% in a few month or best to wait longer to see if these 2 ETF start to perform better?
Thanks

Q: Could you please rate these ETFS for safety. How would they react in a higher interest environment and which would you lean to.
Thanks

Q: Hello, is there a 15% withholding tax on XHY income in a non-registered account? Is the income of XHY treated as interest? Is the income of ZPR treated as dividend? Would you consider these two ETFs risky at this time? Thanks, Gervais

Q: I currently owned XHY and CPD in my LIRA account and have funds to increase these holding from 2 to 4 % weight. Would you be a buyer of these 2 ETF or wait ?
Thanks

Q: Your thoughts on XHY in a RRIF. Would you consider selling and using the cash for something with more upside potential. Thank you Barb

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: I have these 3 ETFs in my RRSP for fixed income exposure. I am strongly considering selling CBO and CLF, down approximately 3% each, to raise funds to buy stocks that are, in my opinion, getting to really attractive valuations today. I'll keep XHY because it is down a bit more (11%) and will likely recover as things improve. Is this an acceptable strategy in times like these. 25+ years until retirement.

Thanks,
Jason

Q: As a follow up to my earlier question, is it a good time to add to this position when credit spreads widen?

The widening of credit spreads means the spread between similar bonds with similar maturities across the risk spectrum? For example, government, corporate and junk?

Thanks,
Jason

Q: Why has this ETF doNe poorly during the correction? As yields drop, treasury prices should increase? Is there fear of bankruptcy from oil company debt?

Jason

Q: I am a long time subscriber and an avid reader of the Q&A. Even with all I have learned, I am still having a difficult time understanding how to invest the fixed income portion of my portfolio. I want fixed income to provide portfolio stability by protecting on the downside while offering the possibility of capital gains along with some income.

I am a buy and hold investor on the equity side and I am comfortable deciding when to sell a company. However, the fixed income side seems to demand a more active approach - or does it? For example, you have been suggesting that interest rates seem likely to decline in the coming months so that would favour long term bonds. But for stability, or as an offset in case I am wrong, should I also hold short term notes? Should my fixed income portion be split 1/3, 1/3, 1/3 among cash, short term and long term and just left at that or is it necessary to continually monitor and adjust these weightings? Or is there one fund that does all that already?

Appreciate your insight.

Paul F.