Investment Q&A

Q: Hi, how can Purpose can fund a 0.6% distribution with a 0.15% management fee given how low bank deposit rates are? Thanks.

The fund documentation states ‘Deposits securely invested in cash accounts with Schedule 1 Canadian banks’.

Q: Some of our GICS have come due. I went on to buy new ones and was shocked at how low the rates are... 0.8 was the highest I could find for a 1 year. I was thinking about buying the PSA ETF instead until rates go up. It's only slightly less at 0.6 and can be sold at any time . What do you think of this strategy? Any risks with PSA that I'm not aware of?

Q: I have 25K that was in a GIC, making basically nothing (or losing money when considering inflation). Can you recommend something that is likely to retain the principal and earn more in 2 years than the 1.5% 2-year GIC? Thank you.

Q: Hello, could you please provide some of your favourite ETF's to fill the fixed income portion of a portfolio?

What about cash?

Q: About 25% of my portfolio is in cash, enough for 5 years of cash needs. The problem is that it earns only 0.2%. Now I am thinking of putting this cash in 5 or more high quality Bond ETFs. Is this a right move? If so, could you give few names? Thanks.

Q: Looking for both US and Cdn (GIC replacement) ideas for an 80+ year old, looking for some income, not looking to shoot the lights out. Sitting in cash is tough. 4-6 suggestions would be appreciated. Thanks.

Q: I have cash sitting in my open on line trading account earning nil at the moment. Can you recommend anything other than a GIC or term deposit with no fees that is reasonably safe and accessible.
thanks.
Doug

Q: Hi, my high interest savings account currently pays a ridiculous 0.1% interest. Could you please recommend me any alternatives (ex.: ETF, CPG) as to where I could park a large amount of $$$ over the next 10 months?
Thanks in advance.

Q: Hello could you tell me of any ETFs you could recommend with high interest saving for putting cash in that you are not using say in a trading account and typically what do they pay,... thanks for the great service
PS Peter will you or Ryan be on BNN anytime soon

Q: I am with TD and they do not list this ETF (PSA) wish they did - is there a TD product that is available that compares.

Q: I am a client at Disnat.
I would like to have a suggestion on how best to use my cash until I decide what type of investment I want to make. Is there a mutual fund or ETF that I could use? Thank you

Q: Hi, I'm 100% equities and when holding cash waiting for opportunities I've been parking it in PSA. With the yield so low now, do you have a few other suggestions for almost cash like bond ETF's that have low risk/volatility and low MER and have a higher yield (~2-3%)? Usually hold less than 5% cash in my portfolio and holding period <6months. I was looking at the Vanguard or iShares ETFs for options. Thanks!

Q: For you previous question you noted PSA and CSAV, however, neither are available on RBC Direct Investing? Any options for USD?

Q: Do you have any recommendations on safe ETFs to park some CAD and USD that will be needed in the next 1-2 months and earn a little yield?

Q: Hello 5i Team,

I am now managing our Mom's ( 92 y.o. ) self-directed investments and have recently done a crystallization of gains in her Non-Registered account, for estate tax planning purposes.
I've now got to decide where to invest this significant amount of cash that she has.
Considering inflation and yet trying not to have too much risk to the downside because there may not be years left to recover from market corrections. Because of her age, I just don't want to be too long-term thinking here.
Any suggestions you can share here, with specific companies or ETFs, would be appreciated.
Thanks for the great service, and please deduct as many question credits as you see fit here.

Q: Ishares US REAL ESTATE ETF (not in your data base)
can you comment on this ETF for a diversified real estate play. Do you view this as a decent entry point.
What's your view of starting a portfolio of these 5 ETFS with a 20% weighting in each, then rebalancing every year back to the original 20% weighting. Im hoping maintaining the 20% cash position will help smooth out the portfolio in these uncertain times, maybe it will outperform the more popular 60/40 portfolio.
thanks Gordie

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: 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: With Bank GIC rates down close to 0.5% how do you feel about a bond ETF such as BMO ZBBB as an alternative? May I have your opinion on pros and cons, please.
Thanks for all you do.

Q: I have parked cash on PSA, I was wondering, if a better choice is to place it in one of IWO , VYMI, XBAL; the goal is to leave it there for a few years, and to help growth the account.
Thanks