Investment Q&A

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

Q: What is your opinion on using VCIP as a 'slightly riskier than cash' investment vehicle for a holding period of 6-12 months? It is obviously riskier than HISAs/GICs/PSA, but do you think it is riskier than XSB/VSB/HFR? There is an equity component to VCIP, but given its greater diversification compared to XSB/VSB/HFR, I wonder if, paradoxically, it might actually be 'safer'. I note that when the pandemic hit, even VSB/HFR fell quite precipitously. Would you advocate a mix of VCIP/VSB/HFR instead? If so, how would you weight the three? Thank you.

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 Guys
I have always been nervous about parking money in PSA high interest savings Account as it is not covered by CDIC
Are my worries here unfounded.?
Maybe my concern comes from the issues with Commercial Asset backed paper years ago.
If you can put my mind at ease on this issue it would be appreciated
Thanks Gord

Q: Peter and team
I unfortunately jumped (like many others) part way down the crash in March.
I simply cannot believe another correction is not coming.
What do you recommend as a safe place to park cash and earn at least a bit of interest other than a GIC while waiting.
Also I know you don't have a crystal ball, but what are your thoughts on a correction ahead.
Thanks
Phil

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 am looking for a place to park wedding funds for a couple years where I can get a reasonable return and capital preservation. I understand the risks associated with a shorter window, but wonder what your top 3 options may be. Thanks

Q: Hi, I am trying to remember a certain stock you presented which has a vertical zig-zag curve. Someone asked about a safe investment which returned more than a GIC or money market account and you suggested this stock (or maybe it was an ETF). Many thanks

Q: Hi 5iTeam, In your answer to my previous question regarding XSB and XLB, you mentioned there are cash proxies that are less volatile than XSB. Would you please name these cash proxies.
Cheers,

Q: Dear 5i,

Can you suggest some non-Bond type Canadian traded ETF's that might have similar performance characteristics to a short term Canadian bond ETF. I am hoping you may be able to suggest some relatively low risk Canadian ETFs that have a little income with minimal chance of capital loss.

thanks

Q: Hi
I am slowly selling into the rallies and consolidating my portfolio.
Of the two VCIP/VCNS which is safer to hold for 1 to 2 years.
Or should I simply put the money in a Hi Savings a/c or in an ETF like PYF/PSA. I won't need the money to survive for 1 to 2 years. But will need it to "wade into the market" as per your suggestions. Is PYF bit too fancy a place to park? One of the gentleman on BNN mentioned this product recently. I wasn't even aware of this product!
Thanks in advance.

Q: Does 5i have a recommendation for parking cash looking out 1-2 years? Thanks, Bill

Q: Over the last few months I have become concerned about the stock market and have sold most of my holdings and now sit on a large cash position. Do you have any suggestions for parking money other than GIC's? Thanks, Bill

Q: What are some best ETFs, Mutual Funds that is best to park temporary cash holdings? Preferably something that's safe (but not an interest-bearing savings account) with the expectation that it's better than holding actual cash and that I can sell easily to use within less than a year time-frame?

Q: Hi 5i Research Team,
I am interested in investing in both Canadian and US T Bills etfs. Please recommend 1 or 2 in each.

Thanks