Investment Q&A

Q: This is a follow up question to my prior question about ETF safety.

You stated “Bond funds had three very bad years. When rates moved higher, nearly every bond fund declined. In a steep market correction, few equity funds would be immune to decline as well.”

Are you saying that the money lost by XSB and XLB cannot be recovered even if rates go back to the very low rates they were at before? And this is due to a sudden market change, which caused more people to want to sell than buy these ETFs, as opposed to the fund reflecting the underlying status of their respective bond market?

In other words, are you saying that these ETFs do not accurately reflect what they’re supposed to due to inherent problems with ETFs in general? And these issues could occur in any, including large and broad, ETFs given enough market instability?

Or, are you saying this is what occurred in the short term, but the price will correct over time, so if you hold on, eventually you will not loose money more than the underlying assets?

Sorry for the long question, but I found your answer a little concerning and wanted to be specific. I hope you understand what I mean.

Q: If I own shares of this both as a CDR and Nasdaq holding are they treated as having a different capital cost for tax purposes?

Q: In the Growth Portfolio which stock would you buy now for 2025 TFSA contribution? Long term hold, thinking GSY as it has the highest rating in the portfolio.
Thanks Ron

Q: Hello Peter,
CSU's results did not beat estimates , yet stock is up. If other companies had similar results, the response in the market may not be that great. Is it due to constellation's history of being a good capital allocator? I saw this article on yahoo, link provided with an extract ,

"Toronto-based Constellation reported third-quarter financial results after the closing bell on Friday, booking a higher profit on an annualized basis, topping analyst expectations. Revenue for the three months ended Sept. 30 fell shy of estimates, while rising nearly 20 per cent year-over-year to US$2.5 billion."

https://ca.finance.yahoo.com/news/dubbed-canadas-berkshire-hathaway-constellation-softwares-stock-seen-hitting-new-all-time-high-162056191.html

Question,

Could you explain the higher profit that exceeded the estimates in the above extract? Thanks very much

Q: Could you please provide update on MP Materials. What is their balance sheet? Would you buy it?

Thanks,
Milan

Q: You have consistently talked about your admiration for BN operationally. It has been trading in range for almost five years and is now hitting out a large breakout, almost independent of its subsidiaries. I know their CEO had spoken about the benefits of dropping rates. Any other comments on the rally here? Do you see it sticking for BN and also compared to private equity peers?

Q: Hello 5i Team: As a long time holder of Fiera wondering if outflows of assets will continue and how the recent 4 billion will affect bottom line.Is the 10% draw down warrented? Thanks Mike

Q: CBIL holds Canadian treasury bills and TDB2913 is a money market mutual fund. It looks to me CBIL is safer with basically the same yield am I missing anything? Thanks

Q: Analysis on the quarter and outlook.

Thanks Greg

Q: Good afternoon,
I have a full position in ITA, would a switch to XLI which has 22% Aerospace & Defense be wise at this juncture for the added diversification while still having defense stock exposure or do you see defense outperforming?

Q: Hi 5i,
I really like your creation of DOCCKS through amalgamating those 6 Canadian names, and the comparative 5 yr history you've put together of some salient numbers.
I think it might be helpful to also see where the money comes from, and wonder if you would also be able to break down the geographical origin (percentagewise) of each company's revenue and, further, compare those results to the net profit, FCF etc resulting from each geographical source of revenue?
Thanks 5i,
Peter

Q: I’m trying to understand the risk I’m up against with investments in CASH and UCSH.U. Both have significant holdings in Scotiabank and National Bank investments. My portfolio percentage positions in these two is quite significant.

- Do you have options for better diversification of my cash holdings?

- In the event of “something going off the rails”, what impact does this have on an investor of these two investments like me in the event of a bail-in of either Scotiabank or National Bank because of these holdings within the two ETF's?

Q: Good morning,

Recently I have become concerned about the potential for a US sovereign debt crisis. From my understanding the amount of US debt is growing at an unsustainable rate and eventually it will become apparent that the US cannot pay back its debt while offering a real return to investors. Once this happens the US will have an issue borrowing money because there is a lack of lenders which will lead to them either having to cut back services (which would almost certainly cause a recession), defaulting because they can't roll over their debt (also causing a recession) or trying to change the rules of the fed to try and print the debt away (which would cause almost nobody to lend money to the US government again and almost certainly cause hyper inflation). To me any action that would involve cutting back services which would be better for the long term but really bad (and political suicide) for the short term would probably not be implemented because the politicians would be voted out. This line of thinking terrifies me and I am really hoping that I am missing something. Am I correct with my analysis? Is there anything that I am missing?

Thanks,
A

Q: As a general rule do most bond funds have a set philosophy about duration or do they simply employ funds based on what they think makes sense at that particular time?

Thank you

Q: could i get analysis on earnings- doesn't look good on the surface - just a delay in orders?

Q: I have very little faith in the go forward value of the Canadian dollar versus the US dollar.Whats are good equity ways to access exposure in a broad sense to the US$?

Q: Would u consider the the fundstrat etfs such as GRNY new? and DQML a buy
Are they hi risk
Can u give the performance and fees ?
Ty

Q: I opted to do the split (keep 70%) and did okay but there is no indication about its dividend. Right now there is no dividend. What gives?

Q: Good morning,

Just looking for confirmation of the recently-announced TRP and SOBO dividends.

I see TRP @ C$0.823 for an indicative yield of 4.85%.
I see SOBO @ US$.50, for an indicative C$ yield of ~ 8.5%.

It would seem to me that if one is + on the space, given recent analyst estimates for both companies, owning both makes sense over the near-term. While I like the SOBO yield, I had forgotten that the TRP yield would drop a bit.

Thanks as always.

Q: I’m thinking of selling all of my equities and buying market index ETFs instead.

I am wondering what are the risks of ETFs. I am aware of the risks inherent with investing in them with regards to NAV, diversification, etc.

What about the risks of the company that manages the ETF defaulting?

What about the risk of a run on the ETF where everybody wants to take out their money at the same time?

In the past, I invested in XSB and XLB in place of bonds. I must say it’s been rather a disaster since Covid. They reduced in value more than Bonds did during Covid. They were not recovering as bonds did when interest rates were increased. Nor were their interest rates as high as bonds were.

I have concerns that market index ETFs may have similar risks. Can you comment on these?

Thank you.