Investment Q&A

Q: I’m 72 and retired, I would appreciate your view on investing in Canadian long term bond etfs, I plan on purchasing TLT in my U.S. account and was interested in purchasing a Canadian long term etf as well…..I appreciate your views, thank you!

Q: Thoughts on this new high yielding bond fund? Thanx.

Q: Do you have a recommendation for a long term high quality US bond ETF?

Q: Hi. Which bond ETFs do you currently recommend? US or Canadian. Thank you.

Q: Which do you prefer to invest today: TLT or preferred stock ETFs. For preferred stock ETFs, could you suggest a few? Please explain the reason. Thank you.

Q: Which ETF would have the best potential under the current market outlook?

Q: Hello 5i,

David asked a question about timing a purchase of TLT. The answer indicated now was a good time but the recommendation was to buy an aggressive bond. Can you list two examples from the US, CAN, and 1 from a global perspective that would meet the description of an aggressive bond?

Thank you,
D&J

Q: Your response to "Alex" on October 23, 2023 and today's National Post article by David Rosenberg are very positive for the immediate success of TLT. Given its reasonable payout, it seems worth waiting for a turnaround; however, its recent performance has been abysmal. Timing thoughts? It is a worthwhile long-term hold?

Q: RE purchasing US treasuries

Hello 5i,
Once or twice I have tried to purchase bonds from my discount broker RBC direct investing. The process to purchase is fairly easy (you will face a hit up front on the bond price compared to the open market). However, when selling a bond or treasury that's when a DIY investor is really at a loss. You call up RBC and then the agent will consult the "manager in the bond department" and they will decide on a price they will give you for the asset you wish to sell. Kind of like a car dealership! It truly is a grey market where your discount broker has all the control of the sale of that fixed asset. Also, if looking at treasuries, you must commit to $10k USD and can't buy, for example in smaller increments, like I wish to do for a family member in a conservative TFSA.

IS there an ETF suggestion for a 10, 20 30 year treasury in USD? Not what i really want, but will mirror the moves in this market, I suppose? TLT is the 20 year. What is the 10 year, 30 year?

Also, can you confirm that the interest paid on the treasury would be tax exempt if held in a TFSA? If tax on interest is exempt in a TFSA, would it still be exempt if one holds the ETF and not the treasury itself?

Q: I currently have positions in HYG ( a bit underwater but no reason to sell) and am considering switching HYG for TLT. The current yield is lower, it seems, but the chances for a long term gain look more inviting. Your thoughts on TLT would be much appreciated. Good idea to switch?

All the best

al

Q: Recently I asked a question on HBND. Could 5i give me a similar analysis on HPYT ? As well as comparison of the different structures between the two . The only one I am aware of is the 50% position of HBND that is not covered calls . Not sure what the situation is with HYPT ..... The yield on the two is considerably different with the former yielding 10% and the latter 15% ...... Please compare what you would suspect would happen differently with each under rising/stagnant/falling interest rates ?..... Thanks Garth

Q: I am looking for $US-denominated ETFs to hold within my RRSP/RRIF. I would be interested in both shorter and longer-term names. When I review the questions you have answered and the company's literature, it is not clear if the bonds pay US dollars or are simply US bonds bought in Canadian dollars.

I am assuming that any ETFs that fit my criteria would not result in US taxes being paid as long as they are held directly in my registered accounts. If this is not the case, please suggest ways to ensure no taxes are withheld at source.

Appreciate your insight.

Paul F.

Q: Good Morning ,

Could we have your opinion on this new listing from Harvest. Also do you see their risk evaluation as accurate (medium-low). Thank you.

Q: Hello 5i, common question for you but I have very little bond exposure and was looking to start building a fixed income portfolio. Can you give me your current top 5 bond picks (assuming ETF's). This can be USA or Canada bonds.

Q: Hello there

I'm looking for a US bond fund (USD is fine) for a registered account. I'm fine with high quality corporate bond funds or gov't whichever you consider optimal. Which do you suggest are worth considering? thanks al

Q: Could you give me some examples of the "Fat Coupon Bonds" that David Roseberg" referred to on BNN yesterday?
Could MTF be included? Thanks, JAMES

Q: hi,
can I get your opinion on the Aug. 9th Globe and Mail article by David Rosenberg and Bhawana Chhabra, "...It's time for investors to revisit their asset mix." And are you able to provide a few Canadian dollar ETF's to buy ( US treasury index? other? ), if you would in fact recommend that?
thanks, Chris

Q: I hold some TLT and have obviously entered into too early. But I am prepared to be patient.
My question is more about the Billionaire Ackman article last week where he states he is shorting the 30 year treasuries. Now, is he doing that simply because he feels the it will be a long time before the Feds actually start lowering rates or, is there something else out there that I do not understand about long treasuries?

Q: Good morning,

With bond rates moving higher can you suggest your top 3 bond etf's to gain exposure at a low cost. Would holding these in a registered or cash account be best? As always thank you for your time

Q: Supposing that an investor had three registered accounts of roughly equal size that they wanted to change from equity ETF's to a fixed income allocation for their portfolio, and these accounts would have to be converted to RIF's in 6 years. Let's also assume that we get one or two more small rate hikes this year, then interest rates flatten and begin to come down slowly over the following several years. Which of three options would you choose on a risk/reward basis? 1. Just hold money market funds currently paying 4.5%+ 2. Barbell XSB and XLB using two accounts, and put XBB (or ZAG) in the third (avg. yield close to 3 %? with potential cap. gains) 3. Put TLT in all three, yield close to 3%? maybe highest potential cap. gain? With the BOC policy rate going up close to 5 points since the start of 2022 the bond funds above fell anywhere from 10%+ to 30%+. Does that imply that if the BOC rate went back down 2.5% that they would rise 5%+ to 15%+, or you can't make that kind of straight line assumption? Maybe there is a way better option, but I don't really want to tie up funds in GIC's and don't want to try to pick individual bonds either. I also considered something like PSA but no cap gain upside there and the money markets probably pay as much interest or more. Thanks for your thoughts.