Investment Q&A

Q: Can you name a few securities that you would recommend in an effort to capitalize on the potential bond market opportunity as outlined in your March 16th market report?

Please rank and provide a brief explanation for the ranking.

Q: If interest rates and inflation are going to peak, do you think these ETFs (XLF, IAK TLT) have opportunity now? If so which one has most potential right now? Thank you.

Q: What would be your top 3 bond ETF picks for both Canadian and US bonds? Is now a good time to put money into these?

Q: Is it reasonable to sell TLT and replace with EDV to register a capital loss but keep exposure to long dated treasuries. As well as a better yield while waiting.
Thank you

Q: What would be the best way to get exposure to US Treasury Bills for inclusion in a registered account (assuming no tax hit from holding them there)?

Q: what % weighting would you feel appropriate for TLT in my balanced Portfolio. If rates start to fall hard in the next 2 years and TLT starts going up. What will happen to the dollar.
Will the U.S. dollar rise in comparison to the CDN dollar or Fall ?
I'm wondering if i should buy the hedged ETF ZTL.F instead of TLT
Thanks Gord

Q: What are your favourite Canadian bond ETFs given the current circumstances and looking ahead a couple of years.
Thank you!

Q: If one believes the 2 year note yield will fall, what are best ideas to play this scenario?

Q: I am looking to add some bond exposure. I had a look at TLT and XHY.

Here is my own personal view on the economy:

- Interest rates could eventually flatline or even fall later in 2023.

- The economy has a somewhat elevated risk of going into a recession.

- The interest rate hikes have a risk of causing "something to break", possibly triggering a black swan event.

Under the above scenarios I am guessing XHY is not a good option considering the individual ratings of the bonds within this ETF, correct?

I don't necessarily want to invest in preparation for a black swan event that may or may not happen, however I want to prepare a bit for that possibility. If that were to happen I would guess that investors would tend to migrate towards the USD. Would that be beneficial for TLT?

Are there better options?

Q: Hi Peter,

After the fed outlook for the economy and the fed rate 2023 what is your opinion of a near term price movement of TLT? Do you think the fed was setting the expectation of a hard landing / recession without acknowledging that the fed rate is restrictive enough already?
Regards
Rajiv

Q: Bond ETFs like ZAG and XBB look to be off 20% or more from highs 2 years ago. Do you see a path back to those highs? And over what period of time? The possibility of capital appreciation while collecting 3% interest has some appeal. Would interest rates actually have to decline, or could merely levelling off cause a bond ETF to rise? If you thought the stars might align say in the next 2 years, what ETF might you choose to play a capital appreciation theme (and maybe state a couple of the assumptions you are making)? Thanks,

Q: For price appreciation in the next 12-24 months, would you prefer a long-term ETF like XLB/TLT or an ETF with shorter duration like XBB/ZAG. Or a bit of both?
Thanks.

Q: I notice that STIP and TIP have each stopped paying their previously excellent dividends. The prospect of their payouts returning, their low volatility and their low correlation with the remainder of my portfolio keep them somewhat attractive. However, can you recommend preferred stock or bond etfs (preferably with available option series) that can provide low volatility, low equity correlation and some yield?

Q: Dear 5i
From what i`ve read over the years , it is my understanding that for every 1% increase or decrease in interest rates there is a corresponding 10% increase or decrease in bond prices . Is this generally accurate ?
If so would it be advisable , once it is believed that interest rates have peaked , to purchase a bond ETF ( with longer term holdings ) ? If so what would be your bond ETF of choice ? That being said if interest rates have indeed peaked it would also be favourable for stocks as well . As such i suppose the best scenario is the add to both with new money . Do you agree ?
Thanks as usual ,
Bill C

Q: Hello 5IR,
Do you know of any fund or ETF that invests exclusively in US T-Bills?
Thanks you. cheers

Q: Is it time to switch from STIP to TLT?

Q: In response to Jason's question on Oct 25th, you indicated that you like AGG and TLT. can you recommend CAD hedged versions of these?
thanks

Q: What environment would TLT perform the best? If the fed goes on hold will TLT effectively be flat, in other words does it take a decrease in the fed funds rate for TLT to have a significant move? What might it take for TLT to go from current price of $96 say to $125. Is a recession good for TLT?
Thanks
Rob

Q: hello 5i:
we hold some PFFD, but your system doesn't seem to recognize that ETF.
Question: would you expect TLT and PFFD to track very closely? Their charts look similar on a 5 year scale.
If so, and as the yield on PFFD is much higher than that of TLT, would not PFFD have a signicantly higher total return over almost any time horizon?
thanks
Paul L

Q: HI 5I,

I have been reading, listening to my financial advisor and seeing some answers on your question blog that there may be an opportunity with bonds. I like ETF's the last while, so can you give me your advice on some ETF's that incorporate a high level of bonds that may see some upside if bonds were to have some capital appreciation. Thank-you