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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am interested in an 'all-in-one' diversified ETF to provide regular (quarterly/monthly) income such as VCIP, that best meets the following criteria:
1) Fairly conservative
2) As tax-advantaged as possible as it will be held in a non-registered account
3) Yield that can reasonably be expected to outpace inflation over time
4) MER<0.4

The rest of the investment portfolio is well diversified across geography, market cap, and sector, achieved with a few broad market index ETFs.
Read Answer Asked by Walter on April 16, 2021
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.
Read Answer Asked by Walter on August 28, 2020
Q: Hello 5i Team:

Thank you for your answer about DGRC today. With hindsight, I shouldn't have included VCIP in the same question! Here it is again as a separate question:

I know from your answers to other members that weighting is personal/that bonds despite all the bad news still play a role in one's portfolio/Short bonds are probably better than long bonds.
I have your Portfolio Analytics service and my input suggests 60 40 split. (Inputting data in PA is a work in progress!!)

With this mind, may I ask this question?

What would your suggestions be for retirees: 40% Fixed income .
All in something like VCIP. Or divide them into different boxes? VSB/VAB/VSC etc., Or some other ETFS?

40% is a lot of money to be in one ETF, no? Or these multi layered ETFs offer enough diversification?

Read Answer Asked by Savalai on July 09, 2020
Q: I like the Vanguard family of ETFs and am looking for safe income in these uncertain times. I am aware of VBAL and VGRO, but could you suggest other Vanguard offerings that focus on earning investors relatively safe distributions. If there are other companies that offer superior ETFs for income I would appreciate your suggestions.
Read Answer Asked by Les on June 17, 2020
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.
Read Answer Asked by Savalai on May 13, 2020