Investment Q&A

Q: Hi,
I need a bit of help in structuring my Bond component for my RRSP.
I had so far running with PH&N High Yield 5%, ZST 5%, PH&N Total Return Bond 10%, PIMCO Monthly Income Fund 5% and MFT 2.5%, for a total of 27.5%. Given my age (59) and the fact that soon we may enter in a Bear market, I have to increase my Bond allocation. According to some, this should mirror my age, probably close to 60%. My question is: What combination of Funds/ETFs and weight should I use? Is probably not a good idea to invest more than 15% in a fund and probably limit my High Yield exposure to 5%. Thank you.

Q: Hi, Could you tell me if XTR and MFT would compliment each other, or is there some or too much overlap between the two, or in other words is there much correlation, thanks?

Q: I have MFT as my fixed income holding. I have noticed that it is dropping and at the same time VAB is rising. What would cause this to happen and is it time to swap to VAB or have both in my portfolio?
Thanks and have a great holiday!

Q: what is your current view on MFT - article in Globe recently was drawing attention to the leveraged loans used in floating rate mutual funds and ETFs as becoming a lot more risky in this environment - your opinion please - thanks - Karen

Q: I was reading an article in today's Globe and Mail where they were commenting on Investors fleeing the US trillion dollar debt market (leveraged loans)- and they felt they were becoming riskier in the current environment where interest rates were not expected to go up as much as predicted - MFT holds leveraged loans I believe - how safe do you view this ETF in this environment? - I looked at the price and it has a good current yield of 5.057% and although down a bit from its year high of $21.64 (currently trading at $20.72)- it has hung in there pretty well. I know it is hard in this environment to try and figure out which space to be in with the current unpredictable and uninformed US President - but I am just interested in your feeling about the floating rate space right now - hold, or sell. Right now I am interested in preserving principal and willing to take some risk. Was thinking of selling and maybe looking at it again once everything settles down to a more normal investing environment where rates might start going up again. Appreciate your insight - Karen

Q: Hi Peter/Ryan
I am thinking of moving from non-registered stocks to MFT for safety and collecting dividends. what you think of this strategy for long term? Do you see any risk or would suggest further diversification in current scenario.

Thanks

Q: I have held MFT for under a year, purchased for fixed income outside of a bond fund. Currently down a bit over 1% not counting distributions, which is obviously pretty good in todays' market, but the drop does have me questioning where it might be going. What would you expect the fund price to do in the each of the following situations:
1) rates continue to go up, even if at a slower rate
2) rates stabilize
3) rates go down
Also, how would the distribution be affected in each scenario above and what is the approximate lag time?
Because of the mix of products in the fund, do you think it will act more as a bond fund or an equity fund to market gyrations?

Thank-you

Q: I am setting up a fixed income portfolio for 5 -10 years with little need for income. HISA @ 15%, HTB @ 5%, HBB @ 5%, PYF @ 5%, HFR @ 20%, MFT @ 50%. I would increase the Horizon's ETF percentages, but liquidity is low. Would you please comment on this set up. Thanks for your service.

Q: A few days ago I asked a question on MFT and you mentioned that your source says MFT yields approx 5.5%.

Both iTrade and WebBroker show that MFT yield .10 cents per month, which according to them is 7.5%.

Could you please clarify, don't understand the discrepency.

Thanks

Sheldon

Q: MFT, What is the risk for this ETF?

Q: Good Morning

MFT, according to my brokerage research shows a current yield of 7.75%. Does that not seem high? I know MFT has fallen 1.2% over the past 3 weeks, is that why?

Thanks

Sheldon

Q: Good morning,
In your response to Marilyn on Friday you replied that you "have no concens seeing it (CPD) as part of an income allocation" and "one needs to decide how it fits in"
My recent experience is that any so-called fixed income that I purchase loses money even including distributions. My current cash allocation is therefor 20% earning nothing, with another 20% in CBO, CPD, XBB, XHY, and a few preferred issues. I can look for a DIS account but could you expand on "how it fits in" and perhaps suggest the ETFs we should currently be using in this environment and a possible allocation range for each. Thank you for the ongoing excellent service in a difficult environment.
Ted

Q: Can you suggest a floating rate corporate bond etf ? Thanks

Q: If you needed to use your cash (i.e. $100K) in 3 years (October 2021), ignoring any other investments held in TFSA and RRSP, where would you invest this money that is currently held in a taxable account? The obvious answer would seem to be GICs, but would MFT or anything else fit the bill in trying to maximize return? Thanks.

Q: if you had to choose which position to add to, which would you choose and why?

Q: A month ago I sold both these bond etf’s to capture the tax loss. I’m now looking to rebuy/reinvest these funds. As part of my fixed income allocation I’m wondering if I should repurchase the same or might you have other suggestions in a rising rate environment?
Thank you

Q: I'm retired and have no fixed income in my portfolio.
I would like to switch about 15% of my investments into fixed income. I have read all the questions regarding MFT but am looking for a few more ideas with as much return as is prudently possible.
I spend time in the U.S., so an idea or two there would be a great help, as well.
Thank you, in advance.

Q: We will be putting 50,000 in my wife TFSA inNovember. we are looking for relatively safe investments with decent return.We think perhaps 10 investments @5000 each.Can you suggest other names I could look into.We have RRSP maxed out with varied portfolio.Deduct as many credits required. Tks 5i

Q: Can you tell me what would be a similar/equivalent ETF
in the US?

thanks

Q: I have invested 14% ($107k) of my total portfolio in the Outcome Oriented Model: Enhanced Equity Income ETF Portfolio. Do you see any changes that need to be made with the portfolio holdings? I have an additional $20k to invest, would MFT be a good addition or just add to the existing holdings? I am 70 years old and my goal is to augment my retirement pensions.
Thanks for the great service.