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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: Greetings 5i team,

I am not sure i fully understand the risks associated with this floating rate ETF. Can you explain to me how they are paying out such a high dividend when the the underlying assets do not. In addition, is there an equivalent US ETF you would recommend. I need income in both Canada and the US!
Cheers
Read Answer Asked by kelly on June 01, 2018
Q: Could you explain exactly what these two ETFs invest in? On their respective websites it appears as if ZFH is largely in government bonds or treasuries of some type (the scary term CDS shows up here), while MFT refers to "bank loans". Both indicate low to moderate risk, while at the same time showing virtually all investments rated at BB or less - below investment grade.
How do these ETFs compare to ZHY or XHY in terms of safety of principle and dividend sustainability?
Thank-you
Read Answer Asked by grant on May 03, 2018
Q: I am looking for a bond ETF to park a substantial amount of money $400K plus for the next 12-24 months. In today's environment with interest rates on the rise i am looking at the following MFT, HYI, XHY or is there a Pimco ETF that would be more suitable.My goal would be to make 3-4% in a safe investment. Any other recommendations would be greatly appreciated.
Read Answer Asked by Brian on April 27, 2018
Q: I read with great interest your response to a recent query regarding Mackenzie Floating Rate Income. I have the same goal as the member who asked the initial question. Under what circumstances might MFT perform poorly? How do you think it compares with PMIF (Pimco Monthly Income Fund), in terms of correlation with equities, bear market/recessionary performance, and total return potential? I note that MFT has a greater proportion of holdings which are below investment grade, do you think PMIF would be the safer choice? Which would you prefer for long term, steady income and capital preservation, taking the relative MERs into account as well? Thank you.
Read Answer Asked by Walter on April 23, 2018
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