Q: I went to a large cash position in my rrsp a few weeks ago, and now I’m interested in putting part of my retirement portfolio (I retired Jan 1) into high interest etfs that I can buy and forget while they generate income via yield. I’ve added a few I’ve been looking at to the ticker box. I’m looking at bond etf’s but I don’t fully understand when to get in and out of bonds - can an investor buy and forget? I’m also looking at covered call leveraged etf’s based on the S&P and Nasdaq indexes. I realize an investor has to have a strong stomach for the volatility associated with high interest leveraged etfs, but for purely an income vehicle, can you provide a few names based on the above criteria? Assuming about 10-15% positions, what percentage of a retirement portfolio would you invest in high interest etf’s, Hoping to generate 8-10% annually from the portfolio. The remainder of my portfolio is mid cap large cap US and Canadian equities. The usual suspects.

Q: Hello Peter and the 5i Team,

With China apparently selling vast amounts of US Treasuries, which in turn has caused yields to rise dramatically, resulting in a corresponding drop in price of this ETF, I'm concerned that an ETF like HPYT won't be able to mitigate the losses, even with its covered-call strategy. Since HPYT is scheduled to pay its distribution today, I'm patiently waiting to determine if my recent steep losses will be somewhat reduced by the distribution. I'm seriously considering getting out of HPYT entirely due to the unintended consequences.

Am I correct in my thinking? I don't have a lot of experience with ETFs of this type.

Thanks as always for your guidance.

Q: I'm trying to assess unit price movement of HYPYT under certain scenarios ..... I have HYPT not HYPT.U ......

1} The Bank of Canada reduces rates in response to Trump's tariffs. Tariff inflation cannot be battled with interest rate increases .....

2} The US Fed also reduces rates as raising them would have no affect on tariff inflation and a possible recession would be Powell's main concern ......

Please comment on my theory and what price action you would expect if I am correct ? Thanks for your terrific service ......