Investment Q&A

PFL has a high yield (12.2%) but high variability. 5-year annualized return is only 3.05%. It lost 17.9% in 2022 and for a conservative investor we doubt it would be a good choice. It uses leverage (26%) which is another risk factor. XFR invests in floating rate bonds. 5 year is 2.18%. Certainly a conservative choice but GICs of course offer much higher yields, and yields on this ETF could decline with rates. ZMMK is a money market ETF and certainly conservative. Indicated yield is 5.16%. It does not have a long history but we would consider it very safe. Yields will decline with rates as well. Overall, if one is looking for ultimate safety and high yield, with no equity exposure, the GIC ladder looks best to us. All would have similar tax implications. HSAV may be of interest, as it is a cash maximizer ETF that does not pay distributions, which can be more tax effective for some. 3-year return 3.40%. It has been in existence for less than 5 years so no comparable return there.