Investment Q&A

Q: I am looking for a fund to hold U.S cash in a U.S. managed Account.
What are your thoughts on NBC201? Are there any others that come to mind?
What is the present yield and MER of NBC 201 and others you might suggest.

Q: What is the present yield and MER of the above funds?

Q: On October 24 you answered a question with the following " ZSP we think is fine for general US exposure (dollar hedged)" my understanding has been that ZSP is not hedged, and I found other sources supporting that. Am I wrong or misunderstanding, or did you misspeak? Thanks

Q: I'm considering Harvest Premium Yield Treasury ETF (HPYT.CA), US treasury Income, high yield through covered calls; very aggressive Yield of approximately 15% and 0.45 mgmt. fee; new ETF to the market, anything one should be aware of here good or bad? Thank you & keep up the super work!!

Q: Please give me your comments/suggestions about my fixed income portfolio and weightings.


BMO AGGREGATE BOND INDEX .ZAG 9%
CI INVESTMENT GRADE BOND .FIG 9%
FIDELITY TACTICAL CREDIT .FID7573 9%
HORIZONS CDN SELECT .HBB 9%
LIBERTY ALL STAR EQUITY FUND USA 9%
PENDER CORPORATE BOND FUND .PGF550 9%
PICTON MAHONEY FORTIFIED .PIC8501 9%
PIMCO MONTHLY INCOME FD CDA .PMIF 9%
RP INVESTMENT ADVISORS .RPD210 9%
RP STRATEGIC INCOME .RPD110 9%
DYNAMIC PREMIUM .DYN3361 10%

Q: RE purchasing US treasuries

Hello 5i,
Once or twice I have tried to purchase bonds from my discount broker RBC direct investing. The process to purchase is fairly easy (you will face a hit up front on the bond price compared to the open market). However, when selling a bond or treasury that's when a DIY investor is really at a loss. You call up RBC and then the agent will consult the "manager in the bond department" and they will decide on a price they will give you for the asset you wish to sell. Kind of like a car dealership! It truly is a grey market where your discount broker has all the control of the sale of that fixed asset. Also, if looking at treasuries, you must commit to $10k USD and can't buy, for example in smaller increments, like I wish to do for a family member in a conservative TFSA.

IS there an ETF suggestion for a 10, 20 30 year treasury in USD? Not what i really want, but will mirror the moves in this market, I suppose? TLT is the 20 year. What is the 10 year, 30 year?

Also, can you confirm that the interest paid on the treasury would be tax exempt if held in a TFSA? If tax on interest is exempt in a TFSA, would it still be exempt if one holds the ETF and not the treasury itself?

Q: Is it time to buy ?

Q: I need to sell 1/3 of my portfolio and park the cash for 3-6 months. TD will not allow me to buy PSA, CASH, HISA, or HSAV. Can you recommend a few other good options.
Thank you,
Derek

Q: 5i has been very clear regarding COVERED CALL etf’s vs related sector etf’s. More specifically 5i has said covered call etf’s provide some cushioning on the downside with the offset of underperforming on the upside.

.My questions:

1. Are there any rule of thumb metrics for estimating the magnitude of the difference?

Cases in point ….admittedly these are snap shots and probably not statistically reliable…. but I do wonder if there are reliable metrics.

This information is from RBC DIRECT INVESTMENT as of today and represents 1 year performance and is an attempt to cover both ends of the risk spectrum.

UTILITY COVERED CALL ETF:ZWU -7%
NO COVERED CALL ETF:ZUT -18% / XUT -15%


TECHNOLOGY COVERED CALLS: JEPQ + 27%

NO COVERED CALLS: XLK +39%/. VGT +36%

2. Are dividends included in the performance numbers?

The data seems to reinforce the 5i information. No doubt about that…. thank you.

How about metrics to guide the buying decisions.

I am increasingly risk averse…. definitely more risk averse but still with some interest in “ adventure “ .

THANKS .

Q: Are there global ETF in US /CDA, that offer in priority protection against inflation,and hopefuly also significant dividends + capital appreciation potential.

Q: hi,
according to portfolio tracking and analysis, I am short on basic materials, consumer cyclical, health care, industrials. im also quite short US and international equities. I prefer equities with dividends that are growing, and has some capital appreciation/growth as well. with this in mind, can you provide your top few picks in each sector please. much appreciated. chris

Q: I would like to put about 50% of my portfolio into safe, higher yielding (10%+) Canadian focused ETF's or Mutual Funds, and adjust my holdings as needed going forward based on sector performance. I feel that both Banks & Utilities are nearing lows and that a further correction may occur in the general market due to tax loss selling or possibly one more rate hike. Do you feel that the mix of ETF's listed provide a safe way to invest with the goals indicated? What % for each, as part of the 50%, would you recommend as a holding, and how would they be treated for tax purposes? Thanks for the great service and please use as many credits as necessary.

Q: I am a retired income investor and I purchased this ETF several months ago for income and some potential growth. It is in a registered account. The payment is reasonable but I now realize that I don't fully understand how this will react to interest rate swings compared to either short or long-term bonds. Should I expect it to have a higher beta than longer-term or shorter-term bonds? Would it usually react fairly quickly to anticipated interest rates move or because there is an equity component does the state of the economy (aside from rates) impact its value, resulting in slower swings? Would you consider it riskier or "safer" than "straightforward" bonds?

Appreciate the insight.

Paul F.

Q: Could you comment about Ninepoint High interest savings etf

Q: Looking for any ideas for U.S. specific sector exposure, are there any sector ETF's similar to ZUB and ZUH but in other sectors of the U.S. market and similarly Can. $ hedged? Thanks. Brian

Q: I don't have any ETF's and I would like to have one of Canadian stocks and one for US stocks. What do you think of the above etf's or could you suggest another one for each of the markets.
Thank you Dorothy

Q: I currently have positions in HYG ( a bit underwater but no reason to sell) and am considering switching HYG for TLT. The current yield is lower, it seems, but the chances for a long term gain look more inviting. Your thoughts on TLT would be much appreciated. Good idea to switch?

All the best

al

Q: I have been retired for 11 years and looking at de-risking a taxable portfolio consisting of HFR and corporate class index funds HXT, HXS, HXQ, HULC, HUC and HEQT. My registered accounts hold mostly corporate strip bonds. What would you suggest in terms of tax efficiency and capital preservation given the challenging investment environment ?

Q: For S&P500 and Nasdaq100 Index ETFs:
Which Canadian ETFs would be more beneficial if one believes the Canadian dollar is currently close to the low point and will get stronger against USD on the long run ?
Also comment on withholding tax consequences of holding these index ETFs in TFSA.
Thank you

Q: With the huge surge in the popularity of covered call etfs, the amount of calls written is also surging. Who is buying this huge increase in call options? Will this increased volume result in lower premiums and thus make the covered calls such as hhl, Zwu and others with a long history under perform their own history?