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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: About 2 years ago I invested in RSP the equal weight SP 500 etf. Since that time SPY the cap weighted etf has decreased about 10% more than RSP. Now that tech valuations have come back down I am considering selling RSP and buying SPY. I recall reading here that you expect tech and consumer discretionary sectors to lead once inflation starts to move down and interest rates peak. You have also mentioned that markets look ahead.

It looks like both tech and consumer discretionary are down more than 11% in the last month.

Could you give me your assessment of this trade?
Read Answer Asked by Robert on October 17, 2022
Q: In a potentially inflationary, or even a potentially stagflation environment I like the composition of this small cap ETF since it is slightly overweight on industrials and materials - Would you agree?

It appears quite cheap. Is that mainly because of the cyclical nature of a lot of their holdings?

I'm seeing a 5.67% yield. Would this be sustainable in the mentioned potential economic environment? On one hand these are small caps, which perhaps puts that yield at risk. On the other hand, one would think that the materials and industrial make-up would help hold it up. Thoughts ?
Read Answer Asked by James on October 16, 2022
Q: I'm thinking of investing in US Long-dated TIPS.

Does this make sense: good real yield right now, and if inflation persists then the yield remains high. Flip side, if we enter a recession and the Fed reverses and lowers rates or pivots to QE then the long duration would make for good capital gains.

1) Please point out any flaws in my above reasoning/if there are other risks I'm not seeing.

2) Please recommend 2 long(er) dated US TIPS ETFs that you think are good.
Read Answer Asked by Max on October 14, 2022
Q: Recommendation for best Canadian dividend ETF for long term hold
Read Answer Asked by Paul on October 14, 2022
Q: Hi Team,
Your opinion please on the Alternative ETFs for next few years for 5 to 10% cash to reduce the actual stock market risk.
Found these ETFs PFIX, DBMF, KMLM
Thanks
Best Regards
Read Answer Asked by Djamel on October 13, 2022
Q: My Son has $12,000.00 to open a new TFSA. He has selected the following stocks
XIU(50)-ZNQ(50)- VFV(25)- ZUT(100)-ZRE(100)- ZPR(200)
He plans to add $6000.00 plus Dividends each year and buy more of same, for next twenty -five years. Will he get a good return on his choice. or does he need to diversify more or only buy the first three. Welcome your direction to maximum total return or close to it. Can accept risk. Many Thanks---Cec
Read Answer Asked by Cecil on October 13, 2022
Q: Hello,

Regarding your recent blog-very nice one!

Could you provide some stock/bond suggestions
For the examples provided,

-companies expected to grow at 50% over the next year
- solid growth companies
-small cap
-suggested corporate bonds long term.

Thanks very much.

Shyam
Read Answer Asked by Shyam on October 12, 2022
Q: Hi 5i Team,

In your recent article you highlighted that it would be a good time to start stepping into purchasing bonds. I am in my late-30’s so I have a longer term investment horizon and a medium to high risk tolerance. I have never purchased bonds in the past so what would be the best approach to purchasing bonds (ie. is it best to buy an ETF or individual bonds) to capitalize on the current depressed pricing?

Do you see this as being a long term trade or a purchase that should be exited when the conditions begin to reverse?

Thanks in advance,
Jon
Read Answer Asked by Jonathan on October 12, 2022
Q: In the present interest rate environment and going forward 6- 12 months, which ETF is preferable i.e. XHY, PFIA, MFT, ZHY, XSB,XBB OR PYF? Would you choose 1 or a combination?

Thanks for your service!
Read Answer Asked by Ozzie on October 12, 2022
Q: I'm down 33% on TXF in an unregistered account.

For tax loss harvesting would ZWT be considered an acceptable proxy for TXF by Revenue Canada? If they are too similar, what do you feel would be an acceptable proxy?

Alternatively, if there isn't an acceptable proxy would 5i suggest leaving the proceeds in "cash" on the basis that it is doubtful that TXF would increase enough in 30 days to offset the tax gain?

Thanks!
Read Answer Asked by Cory on October 12, 2022
Q: I know that this is an unfair question - sorry. I realize that ARKK and AMD are two different investments, but if 5i had a chunk of money to invest in one of these two, which would it be? On a similar note, is Intel a better investment than AMD?
Read Answer Asked by James on October 11, 2022
Q: I’d like to start a position in one or more income funds that offer a very high yield, but I’m not sure which ones to choose. As of Wednesday Oct 5th, these are the indicated yields I’ve found:

CLM 23.92%
PDBC 20.65%
SDIV 15.31%
QYLD 14.19%
RYLD 14.05%
XYLD 13.05%
BIGZ 11.01%
JEPI 10.94%
PDO 10.90%
PDI 10.79%
BXMT 10.38%
MPW 10.17%
STWD 9.84%
EIT.UN 9.42%
IDV 8.15%

Would you recommend any of these or do you have other suggestions? Are any of them too risky if the bear market deteriorates from here, or can they all be held long term? Are some of these yields too good to be true, like CLM and PDBC? Thanks for your thoughts.

Read Answer Asked by Brian on October 11, 2022
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