Investment Q&A

Q: Hello 5i and I hope you're well.
Under current conditions with interest rates, Feds and bank of Canada injecting so much money into the economy, would you recommend corporate bonds or T-bills ETFs. And, what terms: short/medium or long?
Thank you and be well!
Carlo

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Read Answer Asked by Carlo on April 13, 2020

• iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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Q: This question is two fold...one is the payment from XEI applicable for the Canadian Dividend Tax Credit thus 100% dividend and secondly would you think this as a good holding for an unregistered account to be used for income....thanks...Gene

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Read Answer Asked by gene on April 13, 2020

• BMO Real Return Bond Index ETF (ZRR)
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• iShares Canadian Real Return Bond Index ETF (XRB)
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• iShares TIPS Bond ETF (TIP)
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Q: Are there Canadian equivalent to TIP and STIP. I don’t want to add to my risk by not being hedged. I’m looking for a way to protect against inflation at some point. Is there another way besides inflation protected bonds?
Thanks as always for your insight

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Read Answer Asked by Bryan on April 09, 2020

• BMO S&P 500 Index ETF (ZSP)
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• Global X Nasdaq-100 Index Corporate Class ETF (HXQ)
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Q: I have a 22% portfolio position in ZSP and I'm looking to add a 5-10% position in HXQ do see too much cross over here?

Thanks for being here for us!

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Read Answer Asked by glen on April 09, 2020

• iShares S&P/TSX Capped Information Technology Index ETF (XIT)
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Q: Hi Team,

What are your thoughts on purchasing at these levels? What are your thoughts on the long term potential of the underlying holdings and do you see any significant risks other than possible over valuation?

Deduct as many credits as you see fit.

Thanks!

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Read Answer Asked by Keith on April 09, 2020

• BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (ZWA)
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• BMO Covered Call Utilities ETF (ZWU)
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• Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR)
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• iShares NASDAQ 100 Index ETF (CAD-Hedged) (XQQ)
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• iShares S&P/TSX Capped Energy Index ETF (XEG)
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• Nutrien Ltd. (NTR)
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Q: Considering a 5 year time frame, what would be your allocation toward cdn oil (xeg), cdn ag (ntr), utilities (zwu), fixed income (hfr) and US (zwa & xqq). Above average risk tolerance seeking yield and capital gain. Are there any other suggestions....LSPD would also be a holding. thanks.

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Read Answer Asked by Curtis on April 09, 2020

• Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR)
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Q: If I believe that there will debt problems before this is over , does one want to continue to hold HFR. I have held it for a couple of years but would sell it if things go down to add to stocks I like. A couple of weeks ago it went way down when market crashed. I read your answer to stay put as things were a little crazy in bond market. Is it the worry of the bond holders that the companies will go under and in fact this is not a real safe holding right now as I see 1|2 of it's holdings are BBB?

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Read Answer Asked by Geoff on April 09, 2020

• Vanguard Canadian Short-Term Bond Index ETF (VSB)
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• iShares Short Treasury Bond ETF (SHV)
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• Vanguard Short-Term Government Bond ETF (VGSH)
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Q: Would please comment on events that possibly would negatively impact on the above 3 ETFs?

Cheers

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Read Answer Asked by Harry on April 08, 2020

• BMO International Dividend ETF (ZDI)
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• iShares MSCI World Index ETF (XWD)
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Q: Hi, Do you think ZDI and XWD could complement each other, or would there be too much overlap, thanks?

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Read Answer Asked by Pat on April 08, 2020

• BMO Canadian Dividend ETF (ZDV)
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• BMO Equal Weight Utilities Index ETF (ZUT)
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• BMO Equal Weight Banks Index ETF (ZEB)
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• Global X Active Canadian Dividend ETF (HAL)
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• iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
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Q: Please rank the above ETFs in order of preference for income and safety. Thanks.

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Read Answer Asked by Paul W on April 08, 2020

• Global X Active Corporate Bond ETF (HAB)
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• iShares Core Canadian Corporate Bond Index ETF (XCB)
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Q: Inspired by the news of Carnival putting out a 12.5% bond coupon, I wonder if this is an area to look into. Carnival may be a risky corporate bond, but I wonder if there are stronger companies caught in debt when the fall came that are offering good returns.

In short, is there an ETF which is focussed on high-grade corporate bonds and is this a good strategy?

I know you are not favourable toward the bond market, so is low-volatility equity funds (like ZLB) a good alternative?

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Read Answer Asked by Kevin on April 08, 2020

• iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Q: Hi Peter
What are the pros and cons of buying CLF vs actual laddered Govt bonds.
Seems CLF is easy to sell--but is there more risk in a down market?

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Read Answer Asked by peter on April 08, 2020

Q: I have only 5% international exposure right now. can you give me 5 ETF's that have good potential upside coming out of this downturn that could help me balance out my portfolio by region. Asset class not a factor.
Thanks Dave

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Read Answer Asked by Dave on April 08, 2020

• Vanguard U.S. Total Market Index ETF (VUN)
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• Vanguard Total Stock Market ETF (VTI)
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Q: Which would you prefer today, VTI or VUN?

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Read Answer Asked by Tony on April 08, 2020

• Miscellaneous (MISC)
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Q: Dear 5i Team,

Several ETFs like HHL and EIT use a covered call strategy for portions of their investments. When markets have an overall downward trend, or are otherwise directionless but volatile, is this an effective strategy? I know that it works in an upward trending market but wasn't sure about the other scenarios.

Thanks in advance!

Derek

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Read Answer Asked by Derek on April 08, 2020

• iShares U.S. Small Cap Index ETF (CAD-Hedged) (XSU)
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• BMO S&P US Small Cap Index ETF (ZSML.U)
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Q: Peter and team
I was looking for a Canadian equivalent to Russell IWO small cap.
The only one close seems to be ZSML.U. Very small Net Asset Value and likely thinly traded. What are your thoughts and or suggestions.
Thanks
Phil

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Read Answer Asked by Phil on April 07, 2020

• Swiss Water Decaffeinated Coffee Inc. (SWP)
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• Vanguard Balanced ETF Portfolio (VBAL)
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Q: Hi guys, thanks for the great commentary. What do you think about Swiss water process at these levels vs just dumping some money into VBAL

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Read Answer Asked by Whiskey on April 07, 2020

• Purpose International Dividend Fund (PID)
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• iShares Core Balanced ETF Portfolio (XBAL)
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Q: Is there any merit to owning PID if you have XBAL?Having difficult time seeing if there is an overlap. Thanks

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Read Answer Asked by Paul on April 07, 2020

• iShares Russell 2000 Growth ETF (IWO)
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• iShares Micro-Cap ETF (IWC)
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Q: In the crash, the S&P SmallCap 600 and MidCap 400 have declined more than the larger-cap S&P 500. I am going to begin putting some money in the market and was thinking of going heavily in small and mid cap. With an otherwise diversified portfolio, do you see any big problem with this strategy. I believe they will pounce more than large caps and i will sell and rebalance later. Which etf',s would you consider a good match for this strategy?
Thanks

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Read Answer Asked by joseph on April 07, 2020

• Vanguard Canadian Short-Term Bond Index ETF (VSB)
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• Vanguard Canadian Short-Term Government Bond Index ETF Redeemable Transferable Units (VSG)
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Q: Hello,

When it comes to bonds and interest rates I am like a deer in headlights. What would a negative interest rate scenario impact an etf like VSB and VSG or a longer term bond fund?
Thank you and stay safe!

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Read Answer Asked by Rino on April 07, 2020