Investment Q&A

Q: Could you explain exactly what these two ETFs invest in? On their respective websites it appears as if ZFH is largely in government bonds or treasuries of some type (the scary term CDS shows up here), while MFT refers to "bank loans". Both indicate low to moderate risk, while at the same time showing virtually all investments rated at BB or less - below investment grade.
How do these ETFs compare to ZHY or XHY in terms of safety of principle and dividend sustainability?
Thank-you

Q: In regards to Floating Rate High Yield ETF products such as ZFH and MFT is there one ETF product in this category that you would consider less risk than the others?

Thanks Ken

Q: I can't seem to come to a decision.
Should I continue to hold XHY for the long term (+5 yrs)considering the direction of investment grade bond prices? Should I buy more as high yield prices drop?
This represents less than one percent of my holdings.
Your thoughts please.
Dave

Q: Good morning, would you please be good enough to let me know the symbol for the Canadian ETF for marijuana
Many thanks Arnolda

Q: Can you explain the difference between MFT and ZFH ? Joe

Q: Morning,
Is the yield an eligible div? Also, I have MFT in my RRSP account and wondering if having it in TFSA would be any different for withholding tax etc?

Q: Hi, 5i!
We have 10% of our portfolio in CPD... What do you think of selling half of this position, 5% of the portfolio, and replacing it with ENB (Enbridge), say, and/or another "hard to ignore" etf (recently Ryan, in an Etf & Mutual Fund article, identified 3 "hard to ignore"opportunities: CPD, VOX and ZUT)? Please note: we hold the Balanced Equity portfolio, so already have 2% of the Canadian part of our portfolio in ENB.
Thanks!
Rod

Q: I am looking for a bond ETF to park a substantial amount of money $400K plus for the next 12-24 months. In today's environment with interest rates on the rise i am looking at the following MFT, HYI, XHY or is there a Pimco ETF that would be more suitable.My goal would be to make 3-4% in a safe investment. Any other recommendations would be greatly appreciated.

Q: I hold Teck and Nutrien with the balance of my resource holdings in XMA. I have an equal amount of funds in each. I am considering selling XMA to purchase LIF. I know this will give me less diversity, but Teck and Nutrien are major weights in XMA which is otherwise heavy in gold stocks with low dividends and weak growth. At least LIF would give me decent dividends. What do you think? Thanks.

Q: Hello 5i Team,

My question is regarding the iShares Core MSCI Canadian Quality Dividend ETF. It hasn’t been around for very long and with less than 2 dozen holdings, it’s a rather concentrated fund. What do you think of MSCI’s quality screen? Would this be an appropriate core holding in a Canadian income portfolio?

Additionally, for funds with short histories such as XDIV, how much consideration would you give to the calculated historical performance of the underlying index published by companies such as MSCI, WisdomTree, etc. Are they a reliable tool in evaluating new funds?

Thank you!

Q: I guess I didnt make myself clear on an earlier question. I am looking for a US ETF that I can buy with canadian dollars, but unhedged. Preferably in the broad market, Technology, Financial and Health or a combination of all. I do not have a US account with my online brokerage.
Thanks again your service is supurb!

Q: I would like set up a portfolio of US ETF, unhedged to Canadian market. Broad market, Technology, Banks, and Health etc.
Thank you for your great service
Shirley

Q: I am 68 years young and interested in getting into some Gold stocks. Can you give me some ideas on that please.

Q: Would you prefer MTF (Mackenzie Floating rate) over XHY or would you own both in the fixed income part of the portfolio? Is one more risky?
Thank you for your service

Q: I read with great interest your response to a recent query regarding Mackenzie Floating Rate Income. I have the same goal as the member who asked the initial question. Under what circumstances might MFT perform poorly? How do you think it compares with PMIF (Pimco Monthly Income Fund), in terms of correlation with equities, bear market/recessionary performance, and total return potential? I note that MFT has a greater proportion of holdings which are below investment grade, do you think PMIF would be the safer choice? Which would you prefer for long term, steady income and capital preservation, taking the relative MERs into account as well? Thank you.

Q: Could you direct me to what are called "Green Bond's" that I could purchase and "Green Investing" ETF's in both Canada & the US?

Thank you.

Ross Berwick.

Q: I want to help an 86 year old relative - with no investment experience. She has a small RIF (less than 40k) and a TFSA, plus about 250k in unregistered funds -split among two institutions. As the DSCs have run out at the 'expensive' investor company I'm thinking it might make sense to consolidate all the funds at her bank (They are less pushy, have lower generally lower MERs, and it seems like DSCs are far less prevalent). But choosing an appropriate investment for the funds (about 150k) being moved is my quandary.

Preservation of capital is important, but she does want some income. Any suggestion apart from GICs?

Thanks

Q: Hi 5,

I seen a post earlier today regarding MFT.
This ETF looks interesting. I'm wondering what you guys would think of using MFT instead of XHY within the income portfolio? Could you please list reasons for or against this change.

Thanks

Q: My question is about building my etf portfolio. As I'm young and long term oriented, I would like to allocate a higher % to emerging market. Probably around 20%. I have analyzed many EM ETF and I have noticed how different in country allocation, value, sector allocation they are. Would they idea of buying, lets say 4 or 5 EM ETF that would represent that diversity, instead of one, make sense for you?
What would be the down sides? Cost doesn't appear to be one, has I can buy ETF for free, I don't mind the 'complexity' of rebalancing if my EM attribution goes up or down. I understand that EM might goes up or down has a group, but I found difficult to imagine that, in the longer term, an etf with 30% of Chinese shares and high PE and lots of tech, and one with more Indian, Russian and Brazilian shares, with low PE and energy would perform the same. Because I have no idea witch one will out or underperform, I would guess that this diversification would lower volatility and slightly decrease risk among my EM allocation. Feel free to comment this strategy or to challenge me about it.

Q: Hello! I'm a recent subscriber to 5i and liking what I see so far! I have a favorable view on the tech sector and own CQQQ and BABA. Any thoughts on these names or sector in general? Any other names that might be a good fit (besides Amazon)? I was also thinking VB would be a good way to play the tech and financial sector at the same time. How long has it being in the growth portfolio? Any other suggestions regarding niche banks?