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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: Of my bond holdings representing 5% of my portfolio and want to increase to 10%; I'm wondering if anyone listed that I should eliminate/increase in this market environment. Would appreciate any other suggestions. Thanks.
Read Answer Asked by Charles on May 23, 2018
Q: Greetings 5i,

I am making an effort to increase my US bond exposure, and am considering adding a full position (5%) in AGG to compliment my current bond holdings TDB and XHY (at roughly 4% each). My reasoning is that the addition of a US aggregate index will not only add multiple levels of diversification (geographical, currency, bond types, etc.), but also a higher degree of stability should the US economy decline; thereby, at least theoretically, putting pressure on XHY's corporate holdings. If I were to add this position, the three aforementioned holdings would make up the entirety of my bond exposure, as the majority of my fixed income investments are GIC ladders.

I am 36 years old, debt-free, conservative, and only invest with a "buy and hold" mindset. My investment portfolio is solely for the purpose of expediting my retirement, and I will have no need of its funds for the foreseeable future.

Based on my situation, does the addition of AGG sound like a reasonable course of action to you?

Thank you.
Read Answer Asked by Lucas on May 22, 2018
Q: Hello 5i,
In the interest of understanding fully what i am buying, could you tell me how floating rate bond funds manage to float? When i look at the informarion for FLOT, for instance, i notice that the maturity dates vary from one month to five years, if i remember correctly. An etf like xsb doesn't seem to be a lot different. Is it because Floating rates are heavily weighted to the very short term, even though they do as well go out to five years?
Thanks for all the great work
Read Answer Asked by joseph on May 14, 2018