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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: I have owned shares in VSB for 16 months and as of today my unrealized loss is greater than what I have received in income. If interest rates continue to go up I would expect the unrealized loss to grow. On the other hand I remind myself that all bonds are supposed to mature at face value so in the long run I think I shouldn't really lose money.
Can you help me sort through these opposing thoughts? If I am really likely to end up losing money over a 5-10 year period with VSB I will just sell it and buy GIC's that I will hold to maturity.

Thanks
Read Answer Asked by Morgan on February 01, 2018
Q: Should I just rut all my money in these Bank ETFs and hibernate for the rest of the year. 3 more rate hikes by the FED should be good for US banks and also Canadian Banks as spreads widen ? Any others you like ? RAK
Read Answer Asked by bob on January 31, 2018
Q: Good Afternoon, Curious as to your thoughts on starting a growth oriented TFSA with the following, and your alternative recommendations if any. Thanks
ZLB,XWD, TDB3098,TDB3099. About 20k to start which is why I have not chosen individual stocks.
Read Answer Asked by Lavern on January 30, 2018
Q: You have described XDV as a high dividend payer vs a dividend grower. I prefer to take the higher dividend now rather than later. Can you tell me if the etf earns all of the dividend paid or is there a return of capital factor. In addition, you don't like the high financial sector weighting. In a rising interest rate environment could the overweighting be a positive? Thank you 5i.
Read Answer Asked by Richard on January 30, 2018
Q: I am retired living on dividend income. I am interested in ZWU to increase my dividend income with its yield of 6.30%.
However, I noticed that it's cash distribution has been decreasing since Jan 2017. How is its cash distribution determined? With rising interest rates, will it's cash distribution continue to decrease? What income etf yielding over 4.5% would you recommend in this market? What percent position would you recommend for income ETFs?
Read Answer Asked by Curtis on January 29, 2018
Q: I originally purchased this holding in a registered account when it was an income trust. It converted to an ETF a while back. Since acquiring it this has been a steady dividend payer and I do rely on its income. My cost is greater than its value today. What is your opinion of this stock going forward? Should sell my small position and look to another area>
Read Answer Asked by Ronald on January 29, 2018
Q: Currency question:
I want to buy an emerging market ETF and a US market ETF. If we assume that the American dollar continues to drop, are we better to have a Canadian dollar hedged fund or to purchase in US dollars? Thanks in advance.
Read Answer Asked by Pat on January 29, 2018
Q: I have owned these Bond ETF's for the last few years and have seen the unit prices drift lower with the rising rate environment. If I had bought the bonds directly the maturity date would restore the capital. Does the same thing happen within the ETF's to the same effect? How doe s it play out over time?
Thanks
Paul
Read Answer Asked by Paul on January 29, 2018
Q: In the current interest rate environment what bond ETF would you recommend as a core bond holding in an RRSP. Time frame would be long.
Read Answer Asked by Joe on January 29, 2018
Q: My advisor has recommended the following "best current" additions to my diversified portfolio. I value your opinions higher. ZUB RUF.UN ACR.UN WIR.U. IEMG.
In your opinion are these "best to buy" in their areas, and if not, what are your suggestions for better ones? Thank you for your continuing guidance.
Read Answer Asked by Harold on January 29, 2018
Q: hi folks:
what would be your choices for investments (etf or mutual funds) in the commodity space?

specifically is there one holding which covers all commodities from coffee to oils, or would a more narrow focus be better ie. xma, xba ?

because of the 'timing/rotation aspect of commodities in general I would not be adverse to a fund

thanks
Read Answer Asked by Robert on January 29, 2018
Q: I think that the capital losses of CPD in 2015 were because of the BOC reducing the bank rate and the etf owns a large % of rate reset preferreds which do much better in a rising rate environment. Please confirm and explain why CPD also experienced large capital losses in 2008. I didn't think that reset preferreds were around in 2008. Did interest rates increase in 2008 and CPD was composed of perpetual preferreds back then? Thank you 5i.
Read Answer Asked by Richard on January 29, 2018
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