Investment Q&A

Q: hello 5 i team. can you explain the yield difference of cbo 4.13 and vsc .29 and clf at 3.46 to 2.41 for vsb i am considering vsc but can not understand the yield difference on rbcdirect today is this an error ? thank you

Q: I sold most of my mutual funds with the advent of ETFs but have held on to TD Asia Growth fund. Which ETF would have similar holdings to this mutual fund? Which ETFs do you recommend in this space?

Many thanks

Q: Hi Peter and team,

Symbol: XIU

I have been a member since March and I have not asked questions before, because I found that reading your questions and answers gave me a lot of food for thoughts already. Thank you for an excellent service.

But now I do have a question, I would like to hold XIU as a core holding for the long term, and use your recommendations for extra growth potentials. But before I add more XIU, I would like to know what will happen if Blackrock goes into trouble? I know it is unlikely, but after so many crisis, I think anything is possible. Are our regulatory bodies making sure that XIU's underlying assets are totally segregated and safe? If that unlikely event happens, will shareholders of XIU able to access the stock still, or will its trading be stopped (for a while at least)? what will likely happen to the XIU's price?

Thanks!

Q: hello 5i team. from your previous feedback to other investors on xtr i gather 5i considers xtr to be a good compromise for income and well diversified. I held it for most of 2013 and my total income from it was 6130 dollars,however my return of capital was 27% of this at 1638 dollars. i got hooked on the payout for retirement income. any feedback is greatly appreciated.

Q: The best investment i have made in recent years is in 5i research, thank you. My question is what are good etfs for infrastructure,technology and oil service sectors, US and Canadian .Thanks

Q: Hello Fivei Team

As a relatively new suscriber I have found the site very useful and a fresh perspective.
My question is a round real return bond funds. I have held the TD RR bond fund for several years. Last years talk of tapering and interest rate bump pulled them back pulled them back about 10%. YTD on the same fund is up 8.4% with little inflation although the ten year bond has come down since last year.
Can you explain the correlation here as I have always understood these RR's do well in more inflationary times.

Thanks
Jerry

Q: Thanks for all your information, it seems to me you are the only place you can get an honest answer with know hidden agenda. What ETF's would you suggest for a 10% weighting in Europe with a little UK or would you play an international one? It is for an RSP. How would you play the US market for about 20%? Thanks

Q: Hi Peter and 5i team,

Can you recommend a good ETF for good dividend growth? I plan to hold it for a longer term.

Thank you for all of your work. Your reports and the answers to all the questions are helpful.

Best wishes,
Terri

Q: What is your opinion about about VIX( volatility index ?). Is it worth investing money on this stock for future gain. ? It has been very low for a while and something is going happen sooner or later.Thanks. Ebrahimk

Q: Can you recommend a good canadian dividend index? I currently own 18 Canadian stocks from your portfolio and would like to add some diversification and dividends with this. I'm looking for one with a good dividend and low management fee.

Q: Great performance guy,s. Am I Missing something? last 12 months my best two ,stock are SPLV &HSE. No body talks about them.Am I on a different planet? Enjoy every day,and think about eight lines is enough. PS. Think I have a larger than average investment. Thanx for your valuable insight. Cliff

Q: I'm thinking of ETF"s and would appreciate your comments on FXM and WXM. cheers Claude

Q: would u buy zjg at 7.15 in tax free saving account

Q: Hello: I am interested in your opinion of IHY for Interational exposure or would you suggest another avenue. Thank you as always.

Q: Please compare the risk of CVD vs CBO. I note that CVD has a lower duration so I assume it would hold its value better should interest rates increase. Please comment on the duration and other risk factors. Thank you.

Q: Hi 5i: This comment/question relates to the many questions asked recently about CBO, with particular reference to Rob Carrick's comments. In March, Manfred asked about the disparity between CBO's indicated yield of about 4% and the best corporate bond yield that he could find (2.5%). On May 20 Alayne asked about Carrick's article that claims that the indicated yields badly overestimate the actual yields. Carrick refers to the "yield to maturity", and in your response you said that the point "about the GIC ladder" is valid (namely that an investor is as well off or better with a GIC ladder in place of CBO). These comments still puzzle me. For the last 8 months (for example), the CBO price has been $19.8 +/- $0.1, and the indicated yield has remained above 4%. Thus over this period, at least, Carrick's point about GIC ladders has been false. The dividend is paid monthly and I have received it - no question. The emphasis on yield to maturity seems to me misplaced, at least to a degree. The response you got from the CBO people (in response to John's question) stated that they sell all bonds once they get within a year of maturity. Thus for short term bonds the YTM is not the relevant comparison; you would need to know the "yield to maturity minus one year". The difference between this and YTM could be considerable for a two year bond, for example. I'd appreciate your comments - this whole issue has puzzled me for a while.

Q: What are your thoughts on the Brazil economy. I own a small stake in XBZ, which has provided a decent return over the last year, although it is quite volatile. With the upcoming World Cup and the media attention this will bring, do you think now is a good time to sell my stake in XBZ and wait until after the World Cup finishes to reinvest in this ETF?

Q: As income sources in an RRSP which one would you regard as higher risk, XHY or TMC? Thanks

Q: Hello 5i
Thanks for the great responses. I am having trouble finding a post where you answered questions on fixed income, suggesting which bond etf’s you would use at the moment, both in the American and Canadian market. I cannot find it through the symbol search, as it is a general category question. I wonder if you could point me to that post or, sorry about the repetition, let me know once again what you would choose for fixed income at the moment.
thanks

Q: I have RBC managing a portion of my portfolio (RRSP). I have not been impressed with their service. They had the majority of my money in long term bonds earning a pittance plus they were bought at a premium. My overall return has been a abysmal but they still collect their management fee of 1.5%. ( I started with $450,000 6 yrs ago and now have $400,000) I recently got annoyed with this lack of performance and instructed them to sell the various bonds. Now I need to place the cash. Any suggestions?
RBC is suggesting a series of GIC's and some bond funds such as : Ipco monthly income,I shares advantaged short duration high income ETF,Lysander corporate value bond class templeton global bond fund.

I am 72 and must take money out of my RRSP whether I need it or not...
Can't thank you enough for this great service.