Investment Q&A

Q: I would appreciate your thoughts on High Yield Bond ETFs for a long term hold in a registered account. I am looking at HYI, CHB or XHY. Which of those, if any, would you suggest (or something else).

Q: Re: ZLB Hi Team, Globefund shows that ZLB has a beta score of 1.401. My understanding is the market has a beta of 1. My conclusion is the etf is 40% more volatile than the market. Is ZLB meeting its mandate as a low volatility etf? Thank you for your comment.

Q: Hello 5i Team,
HPR, HYI, XSB
All are down (slightly). These are the only bond and preferred share funds that I hold, for a total of $80k. My question is, should I replace them with something else or should they be part of a diversified portfolio? Many thanks in advance.

Q: Is Horizon's U.S. Dollar Currency ETF (DLR) a straight-forward play on the value of the American dollar vs the Canadian dollar and therefore a logical way to short the Canadian dollar going forward? Thanks!

Q: I have some HVPW Equity High Volatility Put Write Index Fund in my portfolio. One piece that I do not understand, is how bad must the market be for this fund to have a significant loss

Q: Hi Peter & Co.

My question is about the advantages and disadvantages of buying the same ETF's in different forms. My example would be using the Vanguard Fund ETF's symbol VGG, VGH and VIG. VGG is a Canadian ETF sold on the TSX in $Cdn whose sole holding is VIG, a US$ ETF that you have recommended on many occasions. VGH is also sold on the TSX and is $Cdn Hedged., it's sole holding is also the US VIG. Is it advantageous to buy VGG in $Cdn and own VIG indirectly or is it better to buy VIG on the US exchange in a $US account. What is the advantage or disadvantage of each route to buying and holding VIG?
Many thanks for a wonderful service.

Bill

Q: Could you please comment on bond ETF's as an addition to GIC's in the fixed income side of my portfolio. I am 66, retired, with a small company pension. Currently I hold 33.33% in Canadian dividend paying equities, and 66.67% in GIC's and cash. Last year I sold my bond ETF's (CBO and ZHY) on a recommendation from your team. I'm glad I did, as they both declined markedly throughout last summer. However, with inflation projected to remain stagnant through 2016 and interest rates more likely to decline than increase, are bond ETF's worth re-purchasing at this point, both for income and capital preservation? They have recovered sharply over the past couple of months. And, if so, would you stick to Laddered Corporates and/or high yield Corporates, or would you recommend another approach? I continue to favour 5-year laddered corporates (CBO) and High Yield U.S. Corporates (ZHY). Thanks for your expertise.

Q: You last commented on CHB in May 2013. It has done quite well for a fixed income ETF over 3 years with an average return of 8.34%. Would you care to update your opinion on their hybrid strategy in the present investment climate? Thank you.

Q: We started a family RESP for our grandkids in 2007 with 3 TD e-funds on an equal PAC basis (MER's are 0.33% to 0.51%). The account now shows Canadian Index Fund (TDB900) value at 30%, Dow Jones Index (TDB903) at 38%, and International Index (TDB911) at 32%; I sometimes think about rebalancing but think perhaps doing nothing is the best approach as the laggards may catch up in time. Would 5i have any different thoughts about the way these funds are invested? Funds won't be withdrawn till 2021 at the earliest. Thanks, J.

Q: Hi Peter and Team,

Can you comment of PKW in the US and do you know of an equivelant ETF in canada?

Cheers

Q: Good day folks. a question regarding U.S.investments in a Canadian exchange etf, now that the Cdn $ is trading around 90 cents, does it make more sense to use a hedged etf in Cdn $ rather than a non hedge etf in either Cdn or U.S. dollars.

from cold Panama City Beach, Fla, thanks

Q: What are your thoughts on DFE as a way to play the European market? This small cap etf has been enjoying a good run since 2012 & pays a reasonable dividend. Would you suggest pairing it with FEZ, or buying on its own. Thx for such a great service.

Q: I am considering PHE, but am concerned about it's size, and lack of liquidity. I would appreciate your insights.

Q: Hi Team,
I have decided that the best way to invest in biotech is via an ETF. Looking at BBH or BIB. Would greatly appreciate your views. Thank you, nancy

Q: We have XRE in our TFSA accounts the price is back where we purchased a few years ago so we have just gained on the distributions. Would you recommend continuing to hold XRE or sell and put it into other items.

Q: Hi Peter
could you give your top two picks for an etf on equalwheight us banks hedged to can.$ . also your top Europe etf on the tsx. tks.

Q: Hi, What is your opinion of XGD for some gold exposure? Thanks

Q: Hi Peter and team,
Do you think Zinc and Silver are poised for a breakout this year and can you recommend some stocks or ETFs to play this?
Thanks.

Q: Can you recommend a CAD hedged ETF that invests in high yield floating bank loans? Thank you, Rick

Q: Hi Peter. Just curious on your thoughts on First Asset Tech Giants ETF(TXF) as a way to get exposure to tech? It holds 25 names which seem to rotate based on momentum, and it has a current yield of close to 7% based on a call writing program. Given the higher implied volatility levels in tech names it only needs to surrender 25% of the upside though. Seems lightly owned given the low trading volumes, but a good way to play US tech without picking a winner?