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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: Can I please have your opinion on whether bond ETF's might be less forward looking "stocks" than a regular equity? It almost seems to me that they react to interest rate changes after they are announced versus anticipating them the way the rest of the market would anticipate an expected change. Are bond ETF's mostly a retail investor thing, or are there lots of institutional "smart money" participants as well?
Read Answer Asked by Stephen R. on July 12, 2023
Q: Some questions about JEPI. Perhaps you can answer at least some.

1 In their materials, JEPI states "Provided an attractive 12-month rolling dividend yield of 11.45% and 30-day SEC yield of 9.59%." What is the difference between the "rolling" and the "SEC"?

2. The dividend history shows a range from last Nov / Dec of $0.60 per unit to the recent $0.36 per unit. But it seems the stated yield is still pretty much in the same range as before. Is that correct? how does the stated yield stay the same??

3. The list of the holdings refers to about 15 - 20 "equity linked notes" which have quite mysterious names (eg "SPX 8"). What are these? How does one find out the identity of the item and what they actually are?

4. their material refers to selling options to generate the income; most US s stocks pay fairly small dividends. How much of the portfolio has to involve selling options to get to the amount of yield?

5. This ETF gets mentioned in your questions / answers from time to time. What is your current view of it? Would you anticipate the current yield to stay at this rate?

Many thanks for your excellent service.
Read Answer Asked by Leonard on July 12, 2023
Q: Hello! For large sums of money that need to be held in cash which is the best and safest option and what is the difference in yield one receives in these different investments? Is money held in these kinds of investments CDIC insured up to $100,000 or is that only if one holds in a GIC? Thank you!
Read Answer Asked by Neil on July 11, 2023
Q: Hi Peter, Ryan, and Team.

Would you endorse a switch from ZLU to VFV? When I look at the sector breakdown of ZLU, I notice that ZLU is heavy in sectors that probably should currently be under-represented, and very light in sectors that should have higher concentration. And of course, the MER of 0.08% for VFV is better than ZLUs of 0.30%.

ZLU is held in our Margin account, and VFV is already held in our RRIFs.

Thanks as always for the timely advice.

Read Answer Asked by Jerry on July 10, 2023
Q: Hi, I'm slowly transitioning from a growth portfolio to a dividend portfolio for retirement, starting with positions in JEPI and JEPQ. Can you suggest a couple of US and a couple of Canadian ETFs with high dividends (+6%) that would complement these two? Thanks!
Read Answer Asked by TK on July 10, 2023
Q: I wish to find a place for some cash. I am not entirely clear on some details for HSAV: the current trading price is around $106,60.

Of course, there are no distributions; What do you calculate the effective yield to currently be?

My trading platform suggests NAV is $106.30, so there is a premium being paid at the current price. What effect will that have on the yield? And what effect when I come to liquidate the holdings?

Last, if you see HSAV a not that good a place to deposit, what other place(s) would be good to hold some cash? BMO HISA is currently offering 4.6%

Many thanks
Read Answer Asked by Leonard on July 06, 2023
Q: Hello 5i,
would you still hold at this level hoping for a recovery or is it the time to move on?
down 60% on a very small initial position

Regards
Read Answer Asked by JR on July 06, 2023
Q: Supposing that an investor had three registered accounts of roughly equal size that they wanted to change from equity ETF's to a fixed income allocation for their portfolio, and these accounts would have to be converted to RIF's in 6 years. Let's also assume that we get one or two more small rate hikes this year, then interest rates flatten and begin to come down slowly over the following several years. Which of three options would you choose on a risk/reward basis? 1. Just hold money market funds currently paying 4.5%+ 2. Barbell XSB and XLB using two accounts, and put XBB (or ZAG) in the third (avg. yield close to 3 %? with potential cap. gains) 3. Put TLT in all three, yield close to 3%? maybe highest potential cap. gain? With the BOC policy rate going up close to 5 points since the start of 2022 the bond funds above fell anywhere from 10%+ to 30%+. Does that imply that if the BOC rate went back down 2.5% that they would rise 5%+ to 15%+, or you can't make that kind of straight line assumption? Maybe there is a way better option, but I don't really want to tie up funds in GIC's and don't want to try to pick individual bonds either. I also considered something like PSA but no cap gain upside there and the money markets probably pay as much interest or more. Thanks for your thoughts.
Read Answer Asked by Stephen R. on July 05, 2023
Q: Can you recommend some high paying US stocks or ETF's to hold in my Rif account. Please include some that distribute monthly payments if possible. I am mostly interested in income, not capital gains seeing most of my US investments are down. Thanks, James
Read Answer Asked by JAMES on July 05, 2023
Q: Hi

Sold both BCE and T prior to them dropping.

I am now under weight in communications by 3.79%.

Do I buy them back or would I be better off with VOX as my US holdings are doing better than my Canadian holdings over all.

Thank you

Mike
Read Answer Asked by Mike on July 04, 2023
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