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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 some cash parked in HSAV and noticed that, for the past month, the trading there follows the same pattern, the price is up during the morning and mid-day and then drops at the end of the day. As a result, the price remained practically the same for the past month and the difference between the NAV and price is now down to only 20c. I am wondering what's going on with this ETF? Looks like some investors are doing massive selling there, do they know something I don't? Is HSAV is still you preferred "cash parking" ETF for people in high-tax bracket?
Read Answer Asked by Helen on December 03, 2024
Q: I have xhy.ca in my unregistered account and am down about 20%. Does it make sense to sell this and buy HPYT or HBND or are these totally different products?
Read Answer Asked by john on December 02, 2024
Q: Hi,

If I invest in a high interest savings ETF like CASH, am I taking risk on my principal? Or am I just taking risk on what interest rate I'm earning?

It seems like there is a bit of a principal risk. Would the price go down if the rates go down?

Thanks,
Read Answer Asked by Robert on November 29, 2024
Q: I am 83 years old and thinking of reducing my portfolio of stocks and putting the monies in Dimensional Funds in my RRIF. Returns seem to be excellent and I would like to get your opinion on these funds. I have no pension so I rely solely on the income generated by these Funds
Second question: The other option is trading my stocks for ETF's therefore what 5/6 ETF's would you recommend that would make a nice balanced income producing portfolio

Wayne
Read Answer Asked by Wayne on November 28, 2024
Q: I hold positions in these two funds as part of the fixed income portion of my portfolio. Looking at their current yields (3.1% & 2.27%) I'm starting to wonder why I don't just put that money into CASH.TO, which is currently at 4.52%.

Am I missing something? Are there other, better funds I should be moving them to?
Read Answer Asked by Alex on November 28, 2024
Q: Hello, I have $500,000 GIC coming due next month and another $500,000 in March. They both are earning a little over 5%. What safe investment would you recommend, bearing in mind that I need the income it would generate to cover some of my living expenses, as I am retired. Thank you
Read Answer Asked by David on November 28, 2024
Q: I am currently at loss with TLT in my cash account. I want to sell it as tax loss. I am thinking buying HYPT in margin account with interest rate of 7.95%. HPYT has yield of 17.27%. So, theocratically I can make 9.32% if I do not sell it. I want to hold it for a medium term 3-5 years. Does it make sense? Will it be more risky than investing in TLT?
Read Answer Asked by Numa on November 27, 2024
Q: I am looking to move some recent high risk stock gains into a dividend/yield product (>7%) that is not a direct function of market equities as I think markets are very overbought. Would something like HYPT be appropriate and can you suggest a few other ideas? Thank you
Read Answer Asked by Terry on November 26, 2024
Q: This fund is part of an employer-sponsored account. It has been steadily decreasing since early October given (I assume) the bond market’s attempts to price in new uncertainties over the past few weeks. I thought this bond component would reduce volatility but perhaps not (?). I have 5-7 years to go until the money is needed. If it’s going to lose value or underperform I would prefer to sell it now and put my faith elsewhere. It is 10% of my total portfolio. My question: What would YOU do in this situation?
Read Answer Asked by Trevor on November 26, 2024
Q: I am concerned about the possibility of a bear market and would like to reduce my equity risk. I am looking for a safe investment which is highly liquid. I am in the process of considering cashable GICs. Are there any ETFs which you would recommend for money market funds? Can you please recommend an ETF for the Canadian market and one ETF for the US market.

Also, for a 1-2 year hold, what type of bond ETF would you recommend (long bond, mid-term, etc) for a fairly safe investment? Again, can you please recommend one Canadian and one US ETF.

Thank you again for this excellent service.
Read Answer Asked by Dale on November 25, 2024
Q: Good afternoon 5i staff
Just a brief addendum to my previous question regarding short or long term bond etf’s are best for today. Many say that Canada’s inflation rate is already rising and that Trump’s policies will push inflation. What I was interested in is why you don’t believe the narrative that we will be facing an inflationary environment.
Thanks
Read Answer Asked by joseph on November 25, 2024
Q: Good afternoon 5i staff
To a question concerning the possibility of inflation and David Rosenberg’s reaction to that, you said:

For Canada, we like XSB, and for the US we like SHY.

I hope I am not quoting you out of context here. But, I was wondering whether you were saying that ´supposing ‘ an inflationary environment, we would choose these. Or, whether you meant that we would be facing an inflationary environment and these would be the best choice. In other words, in your opinion, which would be the best choice for today for a permanent allotment to bond funds, short term or longer, such as xsb and agg.?
Thanks
Read Answer Asked by joseph on November 22, 2024
Q: As I am retiring, I am thinking about allocating a certain portion (25%) to long real return bonds. Right now, they go for approximately 2% over inflation.

What are the downsides of real return bonds?

Also, there a floor, meaning that in deflation is it possible to end up owing them money?
Read Answer Asked by Federico on November 22, 2024
Q: I am concerned about the height of the stock markets and am in the process of reducing my equity holdings. If there is a correction or bear market next year, then I would want to be able to invest again at some point.

With the cash that becomes available from the sale of equities, what would you recommend as an investment? I am looking for something that is extremely safe, can be sold at any time (which eliminates a GIC for consideration) and gives me a bit of yield/gain. Are there any ETFs which fit this bill?

Thank you for this wonderful service.
Read Answer Asked by Dale on November 21, 2024
Q: Looking to park cash for 2 to 3 years in a low volatility etf with a decent distribution. I am looking at above mentioned etf and would appreciate your analysis or do you have other recommendations? Thanx.
Read Answer Asked by Steve on November 20, 2024
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