Investment Q&A

Q: my debentures have traded down to 120.
what should I do with this large capital loss and what is the future of these debentures for current holders? appreciate your analysis and direction.

Q: What is the best denominated US TIPs etf?

Q: I am looking for a fund to hold U.S cash in a U.S. managed Account.
What are your thoughts on NBC201? Are there any others that come to mind?
What is the present yield and MER of NBC 201 and others you might suggest.

Q: What is the present yield and MER of the above funds?

Q: I'm considering Harvest Premium Yield Treasury ETF (HPYT.CA), US treasury Income, high yield through covered calls; very aggressive Yield of approximately 15% and 0.45 mgmt. fee; new ETF to the market, anything one should be aware of here good or bad? Thank you & keep up the super work!!

Q: RE purchasing US treasuries

Hello 5i,
Once or twice I have tried to purchase bonds from my discount broker RBC direct investing. The process to purchase is fairly easy (you will face a hit up front on the bond price compared to the open market). However, when selling a bond or treasury that's when a DIY investor is really at a loss. You call up RBC and then the agent will consult the "manager in the bond department" and they will decide on a price they will give you for the asset you wish to sell. Kind of like a car dealership! It truly is a grey market where your discount broker has all the control of the sale of that fixed asset. Also, if looking at treasuries, you must commit to $10k USD and can't buy, for example in smaller increments, like I wish to do for a family member in a conservative TFSA.

IS there an ETF suggestion for a 10, 20 30 year treasury in USD? Not what i really want, but will mirror the moves in this market, I suppose? TLT is the 20 year. What is the 10 year, 30 year?

Also, can you confirm that the interest paid on the treasury would be tax exempt if held in a TFSA? If tax on interest is exempt in a TFSA, would it still be exempt if one holds the ETF and not the treasury itself?

Q: I need to sell 1/3 of my portfolio and park the cash for 3-6 months. TD will not allow me to buy PSA, CASH, HISA, or HSAV. Can you recommend a few other good options.
Thank you,
Derek

Q: In the event of windup, dissolution, liquidation, where do the various debt instruments rank with respect to each other ie. bank debt, debentures, notes and preferred shares? When there are several debentures, notes and preferred shares outstanding, how do they rank with respect to each other?

Q: Do you think it is a good time to add bonds? It seems the most likely scenario's (slow growth with moderating inflation like now, or full blown recession) will be more favourable to bond investors than equity holders. What is the asset mix you would employ and do you favour longer bonds today? Thanks.

Q: I am a retired income investor and I purchased this ETF several months ago for income and some potential growth. It is in a registered account. The payment is reasonable but I now realize that I don't fully understand how this will react to interest rate swings compared to either short or long-term bonds. Should I expect it to have a higher beta than longer-term or shorter-term bonds? Would it usually react fairly quickly to anticipated interest rates move or because there is an equity component does the state of the economy (aside from rates) impact its value, resulting in slower swings? Would you consider it riskier or "safer" than "straightforward" bonds?

Appreciate the insight.

Paul F.

Q: Could you comment about Ninepoint High interest savings etf

Q: I currently have positions in HYG ( a bit underwater but no reason to sell) and am considering switching HYG for TLT. The current yield is lower, it seems, but the chances for a long term gain look more inviting. Your thoughts on TLT would be much appreciated. Good idea to switch?

All the best

al

Q: In a recent fixed income question, the option of a bar bell approach was suggested using XSB/XLB for short/long bond exposure. Is there an ETF option for this?
I see few questions recently on the covered call version for long bonds (HBND) is there a short bond version of this available as well?

Your comments on up to date pros/cons of this strategy also appreciated.

Q: Dear 5i
Could you please confirm the MER's for the above stated high interest funds and that the stated 12 month yield is net of the MER . Also is it more important to go with the fund with the higher yield or the fund with the tighter bid/ask spread or the fund with the tighter 52 week differential or try to determine the best when considering all three factors knowing there is some compromises ?
Thanks
Bill C

Q: Hi 5i,
In today's environment; October 17, 2023.
If one wanted to purchase a Canadian Passive Fixed Income ETF to hold in a TFSA for 1 to 3 years and then potentially sell. Can you suggest some ETF's that might give out sized Total Return. My goal is Total Return and not necessarily High Yield.

Q: What is the potential regulatory risk related to HISAs? Is it restricted to HISA ETFs?

I have funds parked in a BMO investorline HISA for immediate deployment when needed:

https://www.bmoinvestorline.com/selfDirected/pdfs/BMT_HISA_Terms_CAD_EN.pdf

Can you explain what the regulatory risk and if it is applicable to my current holding?

Is there a better place to park funds?

Q: Hi,

I’m wondering if you can help clarify something for me about the CDIC deposit insurance for GICs. I have tried to research an answer for this but am still unclear.

In one account if I have a GIC valued at $100K, I know I have full CDIC insurance coverage.

If I have two $100K GICs in the same account, but the GICs are issued by two different institutions (e.g., one is a $100K TD GIC and one is a $100K BMO GIC), do I have full CDIC insurance on each GIC, for a total of $200K insurance, or only $100K insurance for the account?

Thank you. Michael

Q: Dear 5i
Do most or all high interest savings accounts pay distributions monthly or quarterly ? How would you rate the above ones that i've listed ? Do you have to be a little cognizant of when you buy them as i see the price can fluctuate slightly throughout the day ? Are you best to buy the one with the highest % distribution or a combination of % distribution and the smallest 52 week high /low spread ?
Take as many points as necessary as i have multiple questions and lots of points .
Thanks
Bill C

Q: Hi 5i,
if one was interested in getting exposure to the US or Canadian High Yield Bond market would you lean toward active management or a passive index ETF? I would appreciate some suggestions to further research for both US and Canada markets.

Q: I'm thinking it might be a good idea to buy some inflation linked government bonds especially long dated either US or Canadian via an ETF Would appreciate your suggestions on specific ETFs and thoughts re short term vs long. My thinking is if inflation is here for longer than we expect and I have inflation linked bonds it's probably the best way to protect myself.