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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 hold XLB in my RRSP. What do you think of swapping the XLB for BEP.UN?

Can you address the answer in various interest rate directions please?

( Between BIP.UN in the RRSP and the BN and BAM outside, I already have 10% exposure to the group. Doing the trade would have me bumping 15%. )

Thank You
Read Answer Asked by Tim on May 24, 2024
Q: Hi, Is there a site giving the actual yield of all the HISA ETF’s? The distributions are already decreasing. I guess they are pretty similar, but they change monthly. PS: I do not think the dividend/yield on 5iResearch MarketData are up-to-date. Thanks.
Read Answer Asked by Denise on May 23, 2024
Q: TD launched a series of Target Maturity Bond ETFs that terminate in Nov of each given year (e.g. TBCF winds up in Nov 2026)
Normally, for Fixed Income, an investor could:
- own individual bonds with exact payment/maturity certainty but very laborious
- own traditional bond ETFs: very easy, but perpetually renewing maturities and mysterious trading prices---often downward, it seems
However these new ETFs seem to offer the best of both worlds.
MER is 0.20 vs XBB 0.10 which isn’t bad.
By TD’s offering chart (May 2), TBCF shows a Yield to Maturity (net of fees) of 4.87%.
Seems like a lot to like here for the individual investor, in Fixed Income.
As a Portfolio Analytics subscriber, the Asset Allocator is unhappy with my dearth of Fixed Income holdings!
Read Answer Asked by Dave on May 16, 2024
Q: Hi 5i
I am asking for advice on purchasing T-Bills from any of the big bank self-investing firms.
1) for a client with lots of investments with a bank, what kind of a spread can a retail investor expect to pay upfront on a 3 month, 6 month and 10 year US T-Bill?
2) how much will this spread change over time? Is there a market condition which advantages the retail investor?
3) is there one of the big banks that does a better job over the others in terms of managing the grey bond/t-bill market? i.e. offering clients a fair bond offering (both in terms of what is available and the percent the bank takes off the top)?
4) perhaps quest trade or interactive brokers show a better offering when it comes to fixed assets?
TIA
Read Answer Asked by Kat on May 08, 2024
Q: Can I get your opinion on mortgage backed securities (US) for one’s income portfolio? Do these increase in value as interest rates decrease similar to bonds? Thanks.
Read Answer Asked by Dan on May 03, 2024
Q: What is your forecast for long term US Treasuries over the next 3 months and again for one year out.
I purchased an ETF which holds long term US treasuries expecting a flat to downwards move in interest rates. The exact opposite has happened which has resulted in downward pressure on the ETFs unit price basically wiping out the distribution.
Your crystal ball please.
Read Answer Asked by Bruce on May 02, 2024
Q: On 9 Jan 2023, Horizons ETF issued a press release with the following comments on HSUV.U:
“suspension will help manage potential tax implications and ensure that HSUV.U can continue to reinvest its distributions”
“Horizons ETFs is strongly discouraging investors from purchasing shares of HSUV.U”
I was wondering what the risk was for: a) managing potential tax implications, and b) the inability to reinvest its distributions. The other point discouraging investors from purchasing shares was new to me and I’d be grateful for your views.

Also, in the not so remote possibility that the growing US Govt debt finally produced the anticipated “big bang” (ie. default, no new ceiling, … what else?), what would you expect to see just prior to the explosive event? If you were retired and had 65% of your nest egg presently in money market funds (100% safe), what number (% safe) would you apply to moving the funds to HSUV.U?

Your deep and practical insights into how the market reacts continue to surprise and impress me. I have learned so much since my first subscription to 5i and can simply offer a big thank you. And, of course, keep trying to do my own financing homework !
Read Answer Asked by TOM on April 25, 2024
Q: Recently sold a rental house and am looking for investment in low risk but monthly payment in a non registered account. I’m not comfortable with bonds and so far have come up with either laddered GICs ( paid out every 6 months) or combination of PFL, XFR, and ZMMK. Do you have any thoughts on any of this. Which would have a the best tax rate implications? And would you have any other suggestions that would work best in the current reduced rate environment we are heading in the next few years.
Thanks
Read Answer Asked by Craig on April 16, 2024
Q: The governments of the United States and Canada may reduce interest rates this year. Based on recent inflation data, it appears that Canada will lower interest rates sooner than the US. My question is: Will the yield of Canadian bonds respond to the Canadian interest rate cut, or will it be influenced by developments in the US bond market? Thanks
Read Answer Asked by Esther on April 12, 2024
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