Investment Q&A

Q: Hello 5i,

Are the distribution from this ETF classified as interest income or dividends?

What type of account is this ETF best to invest in, a T FSA; RRIF or Cash Account?

Thank you.

Q: Can you recommend a similar ETF to this, but in USD?

Q: Do you prefer ZFH or ZHY ?

Q: A 2 part question - 1) How frothy do you find the market and would you take a bit off the table?

2) If you did take sell some stocks, what’s your favourite Money market fund/ETF, in terms of high yield and low risk/safety?

Thanks,

Cam

Q: Hello,

For bond (in CAD) exposure and relatively safe income exposure: is owning both BMO Money Market Fund (ZMMK) and Purpose Global Bond EFT a way to go? Or do you prefer one over the other? Or other alternatives?

Thanks

Dave

Q: Can you please suggest a US listed inflation-protected bonds ETF?

Are there any global ones or is it really just US TIPS for this product type?

Thanks!

Q: I currently have 25% of my unregistered investment portfolio in PSA and HSAV. While the rest of my portfolio is well-diversified, I've noticed that the returns / interest from PSA and HSAV, (after accounting for taxes,) aren't keeping pace with inflation. I'm looking for strategies or alternative investment ideas to address this and improve my portfolio's ability to beat inflation.
The money in these funds are not needed in the foreseeable future but serves as sleep at night factor.
(TSFA's and RRSP's are fully funded)
Any ETF ideas would be much appreciated

Q: I have 15k in a savings account at my bank, at a very low interest rate. I'm thinking of putting the savings account funds into ZST and get a total return in the 6% range. This would be in a TFSA account. What are your thoughts, maybe ZST.L or another ETF?

Thanks.

Q: I need a fixed income investment, and would prefer US based,
I came across CDX, Nasdaq. I'm considering a $70,000 investment. Your thoughts would be appreciated.

Q: I have a very large sum of cash sitting in xfr at a paltry 3% yield

I'm contemplating shifting some to xfli (5.7%) and pfl:US (11.6 %) for the enhanced yield to result in a double and quadruple in monthly income

I understand there is more "risk" (interest rates, and some leverage with pfl), however,

I feel that the reward far out weighs the risk in order to increase monthly income

What do you see as a worst case scenario. I look forward to your comments.

Thank you so much

Q: Can you recommend Are a few bond ETFs that do not pay their interest but the ETF prices go up. I want own bonds and avoid taxes on their interest. I know I will be caught with capital gain taxes, but capital gain taxes are half of interest taxes.
Thank you

Q: Dear 5i team.
The following was your response to a bond question I asked in '24.

"Nothing is guaranteed, but bonds' leverage is highly correlated to their maturity. CLF has a relatively low duration of 2.8 years, whereas XLB is 15 years. As a general rule, for every 1% increase or decrease in interest rates, a bond's price will change approximately 1% in the opposite direction for every year of duration. With a bond ETF in theory the move should be similar, and thus XLB in theory should see a much larger move than CLF when rates move (either way). In reality it is not so concrete, and depends on variables in the yield curve and other factors (supply/demand). But we would be very confident in saying that if rates move lower XLB's bond portfolio should do significantly better than CLF. Owning XLB is essentially a 'bet' that rates will drop. As such, we would be fine owning both XBB and XLB for a bit more diversification of bonds. XBB's duration is 7.5 years so a good middle ground between CLF and XLB."

Been watching XLB/XBB for some time now, and both appear to be in downward trends in terms of share price, and close on yields. Rates have been steady, or in decline, so I'm completely confused.
Please take a look and try to make sense of this for me?

Many thanks for your help.

Q: I've set aside $50,000 to pay tax instalments in September and December. can you recommend a fairly safe investment that would provide decent income while I wait?

Q: Good afternoon 5i;

I have been a holder of the TLT ETF for some time; only a very short period was it in the green. While the yield has been decent, I am now down 14% as the Jerome Powell cage gets rattled.

My question is simply, are the Trumpian risks becoming too much to hold this ETF? I believe he is radical enough to remove Powell, but likely won't and will just continue to make noise. Even the noise is having impact.

If yes, do you have a Canadian Bond Fund you might recommend of similar characteristics?

Q: Hi Team:
I have some cash sitting in RIF acct. Presently in RBF2010 paying 2.3% interest, with unlimited charge for buy or sells..
Would I be better to spent the $9.95 and buy into something like CASH or PSA? Then I would also have to pay $9.95 to get out.
As a follow-up to that question how about if this was in an 'open account' , Where the interest is taxed at 100% income whereas CASH or PSA would act like a dividend income and therefore taxed at roughly 66% income.
OR do you have a better suggestion for larger amounts of $$
Thank you. :-)

Q: David Rosenberg recently wrote an article relating to the outsized US debt situation.
One of his recommendations is high quality bonds. Would you agree with this assessment?
What high quality bonds would you purchase and what length of time - short or long term?
Thank you!

Q: What are your thoughts on the prospects of this ETF?
Is it worth holding? What other suggestions might you have?

Q: I'm trying to understand HPYT and what factors will influence the market price . In Dec. 23 market price was $12.83 and yield was 14% . Today it is $8.91 and yield is 20% . Am I correct in assuming as the price drops the yield will rise ? I did notice that since inception HPYT has paid .15 cents a month . Up until the recent June payment which was .13 cents. Why the decrease ?

What factors influence the market price ? Interest rates I assume . What effect will rising interest rates have on the price ? And what effect will dropping interest rates have ?

What effect will a Taco tariff policy have on the price ?

Will the " Great Big Beautiful Bill " have an effect on the price ? Going to be a substantial increase in U.S. debt .....

Will the price be influenced by Trump's rhetoric of replacing Powell ? And what effect will that be ? .....I can't imagine Mr Market will react positively to a politically motivated Fed Chair .....

Can I slot this into the fixed income portion of my portfolio or is it too volatile ?
Basically I would like to know the various factors 5i feels will influence the price/yield of this security .....

Thanks for your terrific service .....

Q: Hi, new hear and would like to know the best place to park some money for each account type. Money will be needed between 3 to 12 months. Also if selling in which order would you sell the following ZWK, ZPW, UMAX, ENCC, TD, NA, FC, SLF.
Thank you

Q: What are thoughts on Collateralized Loan Obligation ETF's? Is ZAAA a good one, or are there better ones?