Investment Q&A

Q: Good morning
I have registered accounts but also 2 non registered cash accounts with 2 different banks..BMO AND TD. MY TD account is well over 100 thousand dollars. Is it protected or should I divide it.? Should part of it go into a third bank? Sorry for the confusion. Thankyou as always

Q: I currently hold ZAG in a RRSP account and wonder if you feel ok with averaging down on this ETF. It is a 4% holding at the moment.

Thanks

Q: What would be your top 3 bond ETF picks for both Canadian and US bonds? Is now a good time to put money into these?

Q: My broker recommends that I put a rather large amount on that note:

BNS Canadian Banks (AR) Index Callable Contingent $9.60 Coupon Notes Series 393F (CAD)
or
https://www.gbm.scotiabank.com/en/services/investor-solutions/current-issues/detail.en.54849.PAR.html

I read the prospectus but I am not sure of the level of risk.
I am retired and turning on 70.
I would like your opinion.
Regards.

Q: Hello 5i Team

Further the many questions on HISA ETF (i.e. CASH, HSAVE, PSA etc.)

The Globe and Mail on February 09, 2023 a summary of the brokers services including availability to purchase HISA ETF; HISA Mutual Funds; and GIC.

Link (may be behind a pay wall) - https://www.theglobeandmail.com/investing/article-canadas-top-digital-broker-is-td-direct-investing-with-an-assist-from/

Essentially the three brokerages which do NOT allow HISA ETF are:

BMO Investor Line
RBC Direct Investing
TD Direct Investing

Regardless most brokers allow access to HISA mutual funds, however you may be restricted to the particular brokerages affiliated products (i.e. Royal Bank at RBC Direct Investing TD Bank at TD Direct Investing).

Thanks

Q: I am interested in both of these ETFs to replace PSA as my savings account. My understanding is that rather than the distributions being taxed as interest as in the PSA the earnings are reinvested and NAV increases accordingly and when I need money sales of units at higher prices are taxed as Capital Gains.
When reading the Horizons website both of these ETFs have suspended sales of new subscriptions. As these ETFs continue to trade am I correct that this will result in market prices being increasingly inflated over NAV. The website also goes on to say that it does not recommend purchasing units when price exceeds NAV.
Can u clarify what this all means and am I ok to purchase these ETFs to use as a savings account to place temporary excess funds.

Q: Selling US securities held in my RIF I need to find a temporary home for US cash pending reinvestment.
I can't seem to find an ETF similar to Purpose (PSU.U) listed in the US. Am I missing something?
Thanks

Q: Hi 5i,

In Sept 22 you gave NFI a "B" rating. You commented that it is a little on the risky side.

Do you think the Balance Sheet and Cash Flow are strong enough for an investment in their convertible debenture (NFI.DB) which is due in 2027? I realize their would be no conversion possibility with the bond.

Thanks for your opinion on NFI.
John

Q: Further to Barbara’s question, is the TD8150 series of high interest savings account guaranteed under the CDIC insurance up to $100,000.00?

Q: Hi Peter and Team, in what specific TSX traded product would you put $100k Cdn today if you wanted safety and availability over the next 6-12 months ? Recent comments here suggest HSAV may not currenty be the best choice. I apologize for asking re: well trodden ground but I must confess I'm a little confused re: the best choice. Thank you.

Q: My sister needs to park around $90,000 which she intend to put on a house down-payment next February.

She can get around 4.5% for a 9-month GIC.

From reading your website over the years, I know that the above funds are also an option. However, I don't know how to judge the return that can be expected.

Which of the two options (GIC or one of these funds) would you recommend?

Thanks as always.

Q: Hello 5i Research
I would like to initiate a position in mawer bond fund . I currently own most of their other funds , what are your thoughts or should I add to mawer Canadian balance fund that holds about 30 % bonds .
Thanks

Q: There are many questions and recommendations regarding safe places to put cash these days and US treasuries..

Risks investing in US TREASURIES

A question was asked the other day about UTWO. Part of your answer mentioned a 4.9% yield. Very appealing. Tempting to buy.

But as a holder of UTWO are you guaranteed your capital at the end of two years ?

I am under the impression they trade more like bond etfs vs GIC’S here in Canada.

Can you clarify that please.

And given the volatility of the market how risky are these T bills?

Is there a way to buy them and be guaranteed your capital at the end of the designated time period.

Thank you.

I am thinking they trade more like bond

Q: Our allocation to cash at present represents $750,000 and is unlikely to change in the near- to mid-term.
Can you provide direction on placements/investments for this position? Though we understand the inflation piece, optimally we are seeking high(er) returns, with minimal (or no) exposure to market risk (capital preservation). Also are there any instruments paying out distributions in dividends versus interest income. Any advice around the specific (and general) placement of these monies appreciated.

Q: I have a follow up question on my earlier question about UTWO. You said in your answer that it is providing a current yield of 4.9%, but when I call up a quote it says the yield is 3.94%. Is this because the quote is showing the 12-month yield rather than the current yield?

Q: TBIL is an ETF offering 3 month US T-Bills and provides a reasonable return of 4.53%. Is there an ETF that offers 2 year T-Bills? I think it might offer a higher return.

Q: I have a BMO High Interest savings ETF. The distributions are reinvested in the ETF. Will the interest be reported annually by BMO? And so, no capital gain will occur when the ETF is sold? Thanks.

Q: David Rosenberg recently wrote that one can buy bonds issued by Nat gas companies with spreads of 425 basis points over treasuries. Can you give me some examples of such bonds and Where I can find more information?

Q: Is it reasonable to sell TLT and replace with EDV to register a capital loss but keep exposure to long dated treasuries. As well as a better yield while waiting.
Thank you

Q: So now that Horizons has suspended new issues of this ETF, the unit price dropped by about $1.50. will the price continue to drop until it reaches net asset value. In this case at what price should one target to buy this ETF. Do you expect the price to continue to decline in the short term. What would be your advise? Wait or buy now?