Investment Q&A

Q: FYI, regarding a site to obtain GIC rates from all co's [including short term and cashable] see Cannex.ca

Q: With rising interest rates, does this ETF still make sense for fixed income? I had thought this laddered ETF would be less sensitive to rate increases but that has not been the case - I've been taking a red bath on these. Is there an alternative or another option in the bond space that you would recommend? The duration curve is painful

Q: Hi there. In light of last week's BoC's decision to raise interest rates by 75 basis point I was hoping you can help me understand why the banks have yet to raise the rates they offer on their 1-5 year GICs. When I look at the rates that were offered last month vs. now they are basically the same. I was hoping, maybe naively, that I'd see at least a 50 point increase across the board but nothing yet.



I know when the BoC raises rates the banks will increase their variable mortgage rates the next day so what gives? Did the banks already raise their GIC rates in anticipation of the announcement, is there a lag and they’ll raise rates in a few weeks or will they gauge market demand and offer the lowest rates they can get away?


I'm looking to create a 1-5 year ladder and I'd hate to do it now only to see the rates offered on GICs go up 50-75 basis points in a few weeks. Thanks for your insight.

Q: I would think that with todays cpi numbers , and expectations of at least a .75 increase in the fed , that tlt would react very negatively. As I type tlt is just down .19%
Why is it not down more

Q: do you recommend Canadians buying US bond ETFs? Is there a Canadian hedged version of TLT?

Q: I have been a multi year holder of CLF and CBO in my Non Reg account and I would like to take the loss, and find two comparable etfs for my fixed income portion of my portfolio. Suggestions please.

Q: Your opinion?

Q: Hi, I own some HYLD and see that it has dropped more than 10% over the last 2 weeks. It now yields over 13% based on the last payout. Do you think the payout is safe given it's holdings? Also, Would this be a good time to average down? Thanks.

Q: Can you comment on the announced exchange offering.

Q: I read in the Globe and Mail that certain banks are blocking their advisers from buying the HISA ETFs, placing them on “restricted lists” usually reserved for risky, volatile investments.
I take it HISA is referring to Evolve High Interest Savings Account Ticker: HISA  and trades on NEO exchange. At this moment, I have a chunk of cash that I would like to park and earn interest but am uncertain when I will need it.....say 3 to 6 months timeframe.
What is your take on HISA? Or is there some other such account that you would suggest I investigate.
Bottom line, I could also use a GIC at the bank, right?! 
With the timeline being short, what would you suggest I lean towards?........Thanks.....Tom

Q: If, as I believe the market is going to experience another large downturn, would TLT, ZROZ, or in Canada ZTL be a good investment in US Treasury long bonds, due to a possible flight to safety?

Q: Dear 5i
My mother-in-law has a substantial amount of GIC money coming due and was wondering what to do with it re reinvesting . At 93 she is very conservative with her money with all investments being in GICs , Bonds and some mutual funds . She relies on her bank for investing information and investing which concerns me a bit .
She mentioned wanting to get more investment earnings from dividends as opposed to interest income because of the more favourable tax treatment . I did mention to her that she could achieve that with large cap dividend paying stocks or possibly ETFs but at a little greater risk .
I think she would be better off with an ETF rather than a mutual fund but was not sure which ETF might suite her the best . Should she invest in municipal , gov`t bonds or a Bond ETF ? With interest rates not yet peaking i`m concerned that buying bonds now may not be the best time as bond prices go down with rising interest rates as you know . GIC rates are higher now so i`m thinking that may be the way to go for her .
I realize you can`t personalize your answer but a general guideline would be much appreciated . She does not have high income needs as her CPP and OAS covers most of her monthly expenses except maybe for $300-$350 .
Thanks
Bill C

Q: hello 5i:
a follow up to a previous question on ECN.DB: can you explain why there has been a steady erosion in the price of ECN.DB, from a high of 104 a year ago, to $98.50 today? I would think that a 6.1% return (at todays price) would be attractive and would actually result in a higher price, assuming that one believes ECN is worth holding (I do). Is it simply a matter of higher interest rates, present and anticipated?
thanks
Paul L

Q: have you changed your opinion since 2016

Q: I only hold bond positions in these two funds totalling 4.5% of my portfolio. After exiting a couple of equity positions I have a high cash position and was thinking of adding to my bond position. How would you distribute bond investments among
1] less than 5 years
2] 5 to 20 years and
3] over 20 years

Thanks

Q: Was reviewing the 5i Income Portfolio and the type of bond funds in portfolio. Then was looking at the dividend payments on the two ETFs, the convertible bond (which is in the portfolio) is double of the laddered bond (which isn't in portfolio). Are convertible bond funds considered a much higher risk over laddered bond fund?

Q: Hello
Just read the Aug ETF publication. Can you give 5i s thoughts on the above bond position comparison?

Q: I had these shares in a non self directed RRSP account.
Can you please tell me what you know about these shares. I am down about 75% this year.
I have just transferred to a self directed account.
Is it ok for income? Do you think I should sell?
Thank you

Q: Re Gary's question on the 28th re place to park some money. I have a TD Investment Savings Account TDB8150 that has no fees, units are $10. each and the current rate is 2.25 % interest calculated and paid monthly. I opted to reinvvest the monthly interest for more units. Easy access to funds and I also use it for excess cash in my registered accounts. Interest is increased on a reg basis as rates change. I highly recommend it. Hereis a link to the page
https://www.td.com/ca/en/asset-management/additional-solutions/

Q: I've got a 10&% loss in XSH. Is there an alternative ETF I can buy after selling this?