Investment Q&A

Q: I have some cash that I was thinking of putting into PSA or CASH for the shorter term. But I am wondering if the unit price of those may drop suddenly when the market turns bullish, and investors move back into stocks. So, well I may earn a nice yield, I could lose some capital. Is that something I should worry about? Thanks.

Q: Last week Horizons issued press release indicating they were suspending new subscriptions after reaching approx. $US 775 million in assets.
The release says that “ during a period of suspended subscriptions , the Manager expects the shares of HSUV.U to trade at a premium to its NAV per share . While new subscriptions are suspended , Horizons ETFs is strongly discouraging investors from purchasing shares of HSUV. U “ .
As of today , the price and NAV are within a few cents of each other.
How should this press release be interpreted ?
Is it just a formality ?
Or should you be listening when Company issues a caution on its own product ?
Thanks.

Q: Hi
What is the advantage of holding an ETF like CASH or PSA Instead of a money market fund such as TDB8150?
The latter appears to pay a much higher interest rate (3.8%).
Thank you.

Q: Where would you suggest to store cash in a US$ account for daily or 30,60 or 90 days?
Thanks again

Q: I noted and likely your strategy to add to XHY for income and possible capital gains. However, when I looked at high yield corp. bond ETFs, ZJK looked better overall. There is also the matter of CAD hedging. I'm looking to park cash for my 2023 RIF withdrawal this December and I've been using the BMO HISA for this. Can I have your opinion on using ZJK or XHY instead for about 2% higher income?

Q: I'm looking at my legacy pile of preferred shares of which I have never been fond and wondering if this isn't a good time to sell and invest in a bond ETF such as XHY. I know you have expressed ambivalence about prefs but have also said in better times the class can do better. However, yields are roughly comparable, I can use the loses and invest the proceeds in XHY or a different bond fund which you might suggest, keeping the investment on the fixed income side of the page, Many thanks. al

Q: Can you recommend a high interest savings account that trades on the US exchange that is to equivalent PSA-T. I tried using the PSA.U-T in my US account but my trading account wants to convert the US dollars to CDN. Thanks.

Q: I’m looking to put a fairly large cash position to work (my portfolio is 30% cash) over the short term and would like to atleast gain some income (while I wait for a short-term recession scenario to play out) but limit large equity exposure. Can you give some short term bond etfs or some liquid traded products that would serve that purpose. I own a large position in zwb already but realize I’ll still get dinged in a pull back (at which point I’d shift that position back into underlying bank equities for a recovery). And also what kind of yields would I be looking at? I also would like to be paid out atleast monthly. Thanks

Q: Can you please recommend your favourite yield products for stability and income?

Q: My broker has suggested I look into National Banks auto callable note securities (mature monitered Barrier) linked to the Solactive Canada Bank 40 AR index. Issuance date is Monday January 13. Its a 5 year note callable semi annually. Returns seem to be very good. I have absolutely no experience with callable notes and would like your opinion on this note. I am told that if the shares of banks go up in the next 5 years it is a good investment.

Wayne

Q: If one believes the 2 year note yield will fall, what are best ideas to play this scenario?

Q: Hello,
Many experts are predicting a downturn in the market for at least the first half of 2023 and possible even longer. With that in mind, and if the Feds and Bank of Canada pause in Q1,... the market will stabilize and GIC rates may pull back. In fact RBC GIC's short term rates are about the same as longer term. Therefore, is this a good time to start buying Bonds ETFs with the hope that as rates start coming down the stock price will start moving higher? Am I correct in this assumption? And, which ones would you suggest? short, mid, or long term.? As well, what are you thoughts on Prime Linked Cashable GIC's ( offered by RBC)? Finally, would you buy a 1 year GIC currently at 4.65% ( by RBC) ?
Thanks
CR

Q: Hi Peter,

In 2023, when do you predict would be a good time to move from money market funds to bond ETFs such as VAB and AGG? On the fixed asset side of the portfolio, there is an even split between money market funds and a GIC step ladder.

Also, what would be a good indicator(s) for identifying a long-term downturn in interest rates in Canada?

Thanks, and have a great New Year!

Q: I have been gifted this bond ETF in a margin account. I know little about bonds, and wondered if I should keep this ETF or if there is another bond ETF that you would recommend in this challenging economic climate? Thanks for all your guidance during these unprecedented times.

Q: I am looking to add some bond exposure. I had a look at TLT and XHY.

Here is my own personal view on the economy:

- Interest rates could eventually flatline or even fall later in 2023.

- The economy has a somewhat elevated risk of going into a recession.

- The interest rate hikes have a risk of causing "something to break", possibly triggering a black swan event.

Under the above scenarios I am guessing XHY is not a good option considering the individual ratings of the bonds within this ETF, correct?

I don't necessarily want to invest in preparation for a black swan event that may or may not happen, however I want to prepare a bit for that possibility. If that were to happen I would guess that investors would tend to migrate towards the USD. Would that be beneficial for TLT?

Are there better options?

Q: I must be missing something
You state
PSU.U has an AUM of $476M, an MER of 0.17%, monthly distributions with an annual yield of 4.5%,

But the profile shows a yield of 1.8

Q: CAN I HAVE YOUR THOUGHTS ON VTIP.US

Q: My portfolio tracking analysis suggested I purchase fixed income assets - as much as 30 percent. Do you have any suggestions where to start - as I’ve always traded in equities. Are there corporate bonds I should purchase if so what timeline? Or simply ETFs which would be preferred and which ones?

Q: Have been hearing some noise lately regarding real return bonds. Would they be a good choice for long term hold [2-4 yrs] or would XHY be a better choice? In registered or no-registered funds?

Q: Which of these do you think currently looks more attractive (taxable account, if that's meaningful)?