Investment Q&A

Q: Dear 5i team.

Can you give me your thoughts on holding zcs through current market backdrop of higher inflation combined with the geopolitical environment?
With it's steady decline lately, what do you think needs to happen to turn the tide?

Thanks for your help.

Q: Portolio Analytics shows that I'm woefully short in fixed income. I am wholly unfamiliar with the category - is it as simple as shopping for the best GIC rate, or are there other, better options I should consider? Please give me some recommendations. Thanks.

Q: I’m interested in a US bond fund that pays some dividends.

Vanguard has some funds, VFIDX & VICSX that pay 2%+ and appear to suit the bill.

Have you any recommendations in this area?
Is there any reason to stay out of this sector?
What do you forecast the near future, say 3-5 years, to be in US bond funds valuations?

Q: With safety and capital preservation in mind, which corporate or gov’t bonds etf, if any, would you recommend in this rate increase environment and explain briefly why. Thank you!

Q: I have used hfr to park cash for several years. With rates about to rise I want to park some additional cash there but wondering if there is/are other short-term note etfs you can recommend for comparison.

Thanks very much.

Mike

Q: What do you think of this new ishares TIPS ETF? What is the yield? Does it have a place in a long term portfolio?

Please let me know if you prefer this or ZRR.

Q: Scotia I trade gives me access to purchase GICS, just like stocks from my account.
They state all our GIC issuers are members of Canada Deposit Insurance Corp.
My Question is would you be comfortable purchasing GICS from the following group, up to $100,000 ( the CDIC Coverage) as they provide much better rates than our big 4 Banks.
1) Versabank 2) ICICI 3) B2B 4) Concentra 5)General Bank 6) Equitable Bank

Thanks Guys !

Q: Increase iShares US High Yield Bond ETF (XHY) to 5.0%
Trade Rationale - With the equity markets continuing to see volatility, we are adding to XHY for some fixed income diversification and to enhance portfolio yield.
Can you enlighten me a bit more about this buy. XHY has been going down for a while. Thank you.

Q: Would it be worth switching some bond ETFs to BMO Sructured Notes? Could I have your thoughts on BMO JHN 15331 Can Energy Callable Equity PARN S 2986. Would you suggest others. I am 79. Thank you

Q: Hi

Would you have a recommendation for a bond ETF from BMO? I have no bond exposure now and I'm looking to start acquiring one or more bond ETFs - whatever you think might be a good mix considering all the relevant factors.

My brokerage is through BMOInvestorline so there is no trading commission if I use their products.

Thanks so much
Robert

Q: Hi,

Can Canadians buy i bonds directly from the us treasury? My understanding is that it pays a 7.2% interest as it is linked to inflation. Do we have any products like this in Canada and what rates do they offer? Thanks. Regards, Shyam

Q: Hi Guys
Is the yield starting to look tempting at 3.35% . If long term rates aren't moving much, doesn't that say the inflation fears might be a little over done ? and if not now, at what percentage yield on XLB would you purchase,
Thanks Gord

Q: What do you see as the pros and cons of holding ZAG in 2022 and beyond? Thanks.

Q: For the short term bond portion of my portfolio I'm struggling to decide between 1 year GIC's and short term bond funds such as XSB. Thoughts?

Q: I see more and more questions about bond funds. A comment only. I will never buy another one. Even in a declining interest rate environment I had no success. Good luck in a rising environment. Laddering individual bonds in my opinion is not utilized nearly enough. Look at bond ratings when purchasing.

Paul

Q: Please take as many credits as you need to.

I'm so tired of seeing my fixed income portion of my portfolio trickle away. What would you think about equal allocation to the following?

I'm not so concerned with costs if the holding doesn't degrade, but I still want some yield. Please pick it apart and make suggestions. Thanks!

HORIZONS ACTIVE ULTRA SHORT .HFR

RBC CDN DISC BD ETF .RCDB

KRANESHARES TRUST IVOL

PIMCO MONTHLY INCOME FD CDA .PMIF

PENDER CORPORATE BOND FUND .PGF550

FIDELITY GBL CORE PLUS BD .FCGB

BMO PREM YIELD ETF .ZPAY

PICTON MAHONEY FORTIFIED .PFIA

DYNAMIC PREMIUM .DYN3361

BMO AGGREGATE BOND .ZAG

FIRST ASSET INVESTMENT GRADE .FIG

Q: How does one buy mortgage backed securities? And what kind of risks do they have? In what environments do they tend to do well? Are they best held in registered or non registered accounts?

Q: It seems certain there will be several interest rate increases this year (and possibly more in 2023). That means fixed income will become more attractive. Please provide your outlook on this change and discuss how various fixed-income types (bonds, mortgages, mortgage-backed securities, consumer financing, etc.) will be affected and what opportunities for individual investors are likely to appear in the fixed-income sector as rates rise over the next 12-18 months.

Thank you,
IslandJohn

Q: Hi 5i.
While I have never been a fan of TD Bank Locking my sister in to GIC's for her childrens' RESP, I have remained quiet on the topic.
I can no longer do that so I turn to you for some information.


For the Market linked GICs held from 2016 to 2021 - 5 years - DESPITE MARKETS and SUB Indexes being near All Time Highs, TD Bank has told my sister the maturity value of the Linked GIC is the "Minimum Guaranteed Interest Rate of 0.389% total.
Instead of the 20% Max Payout that I can easily calculate based on annual sub index values.

It is my understanding these Linked GICs are a structured product with two pieces; zero coupon Bond and a futures contract. If Markets are at all time highs (annual index values below) how can TD Bank claim the product meets only the minimum interest payment? Do you have any insight into these products or know of a resource. The reason we are in the dark is due to the Financial Planner at TD saying, "sorry I can't help you understand that, it is calculated at head office".
(side note: I wonder if this Planner will be able to sell this product after the March Know Your Client changes? The TD Product is obviously not known to the Branch Planners)


The GIC - 50/50 link to TSX Bank Index and TSX Utility Index


Bank Index Values(Jan 3, 2017 thru Dec 31 2021:
3169.62, 3467.88, 3067.94, 3398.64, 3326.3, 4418.27
Utility Index Values ( Jan 3, 2017 thru Dec 31, 2921)
235.05, 250.41, 216.78, 290.84, 319.5, 343.21


Are these products just a TD Bank Scam and will never pay out?
How can the Markets be at all time highs, after a massive run from March 2009, and this TD Bank Market Linked GIC ONLY payout "Minimum Guaranteed Interest of 0.389%?

What are the steps to make TD Bank prove this outcome?
At Branch level they claim ignorance.

PS.....Unfortunately it does not only pertain to this year. Now I have to go back to each of the past three years to see if only minimum interest was paid instead of my calculated max Payout.

Q: This question may be a little premature however with on line discount brokerages such as CIBC Investors Edge about to charge fees to buy and sell Mutual funds where can I find a place to park short term cash?
I have been using Investors Edge high interest accounts which pay very little however are easy to use. Being a Mutual Fund this will incur fees in the future?
As I have twelve (12) different investment accounts this can become a little pricey for no upside other than minimal interest.
I am now looking for another home for short term cash . Ideas would be greatly appreciated.
Thanks