Q: Is EFR a good buy in the current environment if one is looking at a 3-5 year hold period? Note: although I prefer Canadian dividend-bearing securities, I am in a sufficiently low tax bracket for there to be no material disadvantage for purchasing a foreign asset with a sufficiently high yield.
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Hi there,
I'm evaluating the fixed income portion of my portfolio and am debating between a ladder GIC vs a HISA ETF. I understand GICs are locked in rates and HISA etfs are floating, but can you provide any insight as to the general historical differences in performance over historical time? In other words, say 100k split into 5 rungs of 20k vs 100k in a floating rate HISA etf - is there any difference in performance historically?
Thank you!
I'm evaluating the fixed income portion of my portfolio and am debating between a ladder GIC vs a HISA ETF. I understand GICs are locked in rates and HISA etfs are floating, but can you provide any insight as to the general historical differences in performance over historical time? In other words, say 100k split into 5 rungs of 20k vs 100k in a floating rate HISA etf - is there any difference in performance historically?
Thank you!
Q: What would the change of interest rates going up or down have on yield and the etf price on ZFH.ca. And the possible magnitude of yield and ETF price.
Thanks.
Thanks.
Q: Dear 5i team.
Looking at the chart of ZFH, it appears to be volitile around general market downturns. Can you explain how/why a bond fund like this has this much downside when markets panic and sell off? Looks fairly correlated to me.
Many thanks for your help.
Looking at the chart of ZFH, it appears to be volitile around general market downturns. Can you explain how/why a bond fund like this has this much downside when markets panic and sell off? Looks fairly correlated to me.
Many thanks for your help.
-
iShares Core Canadian Universe Bond Index ETF (XBB $27.96)
-
Vanguard Canadian Aggregate Bond Index ETF (VAB $22.80)
Q: Do you have a preference between XBB and VAB?
Thanks as always
Thanks as always
Q: In the description of the ETF, it mentions the following: "The Fund will invest primarily in debt instruments of Canadian corporations that are not investment grade." -- I have difficulty reconciling the "not investment grade" with your previous comment "solid, fairly conservative ETF, especially considering we are entering a tarif war. What am I missing?
André
André
Q: Your thoughts on ZFH.
Thanks
Thanks
Q: Is this ETF less secure because it follows bonds from "breaking edge technical companies index" even though they are T-bills. If one were looking for a relatively secure Tbill ETF to gain modest income and possible currency benefits in a RRIF which would you chose.
Q: Can I have your opinion on this fixed income etf.
It is Blackrock first actively managed fixed income ETF.
The US version is called BINC.
What are the risks/benefits of this product.
Thanks a lot.
It is Blackrock first actively managed fixed income ETF.
The US version is called BINC.
What are the risks/benefits of this product.
Thanks a lot.
Q: Hello, would there be any issues on buying a ATS bond that goes out about 3 years. Thank you.
Q: What am I missing here? This is a bond fund with an almost 12% payout? Is this something you can put $100k in and get $12k paid out every year forever? I get that it does covered calls but it just seems too easy. It completely trashes the TSX yearly returns with far less risk?
-
BMO Aggregate Bond Index ETF (ZAG $13.69)
-
iShares Core Canadian Universe Bond Index ETF (XBB $27.96)
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.74)
-
iShares Core U.S. Aggregate Bond ETF (AGG $98.05)
-
Materials Select Sector SPDR (XLB $91.52)
-
iShares 20+ Year Treasury Bond ETF (TLT $85.79)
Q: With inflation in Canada edging up, and concerns that tarriffs are inflationary, is it a good time to move to shorter duration bonds? The counter is that if a recession hits interst rates may decrease. What is your take on the timing of all this, and how best to position a bond portfolio?
-
TMX Group Limited (X $55.22)
-
BMO Aggregate Bond Index ETF (ZAG $13.69)
-
iShares Core Canadian Short Term Bond Index ETF (XSB $26.86)
-
iShares Core Canadian Universe Bond Index ETF (XBB $27.96)
-
iShares Core Canadian Long Term Bond Index ETF (XLB $18.49)
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.74)
Q: Canadian HISA accounts do not have such good yields anymore. And the income is taxed as interest. I was looking at my 2022, 2023 tax returns and the revenue from canadian ETF like ZAG, XSB, XLB was mostly ROC. If I’m not wrong, thus, much more tax efficient? Wouldn’t be a good idea to switch from HISA to XSB, XBB, etc to park money in the next few months?
Do you know if high-Yield ETFs are taxed the same way (ROC) ?
USD-HISA are more generous so the logic might be different.
Thanks.
Do you know if high-Yield ETFs are taxed the same way (ROC) ?
USD-HISA are more generous so the logic might be different.
Thanks.
-
Fairfax Financial Holdings Limited Cumulative Floating Rate Preferred Shares Series D (FFH.PR.D $24.97)
-
Hamilton U.S. T-Bill YIELD MAXIMIZER TM ETF (HBIL $15.07)
Q: I am interested on your view of these two types of investments in this period of volatile markets: one being preferred shares of FFH, the other relating to treasuries.
Would either be suitable at this time?
Would one be preferred over the other?
Would you have preferred suggestions?
Would either be suitable at this time?
Would one be preferred over the other?
Would you have preferred suggestions?
-
iShares Premium Money Market ETF (CMR $50.07)
-
Global X High Interest Savings ETF (CASH $50.04)
-
BMO Money Market Fund (ZMMK $49.88)
-
High Interest Savings Account ETF (HISA)
Q: I right now have 100,000 in cash (Canadian Dollars) that I want to keep in Money Market ETFs for the Short Term.
I have been trying to find the yield for all of the above and it is not easy because most of them show me the annualized yield. Interest rates have come down several times in the last year so the annual yield is not the best way to compare the above funds.
Which of the two funds above do you recommend, the reasons why and what is the current yield on it.
My brokerage account is with Questrade and they do not offer any of their own High Interest Savings Accounts like TD Direct Investing.
Thank You.
I have been trying to find the yield for all of the above and it is not easy because most of them show me the annualized yield. Interest rates have come down several times in the last year so the annual yield is not the best way to compare the above funds.
Which of the two funds above do you recommend, the reasons why and what is the current yield on it.
My brokerage account is with Questrade and they do not offer any of their own High Interest Savings Accounts like TD Direct Investing.
Thank You.
-
iShares Core Canadian Short Term Bond Index ETF (XSB $26.86)
-
iShares Core Canadian Universe Bond Index ETF (XBB $27.96)
-
iShares Core Canadian Long Term Bond Index ETF (XLB $18.49)
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.74)
Q: For long term investment what would be a neutral proportion of bonds in terms of distribution among these 4 or are there better options? Currently sitting on 17% cash which I intend to redeploy in stocks when we have better clarity, 36% XBB, 26% XLB, 12% XHY and 9$ XSB for 100% of my bond/cash portfolio.
Thank you.
Yves
Thank you.
Yves
-
BMO Ultra Short-Term Bond ETF (ZST $49.01)
-
Franklin Canadian Ultra Short Term Bond Fund (FHIS $20.89)
-
Vanguard Canadian Ultra-Short Government Bond Index ETF (VVSG $50.35)
Q: Would you recommend this ETF for a balanced portfolio given the volatile market? It hasn’t been around for very long.
-
JPMorgan Equity Premium Income ETF (JEPI $56.76)
-
Harvest Premium Yield Treasury ETF (HPYT.U $9.19)
-
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ $54.36)
Q: I am looking to add some income etfs that are looking attractive in this downturn to my RRSP. I'm looking for combined growth of 8-10% year over year for 10 years for this segment of my portfolio. Do you see either of the above as attractive in this way, or can you suggest something else? I could go to Cdn, but have most of my cash in USD right now.
-
iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.34)
-
iShares Convertible Bond Index ETF (CVD $17.86)
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.74)
Q: I,m 81 so far i managed. pretty well thanks to your Income portfolio, I'm not a fat cat and rely on the income provided.The market tells me to be cautious the stocks I mention constitute 9% of my accounts,I'm willing to increase this percentage as protection to my income I don't expect obvious capital gain,How do you judge the approach,any suggested addition?
Thanks to the Team
Dan
Thanks to the Team
Dan
Q: Under current conditions would you comment on FAP. Buy/sell/hold. Thanks as always