Investment Q&A

Q: Greetings,

I would like to transition an account that was being handled by an investment firm to one that would be income based, and self administered. I will start with approx 100K and add to it as funds come available. I am considering the income portfolio as a guideline. If I were to start with 12 names from the portfolio, which would you be most comfortable purchasing today? Or would you recommend all 22 names and adding to each as funds come available? I have a minimum 10 year timeline, if not longer. I currently follow the balanced portfolio and could not be happier. This account is for my bride and she prefers less risk. Thanks in advance, as a PSA, I have been a member since 2017 and haven't slept better since joining. Thanks!

Q: 5i, thank you again for all the great advice! I saw someone asking a question about these bond / high interest ETFs earlier today. Do you have other suggestions for bond / high interest ETFs? I have a longer investment horizon, but currently are 40% equity and 60% cash. I want to put some of this cash to work in a relatively safer manner.

Q: What are the best bond etfs to own in Canada and US in your opinion? Please provide several options in both countries. Thank You.

Q: hi experts. If a country takes all there gov,t bonds and converts them to perpetual bonds will our bond porfolio drop in value.and if they also change to digital currency what does that mean to us. they are now considering it.thanks brian w

Q: What are your thoughts about the new 6.50% debentures ? The yield implies a higher level of risk but do you think the risk is reasonnable ? Also, is it common to see companies pay the interest or principal in shares when they have the option to do it ? If they do, the amount received is the same as if it would be in cash? Thank you.

Q: Hello 5i Team. My question relates to the dividend on HFR. My plan is to use this ETF as a cash savings fund in hopefully a tax efficient manner. As such, can you confirm or comment on the following: from the Horizon web site (T3 Tax Distribution 2019) it lists the dividend as 93% "other income" and 7% as "foreign income". Can one assume that other income would be taxed as interest income by the CRA? If my assumption is correct, what other ETF options might one look that combines safety and tax efficiency? Many thanks. Steve

Q: With Bank GIC rates down close to 0.5% how do you feel about a bond ETF such as BMO ZBBB as an alternative? May I have your opinion on pros and cons, please.
Thanks for all you do.

Q: Can u explain the concept of a strip bond
Do u consider it a good investment and why?
Can you use an example to illustrate the pros and cons
Where would I purchase a strip bond and can u suggest a few?
Thanks

Q: Hello 5i Team
I want to invest in an Emerging Markets Bond Fund or ETF. My preference is to invest in Canadian Funds. Choices I have found are:
iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) – Symbol XEB.CA
BMO Emerging Markets Bond Hedged to CAD Index ETF – Symbol ZEF.CA
RBC Emerging Markets Bond Fund Series D – Fund Code RBF1097:CA

Questions I have are:
1 – It is not clear from BlackRock’s website, but is XEB 100 % invested in BlackRock’s US ETF EMB:US ?
1 – XEB and ZEF net assets are $97M and $380M, is the lower net assets a concern?
2 - XEB and ZEF average trading volume is 1,707 and 2,664, is the lower daily average volume a concern?
3 – Although the MER for RBF1097 is 1.07% is this a better choice than XEB/ZEF whose MER is 0.54% and 0.55 % as the net assets for RBF1097 is approximately $1.7B?
4 – Any other ETF/MF that I should review?
Thanks

Q: This seems to be higher yielding (3%) but quite safe -short duration, government bond fund. Any concerns.

Q: Do you feel ZHY is a stable retirement income? it pays good dividends over 6%. Is the risk high?

Q: Hi Folks,
My question is about the concept of a 5 year "stepper" product described by one leading financial institution as having a one-year term and automatically renews for four successive one-year terms on the maturity/anniversary date. The annual interest rate automatically increases on each maturity/anniversary date. The investment may be cashed in full or in part on the maturity/anniversary date.
Rates are year 1 - 0.85%
Year 2 - 1.10%
Year 3 - 1.75%
Year 4 - 2.00%
Year 5 - 3.55%
Effective Annual Yield - 1.846%

For someone who has a portion of their portfolio in GICs, does this type of product make sense? What are the pros and cons please and thank you. Michal

Q: Hi Folks,
Everyone is looking for returns, and income investors are searching for interest and yield. Forgive me if I missed a previous question asked and answered, but would it be possible to give a quick list of the type of fixed income products in the low risk category. For a very conservative portion of a portfolio, with a five year hold, which product(s) do you suggest offer the best risk/return trade off given the current rate situation in the market today? How far on the risk spectrum does an investor need to go to achieve a reliable 2-3% return?
Thank you, Michael

Q: Would you know of any reason that there is a further decline in this debenture? The review of the company's financials and other news on their website has provided no indication of any financial issues, on the contrary, there appears to be sufficient liquidity. I thought debentures from established companies would have stability...
Thank you for further clarification!

Q: Hi Folks,

I know your main focus is stocks, but if you have some cash to invest and you don't want it it equities, would you prefer XBB or XSB right now? Or is there another bond fund alternative I should look at for $CDN. This if for a long term hold.

Thank you. Michael

Thank you.

Q: Hi Folks,

I know your main focus is stocks, but if you have some cash to invest and you don't want it it equities, would you prefer AGG or BSV right now? Or is there another bond fund alternative I should look at for $US. This is for a long term hold.

Thank you. Michael

Q: Re" Chris's question where to park house sale proceeds - I too just sold our house (in the process of building another over the next year) and am looking for short term low risk yield. I opened a Tangerine savings and checking account - who offer 2.5% for the first 5 months ($million max) Offer code is "EARNMORE". You have to open both a checking and savings account to qualify. No restrictions after the 5 months and the advisor I talked to told me that before moving the money out - to talk to them as they may extend the offer or provide another offer at that time. Question for 5I - With CDIC limits at $100K - would moving the max over for the 5 months be seen to be "too risky". I really don't want to have to open a bunch of accounts to lower what I see as pretty low risk of bank failure. Thanks

Q: about this previous question, when you click on the link provided it goes to Rate supermarket site with the rate you quoted, but when you go to the Tangerine Site the rate it is substantially less, why is that? https://www.tangerine.ca/en/rates

Q: Good afternoon 5I.
Today Chris had a question regarding where to put his money from his home sale. You guy suggested a one year GIC that's paying 2.15 %.
My question is who is offering this GIC?

Thanks
Asked by Stephen on September 09, 2020
5I RESEARCH ANSWER:
Tangerine Financial offered this rate on one year non-cashable terms this morning. This was posted here.

Q: Good afternoon 5I.
Today Chris had a question regarding where to put his money from his home sale. You guy suggested a one year GIC that's paying 2.15 %.
My question is who is offering this GIC?

Thanks

Q: I've just sold my house, and the cheque has been deposited into my Investorline non-registered account. Not quite sure what to do with it for the next few months. I've read the comments on PSA, and you've suggested money market funds too. I don't know anything much about them - is that something you buy online, or through Investorline? What would be your recommendation?
Thank you