Investment Q&A

Q: If one believes that interest rates can only go up, should one own bonds as part of owning a balanced ETF or balanced mutual fund?

Q: Hi, is the reason for the downward trend in XGB due only to the fact that there is increased optimism with equities? Are there other factors at play?
What would be the reasons for the downward trend to continue for the XGB fund?
I'm considering ZCM as well which will provide another percentage point return.
Thanks.

Q: If I buy:
ZWC ((BMO CDN HIGH DIV COV ETF) for Canadian exposure and income,
ZWS (BMO US HIGH DIV COVER ETF) for US exposure and income, and
ZWE (BMO EUROPE HI DIV COVER CALL HEDGED CAD) for European exposure and income,

that will give me about 7%+ income and exposure to about 120 very decent world wide companies. As a retiree, would I need to do anything else?

Q: Hi Guys

Really appreciate your opinion. Given interest rates at near zero, where do would you invest the fixed income part of your portfolio?

Thanks

Q: Hello could you tell me of any ETFs you could recommend with high interest saving for putting cash in that you are not using say in a trading account and typically what do they pay,... thanks for the great service
PS Peter will you or Ryan be on BNN anytime soon

Q: For my USD TFSA, could you please recommend a US ETF short term bond equivalent?

Thank you.

Q: Hello 5i,
I have $21,000 in XSB and the same in XLB. Should I sell these and just get ZAG or does it really matter and stay as is?

Q: 1. With reference to the likelihood of interest rate increase (and increase in inflation rates) over the next 3 years, are these factors such that they are more likely than not to depress the value of CSU.db?
2. Do you rate these debentures reasonably safe given general business conditions faced by CSU in the next 3 years? I do not know what sources are reliable to check ANY issuer’s credit worthiness.
3. If you had a largish amount ( 8% of a portfolio that has no other fixed income) would you trim the holding? If yes, what would be your suggestions to buy in lieu of CSU.db? I am hard-pressed to find other securities that would be equivalent in the current TINA world.

Q: I have transferred my RRIF account from a broker and I plan to self-mange that account. The cash balance as of today is $290,000. I'm 88 years old so I need strong cash flow and/or capital gains to meet the required annual distribution. Please provide a list of stocks and ETFs that 5i would recommend for that purpose. Thanks for your valued assistance.

Q: I'm re-balancing my RESP account. Can you recommend a bond ETF for a 4 year holding period. My thought was XBB.

Thanks,

Joe

Q: I have allocated 20%-25% of my portfolio to Fixed Income. Would XBB and CBO be sufficient to cover the fixed income component? (say 50-50).

Thanks again for the great advice as always!

Q: Good morning all,

To add to the discussion/confusion about CDIC insurance (Pierre's question of Jan 21 and James comment Jan 25) - I have Cash, TFSA and RRSP accounts at TD. I was informed that in order to get CDIC coverage on more than $!00,000 in the Cash account they have several CDN$ options, TDB8150 which is TD Bank, TDB8155 which is TD Mortgage Corp and TDB8159 which is Canada Trust Corp. Was I misinformed?

Q: Hello Peter, you may want to clarify your response to Pierre's CDIC question of Jan 21. He wondered about coverage if he has both a $90,000 GIC and a $90,000 High Interest Saving Account at the same financial institution. While it is true that he would get coverage of $100,000 coverage for each account if they were in two separate categories (e.g., non-registered, RRSP, TFSA, a joint account with another person or a trust account), he would NOT get 'double coverage' for up to $200,000 if both the GIC and the savings account were just in non-registered accounts in his name alone, nor if both were held in his RRSP or another single category. CDIC will aggregate the deposits in each category, even if they are in multiple separate accounts. Thank you.

Q: I'm trying to keep a decent weighting of fixed income, and started buying the TIPS etf a couple years ago for better-than-GIC returns, and its worked out well. Now, I'm thinking of shorter duration TIPS (STIP) in case the fed has to move on rates sooner than anticipated. I'd appreciate your comments.

Q: Good morning, Why such a big difference between the yields in these two funds, are they that much different, and which fund would be safer, thanks?

Q: What are thoughts on bonds to balance a portfolio? I realize most are not enthusiastic about these right now, but I like to have a bit of them based on what I am used to. Are these a good buy now since they seem to have bottomed, or with interest rates the way they are, should I stay away?

There is also a lot of talk out there of stock market bubble right now so I thought this could protect the portfolio to some degree. I am new and appreciate your thoughts on what you would do here. Thank you

Q: What would be the safest alternative to a GIC that would yield at least two percent?

Q: 10 Years Treasury Yield is rising fast laterly. Is that a result of Fed asset purchases slowing down? Where can we find such information (such as monthly or weekly purchase amount)? Thanks.

Q: Re: Dustin's question today on a good place to park some cash - Tangerine Bank (a subsidiary of BNS) is still offering 2.1% for 5 months if you open up a savings and checking account (Max is $1 mln). I am building a house and have and set up accounts in October - very easy to do and transferring cash back and forth (to RBC in may case) is very easy. Only small issue I have encountered is the $50,000 daily max for transferring funds back to RBC.

Q: I have a large sum of money to "hold" for about 3 months with the purpose of buying a property. I'll be paying about 3% interest on it and am wondering if there is a short term place to hold the money and earn a bit of interest to offset that but not have too much risk of losing principle. I could just put it in my banks savings account for the time being (at 0.1%...) but thought I would pose this question in case you had any better suggestions. Thanks very much.