Q: I would appreciate your opinion on this etf and would it be a good safe place to put cash for holding for future deployment in a market downturn? Do you have any other suggestions that are equal to or better than?
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: I hold 6% of my total in HAB. It's my only bond exposure. Now there is the concern that a very high % of investment_grade bonds is BBB, which may cause trouble in recession.Do you think it'd be prudent to switch into CBO or VSB? Or anything you may suggest? Or am I reading too much into this?
Thank you
Jerry
Thank you
Jerry
Q: Whenever someone asks about parking money safely for a short period (ie up to a year), you always suggest GICs or Treasuries. There are many high interest savings accounts that pay more than these options and are CDIC backed up to $100k or, in the case of Manitoba locales, backed by the province with no limit. And they are completely flexible on term. You can move money in and out at will. Some names to look at are Motive Financial, Achieva and EQ Bank. To conclude, high interest savings should be part of your stock response to questions about parking money safely.
Q: Hi, what do you think of this security for its income potential and safety? Thanks!
Q: Hi team,
Current income allocation is as follows,
VSB 8.5%
XCB 7%
XHY 6%
and 5% cash
would like your opinion on this set up and allocation and if you would change something here.
Thanks for the great service.
Current income allocation is as follows,
VSB 8.5%
XCB 7%
XHY 6%
and 5% cash
would like your opinion on this set up and allocation and if you would change something here.
Thanks for the great service.
- BMO Aggregate Bond Index ETF (ZAG)
- iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
- iShares Diversified Monthly Income ETF (XTR)
- iShares Interest Rate Hedged High Yield Bond ETF (HYGH)
- PH&N High Yield Bond Fund Series D (PHN280)
- RBC $U.S. High Yield Bond Fund Series F (RBF683)
- Mackenzie North American Corporate Bond Fund I (MFC4854)
Q: I have money parked in a GIC that will expire very soon. Needless to say that the current rate isn't good enough and I'm looking for a higher return without too much risk. As a replacement of my GIC, can you suggest 4 or 5 mutual funds (bond oriented or others - I am open !) that I can rely on for an "adequate" yield ? I am not looking for an homerun with bases loaded. I would be satisfied with a yield of 4-5 % approx. per year. I am not a fan of mutual funds showing yields that vary a lot year after year.
I really appreciate your excellent services !
I really appreciate your excellent services !
Q: I hold about 12% of our fixed income in ZHY, the balance in ZAG. If we are heading into recession, default rates my rise but interest rates may fall. Does this holding make sense for a balanced (60/40) portfolio, retired investor living off the income. Capital preservation is important but volatility is expected and tolerable. Thanks for the fine service! Jim
Q: Can you explain how an investor can get a negative yield on a bond? For instance German 10 year bonds have a negative yield. Does that mean that there is a premium paid on the price say 102.00 and investor receives 100.00 at maturity. Does the investor receive semi-annual coupons like other bonds? Are the coupons more than 0.00 or are they negative also? Thank you.
Q: Can you explain when I look at the profile on XTR and look at the charts the 1,3,5 and 20 year charts all show if you held this you would have lost money on share price.
Are the charts accurate? Are the dividends making up for the share price drop?
Thanks
Are the charts accurate? Are the dividends making up for the share price drop?
Thanks
Q: Gentlemen,
I use Implicity to park money actual interest 2.4%
https://www.implicity.ca/Rates/
Regards
I use Implicity to park money actual interest 2.4%
https://www.implicity.ca/Rates/
Regards
Q: Just a comment on your response to Alexandra question of this morning, EQ bank has one of the highest interest rate (2.35%) on high interest saving accounts with many perks like free bill payments ,e-transfers and CDIC guarantee up to 100K per account.
Q: WHAT IS PRO AND CONS OF HAVING CASH IN PREMIUM MONY FUND OF TD OR HIGH SAVING ACCOUNT OF TD AND HOE EACH INSURED ?
THANK YOU
EBRAHIM
THANK YOU
EBRAHIM
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares Core Canadian Long Term Bond Index ETF (XLB)
Q: There are plenty of forecasts telling us that bond yields are declining and may go to zero.
If they continue to decline , what does this mean and how can an investor take advantage of this. Your Asset Allocator tells me I need to move $500,000 into fixed income to balance my portfolio, which is predominantly equities.
Do I go to a bond fund , or actual bonds? If so what would you recommend? If bonds what type and term? I will hold for min 5 - 10 years.
Thanks and take as many credits as you wish.
If they continue to decline , what does this mean and how can an investor take advantage of this. Your Asset Allocator tells me I need to move $500,000 into fixed income to balance my portfolio, which is predominantly equities.
Do I go to a bond fund , or actual bonds? If so what would you recommend? If bonds what type and term? I will hold for min 5 - 10 years.
Thanks and take as many credits as you wish.
Q: Just read the piece on negative interest rates and this question occurred to me. If monetary authorities control interest rates what leverage do bond the "bond vigilantes" have as long as a country doesn't borrow in a foreign currency?
Also, why is it that if rates rise from 1% to3% on a 10 year T-bond you loose 16% but if they rise from -1% to 1% you lose 20%? (see Cullen Roche July 26/19)
Not sure if this is your area of expertise but other members might know.
Thanks
Mike
Also, why is it that if rates rise from 1% to3% on a 10 year T-bond you loose 16% but if they rise from -1% to 1% you lose 20%? (see Cullen Roche July 26/19)
Not sure if this is your area of expertise but other members might know.
Thanks
Mike
Q: I just noticed that 60% of ZAG’s holdings are other BMO bond ETFs, and the rest are direct bonds. I am wondering about the implications of this of MER, yield, and taxation.
In the BMO documentation for ZAG, they note “as ZAG is a fund of fund, the management fees charged are reduced by those accrued in the underlying funds,” which I find confusing. ZAG’s MER is 0.09%, but the underlying ETFs have MERs ranging from 0.11% to 0.33%. Is the 0.09% MER in addition to the MER paid to the underlying ETFs, or is it just 0.09%?
Does the ‘fund of funds’ characteristic of ZAG mean there are taxation issues in terms of it’s dividends being eligible dividends in Canada?
Are the dividends considered eligible dividends or interest?
Thanks again,
Fed
In the BMO documentation for ZAG, they note “as ZAG is a fund of fund, the management fees charged are reduced by those accrued in the underlying funds,” which I find confusing. ZAG’s MER is 0.09%, but the underlying ETFs have MERs ranging from 0.11% to 0.33%. Is the 0.09% MER in addition to the MER paid to the underlying ETFs, or is it just 0.09%?
Does the ‘fund of funds’ characteristic of ZAG mean there are taxation issues in terms of it’s dividends being eligible dividends in Canada?
Are the dividends considered eligible dividends or interest?
Thanks again,
Fed
Q: Good day 5i team: recently I have increasd my weight in ZST .and have felt that in the when not if correction ensuse think it may offer reasonable downside protection.can you advise on any alternative that might be better not counting high interest savings. Tks and all the best Larry
Q: Could I please have your opinion of this ETF as part of a fixed income portfolio.
Thank You
Gerry
Thank You
Gerry
- Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR)
- Purpose High Interest Savings Fund (PSA)
- CI High Interest Savings ETF (CSAV)
Q: I am looking to hold some cash for 6-12 months. My broker - RBC Direct Investing - does not allow me to purchase PSA or CSAV. Would you consider HFR to be reasonably safe, or do you have another suggestion? I am somewhat reluctant to change brokers, but maybe I should.
- iShares Core Canadian Long Term Bond Index ETF (XLB)
- iShares S&P/TSX Capped Utilities Index ETF (XUT)
Q: For safety of income and income, what would be your preference between XUT and a bond ETF? Thanks, Bill
Q: Good morning,
How would the drop in US interest rates effect this Canadian ETF and would this ETF be a good add to my existing XBB VAB for long term stability in an RRSP. I am retired and mostly follow the Conservative ETF portfolio from ETF and Mutual Fund 5i
Thanks
Carl
How would the drop in US interest rates effect this Canadian ETF and would this ETF be a good add to my existing XBB VAB for long term stability in an RRSP. I am retired and mostly follow the Conservative ETF portfolio from ETF and Mutual Fund 5i
Thanks
Carl