Investment Q&A

Q: I have two daughters resident in the USA and would like to put them into something similar to VEQT and VGRO. Are there any Fidelity USA or Vanguard USA products you can suggest that have a similarly diversified mix

Q: What is the total return for 1 3 5 10 year time period.

for this mutual fund.

ralph

Q: Hi Peter
We would very much appreciate your view on this situation, which seems quite unfair to us.
We invested in the TD USD money market fund, TDB2915. At the end of 2024 we received our regular monthly drip and the quantity of units rose accordingly. We also saw a transaction for a much larger drip but there were no numbers put in the quantity column. TD told us that the fund had a Special Distribution. But instead of paying the Special Distribution as cash into our account, the fund instead reduced the cost basis of our shares. TD said that they could either pay out the Special Distribution or reduce the cost basis, and that they chose the latter. TDB2915 has a fixed price of USD 10 per share. Our understanding of what we were told is below by way of an example:
Initial Investment: USD $10,000 with a purchase 1,000 shares of TDB2915 at USD $10 per share.
Special Distribution: USD $2 per share
Instead of receiving USD $2,000 as cash, the fund reduces the cost basis by USD $2 per share
So the Adjusted Cost Basis after the Special Distribution is USD $10 minus USD $2 = USD $8 per share, and so for 1,000 shares the ACB = USD $8,000
When the shares are sold there is a gain of USD $2,000 to report because of the now lower ACB. But we didn’t receive any additional shares.
Putting the tax issues aside, the example shows that the shareholder is no further ahead having not receive the additional USD $2,000 Special Distribution.
Are we missing something? Is this legal?
Many, many thanks for sharing your respected views.

Q: Hello,

I have been reading up on this fund, and comparing it to other covered funds. This one utilizes a strategy whereby they generate income (currently ~ 11% yield) by writing puts. This fund is currently 75% written puts. My sense is that when this strategy is coupled with a long equity strategy, you still have similar downside (less the premiums you receive via selling the puts), but your upside is capped. Works if markets are not overly volatile and remain range-bound. But I think things could go really wrong quite quickly in a volatile downward trending market. It seems to me that the fund is short volatility, which could cause serious distress in the fund vs writing covered calls.

Have I got this right?

Appreciate your thoughts as always.

Q: Comparing ETF's to mutual funds, the argument is that the higher MER is worth it in the mutual fund because the fund is managed. What are your thoughts on this topic?

Q: Good morning,

I try to keep my fixed income weighting in the 35-40% range of total investable assets. Of this, I have maintained my HY exposure - via the PH&N HY Fund - in the ~ 10% range of my fixed income exposure. The rest of spread out in ETFs like XBB, XLB, XCB, TLT.

I would like to increase my HY exposure as a % in my fixed income exposure to ~ 20-25%. I know you don't love to comment on weightings, but do you think this is a reasonable move? I love the fund, and have a lot of time for the PM there.

Thanks as always.

Q: Hi all
Can you advise a ETF substitute to replace my TD3049 mutual fund, looking for lower MER with similar return :)

Thanks kindly,

Q: Could you please give your opinion on ZMID and RBF617 - which would you prefer over the next 5 years. Also, with the Canadian / US $ exchange rate currently being where it is, would this be a good time to use the hedged version of the above or do you prefer the unhedged versions?

Thank you so much!!

Q: Can you provide a synopsis of the above (recently inherited) funds? Are either of these funds pure equity? Would you consider them to be worth keeping or is there an ETF or two that will likely allow for better returns?

Appreciate your insight.

Paul F.

Q: Greetings:
I have held a position in the above for quite a while. When I research the holdings, they will only display the top 10 holdings. Many funds display the top 10 and in the event that more is desired, it will reveal it. How can I possibly access more of the holdings?
Thanks, BEN.

Q: How do you fell about HXQ in a 15+ year RESP?
I have held RBF619 (Science and Technology for 15 years and it has done wonders but it has the fees. Any other ETF's ? ZSP? XIC? OR would you be comfortable with just BN?

Q: I am looking at TD index funds for a youngish person with no interest in investing. TDB655 is listed as currency neutral, the other as currency diversified. What is the difference and which is the most conservative? ( I don't know what either actually means)

Thanks

Q: This fund is part of an employer-sponsored account. It has been steadily decreasing since early October given (I assume) the bond market’s attempts to price in new uncertainties over the past few weeks. I thought this bond component would reduce volatility but perhaps not (?). I have 5-7 years to go until the money is needed. If it’s going to lose value or underperform I would prefer to sell it now and put my faith elsewhere. It is 10% of my total portfolio. My question: What would YOU do in this situation?

Q: I am holding all of the above in my portfolio, along with some equity etfs and a few individual stocks. In seeing your comments on BMO 95290 fund, wondering if i should replace all of these etfs with the BMO fund ? Also, if i should allocate anything to CBO or CVD for diversification.
Thanks! I appreciate your quick and thorough responses!

Q: Can I have your opinion on this mutual fund. I understand no many funds offer exposure to structure notes.
I have done well with my initial investment and am thinking to increase the position.
What is the risk level?
Thank you

Q: CBIL holds Canadian treasury bills and TDB2913 is a money market mutual fund. It looks to me CBIL is safer with basically the same yield am I missing anything? Thanks

Q: I have read many times in the past that it was not a good idea to buy mutual funds late in the year. Probably because of taxable distributions. Would you agree with this?

Q: Your thoughts on FNILX
Thanks again

Q: What is your opinion on DYN6001 for USD regarding safety and liquidity? Other suggestions?

Q: I'm not sure if you will provide information and/or are comfortable commenting on Fidelty Investment ETFs. I have taken a cursory look at this particular fund. I am looking for something comparable that can generate a similar or better yield (4.01%) while enjoying a conservative capital gains opportunity.

Thanks for all you do

gm