Investment Q&A

Q: Hello,

I want to add fixed income to balance my portfolio and will hold it in a cash account. I'm targeting 15% fixed income with > 10 year hold.

1. Are the ETF's in the income portfolio appropriate? or should I have more concentration? Or a different selection?

2. If > one ETF do you have a weighting suggestion?

3. Will these be taxed as income or dividends?

Thanks!

Dave

Q: Good morning
I own CPD which has trended downwards in price over the last year and is now yielding 6.9%. I am considering selling CPD for tax losses and if so, what would be a more sensible strategy. Buy back into CPD after the appropriate delay or Buy something else like a blue chip equity. I know the legal difference between preferred and common but it seems that over an extended buy and hold, commons will prevail albeit with dips along the way. In reality how often are preferred rights called into play to the detriment of common with Canadian blue chips? To me, preferreds offer the worst of both worlds. At this point, my CPD shares are part of my fixed income side and a switch to equities will rebalance things, I know.

Q: I am wondering what is the reason CPD is at a lower level than the financial crisis of 2008. I am at a loss on it for a few years now and wondering if holding another year or two makes any sense.

Q: Looking to increase my fixed income exposure. Currently hold CBO, XBB, and CPD (preferreds). Thinking of adding XHY in addition to these, would you recommend additional ETF's in this space to help diversify?

Q: In an RRSP for the preferred shares ETF portion (5%) of a balanced portfolio, which do you prefer and why?
Thanx!

Q: If I was to invest $400,000.00 into an all bond portfolio, could you suggest what bond securities you would invest the money? Thanks, Bill

Q: I currently own CPD in a taxable account at a loss position. With interest rates looking like they are going downwards would it be positive for preferred resets? Would you be okay with a switch from CPD to XBB at this time? I have CPD as part of my fixed income portfolio even though it is kind of a hybrid between equity and bond. Thanks for your insight

Q: 5-I,

I own CPD plus 5 individual rate reset preferred shares with reset dates ranging from 2020 to 2022. . When I look at the gains / losses I see CPD has been hit much more than any of the individual items over the past year. My question relates to how the NAV is determined with CPD. Is it very similar to that of a mutual fund , ie if many sales orders are received the ETF needs to liquidate, thus causing a drop in NAV? Any other thoughts why such a large performance difference between CPD and individual preferred shares ?

Thank you,

Paul

Q: What are your thoughts on selling all common stocks in a non registered account to preferred shares for an 86 year old senior ( this move is for capital preservation concerns)? Apparently the preferred share asset class has been beaten up lately, according to this senior's advisor! what would be your top 5 preferreds that you could suggest? Please take as many credits as you wish. Thank you!

Q: Good morning 5i,
I am tempted by cpd, as its price is pretty low and its dividend pretty high. As of yet, I don"t own any preferred shares and wondering whether they are really necessary for diversification. I notice, for instance, that you recommend a certain portion in my portfolio analytics. My dilemma, though, is that we are fairly close to the clawback point and I am a little afraid that more dividends would be detrimental. In fact, I have been putting non dividend US stocks in our non registered accounts for that reason. But, if I really needed the diversification ( and this might be a good time to buy preferred shares) I could probably re arrange things. So, the question is how necessary are they in an already well diversified portfolio
thanks

Q: Hi There,

Can you please help me understand why CVD and CPD are in a declining trend over the last ten years? It seems like the yield can not cover the price drop. I want to add them to my portfolio but need help to understand what move its price.

Thank you for the great service!

Dong Sheng Wang

Q: What would you expect will be the key drivers of CPD's price in the marketplace? Eg would it likely follow equities down/up (because of reliance on credit of issuers) or moreso bonds ("safe" haven for yield when equities are volatile)? How do interest rates impact it? What would it do in a recession? I'm not looking for a prediction of the future, but a simplified model on how to think about this kind of security. Thanks.

Q: CPD is at a 52 week low, RSI oversold at 16, and yielding over 5%. It appears to be an ideal time to buy for income. Do you agree?
Thank you.

Q: Hello 5i Research...I have a very elderly family member who needs to re-structure her TFSA . Investment horizon may be under 3 years. GIC's are used in other accounts. We are looking for an ETF solution that will provide a decent level of capital safety and some monthly income (above GIC levels).
We were thinking a combo of XTR , CVD, CPD . XCB and CBO. Is there a one fund solution solution that you might endorse? What percentage split of funds might be appropriate in the current environment?

thanks/art

Q: Why is CPD taking such a hit right now?

Q: Looks like the trend is lower for rates going forward even with the recent drop. If we were to assume rates were going lower wouldn't owning Pref ETF's like the CPD, HPR etc be a bad idea?
Wouldn't rates need to go higher for these to really be a buy right now?

Q: Preferred shares are on the upswing today. Can you explain this activity?
Thanks, Joe

Q: I am looking to buy fixed income funds in my corporate account. What would be your top picks of the ones listed? What are the rate of return - fees? Thank you for your website.

Q: What are the fixed income funds in your income portfolio?
What are some fixed income stocks that have had favourable returns?
Can one hold U.S. funds in a TFSA?

Q: Hello, my question is about CVD, CBO, CPD and XHY. I know you like these ETFs for income, and most of them are in the Income Portfolio. When one looks at their 5-year chart, one can see a downward trend for all of them. What will it take to change that to an upward trend? Would you invest in these ETFs today? Regarding XHY, the Fact Sheet says “Exposure to a broad range of U.S. high yield, non-investment grade corporate bonds, based on market-value weighting”, does the low quality of these bonds bother you? Thanks, Gervais