Investment Q&A

Q: Dear 5i,
Many experts are suggesting that Bonds are very attractive right now because of the high yields.
Can you please suggest some Canadian bond ETF's and Mutual Funds that one might want to do further research on. In your opinion what duration range represents a sweet spot that might offer attractive total return within 3 years.

Q: Hello 5i, common question for you but I have very little bond exposure and was looking to start building a fixed income portfolio. Can you give me your current top 5 bond picks (assuming ETF's). This can be USA or Canada bonds.

Q: How risky is HYG?

thanks

Q: What bond funds are the best to invest in right now for the long term? Currently I hold ZAG.TO and CVD.TO. Should I continue buying them? I would prefer a higher dividend than what the ZAG gives.
Thank you!

Q: Hi there,

Can you please suggest Canadian-listed ETFs for the bond portion of a long-term portfolio? I'm interested in diversification.

Thanks,

Chris

Q: Supposing that an investor had three registered accounts of roughly equal size that they wanted to change from equity ETF's to a fixed income allocation for their portfolio, and these accounts would have to be converted to RIF's in 6 years. Let's also assume that we get one or two more small rate hikes this year, then interest rates flatten and begin to come down slowly over the following several years. Which of three options would you choose on a risk/reward basis? 1. Just hold money market funds currently paying 4.5%+ 2. Barbell XSB and XLB using two accounts, and put XBB (or ZAG) in the third (avg. yield close to 3 %? with potential cap. gains) 3. Put TLT in all three, yield close to 3%? maybe highest potential cap. gain? With the BOC policy rate going up close to 5 points since the start of 2022 the bond funds above fell anywhere from 10%+ to 30%+. Does that imply that if the BOC rate went back down 2.5% that they would rise 5%+ to 15%+, or you can't make that kind of straight line assumption? Maybe there is a way better option, but I don't really want to tie up funds in GIC's and don't want to try to pick individual bonds either. I also considered something like PSA but no cap gain upside there and the money markets probably pay as much interest or more. Thanks for your thoughts.

Q: Hi, I have heard about short term bonds providing high yields. I don't have much experience in this area. Could you recommend a way to add this into my portfolio?

Thanks
Paul

Q: In the current environment, when should an investor consider bonds vs. a high yield cash ETF? For example, XSB has a 2.4% yield right now whereas CASH has a 3.9% yield. CASH seems better due to the higher yield and also won't have capital losses whereas the XSB price can change.

Q: What is your recommended short term CAD bond etf? Can you briefly discuss your top 3?

Q: Can you name a few securities that you would recommend in an effort to capitalize on the potential bond market opportunity as outlined in your March 16th market report?

Please rank and provide a brief explanation for the ranking.

Q: Which ETF product would be suitable for a one year holding period in an RESP?

Q: I am looking at adding a 15 to 20 percent bond component to my portfolio. From the mix of laddered, aggregate, short/long term and high yield ETF’s listed. Which would you recommend and why? Please let me know if you have other possible suggestions? Thank you

Q: Last year I invested in XSB, thinking that the "Short" aspect would be the better place for bonds. Unfortunately, the value has fallen, though perhaps not as much as other bond ETFs. What do you expect to happen with XSB as we go forward?

thanks

Q: In these times where the financial health of companies are being put to the test, are bond funds like XHY, which hold 60% BB grade bonds and 30% B grade bonds, something that a wise investor should be pulling out of?

Q: Greetings 5i,
I am retired and typically don't have much in the way of fixed income since we have decent pension income, dividend income from a non-Reg account and some income from our RRIFs (started early to postpone CPP).

However, there is likely opportunity now for short-term bonds (higher yields as bond prices have fallen) and long-term bonds (capital gains when interest rates start to fall). Could you please identify two Cdn bond ETFs that would satisfy this rate dumbbell scheme?

Thanks as always for your excellent service.
SP

Q: I’m looking to put a fairly large cash position to work (my portfolio is 30% cash) over the short term and would like to atleast gain some income (while I wait for a short-term recession scenario to play out) but limit large equity exposure. Can you give some short term bond etfs or some liquid traded products that would serve that purpose. I own a large position in zwb already but realize I’ll still get dinged in a pull back (at which point I’d shift that position back into underlying bank equities for a recovery). And also what kind of yields would I be looking at? I also would like to be paid out atleast monthly. Thanks

Q: If one believes the 2 year note yield will fall, what are best ideas to play this scenario?

Q: Hello,
Many experts are predicting a downturn in the market for at least the first half of 2023 and possible even longer. With that in mind, and if the Feds and Bank of Canada pause in Q1,... the market will stabilize and GIC rates may pull back. In fact RBC GIC's short term rates are about the same as longer term. Therefore, is this a good time to start buying Bonds ETFs with the hope that as rates start coming down the stock price will start moving higher? Am I correct in this assumption? And, which ones would you suggest? short, mid, or long term.? As well, what are you thoughts on Prime Linked Cashable GIC's ( offered by RBC)? Finally, would you buy a 1 year GIC currently at 4.65% ( by RBC) ?
Thanks
CR

Q: I completed the Portfolio Analytics Tool and uploaded my own holdings. It suggested I should invest in 30 percent fixed income - I’ve spent my investment years in the equity market - any suggestions for this asset class such as which bonds, what terms, etc… ?

Q: What short term bond etf would you recommend?