Investment Q&A

Q: Hello,

In a previous answer you mentioned that the distribution for CBO, for tax purposes should be treated as interest income. Is the same true for XHY? I checked on Blackrock site but could not find tax related info.

Thank you

Q: I have been wanted to diversify my portfolio and I was wondering if this is a good list or a bit of overkill. I have recently bought some XBB. I want these for fairly long positions, my concern is that I might be over paying for these as everyone is fearful and flocking to bonds as a safety net. Would it be wise to let things settle or buy partial positions in these etfs. Also would it worthwhile also owning some us long term treasuries. I am looking to try to cover all possibilities so I am not chasing in the future when market conditions change. I would like diverse group to cover inflation, rising market, recession. I know that I cant take all risk off but I would like have some safety net and not hold all equities.

Q: Hi Ryan and Peter,
My question is of a general nature and concerns a problem many seniors are having with portfolio construction. I'm 70 years old, have a defined benefit pension which, along with my wife's defined plan, covers our monthly commitments. We are underinvested in the fixed income part of our portfolio but because of the lack of returns on bonds and GIC'S, are hesitant to commit a large portion of our savings to this sector.
As with many seniors who have their monthly expenses covered by pensions, we need guidance as to what percentage of our funds should be in fixed income. What percentage do you think is appropriate and could you suggest a few specific investments.
If you believe, as I do, we would be better off investing in Canadian Blue Chip companies that offer relatively safe growing dividends, could you suggest several such companies.

Thank you in advance for your much appreciated guidance.

Q: I have some cash in my account and am thinking of adding to MAL and to XHY. Recent news and performance of MAL has been good, but I am concerned about the effect of US rate increases on XHY. My account is well diversified. I would appreciate your comments on both.

Q: Because of my age and possible future need for income, amount and security, I am pondering the addition of the following ETF’s. I am indicating the present and after purchase weighting in my portfolio. ZWU ( 3% - 5%), XHY (1% - 3%), XTR (0% - 5%). My portfolio is reasonably well
diversified with about 95% blue chip (28) common shares. Can you please comment on the appropriateness of my proposed purchases, given your limited knowledge of my portfolio.

The composition of XTR i shares includes other I share ETF’s so if I were to purchase this security I would be effectively duplicating management fees and further increase my exposure to XHY, which is held in XTR.

Thank you for considering this questions

Q: I hold XHY and XSH in my wife's RRSP. Which of the above would you prefer as an addition? I notice CVD is thinly traded compared to CPD. Another option would be to add to XHY to bring it to a seven percent weighting. Thank you.