Investment Q&A

Q: I note that you are increasing your XHY in the income portfolio. Which of the US listed XHY family would you suggest for my US side? Thanks, Al

Q: Hello 5i,

In your recent update, you are increasing XHY to 6% of the income portfolio. We own quite a bit of ZAG in a non-registered account (about 10% of the total portfolio) that we received this year as part of an inheritance. Given your update, does it make sense to sell some ZAG and replace with XHY? The remainder of investments are in mostly diverse growth stocks and other ETFs on your advice and I'm looking to retire in about 10 years.

Thank you and happy holidays,
John

Q: I didn't have bonds this year and I wish I did even though it lost value it still did better than my portfolio tilted toward growth. If you were to initiate a bonds presence in your portfolio. Would you rather buy these 2 or one or the other. Any other suggestion is welcome.

Thx

Q: I have some cash and thinking of adding to XCD,XHY and HXQ. Would you be a buyer of all 3?
Thanks

Q: Hello Peter,
This question is relating to your holdings in your Income Model Portfolio. Are all the income declared from these investments qualify for dividends tax credits? Or are they treated as normal income like interest income from GICs and would be subject to our normal tax rate?

If it is taxed at our marginal rate, would you recommend holding these investments in a RRSP account?
Many thanks,
Roger

Q: hello 5i:
We hold the Pimco Monthly Income Fund as our sole Global Fixed Income contributor. We are not displeased with it, but wonder if you favour another ETF, or mutual fund, that could replace it, or complement it. We would probably expect at least a 4.5% distribution. Ideas?
thanks
Paul L

Q: I am currently down 20% on my XHY holding. I am thinking of taking the tax loss and either rebuying it in 30 days or possibly buying a dividend paying blue chip stock that yields the same 5+% ... and has some potential for growth. Your thoughts?

Q: As STIP and TIP have ceased to pay their previously excellent distributions, I have been looking for alternatives with similar distribution, diversification and volatility characteristics. XHY seems a valid choice; however, can you comment/provide alternatives? Thanks.

Q: In tuesday's globe and mail, Tom Czitron recommeded buying mid term (5-10 year) federal, provincial government, and corporate bonds because they seem to be in the sweet spot between lower risk and higher opportunity, especially if inflation declines and economic growth wanes.
1. Do you agree?
2. Can you recommend names of bonds that fit this bill?
3. please indicate order of buying (best to worse), if any.
thanks

Q: Hi Everyone at 5i!
I am a new retiree and hold these three ETFs as part of my income portfolio . They have all dropped in value , due to increased interest rates and the market in general. These are my really long term holds unless you foresee a problem with this idea.
Cheers,
Tamara

Q: In the present interest rate environment and going forward 6- 12 months, which ETF is preferable i.e. XHY, PFIA, MFT, ZHY, XSB,XBB OR PYF? Would you choose 1 or a combination?

Thanks for your service!

Q: How would you suggest a 70+ participate in this market,if at all?

Q: I am currently managing my TFSA/RRSP funds and some money outside of registered accounts, which are largely individual stocks. With the market volatility, potential recession and war in Ukraine, I am finding it more difficult to keep on top of the individual stocks and am therefore considering going to ETF's. I am a year away from retirement but would be ok with more risk in the TFSA/RRSP's.
Could you please suggest 5 ETF's for the registered accounts and 5 ETF's for the non-registered accounts.
Thank you,
Jacquie

Q: Hello 5i,
I am a value invester with a mix of equities and ETF's. I have done well with VGT and am up $8,000. As I look for dividends I am looking to sell VGT and buy ZWT. Also exchanging XHYy for ZWH, XTR for ZWC and VE for ZWE. Some are underwater but not by much. $75,000 is involved altogether with these exchanges. Do these changes make sense or should I just leave things as they are. The difference in dividends is nice to have (an extra $300 or more a month) but not really needed.
Stanley

Q: I am wondering about a rebound from the current level with XHY? Do you see it recovering from the loss this year and is it a good time to buy?

Q: Regarding XHY in the 5i Income Portfolio: Is XHY a hold or a buy at this time with a yield of about 4.90%? Is there any US withholding tax in an RRSP holding XHY?
Thanks!

Q: I recognize this is a timing question so apologies in advance. My portfolio is 100% equities (no bonds). As I approach retirement I am thinking of moving 20-25% of my RSP/LIRA into bond ETF's. With rising rates and high inflation am I best to wait this out until we get closer to the end of the rate hiking cycle? If I was to time it perfectly (I know, I know) would it be to buy the bond funds at the interest rate peak? Please recommend a few ETF's to achieve a balanced bond portfolio and any thoughts you have on timing this.
Thanks
Rob

Q: The general rise in interest rates continued during the first quarter of 2022, continuing its pressure on the price of fixed income securities.
I would like to have your opinion.
Is it a good idea to buy fixed income indices right now like the Canadian Bond Index or the Canadian Real Return Bond Index or the High Yield Bond Index? What kind of return can we expect?

Q: HI,
In a reply to Les on March 21st, you indicated that you like XHY a high yield bond. are high yield bonds like XHY considered junk bonds? how would one know the credit quality (e.g. AAA vs BBB) of this ETF ?
thanks

Q: Hi 5i.
Thanks for your continuing great service.

I am trying to find a way to hold US stocks without being subject to US Estate Tax or the need for T1135 tracking.

Are CDRs on US stocks subject to US Estate Tax?

Are CDRs on US stocks subject to T1135 reporting?

Are there other vehicles, besides selected Canadian- company-managed ETFs, that enable ownership of US stocks without exposure to US Estate Tax or T1135 exposure?

Which Canadian companies managing US stock EFTs are not subject to these issues?

Are the Canadian branches of US companies that manage US stock EFTs deemed by CRA to be US or Canadian?

Any additional comments or suggestions that you may have on these topics would be greatly appreciated.

Please deduct as many question credits as appropriate.

Many thanks !