Investment Q&A - 5i Research

BMO Asset Management Inc (ZTS)
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Q: If you own a Canadian domiciled ETF that holds US fixed income (like ZTS) what are the tax implications? Is there withholding tax if held in an RRSP, TFSA, or taxable account?
Some websites say no withholding tax on U.S. bonds but others say yes. What's the right answer?

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Read Answer Asked by Greg on January 28, 2025

African Gold Group Inc. (AGG)
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iShares Core Canadian Short Term Bond Index ETF (XSB)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Vanguard Canadian Short-Term Bond Index ETF (VSB)
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Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
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BMO Asset Management Inc (ZTS)
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SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)
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Q: Hello 5i,

We were reading a report on the risk for corporate bonds due to a tightening of spreads. Our goal from a previous question is to protect funds needed in the next 3 years to augment CPP and OAS (no pensions).

We added bonds, but that plan may require a new assessment. Currently, our portfolio has a small position (2%) of Bonds consisting of AGT, VCLT, VCIT, & VAB. We also have laddered GIC’s for 5 years, plus PSA & BIL (for vacations in the US).

We are looking at replacing AGT & VAB with PSA and VCLT & VCIT with BIL. Do you have any other suggestions that may meet our goals?

Thank you
D&J

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Read Answer Asked by Jerry on January 08, 2025

Q: Currently our health sector portfolio consists of above at 1.5% each. Sector target 10%+/-. Could add to IHI and ZTS. Watch List includes SYK, GH, EXAS, CSLLY, and MPW. Would appreciate your advice on current holdings and filling out sector - either these names or others. Long-term growth goal with focus on medical technology, and diversification within sector.

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Read Answer Asked by sam on October 04, 2019

Q: I would like to deploy cash held in my Canadian $ brokerage account on the basis that the Canadian dollar will decline in value in relation to the US dollar. I am considering the purchase of ZTS BMO Short Term US Treasury Bond Index. My premise is that this ETF should be very stable in the value of its holdings but will directly reflect changes in the CDN/US $ ratio. Is this correct?

Other than paying the high bank exchange spread or deploying a Norbert’s Gambit transaction, is there a better way to institute this idea? Is ZTS a suitable ETF for this purpose?
Thanks
David

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Read Answer Asked by David on September 20, 2017