Investment Q&A

Q: It's been almost a year since I asked about this one (QTIP - Mackenzie US TIPS Index ETF (CAD-Hedged)). I've held it for over 3 years and it has certainly dropped (I'm down about 11%) and over the last 12 months it just seems to be flatlined between $ 83 and $87. Why should I want to keep this one vs. just selling it and moving $$ to something paying a higher dividend (maybe BCE or ENB) ? Or will dropping interest rate finally be the catalyst to breathe some life into this one ?

Q: I didn't get a distribution from QTIP this past month. Any reason why this bond ETF would skip a payment? It's not the first time they did that.

Q: XSTH, QTIP, or ZTIP - which do you prefer for TIPS etf in CAD and why? Feel free to include another CAD name I've not mentioned if applicable

Q: I am down on QTIP but liking the ~ 7% yield. What is it going to take to move the needle on this one (I own it for income but hate seeing the price down with no line of sight to recovery). What will make this bounce back to the $100-$105 range ??

Q: I note you last commented a few months back. QTIP is close to a 52 week low. How safe is the ~ $ 10% dividend and what are your thoughts on this for the next 2-3 years. Should I continue to hold (I'm down about 8% since I purchased).

Q: Why does this ETF keep going down in price when inflation keeps going up? Should I keep holding?

Q: Can I get your opinion on this ETF as a hedge on inflation. Thanks

Q: Hello 5i Team

I currently hold a Canada Real Return Bond (Canada Dec-21) in a RRSP account which matures December 01, 2021.

I would like to maintain my current exposure to Real Return Bonds, however from experience I find it very difficult to purchase Real Return Bonds from my discount broker.

I am looking at the following current Real Return Bond ETF:

XRB – MER = 0.39 % – Effective Duration 15.26 year – YTM 1.83 %

ZRR – MER = 0.28 % – Effective Duration 15.91 year – YTM 1.65 %

Three newer ETFs based on the US short term TIPS are as follows:

BMO Short-Term US TIPS Index ETF (Hedged Units) [ZTIP.F] – MER = 0.17 % – Effective Duration 2.65 year – YTM 0.24 %

iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) [XSTH] – MER = 0.15 % – Effective Duration 2.60 years – YTM 0.23 %

Mackenzie US TIPS Index ETF (CAD-Hedged) [QTIP] – MER = 0.17 % – Effective Duration 8.05 year – YTM 1.13 %

Which ETF would be a suitable replacement for my Canadian $ Real Return Bond maturing on December 01, 2021?

Thank you

Q: Can you explain the difference between Distribution yield advertised as 12.88% and trailing yield of 4.23%. I am looking to buy some fixed income, would this be a safe bet?

Q: I would like your thoughts on QTIP as a partial or whole substitute for funds like XBB or ZAG. Also going forward from now into 2022 how do you see bond funds performing overall. I currently have 35% of my portfolio in fixed income.