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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i Team
To increase my fixed income allocation, I need to add fixed income to my non-registered account.
I am looking at the Horizon Corporate Class ETFs, in particular the Horizons Cdn Select Universe Bond ETF (HBB) in comparison to BMO Discount Bond Index ETF (ZDB), BMO Aggregate Bond Index ETF (ZAG) and/or iShares Core Canadian Universe Bond Index ETF (XBB). I am not familiar with the concept of Corporate Class ETFs.
1 - Is HBB a reasonable alternate to the listed major bond funds?
2 - Please confirm HBB does not pay a distribution and that “income” is reinvested in units of the ETF resulting in potential increase capital gains in the future.
3 - What would be the impact of a future increase in capital gains inclusion rate (from 50 % to 75%) have on corporate class ETFs?
4 - Is there a minimum dollar amount where the corporate class ETFs start to make sense (i.e. is better to pay the tax on a distribution from XBB when the dollar amounts are relatively small)?
Thanks
Read Answer Asked by Stephen on August 24, 2020
Q: in your answer to Scott today, which US company are you talking about ?

Thanks,
Jacques IDS
Read Answer Asked by Jacques on August 24, 2020
Q: In answer to Paul's question re free on-line stock screener for Euro dividend payers, you can refer him to the post "Euro Dividend Payers" in the Forums. Hope that helps.
https://www.5iresearch.ca/forums/viewthread/368
Read Answer Asked by Marc on August 24, 2020
Q: I am very green when it comes to the purchase of bonds. Please help me understand the following transactions. I bought 26000 units at 101.275 for a yield of 4.25%. My understanding is that I paid $26,331 and I will get $26,000 at maturity. In the mean time I will collect the yield. Right? or...
The second transaction is when I bought 25,000 units at 99.25 for a yield of 2.58%. How much principal will I get at maturity?
Thanks for you welcomed answer.
Yves
Read Answer Asked by Yves on August 24, 2020
Q: Exchanging the BIPC shares for the BIP.UN shares - there was an article by John Heinzl in the Globe stating that the BIPC shares are worth a few dollars more so if you exchanged them you would be losing a few dollars a shares because the BIP.UN shares are worth less. There are many questions out there concerning this and so I tried the search column at 5i that hopefully someone else wrote in about it - could you clarify John Heinzl's position on this? Thank you,
Dennis
Read Answer Asked by Dennis on August 24, 2020
Q: Can I get your thoughts on this company please?

Thanks
Read Answer Asked by Scott on August 24, 2020
Q: Hello,
I read somewhere that AAPL took 42 years to reach a 1 trillion market cap and only took 2 years to reach 2 trillion! Sounds like compounding at work. How common is it for mature companies like AAPL to grow at this rate? Which of the other FAANGM companies would you expect some thing like this? Thanks.

Regards,

Shyam
Read Answer Asked by Shyam on August 24, 2020
Q: Hi Ryan and Peter,

I had been watching PHO for months. After their earnings call and the pull back and your words on earnings, I was encouraged and finally took a position at $1.80. I have averaged down during this pullback as I thought it was a bit "silly" as Nigel is just trying to temper expectations. They have no debt, nearly 40 cents per share is cash and a great gross margin. Am I correct in thinking the risk is the 3 companies that represent 80% of revenues and revenues dipping/not growing.

So a couple questions:
1. Am I misguided in my thought that it is very cheap right now and a couple more solid quarters would change sentiment?
2. Your past company report estimated value to be $1.93 a share. What do you believe the share price is now?
3. Who do you believe the key 3 customers are and do they have a chance to pick up more?
4. Do you know who their competitors are? I cant seem to find them.
5. At what point, would you "back up the truck"?

Thank you.

James
Read Answer Asked by James on August 24, 2020
Q: Would you recommend the ETF "DANC" as an investment in one's TFSA? If so what percentage amount of $110.000 would you suggest? Thank you.
Ron
Read Answer Asked by ron on August 24, 2020
Q: I have about 29.3% of my portfolio in financials. Is this too much? I'm above water on all except BNS with FSZ about even if I include the dividend. Which would you suggest dropping if I'm too heavy in this area & in what order? Thanks,as always for your wonderful guidance
Dave
Read Answer Asked by Dave on August 24, 2020
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