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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: Dear 5i,

I am aiming to configure a fixed-income allocation that is an equal compromise between safety/security and long-term total return potential. I would like to choose ETFs that are versatile enough that they may continue to be reasonably held irrespective of changes in market, interest rate, inflation, and economic conditions. Which configuration do you think would be most appropriate for fulfilling this mandate:

1. 100% VAB
2. 50% VAB, 50% VCB or ZCM
3. 25% VAB, 25% VSB, 50% VCB or ZCM
4. 50% VCB or ZCM, 50% intermediate-duration (~5 years) Canadian government bond ETF (does one exist?)
5. another configuration (please suggest)?

I would prefer to avoid the higher risk XHY and CPD. Why does 5i prefer CLF (VSG is cheaper and similar) and CBO (VSC is cheaper and similar)? VCB is relatively new and has only $12.7M in net assets at this time, is this a problem? Or should I opt for the costlier but similar ZCM?

I realize there are actually many embedded questions in this 'question', so please deduct as many credits as appropriate. I am sure your answer will be well worth it.

Thank you.
Read Answer Asked by Walter on June 26, 2017
Q: What is your opinion of buying any or all of the above at this time for some US exposure generally and for these sectors specifically.Please rank them in the order you'd recommend them and I understand the limitation of your opinion regarding US equities. Thanks - Ken
Read Answer Asked by Ken on June 26, 2017
Q: I own equal amounts of both of these shares (1% of my portfolio).

BDSI is performing well and owns a non-opiod painkiller (BELBUCA) that just received approval from Health Canada. They need a contact in Canada to sell/distribute it. Is this the sort of thing that Knight would facilitate?

Palladin used to sell BDSI products but recently returned that portfolio to BDSI to focus on other areas. BDSI now sells directly in US.

Cam.
Read Answer Asked by Cameron on June 26, 2017