Bond holdings limit these Vanguard ETFs

Earlier this year, Vanguard Canada added a fourth balanced fund (a mix of stock ETFs and bond ETFs) to three others that it launched in January 2018.
Here’s a look at all four of these ETFs:
VANGUARD CONSERVATIVE INCOME ETF PORTFOLIO $25.81 (Toronto symbol VCIP), holds roughly 20% of… Read More

Q: Hello, Pat. Do you have an opinion on PIMCO Global Short Maturity Fund (Canada) ETF as a parking spot for cash in this rocky and volatile market. Any feedback is appreciated. Thanks.

A: The PIMCO Global Short Maturity Fund (Canada) ETF, $20.12, symbol PMNT on Toronto (Units outstanding: 3.2 million; Market cap: $64.32 million; www.pimco.ca) was recently launched by PIMCO.

Based in Newport, California, PIMCO is one of the world’s biggest fixed-income investment managers. It’s owned by Germany-based… Read More

Q: Hi, Pat. My question relates to the Horizons Active Preferred Share ETF. Compared to holding the preferred shares of individual companies, does an ETF like this provide any advantages? Is this the best one to buy if you want to buy such an ETF? Thanks!

A: Preferred shares behave more like long-term fixed-income instruments rather than short-term instruments. So while short-term interest rates are still relatively low, the outlook for long-term interest rates is less certain.

The underlying credit quality of preferred share issuers can be a negative factor in some… Read More

Why the Best Utility Stocks should have a place in Your Portfolio

Why the Best Utility Stocks should have a place in Your Portfolio

The best utility stocks can provide growth and income in a diversified portfolio. Here are some tips on picking the best ones
Utility stocks include companies that provide electric power, telecommunications and pipeline services. At TSI Network, we continue to recommend that income-seeking investors buy high-quality… Read More

Q: Hi, Pat. I’m looking for some help here. What has the biggest impact on pipeline companies such as TransCanada and Enbridge: The evolution of interest rates or the evolution of oil and natural gas prices? And in terms of sectors, are pipeline operators more resource stocks or utilities? Thank you.

A: A range of factors—both industry-wide and company specific—affect pipeline stocks.

In general, pipelines have dropped lately along with the market. But their stock prices have also been hurt by investor concerns over rising interest rates. As rates rise, utilities are perceived to suffer because they… Read More