Investment Q&A

Q: What are some thoughts and opinions on XSU

Q: Please explain why the yields on these etfs differ so much

Q: Hi.

Im looking for an ETF". developed Europe " on the US side similar to the VE (can)I looked at those but both have Asia included

VEA or Vxus


thanks a lot

Margit

Q: Hello I’m wondering if you could name a couple of USD traded etfs that would be as close to the equivalent of PSA or CASH but trade in USD either on a Canadian or US exchange if necessary. Thanks

Q: Good morning.
We are retired and rely on our investments for income.
We are looking to simplify our portfolios and would appreciate your opinion.
We are hoping to utilize etfs in our rrsp and tfsa.
In our non registered we would like etfs and Canadian dividend stocks to utilize the the dividend tax credit as this is our main source of income.
At present our set up is:
TFSA. VDY
RRSP. VIG
non registered. 70 % (VDY. XIU. VCE with 15 individual canadian stocks )
30%. ( VGG. ZSP. ZNQ)

Is this too simplified?
Are there any etfs we should add or delete or would be better.

Thanks for your help.
Victoria

Q: Hi Everyone at 5i!!
I own Maw global small cap and have rode it up and down. I am given to understand that it is a good fund but the MER is high. Is there an ETF of a similar nature that I could reinvest my money in??

Cheers,
Tamara

Q: Good afternoon,

I would like to ask a question regarding return of capital ("ROC") with some mutual funds. I am having a tough time getting my head around the actual logistics of how this works. Consider the following basis example:

I own 1000 units in Fund A. My ACB is $10 for an initial investment of $10,000. It is trading at $10. My yield is 5%, paid monthly. Let's assume that of this 5% yield, 4% is dividend, and 1% ROC.

Assuming AUM for the fund remain constant, and assuming that I continue to hold 1000 units, where does the cash come from to pay this 1% ROC? I am assuming that for it to be classified as ROC for tax purposes that it is neither income nor capital gains. And beyond my ACB being reduced, is there anything else regarding my initial investment that I need to be concerned about.

Q: Given that I sold this Purpose bitcoin fund for tax loss in Dec, can I replace it with an alternative company bitcoin fund (CIX) and not jeopardize the tax benefits? It has not yet been 30 days since the sale. Thanks,

Q: Your thoughts on these funds from Hamilton. Would be for an income portfolio. HYLD in an RRSP which will transition to a RRIF in next few years. HDIV would be held in a non-registered acct.
Yield is attractive but are they sustainable? Is a fund of fund and fees for Hamilton are stacked on top of fees for underlying ETFs.

Q: Greetings 5i,
I am retired and typically don't have much in the way of fixed income since we have decent pension income, dividend income from a non-Reg account and some income from our RRIFs (started early to postpone CPP).

However, there is likely opportunity now for short-term bonds (higher yields as bond prices have fallen) and long-term bonds (capital gains when interest rates start to fall). Could you please identify two Cdn bond ETFs that would satisfy this rate dumbbell scheme?

Thanks as always for your excellent service.
SP

Q: Hello 5i Team
Last year stocks and bonds both had a down year, I would like to add to a fixed income ETF that you think would have upside the next few years as interest rate starts to pause and decline in the future. I currently own a position in Vbal etf which has bonds component in it.
Thanks

Q: this etf yeilds a high dividend. the fund appears to have a group of solid energy stocks

with a low pe. looks to good to be true? what is your opinion please?

Q: Hi 5i, I currently hold RCDB.TO in my margin account. My goal is twofold: 1) move it to my RRSP account 2) sell it and replace it with VAB.CA. Would I be best to sell RCDB.TO in my margin account first and then move the cash into my RRSP, or transfer it in kind to my RRSP and then sell it? And would I need to wait 30 days before I purchase VAB.CA? Please deduct as many points as needed. Thanks, and have a great weekend!

Q: Good day 5i - I would like to know if it is advisable to pay a fee for an ETF Cash Account if you are frequently depositing and withdrawing funds to use to buy stocks, etc. I realize the funds are more liquid. Also, not having used an ETF previously, do you need to be concerned when the ETF is at a higher price when you purchase it. Thank you.

Q: could you please recommend a Cybersecurity ETF or two top stock suggestions and if good to buy now or average in.
Thanks

Q: A question on a few of my laggards. As a clean up of my portfolio these are back to original purchase price. Purchased 18 months ago and wondering if buy sell or hold.
Thanks

Q: What are your favourite Canadian bond ETFs given the current circumstances and looking ahead a couple of years.
Thank you!

Q: I am having difficulty finding out about fees associated with CDRs. On the one hand I see the answer 'there are no fees'. On the other hand, I see this on CIBC's website: "The notional currency hedge includes a spread earned by CIBC which will on average not exceed 0.60% on an annualized basis." Is this 0.6% paid for by owners of the specific CDR? If so, is there a similar expense at every bank or brokerage through which one might buy a CDR? This would severely hurt the value of buying CDRs would it not? You are still taking all the equity specific risk, you would still be charged the withholding tax, and unlike an ETF, you are not gaining any diversification for your fees. Thank-you.

Q: Hamilton ETFs have a new ETF trading called HMAX to begin trading January 23, 2023. In order to generate such a high yield, they will need to write call options "at-the-money" instead of "out-of-the-money" which will result in a higher call premium. Would I simply be expecting just a high yield with a stagnant or declining share price? What is your opinion of this new ETF, and do you think this strategy will work?

Q: Peter,

A while ago I asked about a non market weighted ETF that follows the S&P 500. You mentioned RSP. Is there one that follows the S&P 500 , but in Canadian dollars?

Thank you

Paul