Investment Q&A

Q: My daughter is just starting out with a RRSP account. She has some VDY and we would like a suggestion of 5 or 6 non Canadian Vanguard funds

Q: Could you please give me your analysis KRBN, down 30 per cent, buy, sell, or hold. Thanks for expertise.

Q: Can you please rate CALF in terms of risk/reward on a scale of 1-10 and explain the reasons for your rating? I've always stayed away from small caps as I find the sector too volatile, but CALF is giving me second thoughts. I believe this sector is set to run, but am hesitant to invest given my perception of risk. Your thoughts on this ETF are most appreciated. Thank you.

Q: How much overlap is there between VFV and VGRO. This is for a RESP and would you owned both or just one? If only one which one you prefer? Funds not needed for at least 10 years. I own IWO and VGG already.

Thanks

Q: HI,

What is a good time to sell these units/ETFs? To lock in the distribution of that month's interest? I am looking at taking some cash off these and be ready to deploy the capital. Not in a rush. But want to be prepared.

Q: I have a large (for me) holdings in these two Mawer funds.
I can either keep paying the management fees and the annual capital gain, or sell MAW150 at a loss, or sell both, get hit by a large capital gain (MAW107) and buy Canadian ETF's holding small and mid US stocks.
What'd you do?
Thanks Jerry

Q: Hello, I would like your opinion on XDIV, in contrast to others like XEI, ZDV, CDZ, etc. It is a concentrated dividend etf, is it a good thing or not? I like the MER…Thanks.

Q: What are the 5 oldest mutual funds and 5 oldest ETF in Canada along with performance figures.

Thanks
Reg

Q: I am looking to park some cash for a while but have it relatively easily accessible. I understand that these ETF’s are not CDIC insurable but other than that what is the downside/risk of these ETFs and which one would you consider the best? Also I noticed that these etf’s are trading above their set value…$50.14. Under what circumstances would they trade back to their $50.00 value?

Q: Hello 5i
Many thanks for your continuing excellent weekly observations and advice.

In my RRIF, TFSA and Unregistered accounts some of the larger holdings are US companies (GOOG, MSFT, etc). I am concerned that upon my passing some or all of these US stocks may be vulnerable to US Estate Tax.
I know that there are various tax treaties between the US and Canada that might impact some or all of these holdings, but I am unclear on the details.
Can you tell me if either or both the TFSA and RRIF are exempt?
Can you provide references that would cover these questions?
Can you recommend CANADIAN-based ETFs that hold Mag. 7 and/or other popular US stocks?
Thanks again.

Q: Hi 5i,

May I have your current take on this ETF?

Thank you

Q: In a recent answer your wrote HXS we like but many investors do not understand the swap/derivatives so we often mention it after other ETFs. I agree, I did an internet search to try to understand the swap/derivatives procedure, but am still confused. I understand the tax advantages of HXS held in a non-registered account, but if VFV was held in a RRSP is it not better to receive VFV capital gains PLUS dividends then just HXS capital gains & No dividends. For both VFV & HXS track the same S&P 500 Index, so their performance should be the same, less different MER charges. Thanks … Cal

Q: What are your initial thoughts on the new spot bitcoin etas?

Thanks for the service.

Q: I'm curious as to why you recommend VFV as it is my understanding that it is a Canadian ETF invested in a US S&P 500 ETF which has double taxation in a RRSP and doesn't seemed to be taxed favorably in a TFSA or non registered account either. Wouldn't be better to buy ZSP which invests directly in the S&P stocks or HXS which has a higher fee but no dividend to trigger withholding tax?

Q: Hi. After reading your ETF newsletter, I was considering this ETF as a good way to buy into many of the larger companies that are higher performers on the US market. I already have a full market ETF. What is your opinion?

Q: In a recent answer comparing the 2 ETFs, VFV & HXS, you said HXS does not pay any distribution. Does that mean it is like DRIP, instead of a dividend payment, your share holdings increase every quarter. Thanks … Cal

Q: Good morning,

I currently hold VIG ETF in my Non Registered US$ account and VGG in my Non Registered Cdn$ account. Both of these ETFs have the same holdings but the VIG appears to be cheaper in terms of MER and perhaps more tax efficient if held in a RRSP.

Given that both VIG and VGG hold the same holdings and taxation not a consideration, I was thinking of selling the VGG ETF and purchasing some additional VIG ETF.

However, I just stumbled across another ETF (DGRW ETF) that I would appreciate your thoughts on as a potential replacement for VIG ETF. Although a bit more expensive in terms of MER, the annual performance over the last 10 years appears to be much better.


Thank you and I'll await your response.

Francesco

Q: What would be your top 4 CAD ETF picks for longer term growth?

Q: HXS has has a management fee of .10 but as they state this does not include a swap fee of approximately 30 bps. Is the actual management fee .40? Is the swap fee related to the total return nature of this ETF? I’m looking for an S&P ETF to hold in my TFSA and HXS seems like a great option as I wouldn’t be subject to withholding taxes. Do you feel HXS is a better choice then VFV for a 10+ year hold inside a TFSA due to the savings on withholding taxes?

Q: Which sector will perform the best in 2024 ? Based on this answer , which fund should be purchased among the ones mentioned (or a fund representing another sector not mentioned in my question) ?