Investment Q&A

Q: Retired, dividend-income investor.

I just flushed a legacy mutual fund that was planned to be merged into a different MF. I didn't like the new MF asset allocation. I plan to top up some of my existing ETFs and stock holdings to my maximum comfort level re: asset allocation, then (if needed) add an additional ETF to complement the portfolio.

Q#1 = I own CDZ and ZLB. For a conservative, long term, core ETF what guideline would you use for maximum asset allocation? I currently am at 7-8% each for the equity portion of my portfolio.. Is it reasonable to stretch this to 10% each? When I look at the top 10 holdings in CDZ and ZLB, there is no overlap at all.

Q#2 = I also own LIFE and ZWC, both covered call ETFs...total exposure is 11% of my equities. What maximum exposure to CC would you recommed? I seem to recall a question a while back that you suggested 10 or 15% was reasonable.

Q#3 = depending on your above answers, I may need an additional ETF with the following attributes for a long term holding = conservative, dividend >3%, Canadian holdings (ok to have some foreign). holdings should hit as many of the 11 sectors as possible and if possible, little overlap with the top 10 contained in CDZ or ZLB.

Thanks for your help...much appreciated...Steve

Q: Hello I’ve been watching what has been going on in our world and it is terrifying and heartbreaking
Would you have a few cyber security stocks we could add to our portfolio and stocks that you would be looking at in these times
Thank you and take care

Q: Are you aware if there are mounting pressures on ETF providers (Vanguard, Black Rock, etc...) to exit the Russian equity markets? I own VEE, VXC and VEQT for my international exposure, and realized I own about 1500$ worth of Russian stocks. I am not morally confortable anymore with that exposure even though it's a very small weighting. I would gladly write it off of my portfolio... I know this is personal to every investor and that's OK, but some principles come before returns for me...
If it's unlikely Vanguard would make any move towards ETF ex-Russia, I am seriously thinking of selling all (fortunately my exposure is mostly in registered accounts) and buying international alternatives.

What ETFs would you then suggest to get similar international exposure ex-Russia?

Thank you

Q: I have invested in both of these ETFs, one being in CAD, the other in USD.
On Thursday, the value of the CAD version was $16.03; the value of the USD version was 16.62.
This difference in value does not adequately address the current exchange rate of about 1.28.
It seems that the US version is underpriced and that the CAD version is much better value. Could you please explain why there is this discrepancy?
Thank you!

Q: Context: Sold CNQ after a long run up. Funds now to deploy into a locked in RSP about to be unlocked into an income stream. Currently have all blue chip dividend payers and am looking to offset risk by initiating a bond position. Looking for:
-CDN domiciled etf with NA and/or Global focus
-3% minimum yield
-High grade but willing to accept corporates for yield
-Prefer shorter term to maturity, to match future rate increases
-If not CDN domiciled, willing to look at US and willing to look at more than one to match criteria

Thank you!

Q: GLD is one of the ticker/companies that holds physical gold in the USA, are there any companies or units that do this in Canada? If there are one or more in Canada would you recommend say a 5% weight at this time? Would you hold physical gold at this time or prefer gold miners or streamers?

Q: I have some XSB. Could recommend a similar short term corporate bond

Roy

Q: Just wondering if you would offer an opinion on what the likelihood is that both of these ETF’s could be higher a year from now? I guess what I am trying to ask is whether small caps in general might “revert to the mean” in terms of their historic relationship to larger caps regardless of whether growth or value is more in favour/out of favour?

Thanks,

Q: Notice this is trading approximately 3% higher than its 52 week low. Pays a healthy dividend over 6%. Given the situation in the Ukraine, think now is a good time to jump in for the dividend (I am mostly interested in income) or is it possible the dividend may be cut ? If not, what would you see as an attractive entry point and do you feel the dividend should be safe longer term (and I assume you agree this situation with Russia will get fixed in the next 60-90 days).

Q: Hello,

Would you consider XAW:CA as a good ETF to round out the equity portion of the 5i balanced portfolio? Do you see 60% 5i port, 20% XAW:CA, 20% XBB:CA as a decent general allocation for long term investment or would you add different ETF's?

Thank you!

Q: 65 yr old retiring this year. I hold the following: XAW (35%), XBB (20%), XIC (12%), CDZ (7%), ZSP (7%), VTI (7%), ZIC, VTI and ENB at 5% each.
In view of the current conditions, would you increase the fixed asset portion and reduce equity? Which ones would you add to and which ones would you reduce/remove?

Q: Good morning 5i
I am well diversified in my portfolio and so i am looking to buy opportunistically into this dip. So sectors don’t matter. What do you see as the best opportunity currently? Also, your analysis tells me that i need more weight outside of Canada and the US. With this turmoil would Europe be a good choice. If so, what etf would you use?
Thanks

Q: Nine Point has an Mutual Fund and a ETF version of their energy fund:
Do they hold the same companies?
If so - why would one buy the more expensive MF over the cheaper fee ETF?
Also - could you detail the fees for each version.
Thanks

Q: Dear 5i team.

Can you give me your thoughts on holding zcs through current market backdrop of higher inflation combined with the geopolitical environment?
With it's steady decline lately, what do you think needs to happen to turn the tide?

Thanks for your help.

Q: Hi, could you please compare the relative attractiveness of the above 2 ETfs, understanding HDIF is new but the underlying ETFs are not. Is there much difference? I believe the underlying HDIF ETFs are all U.S. whereas some of the HDIV are Cdn which I believe would reduce USD FX exposure? Any advantage of one fund manager over the other (Harvest vs Hamilton)? Thank you.

Q: Portolio Analytics shows that I'm woefully short in fixed income. I am wholly unfamiliar with the category - is it as simple as shopping for the best GIC rate, or are there other, better options I should consider? Please give me some recommendations. Thanks.

Q: Hello Peter,
Are both etfs providing similar exposure to US 500 index (similar to SPY) and are they hedged? Would you recommend one over the other or both are about the same? Thanks very much. Does hedged mean the securities are protected if Canadian dollar goes up or down?

Q: Do you have any thoughts on this recently launched ETF? Thanks.

Jerry

Q: I’m interested in a US bond fund that pays some dividends.

Vanguard has some funds, VFIDX & VICSX that pay 2%+ and appear to suit the bill.

Have you any recommendations in this area?
Is there any reason to stay out of this sector?
What do you forecast the near future, say 3-5 years, to be in US bond funds valuations?

Q: I have no exposure to gold in my portfolio. What would you suggest for a new position in gold? Thank you

Donna