Investment Q&A

Q: Hi Peter, Ryan and associates,

I am an investor residing in Canada, and I am considering investing in US ETFs. What is your opinion of the following two ETFs: ETFMG Prime Cyber Security ETF and Global X Robotics & Artificial Intelligence ETF? Would you invest your own money in these ETFs?

Thanks for the great service you provide.

Q: I have historically held my investments in mutual funds through a financial advisor. I subscribed to 5i Research approximately 3 years ago and made my first investments in equities and an ETF based primarily upon information obtained from 5i Research. The returns on VGRO ETF and my equities have been 2 to 4 times the gain for my mutual funds. I recently upgraded my subscription to include Portfolio Analytics. Based upon portfolio analytics, my current portfolio is reasonably well balanced with recommendations to add healthcare and industrials as well as some international exposure. I have cash on hand that I want to invest. I will hold my investments for the next 5 to 10 years. I am looking at purchasing some additional equities and an ETF with good growth potential at moderate risk. Please provide top 10 recommendations with rankings for stocks that I should consider adding to my portfolio. Please provide recommendations for top 5 ETFs with rankings that I should consider adding to my portfolio. What is your current view on VGRO? Would you suggest topping up my investment in VGRO?

Q: Can you suggest some short-term bond ETFs that are investing in government and/or large blue-chip companies? 3 for Canadian market and 3 for internal markets please? This is to provide regular income after retirement.

Q: Good morning,

This ETF has seen a significant drop from its 52 week high and although I still value most of the companies held in this ETF (Visa, Mastercard, Square & PayPal) to name a few, do you see this ETF turning around anytime soon or is it time to lock in small profits. Thanks.

Q: Dear 5i,

These questions are regarding NNRG ETF and it's many fees.
Is the management fee 1.5%?
What is the MER?
Is there a performance fee of 10%?
If yes, is the performance fee levied daily?
Do you think one is better off buying CNQ which also
pays a generous dividend with no fees?

thanks

Q: I own XIT within both my RRSP and TFSA and I have done very well holding it. It is mostly (72%) made up of SHOP. CSU, GIB and OTEX.

Question #1 = It recently has dropped from the $59 level to around $51. Do you believe the current drop is overdone? My amateur eyes think the next support level is around $50. At what price would you consider adding?

Q#2 = Is the drop related to the potential for interest rate increases? When you look at the 4 main players, where do you think XIT is heading in both the short (< 1 year) and long term (3-5 years)?

Thanks for your help...Steve

Q: I have been watching KraneShares Global Carbon ETF for a while now as an interesting investment with no correlation to the general market. It seems to do nothing but go up regardless of markets. I have been waiting for even a slight pullback that never seems to materialize and if I buy in at this point I feel like I would simply be chasing the hot money. Do you view this ETF appropriate for a long term hold or is it more for trading? How closely does it track the actual cost of carbon credits and does this correlation decay over time? Can it trade at a large premium or discount to the underlying moves in the cost of credits? I would really like a better understanding of this fund. Your thought and advice. Thanks.

Q: Hi Everyone at 5i! I need your advice. I have a non registered portfolio, half I have invested in Canadian and US growth and income stocks. The other half I would like to invest in something more secure. GICs come to mind, but with low interest rates, inflation and unfavourable taxation, they seem like a loosing proposition. Any low risk suggestions??? Thank you for all that you do!!! Cheers, Tamara

Q: Dear 5i,
I have CCPC and my savings in this corporate account are significant (over 1M). I am comfortable with 80(stocks)/20(bonds) portfolio and my time frame is 20+ years.

My plan was to buy the following etfs:
Canada - VCN.TO (24%)
US - HULC.TO (32%)
Developed Markets - HXDM.TO (16%)
Emerging markets - HXEM.TO (8%)
Bonds - HBB.TO (20%)

Questions:
1) Do you think this geographical asset allocation is adequate?
2) Horizon etfs consist 76% of this portfolio. Do you think this is good idea, or should be limit my exposure to horizon stocks. If yes, what percentage of exposure would you recommend and which etfs I should replace them with?

Q: I would appreciate your comments and comparison of long.ca (doesn’t appear to have a yield) with the longevity pension fund.
Thanks

Q: When I look at the long term chart for this ETF it seems since the pandemic began (and after that initial drop) that the the share price has been on a steeper upwards trajectory than it ever was historically? It also looks as if the volume has been a bit higher than before. Is there a simple explanation that is obvious to everyone but me? Is it a few of the top 10 underlying securities that are driving the whole behaviour, or has owning the ETF become that much more attractive in the face of single company risk since the pandemic began? I always appreciate your insight, thanks.

Q: Hi. Our19 year old granddaughter has received a small 5k inheritance. We would like to start her on her way to portfolio construction. Please advise your best suggestions.
Have thought of VGT or some combination of stocks at present lows. Thanks

Q: I want to be better prepared for the next big market correction. I have been keeping ten per cent cash that can be deployed when I correction happens and I know where I want to add to positions and start a couple of new ones, for instance Microsoft. I have never shorted an individual stock but I might consider an ETF that shorts an index. Where should I start my learning? Most of our money is registered accounts which complicates shorting. I am not suggesting I want to do it now but if the market gets forthy next year and the federal banks start to raise interest rates to comabt inflation there is going to be carnage. Thanks for the good service. Glad you informed me about Constellation Software five or so years ago What I gem!!

Q: what is your opinion of the invest strategy in this new etf. besides liquidity what would be other risks to buying a new etf

Q: This preferred is being redeemed. Is CPD a suitable replacement?

Q: I am interested in opening a position in a Bitcoin ETF. It can be Canadian or U.S. Which EFTs would your recommend?

Michael

Q: How would PRA fit into a portfolio? What percentage overall would make sense and what type of equity would you classify it as? If you bought it would you reduce your gold and oil exposure to compensate?

Q: What do you think of the ETHY fund by purpose? It looks like it tries to reduce some of the risk with ETH. How risky would something like this be?

Q: can you recommend a US and Canadian defensive ETF and a US healthcare ETF?
thanks

Q: I am looking to add 1 ETF to existing all-ETF portfolios in my TFSA and RRSP accounts. Existing portfolios are roughly an equal mix of technology growth (ZQQ), dividend appreciaion (VGG) and a bit of fixed income/growth (VCNS) for stability. I am looking for something "alternative" for a roughly 10% position that would not be correlated to traditional equities or fixed income and preferably provide some inflation protection. May I please have your general thoughts (pros/cons) on the Purpose Diversified Real Asset Fund for this purpose. Can you also offer some other ETF suggestions within this general objective, either CAD or USD, that I might consider as alternatives to PRA. Thanks as always.