Investment Q&A

Q: Are there any thematic drone ETFs out there, anywhere, that you would judge investment grade?

Q: Can you comment on what you think is going on with the pref market. They had a great last year with them pricing in rate rises and now they look like they are doing the opposite with potential credit risks. Seems a bit overdone. Thoughts?

Q: Is there a dividend appreciation etf similar to VGG that has a covered call overlay and if so would you recommend in this market. Thanks for your expertise.

Q: Hello. What is your favourite ETF to give gold exposure or is there a specific company you prefer? What are the plus and minus's for your answer and what would be your preference and why? What is the importance of whether the gold is stored in Canada or U.S? What does gold do at times such as this? Inflation? Economical uncertainty?
Thank you for your time.

Q: In my ongoing search for yield, I have generally been pleased with HHL. As you know, it is a fund that equally invests in 20 large cap global health care companies and employs an active covered call strategy. The recent yield range has been ~ 8.50-9.0%. It is a 5% weight in overall portfolio.

I am comfortable with their core equity exposure, as they are all brand names that investors know well. And I am comfortable with its performance relative to broad market performance/sentiment. My question is relatively simple. Is this yield too good to be true, and do you think that 8.50-9.0% suggests excess leverage/risk. I do note that their monthly payout has been steady and there has never been a cut in the distribution.

Thank you.

Q: Your opinion on S&P Ishares Global Materials .(MXI). Any proxy you'd suggest if you do not like it? Thank you. Fooklin

Q: Hi 5i,

Looking for your top 2 or 3 fixed income recommendations for the market we're in, and where you feel we may be headed in the next 12-24 months. Looking for some bond ETFs, preferably Canadian listed.

Criteria is primarily capital preservation with some return to blunt the impact of inflation, and of course liquidity. I want to hold dry powder for buying opportunities I believe will come with recession, but I hate the idea of sitting in cash.

Thanks!

Q: I often hear money managers talk about buying a specific stock (e.g. Apple to choose a simple one) and then writing covered calls against it ….. and emphasizing the prospect of winning both ways.

I am not keen on taking a course in options trading at this point.

Does it make sense to attempt the same kind of thing using etfs?

For example, in technology using XIT or TEC and pairing it with ZWT;

or other sectors too, such as energy XLE … or XLF for financials? In this case can you suggest a couple of covered calls - one for energy and one for financials?


As usual, thanks…. much appreciated.

Q: Looking to put more reserves into bonds & more secure investments. Looking at your "Balanced Portfolio" I do not see your favourites in this area?
I am underwater with XEB which has little exposure to Russia and Ukraine (downloaded their portfolio), do you have alternatives with a good return and expected to perform well during an economic downturn?
Is there anything fundamentally wrong with XEB as an investment financially?

Q: Rather than buy TIP directly, I am leaning towards buying XSTP and/or XSTH. Given that they are only 15% correlated (no doubt due to the CAD-hedged aspect of XSTH) I am leaning towards buying both. What is your perspective on this scenario for an income portfolio given the current state of U.S./CAD dollar exchange rates?

Q: Thinking of using the 10% cash in my kids RESP to buy QQQ. They won't need the money for 13 years. Does this make sense or is it too risky? The rest of the money is currently in VEQT.

Q: Is PDBC a good hedge against inflation and would you recommend it ? What is the dividend with PCBC ? The information on my TD acct. and your website are very different. Are there eff's that provide the same commodity exposure that pay monthly or quarterly dividends that you would endorse. Thanks for your help.

Q: Could you recommend some clean energy etfs that you think is a good way to play the sector? Thanks

Q: Can you comment on the investment merits of these two etfs.Are there others that you would see as more attractive for a diverse long term hold of both Canadian specific and US specific etfs?

Q: Dear 5i,
If one were to hold either VFV or VSP (CAD hedged) for approx. 25 years would you expect the Total Return to be the same for either ETF?
If VFV has long term better performance would it be because there are no CAD hedging expenses?

Q: Regarding US Equity Power Buffer ETF (PJUN): what is your take on this etf to hedge some of the potential downward movement of the S&P 500?. Or would you just hold more cash to try to hedge and protect the downside? How does this etf work and is it worth the MER?

Q: Now that i can get a GIC of over 4% what would be the advantage of owning HFR over a GIC ladder.

Q: I like TIP for its dividend and excellent lack of correlation to the rest of my portfolio. However, will its dividend and covered call income potential make up for its immediate seemingly dubious short and intermediate-term growth prospects? Thanks!

Q: Are there financial risks to Purpose Bitcoin, Ethereum and 3IQ etf's becoming insolvent other than the risk of Bitcoin and Ethereum going to zero. My understanding is they are not allowed lend, invest, etc. cryptos unlike Celsius, Binance etc. and your investment is safe. Please advise, Thanks for your expertise.

Q: I have heard leveraged ETF’s are not good long term holds. I am looking at QQQ but would TQQQ be fine for a long term investment (15-20yr)