Investment Q&A

Q: Financials are getting a lot of attention these days which I believe 5i believes is justified.
So I want to increase my weighting in this sector.

Question

Do you see more upside in USA banks and an etf like xlf over comparable Canadian holdings and/ or an etf like xfn ?

Is there a covered call etf for USAfinancials like ZWB for Canadian financials?

Thanks.

Q: Hi. I know cryptocurrency is slightly outside your purview. However, your advice on QBTC.UN was very valuable in allowing me to get exposure to bitcoin (and a 125% return). As an extension of that, is there a simple way a Canadian investor can get direct exposure to Ethereum outside a digital wallet. ie an ETF, etc... I am hoping there is some liquidity and a reasonable structure. Thanks in advance.

Q: This is a list of the ETF's in my portfolio, (I have omitted the fixed income ETF's that comprise of about 20%).

Do you see any issues with the selection? Any overlap? Perhaps there are better alternatives than the ones chosen.

Thanks for the great service.

Q: If one has a positive long term outlook on agricultural commodities: soft commodities sugar, orange juice, coffee etc., grains and oil seeds, what is the best way to play this trend? Thank you.

Q: I have farming friends who are telling me of a very serious drought not only in Canada but the US as well. I am wondering about holding this in my RRSP where I have a lot of US cash.I know you can't hold commodities there but this is an etf that holds commodities contracts. Because of that does this qualify as an eligible holding?

Q: Gooday 5i team.

I have a small position in FIH and will hold for the long term.

Is there a Canadian listed ETF that has general exposure to India and it's future growth as the World gets back somewhere close to normal post Covid?

Thanks for your help.

Q: Hi 5i Team. The dialog and information related to form T1135 from earlier today was very helpful. To further the discussion let me ask the following; would the following ETF's (below) be considered a foreign assets under the CRA and need to be reported with Part B of the T1135? ETF's - ZWE, ZEM, ZPAY, ZWH, CARS.B, LIFE.B, ICLN, PID. Thx Steve

Q: Please recommend 4 index etf's Canadian for my TFSA and 4 US for my RRSP. If you recommend Bonds make it number 5 Looking at 15-20 year DRIP and hold.
Thanks
Cec

Q: Hi Team,

I am interested in diversifying my portfolio into small cap value ETFs in the U.S. and outside the U.S. With respect to the above, I am considering investing in VIOV and AVDV. Are there other ETFs that you would recommend that I should look into with respect to small cap value ETFs in the U.S. and outside the U.S.


Thanks

George

Q: Hello,

Enjoying the upgrades! Having success with semi-conductor ETF's as a cyclical play in the past.
Would you still be buyers for the next 2 years?
And could I get your thoughts on Invescos new fund in comparison to the heavyweights.

SOXQ*
SOXX
SMH


Thank you very much.

Q: can you your top 2-3 dividend paying ETF's currently for a 3yr time horizon? Thanks!

Q: If these two exchange-traded funds (ZDV and ZWC) have essentially the same holdings, but ZWC is a covered call, then can you please explain the difference in the dividend? ZDV has an annual dividend of 4%, while ZWC has an annual dividend of 7%. Can you also explain how the covered call feature works? Thank you.

Q: I am looking for an etf or stock that might run with Biden’s infrastructure deal. I found PAVE but it seems to have already run up a lot. Do you think it has more room to run? Any other suggestions for ETFs or stocks - maybe BIP.un?
Thanks for your great service

Q: I'm seeking an ETF to help with disruptive technologies.

I have mostly banks, REIT's, and other dividend paying stocks. Less in
technology, health care though I have a few ETF's covering the space.

What I don't have are ETF's that would protect against a possible
decline in my positions: such as disruptive financial stocks (such as
ARKF) and emerging internet, cybersecurity for example. I have very
little knowledge ion these areas but they could well be important
going forward, as a minority position (maybe 5 - 10% of my portfolio).

Thoughts?

Q: Thanks for the wonderful work from the team. I am holding BRLXF since past 2 years. Have a good 100% gain. However in past 6 months its down significant from about $40 to $30. Do you still see a good growth potential for the stock or would you recommend something else in this sector. Holding period is long 5+ and comfortable with risk and volatility.
Also any recommendation on any ETF or something else where one can park cash component of the Portfolio. I hold about 10% of portfolio in cash to be deployed at times when market is over sold .

Q: Hi Team,
Can you recommend a ETF that cater to Chinese Electric Automobile industry either in US or Canadian dollars.
Thanks as always,
Tak

Q: Current owner of NPP314 in my TFSA. I've been waiting for the assets under NNRG to get to a reasonable level prior to making the switch. The last time I looked, NPP314 had roughly $400M and NNRG had $1M. Last night I see NPP314 has $385M and NNRG has over $400M.

Does this match your search engine data? That's quite a jump....to go from roughly $400M combined to $800M combined! Would you agree that it now makes sense to make the switch to NNRG, now that it has a critical mass, along with cheaper fees?

Thanks for your help....Steve

Q: Hi folks, I am expecting an inheritance of about $50-70,000. I currently have what I would consider a med-high risk portfolio for retirement. I'm 46 so I am a ways from retiring but would rather put that $50-70,000 in a small number of low-med risk equities or an ETF with a good dividend and just let it grow slowly but surely. Can you provide any recommendations?

Thanks!

Q: Thank-you for your great service. The improvements to the site are excellent.

My wife and I are value/income investors, currently focussed primarily on the Canadian Market. We had started our portfolio in early 2020 - and felt that the exchange rate was prohibitive to buy US stocks. Also, with the “Covid Crash” and trying to “learn the market” (more like drinking from a fire hose) we thought it best to focus on companies we knew (Country bias). We have done very well, in a very large part to the 5i community, and have built up a diversified portfolio of 36 holdings (including 2 ETF’s); paying six figures in dividends.

We are about a year from retirement and we have started to diversify more geographically and are looking primarily at ETF’s to achieve this. While the exchange rate is much better, the US now looks expensive to us, so we are looking to focus on the developed International markets. While ETF’s are lower risk, the broad array of options makes our heads spin. If this question is too long, please feel free to edit/omit the above paragraphs.

We have a few questions around ETF’s. Please deduct as necessary. We have read all the 5i Questions and viewed the “Fact Sheets” with the ETF’s mentioned below, as homework, and would appreciate your advice.

1. I like the idea of utilizing covered call EFT’s to help offset some of the lower yields (and potentially underperformance during a market turndown) in some of our growthier positions. For example we have a 1.5% position in LIFE (Evolve Global Healthcare CC Hedged), to help balance out SIS’s lower dividend. What percentage of a portfolio should be covered calls before it starts adversely impacting portfolio returns?

2. We also hold a 2.25% position in ZWE (BMO Europe High Dividend CC Hedged) and are looking to add either a 2.25% in PID (Purpose International Dividend) or ZDI (BMO International Dividend) which offer a decent dividend, and potentially more growth. PID currently pays a higher dividend, and we like that no one company has no more than a 2% weighting. Which of the two would you recommend, or are there other ETF’s you would suggest?

We have considered the impact to our sector weights with the above (as best we can) and will be upgrading to Portfolio Analytics to better allocate these. As we move to increase our weightings in ETF’s this will be extremely helpful.

Thank-you!

Q: Hello. KRBN
I like the carbon credits area but don’t understand it well, how would this ETF make money for investors.
Any insight is appreciated thankyou