Investment Q&A

Q: Could I have your thoughts on the merits and/or drawbacks of single bonds ETFs - UTEN ; UTWO ; TBIL.
Thanks

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Read Answer Asked by William on February 02, 2023

• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $43.45)
  • $43.45 P/E (TTM): 16.81X Cap: $1.13B
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Q: Retired, dividend-income investor. Happy owner of CDZ. I just saw the new asset allocation effective Jan 31/23. I believe they reconstitute the ETF annually. Pretty big change in the finance %. It jumped from 24% to 30%.

Am I correct that this has to do with some of their constituent holdings not meeting the required criteria of increasing their dividend over the past year? I have gone through their website and am trying to figure out what criteria they use to select their individual holdings and how they design their sector allocations. Can you help me understand this a little better?

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

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Read Answer Asked by Stephen on February 02, 2023

• Hamilton Canadian Bank Mean Reversion Index ETF (HCA $34.74)
  • $34.74 P/E (TTM): 14.78X Cap: $83M
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Q: I am interested in your thoughts on the Canadian bank mean reversion ETF's. Do you prefer them to the regular bank ETF's? Any recommendations for the ones you like best.

Thanks,
Chuck

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Read Answer Asked by Chuck on February 02, 2023

• State Street Health Care Select Sector SPDR ETF (XLV $146.57)
  • $146.57 P/E (TTM): 23.97X Cap: $38.55B
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Q: Hi Peter and Staff

A while back you recommended this as an ETF with a very low mer . I believe the MER was .1 of 1%?. I have two questions

1. Is this an actively managed ETF or just an index replica based on market cap of the stocks owned?
2. For RESP's just starting out, is this a good way to gain the health care allocation as opposed to picking "the winning horse" due to trading fees ?

Thanks for all you do
Dennis

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Read Answer Asked by Dennis on February 02, 2023

• Eli Lilly and Company (LLY $931.09)
  • $931.09 P/E (TTM): 40.77X Cap: $879.71B
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• Pfizer Inc. (PFE $27.10)
  • $27.10 P/E (TTM): 20.82X Cap: $158.30B
  • View PFE Profile
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• State Street Health Care Select Sector SPDR ETF (XLV $146.57)
  • $146.57 P/E (TTM): 23.97X Cap: $38.55B
  • View XLV Profile
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Q: RSP account, new position. 10-yr + hold. Don’t know whether to buy individual stock for nice dividend, or ETF for diversification. Thoughts?

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Read Answer Asked by Trevor on February 01, 2023

• BMO Covered Call Utilities ETF (ZWU $12.10)
  • $12.10 P/E (TTM): 16.11X Cap: $2.13B
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• BMO Equal Weight Utilities Index ETF (ZUT $29.31)
  • $29.31 P/E (TTM): 20.46X Cap: $865M
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• iShares S&P/TSX Capped Utilities Index ETF (XUT $35.73)
  • $35.73 P/E (TTM): 17.47X Cap: $475M
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Q: I notice that utility ETF are in the low range of 52 weeks.Considering interest rates and economic context ,is it a good time now to invest in utility ETF (or even in utility covered call ETF in order to limit the present volatility ) ? any ETF suggestion ?

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Read Answer Asked by Jean-Yves on February 01, 2023

Q: Hello
.Assuming an investor had a equally weighted NA Portfolio (25% each Index from 1993 to present : (TSX DJI Nasdaq S&P) . the annualized return combined and each respective decade was > 10.5% !!

Who needs to be a stock picker !

Would this have been possible back in 1993 ... IE where there Index Funds or ETFs with suitable MERs ? #investingiseasy

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Read Answer Asked by Brant on January 31, 2023

• Vanguard S&P 500 Index ETF (VFV $163.00)
  • $163.00 P/E (TTM): 26.01X Cap: $28.20B
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Q: What ETF would you recommend for a 1st contribution to a RESP? Long term, medium risk. I don t think it s worth buying individual companies at this stage in view of the small amount and to properly diversify. Thank you

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Read Answer Asked by Pierre on January 31, 2023

• iShares S&P/TSX Capped Financials Index ETF (XFN $77.69)
  • $77.69 P/E (TTM): 14.28X Cap: $1.95B
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• iShares S&P/TSX Capped Information Technology Index ETF (XIT $63.59)
  • $63.59 P/E (TTM): 54.87X Cap: $674M
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• iShares S&P/TSX Capped REIT Index ETF (XRE $15.94)
  • $15.94 P/E (TTM): 63.09X Cap: $1.11B
  • View XRE Profile
  • View Questions on XRE
• State Street Health Care Select Sector SPDR ETF (XLV $146.57)
  • $146.57 P/E (TTM): 23.97X Cap: $38.55B
  • View XLV Profile
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• State Street Consumer Discretionary Select Sector SPDR ETF (XLY $107.77)
  • $107.77 P/E (TTM): 34.95X Cap: $21.53B
  • View XLY Profile
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Q: If you were to consider 5 sector ETFs based on current price and future prospects, what would they be?

Please recommend your favourite ETF for each on the TSX unless it's only available in USD.

Would the beaten down USA sector (eg. XUU) be part of your thinking?

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Read Answer Asked by Kevin on January 31, 2023

• iShares Diversified Monthly Income ETF (XTR $11.95)
  • $11.95 P/E (TTM): 18.54X Cap: $368M
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• Fidelity Asset Allocation Private Pool Ser F8 (FID374 $9.93)
  • $9.93 P/E (TTM): 17.0X
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Q: Hi 5i
For income and some growth, I continue to hold Fidelity Asset Allocation Private Pool Series F8 (374), in a corporate account. It is the only investment in the account. I have two questions.

1) In your opinion is this still a good choice?
2) Could you suggest an alternative to replace part or all of FID374?

Thank you, Bill

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Read Answer Asked by William on January 31, 2023

Q: Are there any Chinese ETF,s that U would recommend at this time? Or is India better, although I dont much trust either country. I would look at India recommendations as well.Thanks, James

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Read Answer Asked by JAMES on January 31, 2023

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.68)
  • $13.68 P/E (TTM): 6.96X Cap: $1.04B
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• BMO Covered Call Canadian Banks ETF (ZWB $25.75)
  • $25.75 P/E (TTM): 15.51X
  • View ZWB Profile
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• BMO Covered Call Utilities ETF (ZWU $12.10)
  • $12.10 P/E (TTM): 16.11X Cap: $2.13B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Equal Weight REITs Index ETF (ZRE $22.85)
  • $22.85 P/E (TTM): 25.68X Cap: $595M
  • View ZRE Profile
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• iShares Convertible Bond Index ETF (CVD $18.28)
  • $18.28 P/E (TTM): 35.13X Cap: $117M
  • View CVD Profile
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• iShares S&P/TSX Composite High Dividend Index ETF (XEI $36.84)
  • $36.84 P/E (TTM): 13.77X Cap: $3.61B
  • View XEI Profile
  • View Questions on XEI
• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $43.45)
  • $43.45 P/E (TTM): 16.81X Cap: $1.13B
  • View CDZ Profile
  • View Questions on CDZ
• iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.38)
  • $16.38 P/E (TTM): 20.4X Cap: $1.07B
  • View XHY Profile
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Q: I am looking for ETFs that trade on the TSX with a yield of at least 4-5%. From the income portfolio, I see CPD (preferreds) / CVD (convertible) / XHY (US HY) / ZRE (REITs), and I am also aware of ZWU (Utilities) / ZWB (Banks).

Are there any others that don't have much overlap with the above that you would recommend?

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Read Answer Asked by Alexander on January 31, 2023

• iShares Russell 2000 Growth ETF (IWO $320.21)
  • $320.21 P/E (TTM): 22.36X Cap: $12.41B
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• iShares NASDAQ 100 Index ETF (CAD-Hedged) (XQQ $59.32)
  • $59.32 P/E (TTM): 32.77X Cap: $4.36B
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  • View Questions on XQQ
• iShares U.S. Small Cap Index ETF (CAD-Hedged) (XSU $47.69)
  • $47.69 P/E (TTM): 17.88X Cap: $639M
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• INVESCO QQQ Trust (QQQ $588.59)
  • $588.59 P/E (TTM): 33.2X Cap: $379.81B
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Q: Hi Peter,

Are there any canadian CDR's for QQQ, IWO or other similiar etf's ?

Thanks

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Read Answer Asked by HARRY on January 30, 2023

• iShares S&P Global Clean Energy Index Fund (ICLN $17.85)
  • $17.85 P/E (TTM): 36.15X Cap: $2.12B
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• iShares MSCI India ETF (INDA $47.36)
  • $47.36 P/E (TTM): 44.02X Cap: $7.17B
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Q: It Looks like India is booming what etf you would recommend Also Grren Energy is the future Is It time to buy any stock for grren energywhich)or it is too early?

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Read Answer Asked by Nizar on January 30, 2023

• INVESCO QQQ Trust (QQQ $588.59)
  • $588.59 P/E (TTM): 33.2X Cap: $379.81B
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• Vanguard Information Technology ETF (VGT $718.45)
  • $718.45 P/E (TTM): 36.76X Cap: $109.93B
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Q: what would you recommend as a US IT ETF

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Read Answer Asked by GRAHAM on January 30, 2023

• Vanguard S&P 500 Index ETF (VFV $163.00)
  • $163.00 P/E (TTM): 26.01X Cap: $28.20B
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• Vanguard S&P 500 Index ETF (CAD-hedged) (VSP $104.39)
  • $104.39 P/E (TTM): 25.99X Cap: $5.22B
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Q: Dear 5i,
If one were to hold VFV and VSP for an infinite period of time and assume MER's were the same and effects of currency were neutral.
Is it reasonable to assume VFV would outperform VSP by approximately 1% because of hedging costs? If not, can you help explain.

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Read Answer Asked by Ian on January 30, 2023

Q: I am considering investing some money in the Chinese market. Can I please have your thoughts on Baba and the two ETF's noted. as well what is your overall opinion on investing in China?

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Read Answer Asked by Brian on January 30, 2023

• Invesco Optimum Yield Diversified Commodity (PDBC $17.52)
  • $17.52 P/E (TTM): 14.19X Cap: $6.48B
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Q: Can you please suggest the best Canadian equivilents to PDBC and DBC and or other ways to play commodities preferrably through etf's in Canada to avoid complicated year end tax issues. Thanks for your help.

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Read Answer Asked by Ian on January 27, 2023

• BNS Tiered Investment Savings Account A (DYN6000 $1.00)
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Q: I am using this high interest savings account (about 4% ) to hold money for RRIF (monthly)withdrawals. if I am correct there is no trading fee as with PSA etc. Is this the best way of managing this issue?
Thanks for your help Tom

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Read Answer Asked by Tom on January 27, 2023

• iShares Core Canadian Short Term Bond Index ETF (XSB $26.81)
  • $26.81 P/E (TTM): 45.21X Cap: $3.91B
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• iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.38)
  • $16.38 P/E (TTM): 20.4X Cap: $1.07B
  • View XHY Profile
  • View Questions on XHY

Q: In these times where the financial health of companies are being put to the test, are bond funds like XHY, which hold 60% BB grade bonds and 30% B grade bonds, something that a wise investor should be pulling out of?

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Read Answer Asked by Kevin on January 27, 2023