Investment Q&A

Q: I am interested in your ideas for ETF that cover semiconductor stocks. For RRSP. Would prefer non-US-situs ETFs, if good ones exist (estate planning reasons); however, you can suggest US-situs ETFs as well. Can be either US or CA dollar-denominated.
Ted

Q: Good evening

What are your thoughts on these two ETF's ? I see you have answered a few questions on these already. I am thinking of buying ZSP.U for a long term hold. Do you prefer one over the other or does it really matter?

My main question is with US holding tax. Back in 2017 if I am understanding it right you answered that in an RRSP ZSP.U would still be subject to the taxes. Is that still the case? I am a bit confused as all my other US holdings in my LIRA and RRSP have no taxes held back on dividends. Before I buy I want to be sure my dividend on ZSP.U will not be taxed inside my LIRA.

Thanks Jimmy

Q: Apparently, there are 11 major sectors in the S&P (Global Industry Classification Standard). Could you please list one ETF to best represent EACH major sector of the S&P? For example, would IUIT best represent the entire Info Tech sector of the S&P? It seems the SPDR funds are much more specific than the 11 GICS sectors:
Information Technology
Health Care
Financials
Consumer Discretionary
Communication Services
Industrials
Consumer Staples
Energy
Utilities
Real Estate
Materials

Thank you very much.

Q: Where did you get the yield on these ETFs being 4.6% and 4.8%? My TD webbroker shows yields of 2.29% and 2.26% respectively

Q: In reference to Paul's question yesterday. That ZWU from 2017 to 2021 of that nice dividend 1/2 to 1/3 was a return of my own capital, Considering that, I'm surprised that 5I has recommended ZWU. What I thought was a very nice dividend is not. Now I'm wondering how many other covered call stocks are doing the same? The underlying stocks don't give a return of capital, right. Next I'm going to find out there is no Santa.

Q: hello 5i:
can you tell me how much Return of Capital has been for ZWU dividends over the last 5 years?
thanks
Paul L

Q: Portfolio analytics suggests that I need more international exposure. Can you suggest some ETFs that would provide me with broad exposure to international markets (non-US markets)? Perhaps lower-, medium- and higher-risk options? Thank you.

Q: To full fill RIF withdrawal obligations, I am seeking high yield vehicles and found HYI, ZHY and ZJK, they all have above 6% yield. HYI is called active high yield bond ETF even has 7.33% yield. Does active high yield more risky than other two? What do you take on these ETFs if you are a yield seeking investor? Thanks. Lin

Q: Hello,

What is the difference between PSA and CASH?

Also, I own ZCS and CBO and was wondering if I should increase my allocation to CASH and PSA while reducing my allocation to ZCS and CBO considering the higher rate (better yield) on the short end of the curve. It seems to be higher income / lower risk strategy. Can you please provide your comments. Thank you.

Q: Do you think the prospects of investing in Emerging markets funds is improving? Are they going to be better performing compared to developed markets? Does the rising interest rates impedes their progress?

Q: Schedule K1 Tax Form. I was looking at general commodity type funds and see that DBC and PDBC seem somewhat similar if looking at their commodity portfolios. Both deal with 14 traded commodities. Was using ETF.com as the information source.

DBC seems to have more trading volume and also a higher mgmt expense (0.87%).
PDBC has mgmt expense of 0.62% and assets under mgmt seem to be approx 6Bil. vs 2.53Bil with DBC

One difference noticed is that the structure of PDBC doesn't result in the creation of a Schedule K1 Tax Form while DBC does.

Please explain to me like I'm a 12 year old and that I have a "BIG RED L" on my ETF/ETN trading knowledge and trades vehicle.... what significance is the K1 thing and what sort of pitfalls do I need to be aware of if trades are being done in non-registered accounts? Does the K1 have the potential to add complexity and hassle at tax time?

Thanks for all that you folks at 5i are doing. Much appreciated.

Q: Presently hold ZRE and CAR.Un in TFSA account.. Up on CAR and down on ZRE. Would you consider that to be a duplication and would it be better to focus on CAR?
Thanks

Q: Possibly not the place to ask this? Read your blog on the subject ETFs. Went to my investor site to research further names CASH. PSA and discovered they do not support:
"In line with RBC enterprise policy, RBC Direct Investing does not offer any non-RBC short-term deposit accounts. Accordingly, RBC Direct Investing is not making non-RBC HISA products available for trading (like CASH.TO)" They then went on to offer their own Mutuals; RBF2010, 2020, 2030.
Anyone at 5i know any outfits who do offer HISAs? Thank you

Q: Hi Peter

Could you please share your thoughts on the new Evolve S&P 500 enhanced yield ETF : ESPX ?

It is interesting that IVV is its largest holding at 36%. Will this help to offset the upside limitation of covered call ETFs ?

Q: A portion of my portfolio is invested in the BMO Covered Call ETF's. In their fund prospectus, they indicate that a portion of your return is a return of capital. Is this a return of invested capital or is this the return of the premiums collected from writing the calls against the underlying securities?

Q: Peter; Is there any way to buy shares of Kia ,Honda, Toyota, Mitsubishi and Suzuki in a EFT or Index ? Thanks
Rod

Q: Will you please give your opinion of undervalued stocks in the industrial and consumer discretionary sectors (with good dividends). Also, related ETF's would be appreciated. Thank you for your great service.

Q: I am converting my TFSA to a dividend with some growth portfolio to reduce volatility and hopefully get more sleep. I want to start with 2 etfs to establish diversity. I like DGRC and VGG. I plan to set and forget the etfs once I reach the desired weighting. Do you think this is a good pairing of dividend growers? Can you comment on the somewhat lower average daily volumes of the etfs? Would including CDZ add value? Thank you

Q: What is your recovery outlook for these etfs and how would you rank for new money in non-regsection of portfolio that is diversified?

Q: Can you recommend an ETF or two that focusses on the Canadian technology sector?