Investment Q&A

Q: Hi Peter,
In the covered call ETFs universe, there are ETFs that write options out of the money, and ETFs that write options at the money. Please explain what these two strategies mean. Is one strategy more risky than the other? For example, comparing ZWU with UMAX, yield of UMAX (at the money) is twice as much as ZWU (out of the money). What’s the catch here? With the current volatile market, would you favour one option strategy over the other? Thanks.

Q: I,m 81 so far i managed. pretty well thanks to your Income portfolio, I'm not a fat cat and rely on the income provided.The market tells me to be cautious the stocks I mention constitute 9% of my accounts,I'm willing to increase this percentage as protection to my income I don't expect obvious capital gain,How do you judge the approach,any suggested addition?

Thanks to the Team

Dan

Q: Hello ,
I was thinking of buying TD technology leaders etf (TEC) instead of XQQ , the nasdaq 100 etf as it has performed the nasdaq and seems to be more diversified. Any comments please?

Also, I looked at the details of VUN and XUU etfs, They both seem to have similar holdings and over 5 year period both have similar performance. However , going over more than 5 years, why has VUN out performed XUU. I am not clear on this..

Regardless of the tariffs situation, the US market seems to do well over time, and hence i thought instead of total Europe exposure, go with VEQT etf. Any comments please..

Also, do you prefer unhedged products like VUN as opposed to VUS? Lastly, i use yahoo to to compare charts. Do you know a better site please? Thanks very much

Q: With all of the chaos going on in the US, what are your thoughts on iShares EWZ going forward? If this is a possible position, what percentage of a portfolio would you be okay with?
Thanks, Lesley

Q: Hi,

I’m following up on recent questions about taxation of the ETF VEQT (and similar) in an RRSP.

I am a bit confused about what withholding taxes might apply to VEQT. I have three questions please.

1) Would you be so kind at to explain what withholding taxes apply to VEQT in an RRSP?

2) If there are non-recoverable withholding taxes on VEQT in an RRSP, can they be quantified?

3) Finally, if there are withholding taxes applicable to VEQT in an RRSP, is there an ETF setup with the same diversification objective as VEQT that is more tax efficient in an RRSP?

(I tried following this information but I’m still unclear: https://www.vanguard.ca/content/dam/intl/americas/canada/en/documents/WithholdingTax_Guide-final.pdf).

Thank you very much.

Michael

Q: Can you discuss the differences between dlr.i.ca, dlr.ca, hbil.ca , pas.ca , csav.ca in regards to safety of capital to park cash. There is a significant difference in return 4%-10%. Some are high interest savings accounts and others US dollar accounts. Are the US dollar accounts too risky?
Thanks.

Q: Is XIT worth holding? Or would one be better off just buying the top 3 holdings in equal weightings. For CDN tech, what would be the best buys today for the long term?

Q: I rely on you for accurate information when reading answers to questions. however my research shows that VEQT holds a basket of funds not individual stocks. I hate paying more taxes than I need to and always look for the lowest fees and taxes when investing. Please confirm holdings of this fund. Thank you.

Q: I was told current rate(s) on TCSH.TO (TD Product) is 4.85 whilst Global X Cash is 4.03 annualized. Not certain how and why these can be considerably higher than many High Interest Savings accounts but would you consider them to be equally safe to comparable High Interest Saving Accounts for holding Cash?

Q: Do you you prefer one of these over the others? Would VEQT would be more efficient in an RSSP as it holds individual stocks rather than ETF's?

Q: Could you list Canadian dividend ETFs that pay out is in the middle of the month, or not at the beginning and the end of the month?

Thanks

Q: Hi gang,
What would be your best pick from this 4-ETF. I would like to buy one . Or any other suggestions. How much do you like small caps? Do you think if interest come down small caps will move. ?
Thanks. Alnoor

Q: Hi 5i:
My question is about ETF EQLI, an S&P equal weight ETF that also writes covered calls. This ETF trades on the TSX in CAD but tracks a US index. Would the income generated by this ETF, if held in a TFSA, face the clawback from the US government even though it trades in Canada?
Thanks,
Murray

Q: I read with interest your answers to Alex and Robert this morning regarding SLVO and David Rosenberg's thoughts. I have a great deal of respect for Mr. Rosenberg . Does 5i feel that SLVO would roughly track the gold index ? I do not see any covered call gold equivalent ETF unless you know of one ? The closest I can find is AMAX which is gold miners ..... Having said all that which does 5i feel is the better choice to follow Mr Rosenbergs thesis ? SLVO or AMAX ? I do like the covered call component of both over a straight up Gold security like PHYS ..... Thanks for your terrific service .......

Q: Question on increasing my copper exposure:

I already own some TECK.B, but concerned about the (approx.) 26X PE ratio. Does this concern you?

I'm considering COPX. Yes, comparing an ETF to a stock is a bit apples / oranges. If I believe that International stocks in general will outperform going forward, is this a good choice. I do realize it does have some North American holdings - including TECK.B itself - but the aggregate PE appears to be better value compared just TECK.B.

Perhaps selling TECK.B and just holding all of COPX is a better choice despite the (I think) 0.65 MER. Your thoughts and comments on all this ?

Q: Holding for the next five years, what would you choose and why?

Q: Hello 5i team,
I currently have a balanced position in HBND in my TFSA for income (Using TFSA as an income source in general). Before HBND I used to have HYI as an asset class that used to track US high yield bonds, but was shut down last year. I have a few questions.

1)Is HBND an approximate substitute for HYI for this asset class?
2)Also HBND is not even a year old but do you have an idea of the NAV of the ETF?

HBND pays a decent amount monthly but I am not sure of the sustainability of the payout.


Thank You,
Andrew

Q: SLVO, a CC silver ETN, does not seem to be in your database. I am looking to add this to my precious metal holdings but want the higher income. Yahoo reports the yield at 22%, which seems absurd. Do you have data on longer term avg yield and what do you think of this in general for income oriented silver exposure? Thank-you.

Q: Which of the following you recommend for safety ?
ZMMK, HISA or CASH.
Please deduct as required. Thanks for your insight.

Q: Would it be more prudent to switch CSAV and PSA to TBIL and CBIL?