Investment Q&A

Q: TD launched a series of Target Maturity Bond ETFs that terminate in Nov of each given year (e.g. TBCF winds up in Nov 2026)
Normally, for Fixed Income, an investor could:
- own individual bonds with exact payment/maturity certainty but very laborious
- own traditional bond ETFs: very easy, but perpetually renewing maturities and mysterious trading prices---often downward, it seems
However these new ETFs seem to offer the best of both worlds.
MER is 0.20 vs XBB 0.10 which isn’t bad.
By TD’s offering chart (May 2), TBCF shows a Yield to Maturity (net of fees) of 4.87%.
Seems like a lot to like here for the individual investor, in Fixed Income.
As a Portfolio Analytics subscriber, the Asset Allocator is unhappy with my dearth of Fixed Income holdings!

Q: Hi, With CDN interest rates maybe coming down I'm wondering if a switch from a covered call utility ETF (ZWU) to an equal weight ETF like ZUT makes sense? ZUT though has a fairly high MER, so is there a better option, or maybe better to just buy individual stocks. Thanks.

Q: Hi Peter,
For my RRIF, I want to invest in covered calls ETFs that generate high income with some growth potential for long term hold. Given the current market with possible near term interest rate cut, please share your top four Canadian listed covered call ETFs and top four US listed, with their respective current yield. Thanks.

Q: Hi. I’m looking for a Canadian-listed ex-North America equity ETF for a TFSA. And am familiar with the options you usually refer to, such as VIU. My question is whether there are more “actively” managed ETF’s (focused on developed markets) which you would consider. Such as QIE.

A separate related question. Are there U.S.-listed alternatives you would consider, in spite of the withholding tax. And is the withholding tax less of a deterrent than we make it to be.

Thanks.

Q: You recently answered about RRSP being the ideal account to hold viu in to minimize withholding tax - does this apply to VEE and ZSP too?

Thanks in advance. - Jeff

Q: Hi Group i am 74 with a 500k portfolio. I do not need to use this money for another 5 yrs. I would like to slowly convert to dividend / growth / value ETFs. I am looking for yield of 5% or higher along with a 10% growth/value profile. Can yo give me your top 2 picks in the 6 main sectors that fir this criteria along with a few words explaining your selections. Thanks with your help with this

Q: You have recommended SPYD ETF in recent answers, and on doing some research, see Morningstar rates it as a one star and Seeking Alpha has a dismal article on it. Just wondering why you like it? They seem to like SCHD much better. Would you agree with this thesis for a Dividend ETF?
Thanks!

Q: Hi folks
I am looking to park some US cash in a high dividend or interest US ETF that pays monthly. May I have a few ideas
Much thanks

Q: OUSM: Kevin O’Leary mentioned this ETF that he helped design on BNN on Friday. It covers 380 companies of the Russell 2000 Index that are profitable. It also pays a monthly distribution. What are your thoughts ?

Q: Is the main purpose of a covered call ETF to increase income but have a flip side to potentially limit gain?

Q: Hi

Is there a preferred account in which to hold VIU from a tax perspective?

Thanks
Robert

Q: Hi team. I have ZWU as my main utilities holding @ 11% and I also have positions in BCE and ENB on their own. ZWU has both BCE and ENB in their top 10 holdings. In your opinion am I participating in "di-worsification" by holding BCE and ENB outside of ZWU. Would you sell both BCE and ENB and fold the funds back into ZWU? I'm ok letting ZWU go to +/- 15% of my portfolio. Appreciate your thoughts. Bill.

Q: I hold both etfs in my riff and I am looking at reducing a % in one to satisfy my 2024 withdrawal for tax requirements. Would you recommend which one and reasoning? Thanx.

Q: Feels like the right time to step into long term bonds. Do you agree and what would be your maximum allocation in an income portfolio? Thanks as always.

Q: I am looking for US dollar income in a non registered account. What is your view on zpay.u for this purpose. Are there any other etfs you would recommend as an option?

Q: Knowing that portfolio allocations need to be very personal, but would 30% Canada, 45% US, and 25% international work as a general guideline for 60% equity portion of a new RRIF account?
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.

Q: This ETF has been recommended as a primary holding by a financial advisor. I see that it pays a small dividend. Do you know if there would be an annual capital gain/loss even if a person continues to hold? What are your comments (good and bad) about having this as part of their portfolio?

Q: Hi folks,

I hold VI but I know you prefer the unhedged version, VIU. For me to make that change, would I just sell my VI and buy VIU on the same day as I'm sure they won't move much intraday. It's in my RRSP so no tax issues.

Thanks
Robert

Q: Your opinions of the Mutual funds listed and suggestions of lower fee ETFs'. Much appreciated- ane

Q: Is there a Canadian ETF similar to the Sprott Uranium ETF URNM which only trades in the US .