Investment Q&A

Q: Good morning. Which do you feel would be a better etf for industrials in a RRif or do you have another suggestion? I understand IYJ has a higher mer but better long term performance with more holdings. Have they both equal risk? Would something with more international flavour be better?

Q: There are quite a few commodity ETFs (e.g., PDBC, DBC, GSG, FTGC, DJP, COMT, BCI, USCI, GCC, RJI, COMB, COM; listed in descending order of assets held; minimum US$100,000,000). Although I own resource stocks (SU, CVE, TOU, NTR, AEM, FNV, XGD, PAAS), I don’t have commodity exposure per se. I am interested in buying one (or two) commodity ETFs within my RSP. Since I already own oil and precious metal stocks, I would prefer an ETF that includes commodities beyond just oil/gold/silver (although some exposure to these commodities within the ETF is of course okay). And I don’t want extra paperwork like a K-1 form (although I don’t think this applies to an RSP, not sure). Can you suggest one or two commodity ETFs based on these parameters, and what would be the basis for your recommendation(s)? Do you think some commodity exposure (~1% of total portfolio) is reasonable in case higher inflation is looming?

Ted

Q: I would like to purchase these two ETF's for income and safety.
What are your thoughts on each as far as income and safety or would recommend something else?

Q: So I'm a lot less diversified than I thought and have something like 35+% of my investments in Tech. I have a good deal of money in XUS, XUU, and XAW. I thought I was getting diversification, but I didn't realize how heavily weighted in Tech (25% or more) these ETFs were. A few smaller investments (SKYY, IGV, GOOG) put me far more into the Tech space than I realized.

What's the best way to invest in broad ETFs without being so heavily invested into Tech? I feel like 20% is already a high weighting for this sector

Q: Hello 5i team, curious to know your thoughts about covered call ETFs, and whether they provide any interesting opportunities for portfolio diversification/hedging. If yes, would appreciate any suggested ETFs for Canadian, US and more international exposure. Thank you!

Q: I have about 5% of my portfolio in CPD ETF. So far it's been a nice, steady-eddie performer with a good dividend. In fact, it's been moving steadily upward for the last year now. But when I look back on its history it has been anything but a good performer. It was almost $20 in 2007 and is now just over $13. Why was this such a lousy investment for so long and what has reversed so strongly in just the last year? I don't see any point in its history when it went up so fast except in 2009. More importantly, is this likely to continue for a while or do you think it will revert to its previous behaviour?

Q: Hi which of these 3 ETF'S would you recommend for exposure to European markets ZEQ,VE,XEH, could you list them in your preference.
Thank you for your service
James

Q: Hi Peter & Team
which of these two mid cap value ETF would you choose and why?
IJJ & IWS
I can see IJJ has out-performed a bit more over the last year.
I am looking for a five year hold in my TFSA.
This would be around 20% of my holdings with 80% in growth (ARKK, ARKF and Cdn growth stocks.
Thanks, Ron

Q: Hello
Can you give me two reliable ETF in CAD and two ETF in USD in regards to travel and leisure that will benefit with the re-opening economy.
Thank you

Q: Hi Guys,
I bought COPX as a way to invest indirectly in the change over to EV's given that an EV uses double the amount of copper in each vehicle and would hold for a number of years. I still think its a good choice, however I'm now thinking perhaps I should have spread the risk with a broader based commodity ETF, can you suggest a broader based commodity ETF in Canada & the USA that you would consider building a position in over time.
Best regards,
Tom

Q: Lately I've noticed a lot of people on Fintwit commenting about the market switching from growth to value. A lot of them seem to be bullish on IWN. I already own IWO, and have enough cash to also buy IWN. If we are moving from growth to value, would IWN outperform IWO? Is there a big difference between them?

Q: I have a bit of money for an ETF, which Canadian ETF would be your number one choice for now.
Thanks for the help

Q: What would be you favorite ETF to cover the UK?

Q: Do you have a suggestion or two for a growth-oriented international ETF, that does not contain Canadian stocks, to put in a TFSA for a very long-term hold?

Q: My grandson of 23 is starting his 1st tfsa with $2500 to begin and needs a core holding start. please suggest a stock only and etf only models. Which one or mixed off, would you deploy today.
thanks

Q: Hi 5i,

BUZZ [VanEck Vectors Social Sentiment ETF] invests in stocks of USA AI-selected stocks with the most positive sentiment from online sources (i.e. social media, news articles, blog posts, etc.) -my summary. ~ 5-Year Performance: S&P500: +95%, NASDAQ: +182%, BUZZTZ: +234% -my calculation.

This makes me pause; recent article are doubtful this performance can continue; what are your thoughts? Thx.

Q: HI!
I thinking of investing in HCAL but wonder how much growth the Canadian banks have for the next year as they have recovered so well. What are your thoughts?

Q: Can I get your take on this US ETF. It seems to have out-performed all the other smallcaps this year. I have some money in it and am thinking of increasing my holding here.

Q: This is more a comment about covered calls. I invested in a few of the covered calls in October 2017 primarily for the income. A larger percentage of the investment was in the BMO Canadian Covered call and when it was purchased the TSX was at 16,000 and the unit value was approx 20.00. Now the TSX is at 18, 837 and the unit value is $17.46. The energy stocks in general are still down about 10% compared to October 2017 however the banks that the ETF holds are around 20% higher. The downdraft in March last year was painful but I needed the income so I did not sell any of the BMO covered calls. Most of them are still lower except the US ETF. I do expect that over time the stock market will continue to rise (as it has over the last 100 years) and I will get back to what I paid for the ETF's however my story shows how these work with a major downturn in the market.

Q: I heard that silver may continue its resurgence in 2021.
What would be your best bet in this space? Stock or ETF.
Could you list two of each?
Thanks
Jeff