Investment Q&A

Q: I have cash from a maturing GIC and am looking at options to reinvest it. I am considering evenly investing it in these 4. Time horizon is 2 to 5 years, low to medium risk. I would appreciate your thoughts on these or if there are other ETF's to consider. Thanks!

Q: Do you know if there is a consumer staple etf that trades on the TSX?

Q: May I have your thoughts on 2 or 3 defensive ETFs, US preferred, with growth potential that also pay a moderate dividend.
With thanks.

Q: Barry Ritholtz: Some investors have big, concentrated equity positions that have accrued big gains. Maybe it’s due to employee stock option plans. Perhaps they have some founder stock from a startup. Maybe there was an IPO or a takeover.

But suddenly they find themselves sitting on an uncomfortably large percentage of their portfolio in a single name. The challenge for investors is how can they diversify when selling shares leads to owing big capital gains? What’s an investor to do?

I’m Barry Ritholtz and on today’s edition of at the money we’re going to discuss how to manage concentrated equity positions with an eye towards diversification and managing big capital gains taxes.

To help us unpack all of this and what it means for your portfolio Let’s bring in Meb Faber He’s the founder and chief investment officer of Cambria. The fund runs 15 ETFs and manages nearly 3 billion in assets. Their new ETF is coming out in December 2024: The Cambria TaxAware ETF – symbol TAX – is a solution to address just these challenges of concentrated positions.

The above quote is intriguing. If I understand it correctly It will allow a tax deferred diversification from a single holding with large capital gains. It hardly seems possible. If I read this correctly, will this etf be available for Canadians? How do you view it?
Thanks

Q: With the runup in bitcoin to $100K, do you think there's more potential in etherium and if so, what would be the best ways to play it?

thnx in advance
Dave

Q: Hello 5i,
Is it better to hold DLR or DLR.U if the US currency is strengthening against the Canadian dollar?
Thank you for help.

Q: Hi Team,
What would be some of your best ideas in the small/ mid cap space today either US or CND that you see having the best potential over the next decade (medium risk). Or alternatively if I wanted to play it safer what US based etf would be suitable to play the theme here assuming small and mid caps will show outperformance in the next few years? I am leaning towards the US sector as outperforming canada at least in the next few years.

Shane.

Q: I purchased the above three ETFs

MAGS for Mag 7

IGV for Software and

BUG for Cyber Protection

Have I got the good areas Covered with these three purchases What other areas should I purchase RAK

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Q: Is the IBIT ETF allowed to be held in a TFSA ?

- I understand Bitcoin or other Crypto cant be held directly in a TFSA

- I know you aren't tax consultants, But would appreciate a general knowledge answer...

Thanks,
M

Q: Which ETF's would you recommend that cover some or all of the "Magnificent Seven" stocks? Thank you.

Q: I like what Global X has to offer in their line of ETF's. However, I think I read one of your Q&A responses a couple months ago that their can be a concern with overloading the overall percentage of ones portfolio with a given ETF company. Did I understand that correctly? If so, just wondering what the potential consequences are in doing that, and if you do recommend spreading investments over a number of ETF companies.

Percentages are personal, but perhaps 5i has a ballpark-ish range that they would be comfortable with for a given ETF company (?)

Q: What’s the advantages or disadvantages in holding an s&p500 ETF in Canadian dollars (XUS) vs holding it in US dollars (SPY)? Which would way do you recommend? Would you still recommend buying in US when the Canadian dollar is so weak like it is right now?

Q: Is there a cash holding to invest in that is not locked into a term (like a GIC but with no term), so, with full liquidity? I'm thinking of a high-interest type account within an RRSP so I can go to cash a few months in advance of need for the cash, but still incur interest on the cash as I wait to make a monthly withdrawal. I invest with RBC Direct Investing in case that's helpful - perhaps there is an RBC product that suits my needs.

Q: What is your opinion of the Motley Fool 100 index ETF ticker TMFC ? It looks like they just copied QQQ holdings/weightings with a few minor adjustments.

Q: Hello Team,
What do you think of XHYC for the next 1-2 years? What is the downside? Better to do XLY instead?
Thank you!

Q: Today I asked the following question

"I am looking at hedged ETF's and specifically VSP. I was interested to see how well the ETF tracked the index and found that over a 5 year time frame - it underperformed by about 11%. (Total return for VSP is 81.0% and SPX is 93.33% - The Vanguard US ETF - VOO tracks SPX almost exactly.) I am assuming that this underperformance is because the hedging strategy is not perfect?? .......or does the 11% difference represent the cost of hedging?? Also - would other hedged ETF's have similar comparisons?? Thanks"

The answer

"The performance difference is not that the hedge doesn't work, it is because it does. VSP takes away the currency impact. The Canadian dollar has been quite weak over the time period noted, so VSP has not benefitted from the rise of the US$ vs the C$. "

This answer makes no sense.
If VSP takes away the currency impact - the returns should match the S&P 500 Index ....that is the whole point of hedging - but its 11% off - that is the question. It is either because the hedging strategy is not effective or its due to the cost of the hedge.


The unhedged equivalent Vanguard Canada ETF VFV outperforms the S&P 500 index as you would expect due to the weaking CAD........because it is unhedged....which makes sense.

Q: What is your opinion of this ETF. Would you consider it a buy at its current price. If not do you have any other reconmendations

Q: Hi Team
If you want to invest in Physical Precious Metal ETF US & Can
Your best choices 3 ETS in Can & Us ?
Thanks
Best Regards

Q: Regarding my previous question on Dec. 2nd. I want to make sure I understand clearly so would you please elaborate on what is meant by ¨we think a broadening out of market cap exposure (a little bit) into VTI makes some sense.¨? Thank you.

Q: I have owned an HISA ETF for a couple of months now - in this case UCSH.U. I had assumed these ETF types to be quite safe but am surprisingly already down 0.21% in a very short period of time. What are the dynamics that make this ETF go up or down in value over time ?