Investment Q&A

Q: I found your article regarding the difference between the Fang stocks and a small cap stock index very informative and interesting. Perhaps an even more interesting comparison, at least for me, is the difference in performance between VOO and RSP. One a market weighted US etf and the other an equal weighted. There is quite a large divergence between these two in the past while. VOO has the top five holdings as Fang stocks--over 20% of the total portfolio. RSP has no fang stocks in the top ten.
It has me thinking. But, what conclusion to draw? I have been wanting to move away from individual stocks to etf's, especially in my US holdings. But, this makes me wonder whether I wouldn't be a lot better with individual stocks, say the top ten that you mentionned in response to a question today. In that way I wouldn't be burdened down with a group of non performers, as in RSP, nor too heavily invested in Fang stocks, as in VOO, in the event of a future crash.
I know that it is not too good to change strategies often but I am quite perturbed by this. I don't know if you can offer a comment on this or not. But, I appreciate 5i as a sounding board and any comments you have are always helpful and useful
thanks

Q: Hi team,

What do you think of UFO for space play? It think the space should do well in the coming years with the USA now depending on homemade solutions. If you agree, is there any company or ETF you would suggestion in place of this UFO?

P.S: I, as one of your early members, must say that I wish you would have allowed questions on US stocks much earlier. And I am relieved to hear that you are going to continue with this added value service. I keep coming to this site indeed because I want to learn from your answering questions about the US stocks. It is not a secret that Canadian Markets have hugely under-performed their US counterparts.

Thanks for all you do for us!

Q: I have just $10,000 U.S. to purchase something with. I heard Brookshire Hathaway is sitting on a whack of money and that the valuation was pretty good. This will be my only US holding currently and wondered if an ETF would be better? Not worried about risk and could get 100 Roku, if you think that might be rewarding? Thank you so much for making the stock market fun and interesting for an amateur.

Q: Follow up question from a few weeks ago. I am planning on combining XUU (20% of my portfolio), VIU (15%), VEE (5%) in to just XAW, but was wondering if there is any concern of having 40% of my portfolio in just one ETF (as large and diversified as it is.....). Thanks for your opinion.

Q: I hold a 5.9% position in ZWU in a registered account. I have surplus US cash in a non-registered account to put to work and was thinking of XLU which yields approx 3.4%. I realize this distribution will be treated as income by CRA [I am retired - low tax bracket] but it seems better than letting the funds just sit. If you could offer other suggestions I'd appreciate them. Thanks.....

Q: Hi
Would it be a wise to replace the 4 mentioned above with ITOT in my RRSP.

Thank you Mike.

Q: I am considering Investing in a couple of Uranium ETFs (US or Canadian), one for producers and one that is more speculative. I would appreciate your suggestions.
With appreciatiopn,
Ed

Q: Hi Gentleman,
I'm looking to simplify my portfolio on both the Canadian and US side.
Looking for your suggestions on your top 1-4 ETF's that trade on the TSX that would provide diversification by sector and globally as well as a dividend that would be safe? The same question for your top 1-4 ETF's on the US side. Long term holds 10-15 years. portfolio size is $500,000.
Thanks,
SF

Q: Hi 5i team,
I am looking for your opinion on which of these would be your choice to play the crypto market? What are the +/- of each in your opinion? This would be a mad money investment. Thank you

Q: I am looking for safety with essentially no downside but a return greater than a 6 month GIC (hoping for better in 2021). A Dynamic Alpha Performance II Fund Series A - FE has been recommended (not sure which series actually). I am skeptical given the high MER. I would very much appreciate your thoughts. Thanks.

Q: I'm looking to convert a RESP invested in mutual fund (chorus II agressive growth) to lower fees and menage it more actively. Kids are 5 and 2 years old.

I was thinking to diversify with 3 or 4 ETF for 70% of this portfolio. What are your thoughts about a combinaison of VFV, XIC, XIT, ZQQ and DXG for long term? Do you have better suggestions?

Althought, is investing in XIT and ZQQ and DXG a good idea on short term since tech valuation is already high at this moment compared to other sectors?

For the rest of portfolio (30%), i would go with stocks. What would be your top 4 on short term (next 6-12 months) and on long term?

Q: Morning, 5iTeam,

I am thinking taking a position in XLB and XSB. Would this move make a good pair trade in your opinion?
Cheers,

Q: Last year, I purchased ZDH in my mother's retirement account. She is close to 80. It has been a very poor performer, significantly underperforming the international indexes. Performance seemed to be reasonable prior to the market drop in the last few months. Morningstar now rates both ZDI (unhedged) and ZDH (hedged) as two stars, and it now falls to the 4th quartile for most time periods.

I would appreciate your views about ZDH. Would you continue to hold this ETF expecting that it will start to outperform the market, or would you sell it? Do you feel that it has dropped a lot since January due to its sector composition, and will bounce back? If you would sell it, what would you recommend? Dividends are not a priority, but looking for low to medium risk.

Thanks for your excellent advice.

Q: If one was to buy some of the out of favour trends as mentioned in this article, what are some of the US and CAD ETFs that you recommend?

Many thanks!
https://www.albertbridgecapital.com/post/bubblicious

Q: Hi, US long terms bonds performed very well during the recent market decline. Did the Canadian bond etfs perform well during this down turn? Which ones did well? I would add to such bond etfs. Thanks.

Regards,

Shyam

Q: Good morning,

Roku has dropped from approx $140 back to $106. Would you be adding to your position (If light) at current levels or are there any changes in your long term thesis?

Yesterday you mentioned XWD as a good ETF option for international exposure but stated that it had 65 percent NA. Is there a good option for international equity with a value bent without NA companies?

Thanks for being a calming voice during volatility.

Q: Hi Peter & 5i,
Which of these 2 ETF's would you prefer and why, or if you have any other that is better, would be much appreciated. Thanks for your wonderful service. Stay safe. Ivan

Q: What is your opinion of this ETF for exposure to US pharma companies? Do you have other suggestions that would be comparable/better traded in CAD.

Q: Hi,
I found myself keep under-performing comparing to the market. I'm thinking about replacing my stocks with index ETFs.
Do you think it's a good idea to have a profolio consisting of all leveraged index ETFs? for example, leveraged TSX index + leveraged SP500 index + leveraged index from other countries?
My understanding is that the market tends to go up, so if it says leverage then I get more return in the long run?
Also, could you recommend some of those leveraged ETFs? From googling I found some names such as HSU, SSO, etc. Are they good?
Thank you!

Q: I hold VEE CDN ETF in Non Registered account. I got T3 Slip with foreign income. When doing Taxes I have to choose country do I put as USA or which country.

Thanks for the great service.