Investment Q&A

Q: Portfolio Analytics suggests we increase our US and International allocation to 35% and 25% (Currently much lower in both) and also decrease our equities and increase our fixed income to achieve a 60/40% split . (Currently we are at 85/15%). Looking at XBAL as a simple way to help achieve this, using some cash and proceeds of TSGI which I plan on selling soon. Any concerns or other suggestions ?
Thanks as always.

Q: Have $20,000.00 sitting in a LIRA account. Please recommend 3-4 ETFs that I can hold for the next twenty years. and drip (no bonds) would like to double every 10 years. Would Dividend Growth ETFs a good choice over that time frame or just growth stock ETFs?
Thanks Cec

Q: Is there a US equivalent to ETHI with a higher AUM? I like the etf but it’s still really small.

Thanks

Q: Hello 5i
I have CLF at 6% weight, the highest of the portfolio. I am tired of seeing it constantly dropping over these many years. Would it be of a benefit to exchange this for XLB with the higher dividends and what appears to be an up trend over time? I am 73 with a 60 /40 split, value investor seeking dividends holding some growth equities among the blue chips.
Thank you
Stanley

Q: Hi Guys
I cant find the top 10 holding ,please list ,where is
Bob

Q: Hi,

Looking for a long term hold, preferably lo-volatility and some growth. I own the banks, AQN, BAM, and ZQQ. Can you recommend your top two picks and why?

Q: Hi 5i team: I am looking to add to my portfolio an International ETF ex Canada (in US dollars), I want to get more ex-Canada diversification. Am leaning toward XAW:U (shares Core MSCI All Country World ex-Cda) as it seems to get high marks from the research I have done. Could you suggest another 2 or 3 as alternatives in US dollars. What do you think of VT ? Thanks as always for your guidance.
Steve

Q: RE: Nov 12, 2019 Q: I found your response to Leonard’s question regarding which accounts international ETFs are best placed quite interesting.

When both (a) VWO's extra withholding tax and (b) VEE's better return than VWO (longer term - 7 years) factors are considered together, which has produced the best 'real' return (and be likely to in the future)?

VEE vs VWO Performance (approx):
- VEE: Dividend: 2.8% 7-Year: +36.9% YTD: +9.2%
- VWO: Dividend: 2.7% 7-Year: +5.5% YTD: +7.6%

Thanks!

Q: What is your opinion on newer ETFs that are basically high interest savings account? I'm referring specifically to Purpose High Savings Interest ETF and CI First Asset High Interest Savings ETF. Is there any risk here or do they pay such low interest rates that just holding cash or a cashable GIC would be preferable? Thanks.

Q: Hi, I have been increasingly hearing that after a long period of growth stocks significantly outperforming value stocks that the tide may be turning and a major shift to value stocks may be underway and in the early stages. Time will tell if this is correct but meantime would you be able to recommend some value oriented Canadian ETF’s that would most benefit frommsuch a rotation? Thanks.

Q: Hi 5i Team.
Can you suggest some companies, or ETF's, that have a high leverage to the prices of gold and silver? Any other suggestions on how to play that market is immensely appreciated? Is your opinion on the strength of gold and silver, positive, for the near/intermediate future? Thank you!

Q: For an investor with a high equity tilt (e.g. 90% equity - 10% bonds), can you recommend one fund as a one-stop-shop for the bond component? PMIF currently has my attention.

Q: Hi, I can get 2.8% interest in a savings account. Is there any benefit to investing in any of the bond ETFs which all look to yield less than that? Both get taxed the same, right?
p.s. I'm in it for the long run.
Thanks.

Q: I found your response to Leonard’s question regarding which accounts international ETFs are best placed quite interesting. I hold large positions in both VE and VEE in a registered account. If I understand your response it means that I am paying a withholding tax twice (on US and International side) with no recourse to claim it back. If staying within a registered account, what two ETF would you recommend to replace VE and VEE for better tax efficiency? Would you endorse immediately switching and would there be any drawbacks to making such a switch?

Q: Hi 5i Team,
If you were starting a TFSA and only had 30K would you select 6-10 individual stocks or would it be better to start with an ETF (was thinking XBAL) to start. My daughter doesn't want a lot of work tracking or watching stocks and doesn't want to incur a lot of trading costs. Would you suggest another ETF to start with or go with XBAL, keeping in mind that new money will be flowing into the account to the maximum in the next couple of years. Capital preservation is a consideration but she has a 10 year time frame to work with. Thanks

Q: 5I, hello again
thanks much for your excellent program.
You have answered questions on holding of int’l exposure before but my head hurts from trying to reconsider how to best arrange my holdings.
I presently have: VEE (@ 1.43% portfolio weight); XEC (1.40%); and ZEM (1.81%). VEE is in a cash account and the other 2 are in RRSP .

To improve performance by trying to get the best tax efficiency, I have started to think about having all the funds for this part of the portfolio just in ZEM, to be held in a cash account. I pay taxes and any withholding tax with be creditable.

Questions:
1. Is ZEM best held in a cash account or an RRSP?
2. ZEM is a large ETF...is having just the one still sufficiently diversified? And is ZEM sufficiently liquid?
3. If your thought is to continue to still hold some VEE, should it best be held in a cash account or an RRSP? Same question for XEC?

Please deduct question credits as may apply.
Once again, thanks for your excellent program

Q: Hi there, I would appreciate your opinion on this fund.
Thanks, James

Q: Looking for an international dividend ETF for a long term DRIP in my TFSA. Would you recommend ZDI or something else?

Q: Hello 5i,
Could you please advise me which securities to sell and/or lighten up if I was to buy a house. Please take into account the prevailing economic environment. Let’s say the mix is 80/20 stocks to bonds/interest bearing certificates and the securities are evenly dollar-wise represented.
Thank you in advance,
Rick

GUD ENB WSP MG ATD.B PBH SLF DOL AEM KXS CSU NFI MX SU SIS,CSH.UN INO.UN BIP.UN PSLV SBUX VWO VGK VIG,CBO CPD XCB CSU(DB) HYGH LQD

Q: Good afternoon!
I am helping a friend move away from mutual funds, and I note on Bloomberg that the "Current Mgmt Fee" for this fund is 2.1%, and the Expense Ratio is 2.61%. Am I correct in thinking this means that 4.71% comes off the top here before valuation?
Also, over 77% of this fund owns other BMO funds, which I assume have their own deductions not included in the above. Is this also a fair assumption? Of interest, it says it is 2% to redeem!
Thanks! … Paul K