skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What are your thoughts on this balance fund? Do you feel the returns will be any better than a normal 60/40 balance fund.
Read Answer Asked by Eric on October 26, 2020
Q: Hi,
are the dividends paid by CDZ all eligible for the dividend tax credit or is there a portion that is return of capital? Sorry, I couldn't find it on Blackrock's web site.
Also, what would explain the negative performance of this ETF's in the past year as compared to say the XIC or XIU?
Thanks,
Dan
Read Answer Asked by Daniel on October 26, 2020
Q: I have a taxable corp account, 94% equities,(28% US, 6% cash. Just read an article that bonds even at 0% expected return would help off set losses in this and upcoming volatile market, even though interest would be fully taxed.
Would you suggest;
1. sell some winners or tax loss some losers and buy a bond fund, ?CLF. ?CBO-or another one you might recommend. What weight percentage would you suggest?
2. use the cash to buy the same bond fund or a combo of the above two or your alternative
3. buy a preferred corporate share or shares? suggestions or preferred ETF ?HPR or another suggestion
4. Would you suggest a US Bond fund, ?suggestion
5. do nothing
Thanks and deduct what you see fit
Read Answer Asked by JEFF on October 22, 2020
Q: Looking to increase my exposure in International Equities. Currently have 20% of entire portfolio in XEC/XEF at a 75/25% split. Are these fine ETF to continue to purchase or do you recommend better international ETF.
Read Answer Asked by William on October 22, 2020
Q: is there an ETF that focuses on tech stocks, couldn't seem to find anything in the Q and A section
Read Answer Asked by steve on October 22, 2020
Q: You have referred to some stocks and ETFs as CORE. What percentage of portfolio would you recommend as core (relative to satellite holdings) and what would be the number of core stocks and ETFs for diversification. What core stocks and ETFs across all sectors would you recommend?.
Read Answer Asked by sam on October 22, 2020
Q: Further to my question on Oct 20 regarding switching from stocks to a more passive investing into ETF's that someone with little knowledge of investing could manage. I was wondering why you did not mention ETF's such as ZEB-banks, ZUT-utilities, ZIN-industrials, telecoms, bonds etc that would cover the different market segments. The dividends appear to be within the 4% range. Based on this would you recommend this type of etf and if so which etfs would you recommend for each of the Canadian market segments. Do you have any concerns re this strategy.
Thanks
D
Read Answer Asked by Wayne on October 21, 2020
Q: To avoid dividend withholding tax in an RRSP, the best solution from a tax perspective is to hold US ETFs that hold securities directly, such as VTI. This was your answer to my first question. Is there any downside for a Canadian RRSP investor to own a US listed ETF such as VOO? Thanks again.

Answer:
From a tax perspective, no.
Further question to this conversation. Is there any downside to a Canadian RRSP investor owning a US listed ETF from any other perspective than taxation? Any downside from any perspective. Thanks.
Read Answer Asked by Terry on October 21, 2020
Q: Hi 5i team,
What is your favourite top pick for India ETF and your top pick for China ETF (preferably in C$)? Or would an emerging market ETF be a better investment approach? Which emerging market ETF you prefer that has a larger percentage invested in China and India? Thanks for you advice.
Read Answer Asked by Willie on October 21, 2020
Q: To whom it may concern ,
I have some GIC’s maturing but interest rates are so low that it is hardly worth rolling them over. I am looking for some alternatives with high security and better Yield. I am thinking perhaps some bank stocks or Vanguard products and would appreciate your opinion or any other advice you may have.
Thank you for your valuable advice..
Ernie Trosch
Read Answer Asked by Ernest on October 21, 2020
Q: I am down in XEI and ZRE about 20% and 25% respectively;
in DGRO 2%.
Do you think it is worth waiting for a turnaround or should I
look to exchange for something more hopeful?
Although DGRO is only down a bit it has never gone up.
Would something like VUG be more growthy?
I would appreciate your assessment.
Thanks.
Read Answer Asked by Sam on October 20, 2020
Q: Hello 5i,
As always, a huge thank you for all you do!!!
Income-focused investor.
My question is in response to a previous question, in which answer to, you seemed to favour PID over ZDI. I hold ZDI and have previously discounted PID as an option for two specific reasons: 1) ZDI is almost 3x larger in market cap (328 million versus 124 million (from Globeinvest)) and also the average volume is many times greater (today's volume notwithstanding - PID seems relatively illiquid). I have seen previous answers re: ETF's in general where you are less keen on what are almost micro-cap ETF's for other than the most niche of offerings. I have occasionally had concerns about ZDI's relatively small market cap as it is. The yields between these two are only about 1% with ZDI being marginally higher. So, given the foregoing, do you see the growth profile of PID so much of an advantage that you would still endorse it over ZDI? I would have no problem switching, but my previous concerns would need to be allayed somewhat before considering the move.
In general, what would be the "line" for an ETF market cap below which you would not endorse?
Your thoughts??
Many thanks - be well and stay safe!!
Cheers,
Mike
Read Answer Asked by Mike on October 20, 2020
Q: In recent questions, you have recommended VEE as a Canadian emerging markets ETF. In the past, you often recommended ZEM. Is this observation correct? If it is correct, why do you now prefer VEE to ZEM?

For a TFSA account, would you still prefer VEE to ZEM? If I am reading the company information correctly, ZEM appears to be more tax efficient and has had a higher return over the last 5 years.

Your advice is most appreciated. Thank you.
Read Answer Asked by Dale on October 20, 2020
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!