Investment Q&A

Q: Thank you for your response to my question about a simple etf portfolio .
For the non registered portion you suggested using HXS instead of VFV and HXDM instead of VDU . After reading the horizon website on HXS for both registered and TFSA they do say it is advantageous tax wise to use this etf .
This answer seems a bit confusing since you have answered a previous question this way . .
Earlier 5i answered a question in april 2019 :
watched---default Horizons S&P 500 Index ETF (HXS)

watched---default Vanguard S&P 500 Index ETF (VFV)
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Q: Is this a a good play to the US market in a TFSA. Thanks

Asked by David on April 23, 2019
5I RESEARCH ANSWER:
Yes and no. It tracks the S&P 500 index, and we think this is the best way to get US exposure. The fund uses derivatives to convert dividends into capital gains, allowing tax deferral, which can help some investors save taxes. BUT...under the recent changes to the federal government budget, these types of ETFs are not going to be able to be run in the same way. Horizons says it will likely have to pay distributions this year. It is still an OK fund, but VFV would be better now, and cheaper, and follows the same index.

So I am confused .
Please clarify.

Q: Hi guys

Most ETFs I kind of understand what they are using to mimic an index, and to create the holding. With this ETF trading off the VIX wondering how they do this? What do you think of this as a short term holding. It just seems the VIX should have much more noise, given Trump, uncertainy, and trade issues, yet you wouldnt know it. Your thoughts?

Thanks
Stuart

Q: With interest rates stable or downward sloping why would a preferred share fund be decreasing in stock value? This should normally increase the value of the preferred shares in the fund, would it not?

Q: Follow-up: the ticker is HDGE by AdvisorShare

Question:
An ETF acting as an Hedge fund ? What is your take ?

Answer:
Do you have a specific ETF in reference here?

Q: In reading Jason Heath's article in the Moneysaver he comments that there is no US withholding tax on US ETF's held in an RRSP, but there is withholding tax on the Canadian equivalent. I am in the process of rearranging our RRIFS and have been switching to more ETFs, including US based ones. Many ETFs have both a Canadian dollar and a US dollar version of the same fund. For convenience, to avoid opening a US dollar RRIF component, I elected to go with the Canadian equivalent.

Does the withholding tax also apply to RRIFs as well as RRSPs. If so it follows that perhaps I should convert a portion of our RRIF to US dollars and then purchase the US based ETFs in that account. It is not difficult to do, just a bit inconvenient.
Your thoughts please.
Russell

Q: I'd like to simplify my rrsp and have a constant stream of income. I was thinking of selling my 30 stock over weight in canada and buy 5 or 6 ETF. Making easier to manage and have more investment outside of Canada. Do you like ZWC 20% weighting Ca, ZWH,20% weighting Us , ZWP20% weighting Eur , ZQQ 20% weighting Global tech company and Maybe ZRE for last 20% because reits usually goes up in a negative market. Please give me your opinion on my ETFs and your 6 picks would be? take as many question credit needed. Income and diversification globally are my goal.

Q: I have recently been making significant adjustments to my portfolio, based on the results of Portfolio Analytics. In particular, I am significantly decreasing my financials and energy, and making large increases to my US and international weights.

Despite my changes, I am still overweight by 6% based on the recommended financials, and by 5% for energy. I am underweight international by about 6%. What is your recommended tolerance? How much leeway do you suggest for the recommended allocations?

Also, I am currently invested about 11% in VIGI. What is the maximum allocation you suggest for any ETF? I am a fan of the dividend aristocrats/growers strategy. Is there any other international dividend ETF which you would recommend (if possible, sold in Canadian dollars) along these lines?

For the US dividend growers, I have DGRO, VGG and ZDY.

Thank you for this incredible service that you offer!

Q: For the purpose of simplicity I would like your opinion on these 3 ETF portfolios.
My idea is to rebalance 1 / year.
non registered: VFV 30% VDU 30% VAB 40%
TFSA: VFV 50% VDU 50%
RRSP: VOO 30% VIG 30% IWO 30% VAB 10%
Any suggestions as to changing the etf's used for better tax purposes ?
Are there better etf's that you would recommend using?
Thanks for your help .
Victoria

Q: Any specific reason for the continued drop in value in ZPR.

Thank you,

Bob

Q: Do you have a favorite gold bullion fund or etf that is either long one of the following currencies CDN, CHF, JPN, or the Singapore dollar?

Q: I have cash sitting in most of my accounts. I am retired and would like to put some of this cash to work for me. I don't even think my bank is providing interest on some of this cash. I have DRIPs in several bank stocks and telecommunication companies. Can you suggest some ETFs that might be useful here. I am interested primarily in ex-Canada and in seem of the other industries besides financial and telecommunications unless they are based outside of Canada. Thanks.

Q: From your suggested ETF list you provided for my Portfolio Analytics which ones would be best to incorporate in my RRIF and TFSA? Hope you have access to those ETF's. Thanks.

Q: Good morning, if i wanted to buy just one well diversified etf ex-Canada, but cdn dollar denomination fund, for about a five year hold, what would you recommend? Moderate risk.

Q: This is a relatively recent ETF that I took a position in a few weeks ago. Yield looks good, I just wonder about some of its holdings and the ETFs viability in these uncertain markets. I would appreciate your thoughts on the ETF and its holdings. Many thanks for your time and efforts on our behalfs. Mike

Q: Greetings Team,

I am headed into retirement and own both these funds in both my registered and non-registered accounts. Don't really have a need for capital appreciation - just steady income. What max % would you recommend on each of the funds. Overall which would you say has the highest risk profile of the two - MFT has the higher fixed income assets but given they use leverage to increase the return. just want to make sure i completely understand the risks in owning each.

Q: Hello, my question is about CVD, CBO, CPD and XHY. I know you like these ETFs for income, and most of them are in the Income Portfolio. When one looks at their 5-year chart, one can see a downward trend for all of them. What will it take to change that to an upward trend? Would you invest in these ETFs today? Regarding XHY, the Fact Sheet says “Exposure to a broad range of U.S. high yield, non-investment grade corporate bonds, based on market-value weighting”, does the low quality of these bonds bother you? Thanks, Gervais

Q: Hi, Continuing with portfolio alterations, currently need Basic Materials, communications and utilities. As well, US and International. Any namesyou could recomend to fill these criteria? Thanks

Q: Which is better in terms of cost, diversification, performance, risk: MD Bond Fund or XBB.TO?

Q: Hello,
Will you recommend FCID and EMLC for geographic diversification high yield dividend?

Q: Hi team,

Any comments on using this ETF for long term U.S tech exposure in a non-reg account? Would you be a buyer at these levels?

Thanks