Investment Q&A

Q: Can you suggest a US ETF for high tech exposure for a young person initiating a position. thanks

Q: I would appreciate your views about the benefits of specific factors. I have read a number of articles which claim that over time, dividend growing stocks do better than stocks with no dividends or stocks with overly high dividends. Similarly, there are research articles which claim that "quality" stocks outperform the indexes. Increasingly, I see articles which appear to indicate that other factors such as momentum, women-led companies, socially-responsible firms, etc. also have improved performance. The ETF industry is now offering a wide variety of funds based on these factors (with higher fees than the broad based index funds).

Which factors, if any, do you see as offering outperformance of the broader based indexes over long-term time frames? Are ETF investors better to look for low-cost broad index funds, or should they seek specific types of factor ETF funds recognizing the slight difference in fees?

Thank you for your advice and insights.

Q: At age 50 and have about $60,000 in a (diversified sector) RRSP and just starting a TFSA with $8000 in it, what ETF's or stocks would you recommend starting with?
Thanks for your reply.

Q: I am looking for an all-cap European ETF...any recommendations, preferably in CDN$

Q: I am considering setting up a 2 etf portfolio for my elderly parents, the plan includes a 60 bond/40 equity etf in a non registered account and was thinking a 50/50 in the TFSA, I realize that is a perhaps alot of eequity exposure but they have more than enough income to live off and will likely never acess these funds. Thoughts on the plan and ETF ideas please. The combined portfolios would be in the $500000 range so I have to be mindful of foreign ownership rules, any other rules I should watch for?

Q: I have held the Mackenzie Global Resources for a long time but have certainly questioned it's performance and the MER at 2.48%. Would there be select ETFs that would provide equivalent global coverage?
Thanks.

Q: I have positions in several ETFs trading on the TSE. I like to keep up to date on major holding changes and weightings within each ETF. Is there a good (one stop shop) source of updated information, other than going on to the separate ETF company websites?

Q: I'd appreciate your opinion on CWO ( Shares emerging mkt). MDM070 ( MD Growth) & MDM050( MD Equity fund). Thank you. Fooklin

Q: Dear 5i,
Do you think the CRA will have any concerns with Horizons change from a Total Return Swap structure to a Total Return Corporate Class structure implemented in Nov. 2019?
I understand that Horizons changed all their Total Return Swap ETF's to this new structure late last year. I would like to avoid any future CRA tax issues if I purchase one of these Total Return Corporate Class ETF's. Your thoughts would be appreciated. Thanks

Q: Currently have 25% of my portfolio in XUU. I am interested in increasing my US exposure up to 30% though. My question is do you have any problem with 30% XUU or would you possibly split it in to two? Eg ZSP and something else? Note - I would prefer a Canadian listed ETF but if you think there is a better American option I'm willing to listen.....

Q: Hi Gang, are there are any small cap Ai companies in Canada that show good promise going forward, Thanks Anthony

Q: Is black rock XEQT all in one, all stock, ETF a good option for an RESP that would start with a $1000,00 and add $100 a month. Or do you have a better suggestion.

Q: Dear 5i,
I would like to spice-up my portfolios with small allocations to some small/mid-cap/thematic/sector ETFs. The Active ETF's can be sold on a US or CDN exchange and the holdings can be in any country. Can you suggest as many as you can so I can do some further research. (ie ARK products look interesting to me)

thanks for your suggestions

Q: I listened to a commentary where the analyst was suggesting one have a bond fund, in this case US, which receives income in a foreign [non-US] currency and then the fund converts that to USD. As the USD depreciates from QE relative to other currencies [if this happens in reality] the inflow to the bond fund will be worth more in USD. Is that a logical approach and would Vanguard’s BNDX be an appropriate? Even if the above is a stretch would holding some of one’s bond allocation in BNDX be prudent?

Thank you.

Q: What would be the best ETF choice for exposure to India (USD or CAD is fine)? I am aware of ZID. Is there anything comparable or better?

Thanks

Q: FENY, XLE, IYE I am looking to add to my small investment in energy stocks. I have zeroed in on these 3 candidates. Using the RBC Direct Investing site, there appears to be little difference between these stocks looking a both short term and long term out to 10 years. MER’ s are also comparable.
But FENY has almost a 12% yield while the other 2 are around 6%. Given the otherwise very similar performance metrics is there any reason NOT to buy FENY. And for a decking dividend and significant upside potential is there another energy etf that I should consider? Thanks for your help with this decision,

Q: I own nvs and thinking of swapping it with an health global ETF. Is there one on the US side similar to the global can hedged XHC?
appreciate your opinion
thanks a lot
margit

Q: Hello
Can you please tell me whether the above noted ETFs are included as part of the $ 100,000 limit imposed by the CRA for reporting foreign assets?
Thank you

Q: Is there an ETF on the TSX which holds silver mining companies rather than silver bullion?

Q: Hello,

Thank you for your very prompt response to my question concerning how this ETF is able to pay such a high distribution. I now however have a few follow-on questions.

Since you indicated that a vast percentage of the distribution the ETF paid in the past year was simply a return of investors capital, wouldn't that make the likelihood of the ETF being able to continue payment of the current high yield very suspect over a rather short period of time? If investors are predominantly receiving a return of their own capital back to them, over time, then at a rate of 9% plus per year, won't the fund simply run out of funds to make these payments with over a period of 10 or so years? How would this differ from putting one's money under the mattress and simply withdrawing 10% of it each year?

Does the Evolve Global Healthcare (LIFE) ETF also engage in this practice, in order to support its roughly 6.75% yield?

If ETFs are supporting high yields by returning investor's capital to them and if that practice is inherently unsustainable, then I imagine that including information of that nature in the answer to any and all inquiries about such ETFs, would be very beneficial to all your members.

Thank you