Investment Q&A

Q: I am coming into a $50,000 gift from aging parents, and would like to invest for my 10 month old son’s education. I want long term growth until he needs the money (probably 18 years or so). Would you recommend 100% ZSP or some other ETF? Also, should I buy in one shot as soon as I have the money ?

Q: I'm trying to understand how some of these high yield ETF's work . Specifically YMAX . Looking on their website they say they are a " fund of funds " and they change things up every month . They also refer to themselves as " high risk " .... So could 5i explain just exactly which funds they own and what and why they change things up monthly ? As well as what market factors will determine which direction the ETF will go up or down ? Looking at their history they came on the market in March of 2024 reached a high of $21.84 and trade now at $13.77 . That's a drop of 37 %. But with an annual yield of 68.32% . I'm not sure of how to calculate it's yield over the year or so of existence as that 68.32% number is at today's market price. But I'm pretty sure they're in the black. 5i has better information to tell me what the return has been since inception ? I also noted that it's steady drop occurred between March 24 and April 25 after which it has been on a slow but steady climb .... What market circumstances created both the drop and reversal in April ? .....

Basically this is a " what is it ?" a "What makes it move ? " a " why does it yield so much ? " and a " why is it high risk ? " question ? ....... Thanks for your terrific service ......

Q: RE: I retired two years ago.

I hold roughly equal amounts of VUN and XUS in my RRSP. Both have performed well, and I now want to generate some cash. I’m trying to decide if I should trim both or just one? Selling VUN would reduce my portfolio risk more than selling XUS, correct? What are the pros and cons of each sell option? Thanks.

Q: I've asked a few questions on GDXY before but I'm still trying to get my head around the reasons for the fluctuations in yield . As I understand it they invest in the Van Eck gold miners index writing covered calls .... Nothing particularly spooky there. There are other covered call ETF's that invest in gold mines . But none of them have a yield anywhere near what GDXY does..... So I would like an explanation of why ? Two months ago the dividend that went into my account was 59% { calculated annually " } . Last month it was 68% { calculated annually } . This morning it was 26.9% { calculated annually } ...... That's a considerable difference from the previous two months . And looking at both the VIX { for volatility in option pricing } and a graph of gold prices doesn't account for it ..... Please explain just exactly how this fund works ? .....And why the considerable drop ? ...... Also please confirm my calculation of this month's yield ? ..... { If my financial institution screwed up the amount that should have gone into my account I want to know about it } .....Thanks again for your terrific service .....

Q: Hi 5i, Trying to move into more ETFs in our RIF & LIF accounts from individual stocks for income and preservation of capital. Please rate these ETFs for a long term hold. Any additional suggestion would be appreciated. TIA

Q: Hello,
From what i gather, VUN has similar performance to SPY except that it is in cdn dollars. Since SPY has greater exposure to tech companies, i was wondering if it is best to diversify slightly by putting one third in VUN (total us market), XQLT (ishares msci usa quality ) and VGG (US dividend appreciation ) or do you think it is best to just have one VUN , or VGG or XQLT. I am looking for an etf that is not too heavily weighted on technology. Much appreciated.

Q: What would be your answer if today’s Roy’s question was about RRSP or RIFF account ?
What bond ETF would you suggest if any or is it just better to get sitting like CASH?

Q: Can you update your thoughts on this ETF. Do you consider it ‘bestin class’, or can you recommend better options?

DON

Q: Hi,

I set up an unregistered account for my wife several years ago with the following ETFS, with the thought that it would be relatively easy to maintain:

VGG
ZSP
ZCN
ZIU

In looking at it today, I'm wondering whether I have too much overlap. I can't remember what my logic was for these four ETFs! I should have written it down as my memory doesn't work so well anymore.

Does the above work ok? Or would you slim it back? And add VIU?

Thanks,
Robert

Q: One of these will have to go as I need the funds. Which one, or should I just decrease each one. Thanks and greetings. Peter.

Q: I need a fixed income investment, and would prefer US based,
I came across CDX, Nasdaq. I'm considering a $70,000 investment. Your thoughts would be appreciated.

Q: I have a very large sum of cash sitting in xfr at a paltry 3% yield

I'm contemplating shifting some to xfli (5.7%) and pfl:US (11.6 %) for the enhanced yield to result in a double and quadruple in monthly income

I understand there is more "risk" (interest rates, and some leverage with pfl), however,

I feel that the reward far out weighs the risk in order to increase monthly income

What do you see as a worst case scenario. I look forward to your comments.

Thank you so much

Q: Can you recommend Are a few bond ETFs that do not pay their interest but the ETF prices go up. I want own bonds and avoid taxes on their interest. I know I will be caught with capital gain taxes, but capital gain taxes are half of interest taxes.
Thank you

Q: Can you suggest a list of best emerging market ETFs Traded on TSX in CDN$ and on US exchange in US$.

Can you also suggest list of ETFs with defense companies

Q: I asked a question last week but it must have got lost. This is a follow up question regarding my question about if you could only hold 3 ETF's what would they be. You answered ZSP, XIC and ZNQ. Can you please explain the rational for owning both ZSP and ZNQ. Is there not a lot of overlap between the two? And if I were to hold only these # ETF's can you also explain why you wouldn't include another international exposure ETF? I believe ZNQ is currency hedged which usually means higher fees. Is there another option to ZNQ that isn't hedged with a lower MER?
Thank you for your service.

Q: Thanks very much for your really insightful answers.
Which ETFs capture the blockchain technology space? Any ranked recommendations?

Q: Hi there, I'm looking to add a small position to get Etherium exposure. What is your recommended way to get exposure on the TSX, if one doesn't want to hold the currency directly? Thank you!

Q: Hello Peter & Team,

You often Mention ZRE as a good option for exposure in the RE Sector and I have held it for some time. The dividend is ok but, I am under water a little over 8% since taking on the position in 2023, and I'm getting a little weary of waiting... If you suggest to continue staying the course (always long term holds in my portfolio) because you expect I will climb out of this hole, then that is what I will do. But if you think I might be happier moving on to an alternative that you could recommend which might generate some gains while providing solid income along the way, it would be a recommendation I wouldn't say no to.

Thanks for all you do

gm

Q: I am building a small non-registered portfolio to provide income with modest capital appreciation. Your thought on these 4 ETFs or other suggestion.

Q: If you were setting up a diversified unregistered account for yourself from scratch using US ETFs today, for a long-term hold:

How would you approach this?
What would ETFs would you pick?
What percentage would you put in each?

Please charge multiple questions as needed. Thanks very much.