Investment Q&A

Q: Like a lot of investors I am looking at increasing my U S holdings. Is targeting the medical sector advisable given the politics that could come into play in the U S? If advisable would you put 2% (sector weight) in each one or prefer 4% in a single ETF?

Q: I am looking for a US dollar Emerging Market ETF that I can purchase for my portfolio

Q: Are there any water rights funds in Canada that you’re aware of, or farm land reits?
What would you suggest for warehouse/industrial land reits in Canada and US?
Thanks.

Q: This is a follow up question about a portfolio for my parents. Thank you for your response, yet again.

You suggested an ETF for growth as another option. How about XHC and IWO? Any other suggestions?

You mentioned that tax reporting for trusts are a nuisance. I agree. But if I put it in an RRIF, which would you suggest?

Thanks again,

Fed

Q: Could I please have a few of your top Smart Beta ETFs recommendations. I was hoping to get a few ETF ideas that cover USA, global and international only. A few that trade on the TSX and in the USA would be great. Thanks

Q: Could you offer me a suggestion for a dividend income etf. Also going forward with a corrrection coming would this be a moderately safe position thank you Ken

Q: Hi 5i,
HXQ vs. XQQ – Questions and Comment: 1. Is the XQQ’s dividend subject to US tax withholding? 2. If not, is it eligible for the Canadian dividend tax credit? 3. My discount brokerage site indicates that the MER on HXQ is actually lower than that of the XQQ but I understood you to suggest otherwise. Can you please just confirm on that one?
It seems to me the elimination of the total return feature of the HXQ may not be the most important element in deciding between these funds. The charting function I use shows HXQ to have outperformed XQQ measurably over a 3 year period. While some of that might be attributable to HXQ’s lower MER and ‘total return’ feature, isn’t the bulk of the difference attributable to the fact that HXQ is unhedged, while XQQ is CAD-hedged, and over the 3-year period HXQ’s return has been amplified by the Canadian dollar’s decline against the US buck? Or is there something else in the mix? In any case, maybe the decision on whether to switch from HXQ to XQQ should be mostly a matter of whether one would prefer to be CAD-hedged or currency-exposed over the anticipated investment timeframe. Whatever tax consequences might flow from the other variables involved, they could easily be overwhelmed by a currency move of a few percent and, in a taxable account, any gain on a currency move would remain tax-deferred until a disposition event. Even then, the applicable tax rate would still be the capital gains rate. So that aspect of HXQ’s tax efficiency would be preserved. HXQ may not end up being as tax efficient as it was when it could avoid cash distributions. But if it is just going to have a yield akin to XQQ’s 0.44%, and if available alternative holdings (like XQQ) are already doing that, the fact that HXQ may have to pay a distribution may not be the most important consideration for a switch decision. Or am I missing something? Thanks!

Q: Hello! Can you tell me if there is an etf that holds Chinese technology companies Baidu, Alibaba and Tencent? Thanks

Q: Hi 5i team,

Regarding your answer to Dennis on Apr 25 regarding holding VGRO in RRSP and tax on US dividends, I thought there is no tax on US dividends inside RRSP, am I missing something? Thanks.

Q: You are recommending etfs based on my analytical profile. What is a US HEDGED ETF.
Does it mean if the Canadian dollar goes up agai st the US dollar I would lose money. I am having a hard time buying the etfs at all time highs with small dividends. The one I want to buy is vun or zsp since they hold a lot of US technology, I think.

Q: This is a follow up to a question XGRO by Andrew. I see the MER as 0.84% not 0.18%, whihch is the management fee. Further since a fund like this holds other funds, are they not paying fees on those funds as well, with those charges being 'invisible'?

Q: Can you suggest the cheapest (but safe) gold bullion ETF in Canada or US?

Q: Hi 5i
I am completely new to the world of ETFs but, according to Portfolio Analytics (and I did know it was a good idea before being told, really I did) I need to add US and International exposure to my portfolio. I think the only reasonable way for me to do that given I don't/can't follow non-Canadian equity markets is through ETFs.
I would like to place 55K in US ETFs and 45K in International ETFs and this will, for now, comprise the entire non-Canadian portion of my portfolio.
I am not adverse to some above average risk and while I'd like income I'm more interested in growth.
In researching where to place this money I've concluded that I might not have the candle power necessary to make rational decisions about ETFs because of the distinct possibility of purchasing ETFs that hold the same or similar underlying equities from the same or similar geographies in the same or similar sectors (assuming I'm not just concentrating on discrete sectors). Left to my own devices I feel that I could very possibly purchase a little bundle of different ETFs that are all essentially but unintentionally quite similar.
My question is two-fold:
1. Is my concern about concentration valid or have I misinterpreted the lay of the land, and
2. Could you suggest 4 or 5 US ETFs and a similar # of International ETFs that I can consider and that won't have the type of overlap I'm worried about.
I realize this is a broad and general (and perhaps rambling) question - so please deduct as many credits as you think is warranted.
Thanks a lot!
Peter

Q: I would like to buy this ETF in American funds,, I can’t seem to find its symbol or US listing. Can you help,,HMUS.U doesn’t work.

Q: Hi 5i,

Portfolio Analytics is telling me to lighten up slightly in CDN exposure and add to International.

I hold First National (up 25%) and Corus (down God knows how much but bouncing back recently). Both in my TFSA. These were literally the first two individual stocks I ever purchased.

Just based on the fact this is a TFSA and my time horizon is decades, the answer is probably a no-brainer but I've got to ask your opinion anyways - should I dump these and roll the $ into an Intl ETF?

I've got lots of exposure (XAW) to developed markets but much less so to emerging. I am considering both VEE and XEC. Thoughts on either, or a better option?

Please deduct credits as appropriate for the multi-part question.

Thanks!

Ryan

Q: I'm 61. I'm getting to the point in my life where I want to spend less time following stocks and just start to enjoy my life more. I have 5 accounts, 4 are registered. I'm thinking to just sell everything in all of them and buy XGRO in all of them. One fund across all accounts. No more following stocks or rebalancing and the MER is just .18. I realize I'll lose some tax advantages by putting certain investments in registered or non registered accounts, but I'm willing to give that up for the simplicity and hands off approach of a one fund portfolio.
Problem is one of my RRSP accounts is in USD, so I'm looking for a US domiciled equivalent to XGRO. Any ideas? Thanks

Q: Hello,

I am currently looking to increase my fixed income exposure by $70,000. I currently hold the above 4 Fixed income ETF's. Each one represents less than 5% of my overall portfolio. I am looking for growth. Your suggestions would be much appreciated.
Thanks.

Q: I ZEM, VEE, and XEC. The yield on ZEM is approximately 1% but the others are approximately 2 - 2.5%. My thought is to migrate from ZEM to XEC, for the improved yield.
1. Are there any significant differences between the 3 (eg tax treatment)?
2. Do you think it is worth migrating for that bit of extra yield?
3. Or there other reasons why ZEM would be good to hold? I will still have some diversification with the VEE.
thanks for your great service.

Q: Hi,

My wife's group RRSP has Manulife AllianceBernstein Canadian Core Plus Bond as one of the options. How does it compare with CLF. Should I instead invest in MAW102 in the group RRSP and buy CLF in her regular RRSP account as part of bond portfolio allocation.

Thanks
Ninad

Q: Since the tax benefits for HXT, HXQ, HTB, HXS have or will be diminished, is there any reason to continue to hold them or should we be switching to other etf's, is so which ones would you recommend?
Thanks for your service.