Q: Do you recommend US-based, Total Return Index ETFs (which use total return swaps) for TFSA to avoid US withholding tax on dividends? For example HSX.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
- Fairfax India Holdings Corporation Subordinate Voting Shares (FIH.U)
- iShares S&P India Nifty 50 Index Fund (INDY)
Q: For an investor looking for some direct exposure to India with a long term outlook, would you prefer FIH.U or INDY or do you have a different top pick? What about IFN which seems to have an indicated dividend yield of 13.4% Would be held in a registered account.
Q: How is it that Zimbabwe can pay a dividend beyond (by quite a bit) what the underlying holdings seemingly pay. Does the covered call element really make up the difference or are they returning my capital in part?
Q: I hold a substantial position in VEE as part of my international allocation. While it is priced and trades in Canadian dollars, its core holding is VWO which trades in US dollars. I already have enough US dollar exposure, and welcome the added diversification between the Canadian dollar and local emerging market currencies. However, adding VWO into the mix has me confused as to how F/X exchange rates will affect the performance of VEE. Will any F/X impact to VEE be limited to the relative exchange rates between the Canadian dollar and emerging markets, or does the US dollar somehow play into this?
- Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
- Vanguard FTSE Emerging Markets ETF (VWO)
- iShares MSCI Emerging Markets ETF (EEM)
Q: Investments in emerging markets might make sense at this stage.
What would be your assessment? Would you have another recommendation?
Thank you, Team!
What would be your assessment? Would you have another recommendation?
Thank you, Team!
- BMO Aggregate Bond Index ETF (ZAG)
- BMO Mid Corporate Bond Index ETF (ZCM)
- Vanguard Canadian Aggregate Bond Index ETF (VAB)
Q: I have a question about fixed income ETFs and the bond market. Is this the time to be putting large sums of money into fixed income ETFs like ZAG, VAB and ZCM? What risk do these ETFs pose in a rising interest rate environment? Should one even be concerned with the price fluctuations over a month, 6 months or a year?
- BMO Aggregate Bond Index ETF (ZAG)
- BMO Discount Bond Index ETF (ZDB)
- BMO Low Volatility Canadian Equity ETF (ZLB)
- Vanguard FTSE Canada All Cap Index ETF (VCN)
Q: i have about $500,000 to invest for 10 or more years. i don't need income from it. in order to keep it simple and be able to easily rebalance every six months or so, i am considering investing in only 3 etfs, as suggested by the canadian portfolio manager.
1. do you see any problems with this strategy? (i already have another portfolio in individual stocks.)
2.would ZAG be preferable to the suggested ZDB?
3. would ZLB be preferable to the suggested VCN?
thanks in advance. take whatever number of points necessary.
1. do you see any problems with this strategy? (i already have another portfolio in individual stocks.)
2.would ZAG be preferable to the suggested ZDB?
3. would ZLB be preferable to the suggested VCN?
thanks in advance. take whatever number of points necessary.
Q: ZWE is down 15% from my purchase price but with the 7.54% dividend I'm still up; however, the MER of .65% is a bit high & I'm wondering if I should stick with this ETF or is there a better alternative for an RRSP? Thanks as always for the great advice.
Dave
Dave
Q: Hello,
I am thinking about buying VGRO for my RRSP account and have a question about management fees. According to Vanguard Canada website the management fee for this fund is 0.22%. However, the only holdings for VGRO are seven other Vanguard ETFs... will I be paying these 0.22% on top of management fees for these seven ETFs or this number is a weighted average of management fees for holdings?
In other words, if I buy a Vanguard ETF that holds other ETFs, will I be paying just the management fee for main ETF or I will indirectly pay management fees for both main ETF and "nested" ETFs?
I am thinking about buying VGRO for my RRSP account and have a question about management fees. According to Vanguard Canada website the management fee for this fund is 0.22%. However, the only holdings for VGRO are seven other Vanguard ETFs... will I be paying these 0.22% on top of management fees for these seven ETFs or this number is a weighted average of management fees for holdings?
In other words, if I buy a Vanguard ETF that holds other ETFs, will I be paying just the management fee for main ETF or I will indirectly pay management fees for both main ETF and "nested" ETFs?
- Sun Life Financial Inc. (SLF)
- Canadian Utilities Limited Class A Non-Voting Shares (CU)
- Emera Incorporated (EMA)
- Keyera Corp. (KEY)
- Algonquin Power & Utilities Corp. (AQN)
- Diversified Royalty Corp. (DIV)
- iShares Canadian Select Dividend Index ETF (XDV)
- iShares Core S&P/TSX Capped Composite Index ETF (XIC)
- iShares S&P/TSX 60 Index ETF (XIU)
- Mawer Global Equity Fund Series A (MAW120)
- Mawer International Equity Fund Series A (MAW102)
Q: Good morning,
I'm 70 years old and with yet a new year upon us and a review of the holdings in my non reg equity portfolio, I'm concerned that my $650K non reg equity portfolio has slowly grown into a "hodge podge" of miscellaneous holdings that need to be trimmed, better concentrated (minimum 5% per holding) along with the addition of a few additional names in sectors that are not currently represented. My current holdings are as follows:
AQN (3.3%),BCE (11.6%)BAM.A(3.8%),CU (4.5%),DIV(2.8%),EMA (2.4%),KEY(2.2%),XIU(5.2%),XIC (33.2%),XDV(18.4%),SLF(3.6%),T(2.9%),T(2.9%),MAW120(3.1%)MAW102(3%).
I would very much appreciate your suggestions on how to best to adjust my current non reg equity portfolio to make it easier to manage and follow. I'm open to adding an appropriate mix of ETFs or Mawer equity funds as need be. My RRSP and TFSA are pretty much all populated with a mix of relatively low MER Mawer equity funds which have performed well over the years. I thank you in advance and look forward to hearing your sage advice and recommendations.
Francesco
I'm 70 years old and with yet a new year upon us and a review of the holdings in my non reg equity portfolio, I'm concerned that my $650K non reg equity portfolio has slowly grown into a "hodge podge" of miscellaneous holdings that need to be trimmed, better concentrated (minimum 5% per holding) along with the addition of a few additional names in sectors that are not currently represented. My current holdings are as follows:
AQN (3.3%),BCE (11.6%)BAM.A(3.8%),CU (4.5%),DIV(2.8%),EMA (2.4%),KEY(2.2%),XIU(5.2%),XIC (33.2%),XDV(18.4%),SLF(3.6%),T(2.9%),T(2.9%),MAW120(3.1%)MAW102(3%).
I would very much appreciate your suggestions on how to best to adjust my current non reg equity portfolio to make it easier to manage and follow. I'm open to adding an appropriate mix of ETFs or Mawer equity funds as need be. My RRSP and TFSA are pretty much all populated with a mix of relatively low MER Mawer equity funds which have performed well over the years. I thank you in advance and look forward to hearing your sage advice and recommendations.
Francesco
- iShares Russell 2000 Growth ETF (IWO)
- Invesco NASDAQ 100 Index ETF (QQC)
- Vanguard U.S. Dividend Appreciation Index ETF (VGG)
- Vanguard U.S. Total Market Index ETF (VUN)
- S&P 500 ETF TRUST ETF (SPY)
Q: Have $20,000 I would like to allocation outside Canada. Already receiving an average of 6% dividend return on my C$ portfolio. Not really looking for additional income , what do you think of the above or is there other ETFs I should research.
I have a small position in VGG. Maybe etf holding Amazon, PayPal but not a pure internet such as FDN.
I have a small position in VGG. Maybe etf holding Amazon, PayPal but not a pure internet such as FDN.
- iShares Balanced Income CorePortfolio Index ETF Advisor Class (CBD.A)
- Mawer Balanced Fund Series A (MAW104)
- Vanguard Balanced ETF Portfolio (VBAL)
- Vanguard Growth ETF Portfolio (VGRO)
Q: Good morning,
All four of our family TFSAs and RESP are invested in a mix of Mawer equity and balanced funds.
I'm reading a number of very favourable articles on the benefits of holding a one etf solution for a well diversified portfolio and was wondering if I should consider:
a. keeping the Mawer funds in our TFSAs and RESP but purchasing either VBAL or CBD.A for new TFSA and RESP contributions;
b. Sell all of our MAWER funds and buy either VBAL, CBD.A and perehaps some VGRO for the RESP given that our grandchildren are only 7 years old.
Your thoughts and adjustment suggestion to our TFSA and RESP holdings would be appreciated. Thank you.
Franco
All four of our family TFSAs and RESP are invested in a mix of Mawer equity and balanced funds.
I'm reading a number of very favourable articles on the benefits of holding a one etf solution for a well diversified portfolio and was wondering if I should consider:
a. keeping the Mawer funds in our TFSAs and RESP but purchasing either VBAL or CBD.A for new TFSA and RESP contributions;
b. Sell all of our MAWER funds and buy either VBAL, CBD.A and perehaps some VGRO for the RESP given that our grandchildren are only 7 years old.
Your thoughts and adjustment suggestion to our TFSA and RESP holdings would be appreciated. Thank you.
Franco
Q: Hi Peter and Team,
Can you explain the advantage of purchasing CBO with a yield of 2.74% instead of GIC's (1yr @ 2.6% & 2yr @ 2.8%-3% ) and Corporate bonds such as BNS 2-yr @ 3.27%?
Cheers,
Debbie and Jerry
Can you explain the advantage of purchasing CBO with a yield of 2.74% instead of GIC's (1yr @ 2.6% & 2yr @ 2.8%-3% ) and Corporate bonds such as BNS 2-yr @ 3.27%?
Cheers,
Debbie and Jerry
Q: Would you please advise me on which US ETF you think is best at present, given that JNJ is one of the top ten in VYM? Or is there another ETF that I don't know about?
Thank you.
Thank you.
- Fortis Inc. (FTS)
- Fiera Capital Corporation Class A Subordinate Voting Shares (FSZ)
- iShares Russell 2000 Growth ETF (IWO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares Floating Rate Bond ETF (FLOT)
Q: Given the uncertainty in short term market direction,I have 50% of my TFSA in cash.I believe Canadian interest rates are not going to rise.I am considering the choices listed above, unless you can suggest others.I also have some cash in my US$ RRSP and am considering the Vanguard fund for this cash.US rates may climb further,but not much.Perhaps you could rate these according to risk.
Thank you.
Thank you.
- Global X S&P 500 Index Corporate Class ETF (HXS)
- Global X US 7-10 Year Treasury Bond Index Corporate Class ETF (HTB)
Q: Good day and best wishes to 5i team for 2019! Regarding the swap arrangement for these etfs in lue of dividend distributions. If for example they had a 3% yield.and say I owned 1000 shares at a book value of 10$per.share. would the distribution show up as more shares similar to a mutual fund. So if I then sold after distribution.i would have a capital gain of say 300$and no concerns regarding dividend? And second question do you see some good interest in this as a way to shelter income or would you more lean towards say vcns or vbal? Hope I do not confuse. Tks Larry
- Vanguard S&P 500 Index ETF (VFV)
- Vanguard S&P 500 Index ETF (CAD-hedged) (VSP)
- Vanguard U.S. Total Market Index ETF (VUN)
- Vanguard U.S. Total Market Index ETF (CAD-hedged) (VUS)
- Vanguard Total Stock Market ETF (VTI)
Q: I currently hold both VTI and VSP in my RRSP for US exposure.
VTI is my only US holding (i.e. trades on US exchange) in my RRSP, so it is the only holding that forces me to occasional exchange currencies (US dividend).
Which of the following options do you prefer (feel free to suggest an additional option):
1) Do nothing (continue converting the US dividends to CDN$).
2) move VTI to VSP. (CAD hedged.)
3) move VTI to VFV. (not hedged)
4) move VTI to VUN. (not hedged, broader index)
5) move VTI to VUS. (hedged, broader index)
Thanks.
VTI is my only US holding (i.e. trades on US exchange) in my RRSP, so it is the only holding that forces me to occasional exchange currencies (US dividend).
Which of the following options do you prefer (feel free to suggest an additional option):
1) Do nothing (continue converting the US dividends to CDN$).
2) move VTI to VSP. (CAD hedged.)
3) move VTI to VFV. (not hedged)
4) move VTI to VUN. (not hedged, broader index)
5) move VTI to VUS. (hedged, broader index)
Thanks.
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares S&P/TSX 60 Index ETF (XIU)
- Vanguard S&P 500 Index ETF (VFV)
Q: I am an old man (86) sitting on a lot of cash ($800.000) and I am considering on purchasing the following stocks equally invested what I think if is a conservative based portfolio.
VFV yield1.7%,XIU Yield 3.2%,CBO yield 2.61 %, XBB yield 2.9%,CBO yield 2.61 %
Would appreciate any comments you may have. I am looking for yield and relative safety. Thanks, Bill
VFV yield1.7%,XIU Yield 3.2%,CBO yield 2.61 %, XBB yield 2.9%,CBO yield 2.61 %
Would appreciate any comments you may have. I am looking for yield and relative safety. Thanks, Bill
Q: Hello: I am in the process of setting up a TFSA for my 25 years old daughter with ETFs where she can contribute whenever she has money. My questions are: 1) Is the ETF portfolio a simple way to invest? 2) What do you think about portfolio with just one ETF - VGRO? 3) Since it will be a DIY portfolio, is there any advantage in opening the account with Questrade/Wealthsimple in comparison to with TDwaterhouse? 4) if I don’t go with VGRO only, what ratios of XWD, VFV, VGG, HXQ, XSU +/- any other ETF do you recommend while keeping costs/MERs very low?
Q: Conservative, retired investor who loves dividends. I am normally a buy and hold investor, who trims-adds around core positions. I have a 3% position in ZWE. I've owned it since Oct '17 and am down 8%, including the dividends. So capturing some capital losses is an option.
Two questions...#1 is regarding the currency hedge. Normally I like the hedge product, since it takes some of the risk out of the investment. Your thoughts of keeping ZWE vs switching to an unhedged version, based on your "currency" crystal ball?
#2 is regarding the prospects for securities within ZWE and the current turmoil in the EU (Brexit, etc.). Has the market already priced in a lot of this turmoil? Should I consider adding or should I accept this is one of those investments that just did not work out and take my losses?
Thanks...Steve
Two questions...#1 is regarding the currency hedge. Normally I like the hedge product, since it takes some of the risk out of the investment. Your thoughts of keeping ZWE vs switching to an unhedged version, based on your "currency" crystal ball?
#2 is regarding the prospects for securities within ZWE and the current turmoil in the EU (Brexit, etc.). Has the market already priced in a lot of this turmoil? Should I consider adding or should I accept this is one of those investments that just did not work out and take my losses?
Thanks...Steve