Investment Q&A

Q: First Trust NASDAQ Technology Dividend Index Fund tdiv
Vanguard Div Appreciation vig
Are there any significant differences ?
Do you prefer one over the other?
Thankyou

Q: Good day team, with current environment for context, and looking at tech/big data companies: Are there etfs (Canadian but with CDN/US/Global exposure) that cater to broad based tech. I feel once we are out of this, technology will play an even greater role in our lives and in industry, healthcare, security etc etc

Q: I managed to miss the recent recovery as I was expecting the market to go lower. I'm now considering gold given the high amounts of government spending and possible inflationary pressures. May I have your thoughts on gold as an investment right now? In particular, the GLD etf? Thanks,

Jason

Q: Hi 5i Team. Question(s) for you on the ETF HPR as it relates to taxation. This summary was taken from my recently received T3. On the T3 summary in the first column it indicates, on a monthly basis a total distribution of $352.14. The $352.24 is broken down as follows: 2nd column on the T3, indicates a return of capital or foreign tax paid of $18.81. The 3rd column on the T3 then states the actual non-elig.div or actual elig.div or foreign tax paid of $344.63. Should I assume that the $344.63 is actual elig. div for the Canadian Dividend Tax credit? Please deduct number credits as required. Thx Steve.

Q: HI, I just recently made the switch from mutual funds to ETF’s and a DIY strategy and am looking to lock down 4 low cost ETF’s that I will invest in for the long term (30 + years) and leaning more toward the aggressive side for these. I am looking to take advantage of some dollar cost averaging to enter the ETF market for some broad market index ETF’s in my TFSA and was looking for you opinion of some that I am trying to choose between.
Canadian Market – I am trying to choose between XIC, VCN & ZCN. They all have significant overlap and same MER so I don’t see a whole lot of difference between the three, although I am leaning towards XIU, thoughts on which one you would choose for your portfolio?
US Market – I am trying to decide between VUN & VFV. The VFV has lower MER than VUN and has outperformed VUN as of late. Smaller and mid-cap companies historically had higher volatility than the large-cap companies found in the S&P 500, and so the trade-off is potentially higher growth, for potentially more volatility if you go with a total market index like what is found in VUN. The S&P 500 has outperformed the total market index as of late so I guess the question is will this continue, I am leaning towards VFV, thoughts on which one you would choose for your portfolio?
International Developed – I am trying to decide between XEF & VIU, both have similar MER, thoughts on which one you would choose for your portfolio?
Emerging Markets – I am trying to decide between XEC & VEE for a small percentage of my portfolio, thoughts on which one you would choose for your portfolio?
These are some ETFs’ I have come across from doing build wealth Canada course and reading other materials and listening to podcasts that seem to fit my long-term outlook. I am by no means experienced in this matter and just looking to hit the ground running so If you have better suggestions for certain markets that I may have missed feel free to outline them.

Thanks
Sean

Q: Hello 5i and I hope you're well.
Under current conditions with interest rates, Feds and bank of Canada injecting so much money into the economy, would you recommend corporate bonds or T-bills ETFs. And, what terms: short/medium or long?
Thank you and be well!
Carlo

Q: This question is two fold...one is the payment from XEI applicable for the Canadian Dividend Tax Credit thus 100% dividend and secondly would you think this as a good holding for an unregistered account to be used for income....thanks...Gene

Q: Are there Canadian equivalent to TIP and STIP. I don’t want to add to my risk by not being hedged. I’m looking for a way to protect against inflation at some point. Is there another way besides inflation protected bonds?
Thanks as always for your insight

Q: I have a 22% portfolio position in ZSP and I'm looking to add a 5-10% position in HXQ do see too much cross over here?

Thanks for being here for us!

Q: Hi Team,

What are your thoughts on purchasing at these levels? What are your thoughts on the long term potential of the underlying holdings and do you see any significant risks other than possible over valuation?

Deduct as many credits as you see fit.

Thanks!

Q: Considering a 5 year time frame, what would be your allocation toward cdn oil (xeg), cdn ag (ntr), utilities (zwu), fixed income (hfr) and US (zwa & xqq). Above average risk tolerance seeking yield and capital gain. Are there any other suggestions....LSPD would also be a holding. thanks.

Q: If I believe that there will debt problems before this is over , does one want to continue to hold HFR. I have held it for a couple of years but would sell it if things go down to add to stocks I like. A couple of weeks ago it went way down when market crashed. I read your answer to stay put as things were a little crazy in bond market. Is it the worry of the bond holders that the companies will go under and in fact this is not a real safe holding right now as I see 1|2 of it's holdings are BBB?

Q: Would please comment on events that possibly would negatively impact on the above 3 ETFs?

Cheers

Q: Hi, Do you think ZDI and XWD could complement each other, or would there be too much overlap, thanks?

Q: Please rank the above ETFs in order of preference for income and safety. Thanks.

Q: Inspired by the news of Carnival putting out a 12.5% bond coupon, I wonder if this is an area to look into. Carnival may be a risky corporate bond, but I wonder if there are stronger companies caught in debt when the fall came that are offering good returns.

In short, is there an ETF which is focussed on high-grade corporate bonds and is this a good strategy?

I know you are not favourable toward the bond market, so is low-volatility equity funds (like ZLB) a good alternative?

Q: Hi Peter
What are the pros and cons of buying CLF vs actual laddered Govt bonds.
Seems CLF is easy to sell--but is there more risk in a down market?

Q: I have only 5% international exposure right now. can you give me 5 ETF's that have good potential upside coming out of this downturn that could help me balance out my portfolio by region. Asset class not a factor.
Thanks Dave

Q: Which would you prefer today, VTI or VUN?

Q: Dear 5i Team,

Several ETFs like HHL and EIT use a covered call strategy for portions of their investments. When markets have an overall downward trend, or are otherwise directionless but volatile, is this an effective strategy? I know that it works in an upward trending market but wasn't sure about the other scenarios.

Thanks in advance!

Derek