Investment Q&A

Q: Hello 5i team,
Could you give a few ETFs and/or Mutual Funds about Science and Technology and one that tracks the Nasdaq in CAD$ or US$
Thanks,
Antoine

Q: What ETF would you recommend for all your favourite Canadian tech stocks?

Thanks.

Q: Retired dividend-income investor with minimal healthcare exposure (2% of equities). If I wanted to increase my health care exposure via an ETF and receive a dividend, which ETF would you chose? Which type of account would you buy them in...RRSP, TFSA or Cash (I'm thinking about income tax implications and USA withholding issues)? In a previous comparison, you indicated you preferred LIFE over HHL, although in another question you preferred XHC overall. I am sitting on roughly 8% cash and currently think I may wait for 2nd Qtr earnings to unfold, or possibly wait until the USA election...I know this is market timing, but I just don't trust where we are at right now. Once Q2 earnings are in, I might invest the $/month over the next 6 months strategy.

So, which ETF would you choose and would you wait for Q2 earnings to be done?

Thanks...Steve

Q: I currently have a half a position in XGI and 65% are holdings in the USA.

Can you recommend similar industrial ETF's with more European /Global exposure and less USA

Thx

Steve

Q: I am thinking of purchases of these 6 ETFs (or some of them). Would you see ZPAY, FCIQ, and FCUQ as being defensive? And back to the "where should I hold" issue: where would these 6 best be held for tax or other efficiencies: Cash account? RRSP? TFSA? Corporate account? Many thanks.

Q: For RESP investments for my 3 grandchildren (ages 7, 9 and 11), I am pretty sure I'd like to choose XIT, partly because it's Canadian and I recognize the names of the top 10 holdings. I would like to be fairly aggressive. But I also would. like to complement XIT with another ETF without being overweight in (any?) energy or financials. In fact, probably no energy and underweight financials. Something fairly balanced without technology, but still growth tilted. I'd like it to be TSX traded in Canadian dollars, but it does not have to hold all Canadian stocks. Another option would be to complement XIT with one or two individual companies but not sure I could get the diversification that way. Would like to keep it simple, if possible. Is there a Canadian equivalent to IWO or an equivalent that trades in Canada in Canadian dollars? Or would that type of ETF already be overweight technology, minimizing diversification? In short, diversified with a growth tilt and in Canadian dollars but not too much technology overlap with XIT. Thanks for your help on this. Much appreciated.

Q: Peter,

What ETF's are available in both Canadian and U.S. dollars that track the Nasdaq 100.
Thank you
Paul

Q: Hi, looking to add to the fixed income part of my portfolio, I hesitate between CBH and CBO. In the current state of affairs, should I go for a short-term etf like CBO or go with CBH for which the duration is a reasonable 4.5 years. I have mainly individual govn’t bonds at this point plus 10% total in XBB and XSB. Thanks

Q: I have held cpd for some time and I am down about 50 percent What will it take for this pref share ETF to recover I am a long term investor
Thank you
Paul W

Q: Hi 5i team,

You kindly answered a recent question of mine re: minimizing risk of U.S. estate taxes (I am high net worth investor). I posed the question of emerging markets exposure, and asked you to compare VWO (U.S. situs) versus ZEM (Canadian situs); and you recommended ZEM for avoiding U.S. situs investment. My follow-up question has to do with making a comparison between VEE (the Vanguard Canada emerging markets fund) and ZEM. My understanding is that all ETFs registered to Vanguard Canada (such as VEE) are considered "Canadian situs" investments, even though they hold investments outside of Canada. So here are my two questions:
1. In a comparison between ZEM and VEE, would you recommend one over the other (the goal is Canadian situs investment within my RSP for long-term emerging markets exposure, at least 5 to 10 years).
2. In general, how can one most easily determine whether a security-- whether ETF or individual stock--is Canadian or U.S. situs investment (for estate planning purposes)?

Ted

Q: Greetings,

Hoping you can help me to understand the fundamental differences between these funds and why the US preferred ETFs have significantly outperformed CPD since March.

Thanks

Q: Hello 5i Team:

Thank you for your answer about DGRC today. With hindsight, I shouldn't have included VCIP in the same question! Here it is again as a separate question:

I know from your answers to other members that weighting is personal/that bonds despite all the bad news still play a role in one's portfolio/Short bonds are probably better than long bonds.
I have your Portfolio Analytics service and my input suggests 60 40 split. (Inputting data in PA is a work in progress!!)

With this mind, may I ask this question?

What would your suggestions be for retirees: 40% Fixed income .
All in something like VCIP. Or divide them into different boxes? VSB/VAB/VSC etc., Or some other ETFS?

40% is a lot of money to be in one ETF, no? Or these multi layered ETFs offer enough diversification?

Thanks.

Q: Regarding yesterdays question on Vanguard ETF terminations
Why do you feel it is better to sell before termination? when the commission can be avoided by letting Vanguard distribute the cash to unit holders.

Q: Could I get your view on zpay. It is a relatively new ETF under the BMO banner and managed by Larry Bergman.
It looks like it would provide higher steady income with some growth while providing some downside protection.

Q: Appreciate your comments on the ETF ZAG and the Mutual Fund AIM2143 Emerging Market Class. If you have a better alternative please recommend it.
Thanks.
Clayton

Q: Hello:

It seems b/c DGRC is not heavy on Energy and Financials, it has done better than ZDV/VDY.
Going forward, should one add to one's DGRC position or VDY/ZDV. Out look for energy is still bleak, isn't it?

My main aim is to enhance Dividends, get tax credits in our non RRSP portfolio. Safety is always a concern and I presume all of them offer some safety though not 100% as they are all based on stocks after all.

Also how do these ETFS compare with VCIP which I presume will be safer but less tax efficient and less growth?

Thanks for your service.

Q: Hi Group I have AEM,GLD, FNV,GDXJ in my present Gold holdings, that represents 7% of my portfolio. I would like to go to 10% (your thoughts on moving to 10%) .Should I buy another stock or add to one of my present holdings (GDXJ) is my best performer. I am medium risk investor. Appreciate your comments

Q: Hi 5i Team:
RE: WFH (Work From Home ETF) from Direxion.
This ETF just came out June 25th .. do not see it in your database.
What is your opinion of the theme of this ETF ?
Would be a satellite holding in my portfolio.
Seems to make a lot of sense in the current COVID-19 environment.
Or could you recommend another ETF or stock that you like the prospects of going forward in this new investing environment ?
Thanks, Steve

Q: This is a follow up to my question yesterday about fixed income investments and inflation/ interest rates.

If one is of the view that interest rates will increase, what is your advice about real return bonds, versus regular bonds. Does it make sense for most investors to hold real return bonds in their fixed income portion of their portfolio? If so, what is the maximum percentage of their fixed income portion that you would recommend that real return bonds take? How best should an investor buy fixed return bonds - does an ETF make sense, and which one would you recommend?

Thank you again for your wonderful advice.

Q: Hi group is there an ETF that has most of the Bio Tech Pharma companies that are working on a Vaccine for Covid -19? Thanks