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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.

Q: Good day 5i team:1. Would you consider ZDB as the safest way to beat a high interest savings account for money that may or may not be needed for a uncertain time frame?thus is it the surest to have my capital back? and 2.any thoughts on xdg being the best option available for global diversification outside of Canada with a decent yield for monthly income for retirement? 3.any thoughts on why PBH did not give any downside protection in the recent correction and seems to be not getting any traction since I am down 5% would you advise to hold?TksLarry
Read Answer Asked by Larry on February 28, 2019
Q: What are your thoughts on Vietnamese market in the next five years? Are you aware of any ETFs focusing on that market?

Thanks.

Liping
Read Answer Asked by Liping on February 28, 2019
Q: Hi 5i team,
With reference to your response on Feb 26 to my question on VGRO for TFSA, you stated “The tax efficiency referred to is usually regarding taxes on dividends received. Some Canadian ETFs are not considered as tax-efficient because they may gain international exposure through a US-listed ETF which can cause an extra layer of taxes on dividend. However, we do not see that to be an issue with VGRO, as it holds most securities directly.” I am confused. VGRO does not hold any stocks directly but indirectly through other Vanguard ETFs. Please clarify and its suitability for TFSA. Thanks.
Read Answer Asked by Willie on February 27, 2019
Q: Hi Peter
the above stock hit bottom sometime in late or mid Dec
It has been on the rise since then

I had some money invested in it, happy to get the dividend but disappointed at the lack of capital appreciation
I am now at break even point
is SLF or the banks a better choice (I could use ZEB eft), goal is dividend plus some growth, thanks

Michael
Read Answer Asked by Michael on February 27, 2019
Q: My RRSP - I was comparing Vanguard S&P 500 Growth ETF VOOG to Vanguard S&P 500 ETF VOO.
Warren Buffett is suggesting the index - so VOO, but VOOG Growth has performed better since inception with the same risk of 4 out of 5 - as defined by Vanguard.
VOOG has a higher turnover rate of it's stocks -at 17.6% vs 3% and it still outperformed after taxes on the higher turnover. It has 294 of the 508 stocks that VOO has.
Wondering your thoughts on one over the other. Since it is in an RRSP and I don't need the money for 25 years.

https://personal.vanguard.com/us/funds/vanguard/compare?navigatingFrom=4
Read Answer Asked by Terry on February 27, 2019
Q: I am looking for a balanced source of income on my USD. Is there some US equivalent to the likes of ZMI or XTR that you know of?
Read Answer Asked by Daniel on February 27, 2019
Q: ETF tax advantage question again.
Could you expound on the different types of taxes on XEC which is an Canadian listed ETF holding emerging markets via IEMG vs holding the IEMG directly which you recommend, to be a better holding for tax purposes in an RRSP account and a non registered account?
In both my RRSP and non registered accounts there doesn't appear to be any taxes withheld when looking at the transaction history, just the dividends. Is it taxed before dividends are paid? You say it would save a layer of tax. Is there more then one?
Other then the articles recently read in you Money Saver Magazine and on the ETF newsletter is there anyway of knowing or finding out which ETF's are better suited for each accounts, tax wise? When will Mr. Mahrezs' part 2 of favorite ETFs for individual accounts be published?
Thanks
Jeff
Read Answer Asked by JEFF on February 25, 2019
Q: Hi, I'm a dividend/ income investor new to 5i and have a question on portfolio allocation % with regards to geographical location. ie - I have ETF's ZWA (USA) at 8.6% and ZWE (Europe) at 5%, (13.6% total ) of my overall portfolio. I have a general rule that no one position should be over 10% and no one sector more than 25% of my portfolio. What is 5i's perspective on this and would your recommendations be higher when you're talking ETF's that hold a basket of stocks?
Read Answer Asked by William on February 25, 2019
Q: Hi
I'm trying to reduce the risk in my TSFA with the intent of using ~$60K towards a down-payment for a new home in mid-2020. My plan is to sell most of the current investments and invest the money instead in a much safer income generating ETF, though I'm open minded to where I could invest instead. I've done pretty well on (some) of these investments, but am prepared to sell the winners and losers and cut my losses to move forward and decrease my risk. I'm most concerned about having to sell at an even greater loss when we are ready to buy next year. I've listed my current investments.

Are any of current investments worth holding into for the next 16 months instead of selling now and which ETFs you would consider buying?
I'm planning to sell:
BBU.UN (no loss/gain), CM (up 3%), EMA (up8%) IAN (up200%), XEC (down 5%), LB (no loss/gain)

I'm planning to buy instead XTR.

Please take as many credits as you think fair.

Read Answer Asked by Michael on February 25, 2019
Q: With a 20 year time frame, my daughter has some money to invest in her portfolio which consists of:
Canada: PDC (25%) ZAG (30%), Money Market (10%).
US: XUS (20%), ZQQ (5%),
Europe: XEU (10%)
If the US and China reach a trade deal she might move 5% from Money Market to ZEM.
Given that the bull market is long in the tooth, would it make sense to move XUS to VGG? The composition of VGG appears more defensive and the reduction in technology stocks is compensated by her position in ZQQ. Growth has been similar, the dividends and BETA are about the same, and VGG's MER is lower (.08 vs. .11). Your advice would be appreciated.
Read Answer Asked by Ken on February 25, 2019
Q: Any suggestions on the best approach to separating out China from emerging markets exposure? I own XCH in both my RRSP and RESP accounts, but want some control over how much emerging markets international exposure is in China vs elsewhere.
There are US ex-China ETFs but haven't found anything comparable in Canada. Canadian ETFs seem to have 20%+ of Chinese exposure, which I'd like to avoid holding XCH already.

Thanks!
Read Answer Asked by Yasin on February 25, 2019
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