Investment Q&A

Q: My target allocation for International Equity is 20% and is made up of just two ETFs (VE and VEE). Do these two holdings provide adequate and broad enough international exposure or would you recommend any additional (or different) ETFs? How would you recommend splitting the 20% total between these holdings?

Q: Would you recommend either of these for a lazy TFSA investor? Thanks. Peter

Q: A month ago I sold both these bond etf’s to capture the tax loss. I’m now looking to rebuy/reinvest these funds. As part of my fixed income allocation I’m wondering if I should repurchase the same or might you have other suggestions in a rising rate environment?
Thank you

Q: For a 35 year old with $6000 to put in self directed rrsp would it be better to buy the etf ZEB and pay the mer or would it be better to allocate $2000 each to RBC, BNS and TD or all $6000 to BNS
thx Susan

Q: What are your favorite europe ETF , would probably split 5% of the portfolio (150 000$ total portfolio in RRSP) between 2-3 to get better exposure (euro zone vs euro+uk)(large vs total market)
No hedge etf. 7-10 year horizon

Also, with 30% us , 5% china, 3 % india, 5 europe, 3% XAW, 40% canada, where would you suggest to invest the remaining 14%?

I was thinking 5% japan etf, 3 % frontier etf, 6% basket of EM (to cover taiwan, south korea with minimal china, russia, turkey and brazil allocation)

I have plenty time to manage, so not an issue, but would probably only rebalance occasionally (if worth the fees)

Q: Can I have your thoughts on this ETF? Thanks.

Q: I hold both XBB and ZFH in my RRSP. Is there an advantage to holding both or should I consolidate in ZFH? ... or to another fund which you can suggest?

I need to add a greater bond exposure and want to ensure I'm not simply doubling up.

Thanks,
Ron

Q: Your thoughts on SOXX currently.

Q: My daughter has been sold this fund (agf elements bal portfolio fe,483) by her advisor a few years ago. She seems to feel she is locked in, although I doubt that. I suggested a switch to maw 104 since she seems apprehensive about VBAL with it's shorter history. I would appreciate your wisdom. Thanks

Q: Are these etf's better to be held in registered accounts for tax purposes. Since there will be ROC when sold, how difficult is it to calculate or are tax forms supplied with that info upon sale. I'd like yo add it to my non registered account to collect the nice dividends but worried about how to handle after a sale. Thanks

Q: Now that Marijuana is legal in Canada, would you still recommend HMMJ as the best, safest way to invest in it, thanks?

Q: Good Morning
Technicals on XBM would indicate that we are entering a growth period for base metals, however, "Bank of Nova Scotia (BNS.TO) on Monday said concerns over Donald Trump's trade war with China is likely to dominate the outlook for commodities in the fourth quarter, predicting the issue could be a drag on markets until the 2020 U.S. election. The bank said that while a new North American trade agreement may decrease uncertainty, the U.S. trade war with China is likely to cut commodity prices for most metals."
What is your stance on base metals for the upcoming period?

Carl

Q: Hi All at 5i! A quick question on taxation of CBO.... are the monthly distributions taxed as dividends or interest ? Thank you

Q: Does this ETF have a CAD hedged cousin? or an ETF that does hedge CAD for another US index ?
Ernie

Q: I wanted to chime in on Johns question about bond etf’s. I completely agree with Johns concerns and feel that generally speaking the possibility of capital losses on a bond etf is under appreciated, under reported and glossed over by too many people. I have held VSB and VSC for well over 3 years and my yield to date isn’t even remotely close to covering the capital losses. I see absolutely no reversal in site. That they are more liquid and diversified to me is pointless. I would have been significantly better off in cash, GICs or an individual ST bond that matured and gave me my capital back.

Q: ..thinking American midterm elections may be a catalyst if Dems win and dampen the economic momentum (and associated rate increases) going forward...under that scenario do you think utilities would be a good place for relative safety, yield and a possible rebound? thanks.

Q: Please comment on my perspective below. Am I wrong?

A bond matures and you get a known amount of principal back (on top of the distributions paid out along the way). As such it provides a safety component in your portfolio. The safety comes from NOT being at the mercy of the market (all you have to do is wait till it matures).

A bond ETF does not do this. The principal you put into it is eternally at the mercy of the current market price of that ETF. Even when any bond matures, the ETF just goes out and buys more bonds at current market prices. Therefore it does not return a known amount of principal as a bond would. The whole concept of "maturity" or "yield to maturity" disappears. So these ETFs are a lot more like equities than bonds. If people are following advice about the percentage to allocate between bonds and equities, in my opinion it is a mistake to treat the bond ETFs as in the bond category.

(The exception to the above being "target date bond etfs which do mature and return your principal").

Q: Is this a good time to invest in Biotechnology?
What do think about the IBB ETF?
Thank you.

Q: How do I buy bonds? Can I achieve the same goal through ETFs?

Q: Hi All at 5i! I am working at establishing a more stable portion to my portfolio in the form of bond and preferred ETFs. I require four that pay me a dividend and have so far chosen CPD, XHY and CBO and would welcome a fourth ( or more) suggestion. Could you please help me with this. Cheers, Tamara