skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi there, it seems like more and more commentary is stating we are in late cycle. Assuming this means that we will soon see a recession in the next 12-18 months, would it make sense to hide out in a low volatility ETF for the time being? It seemed to have held up pretty well in the 2018 Q4 drop. What are your thoughts regarding this strategy and between ZLU and ZLB which would be preferred to be in, or would you split your portfolio 50/50 for diversity? Thanks!
Read Answer Asked by Michael on March 11, 2019
Q: Good afternoon,
I began building an Investment Account with the ETF's approx 10% weight each. I added CGX(for Dividend) and a GIC when I was unsure of what to do.
I realize the overlap with XDV;XIU;CDZ; and the Royal Dividend Mutual Fund. What do you recommend I do with the overlap? Diversification? I would like to begin to add individual stocks. Long term horizon. Have RRSP and maxed TFSA.
Growth and medium risk profile. Thanks Paul
Read Answer Asked by Paul on March 11, 2019
Q: Hello I was wondering if you know of any ETF's like the ZEB for banks that would represent the insurers either traded in the US or Canada that you would recommend for a long term hold in and RRSP. DRIP eligible preferred.
Read Answer Asked by Kolbi on March 09, 2019
Q: These all in ones are marketed as simple, low cost, well diversified ETF’s. There are no historical performance results to consider however. I’m considering for very long term hold in pension accounts.
Your thoughts on these products and type of investing strategy they best fit.
Appreciate your feedback.
Read Answer Asked by Larry on March 09, 2019
Q: I am currently researching the Vanguard Conservative ETF Portfolio. I would like to confirm that I understand the total fees properly.

The Vanguard website indicates that the MER for this product is 0.25%, and "For any Vanguard fund which invests in underlying Vanguard fund(s), there shall be no duplication of management fees chargeable in connection with the Vanguard fund and its investment in the Vanguard fund(s)."

VCNS holds a portfolio of other Vanguard ETFs. I interpret the above paragraph to mean that the total fees paid to Vanguard is 0.25% (ie. that there is no stacking, that I do not pay the separate MERs for the underlying portfolio ETFs, PLUS an additional 0.25% for the VCNS ETF). Can you please confirm that my understanding is correct?

Thank you for your help and your insightful advice.
Read Answer Asked by Dale on March 08, 2019
Q: I am interested in increasing my US content, but do not wish to purchase directly from the US. I am looking for some Canadian ETFs based on US Equities to add to my otherwise balanced TFSA for a 5yr+ hold. I currently hold ZWH. Wondering if you could give me your top 5 picks for growth. I would be interested in your best suggestion to play FAANG stocks as well in a Canadian ETF..
Read Answer Asked by KEN on March 07, 2019
Q: I have read here and elsewhere that that VEE does not hold stocks directly, but rather via its US listed counterpart VWO. However, I can't find any confirmation of this on the Vanguard side or in the VEE prospectus. The Vanguard Canada page for VEE implies that stocks are held directly. Can you please confirm that this is in fact the case? Thank-you.
Read Answer Asked by Stephen on March 07, 2019
Q: Like many here I suspect, we missed the cannabis event completely. Fearing to be too late, trying to ascertain whether to enter via an ETF like HMMJ (the only one I can find with any kind of liquidity) or do I try to build a small "equal weight" holding of the 5 or 6 stronger entities in this space. So how would you rank today the top 5 or 6 entities trying to build a presence or should one try to follow on the coat tails of an established company trying to enter the cannabis space like ATD.b or one of the liquor companies?
Read Answer Asked by William Ross on March 07, 2019
Q: Hi 5I team.

Other than XUS (15%) I really do not have much exposure to US Stocks. Would you please recommend a few US stocks or Sector based ETFs to invest about 10% of new cash. I have a few options based on Mad Money and Market Call. Any preferences of the stocks I've listed or other ETF suggestions would be helpful. My horizon is for 5+ years.

Thanks


Read Answer Asked by Abhishek on March 06, 2019
Q: I am a recent subscriber to your ETF newsletter. I find it very informative. Thank-you.
I have read with great interest your articles about tax efficiency of ETFs. I have two questions: (1) If a US ETF is held in a non-registered account, I understand that there is a 15% withholding tax on dividends. However, is this withholding tax not deducted from Canadian taxes payable? If a person is in, say a 40-50% tax bracket, how big an issue is this on an after-tax basis?; and (2) Where can I find out the tax impacts for each ETF before I consider making a purchase?

Thank you again for all of your excellent advice.
Read Answer Asked by Dale on March 05, 2019
Q: I hold VSP Vanguard S&P 500 Index ETF (CAD-Hedged) in my RRIF. I am confused by the following comments in the February 2019 ETF & Mutual Fund Update under the title Exchange-Traded Funds for Your RRSP – “When it comes to Canadian-listed funds that hold U.S. equities or hold U.S. listed ETFs it is best to avoid them because U.S. dividend income is taxed on your behalf.” I had thought that VSP was appropriate for RRIF’s. Please advise.
Read Answer Asked by Nadine on March 05, 2019
Q: Hi Peter,
I really enjoyed your appearance recently on BNN. I like the fact that you appear without notes, printouts, “model” prices or table-pounding buys, unlike some of the other guys.

I read your FP article on the weekend on asset and sector allocation. I agree 100% with getting the sector right - just look at commodities over the past many years. It is the larger asset allocation question (stocks vs. bonds) that puzzles me. For me, I am an equity guy and typically run 90-100% equities for better long run returns. Any remainder is cash looking for new opportunities.

I have never in my life bought a bond (or bond ETF), unless you count CSBs 40 years ago when they were at 12% plus; rates we will never see again in our lifetimes. I understand bonds for reducing volatility in your portfolio. Last fall showed the volatility of an all equity portfolio. Yet today, we are making a nice recovery. My question is if or how do bonds enhance your returns?

In Warren Buffett’s recent interview on CNBC, he said that given a choice of holding a 10 year government bond versus holding the S&P 500 for 10 years, he would buy the S&P in a second. He said the same thing for a 30 year comparison. I just can’t get comfortable with the idea of holding bonds to enhance your returns. If the primary advantage of bonds is to reduce the volatility of your portfolio, then I am fine without bonds.

Thanks again for your insight.
Dave
Read Answer Asked by Dave on March 05, 2019
Q: Hello, curious as to your recommendations for my TFSA. I currently hold all stocks in my RRSP, and a mix of mutual funds and etfs in my TFSA. I will soon be making a new TFSA contribution and must decide between adding a new name or topping up existing holdings. Funds likely to be held for a few years. Current holdings, in equal parts are
ETF's RIT, XWD and ZQQ, mutual funds include Fidelity Far East and Canadian Growth.
Have thought of HMMJ as well as TDB 3098 as possibilities.
Your Thoughts Please and Thanks. Lavern
Read Answer Asked by Lavern on March 05, 2019
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!