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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: In reviewing ZWC distribution tax information for 2017, $.664 of the $1.12 distribution was deemed ROC with the remainder being eligible dividend. How is this possible? The ETF holds dividend paying companies. There is no operating business carried out that would have non cash items like depreciation that would constitute ROC. Gains realized on call writing would be capital gains. Where is this ROC coming from and is it cause for concern?
Read Answer Asked by Chad on August 08, 2018
Q: For investing in Etf's, which top three sector's do you recommend investing in for the next three to five years, hedged or un-hedged, thanks?
Read Answer Asked by Pat on August 03, 2018
Q: Hello 5i Team

The passive index fund industry is dominated by BlackRock, Vanguard, and State Street. Seen together, these three giant, passive asset managers already constitute the largest shareholder in at least 40 percent of all U.S. listed companies and 88 percent of the S&P 500 firms. What are your thoughts in terms of the big three controlling the corporations and what happens when there is a market correction or meltdown. Would there be any buyers left and also individual stock investors could get into deep trouble.

https://www.cambridge.org/core/services/aop-cambridge-core/content/view/30AD689509AAD62F5B677E916C28C4B6/S1469356917000064a.pdf/hidden_power_of_the_big_three_passive_index_funds_reconcentration_of_corporate_ownership_and_new_financial_risk.pdf

Appreciate the good work done by 5i team.

Thanks
Ninad
Read Answer Asked by Ninad on August 01, 2018
Q: Good day,

I currently own the subject shares in my TFSA portfolio. Are these stocks still worth hanging onto with the current volatility? I was considering selling everything and going with Vanguard or iShares.
Read Answer Asked by Enzo on August 01, 2018
Q: At 75 years of age I am not comfortable holding a full portfolio of stocks in a world that is so dependent on tweets from a malevolent idiot. Thus I have moved a large portion of my holdings to cash, and have built a GIC ladder as my main attempt at capital preservation. I am now looking for stocks or ETFs that provide good income with a relatively low risk of capital loss. SRU.UN was recommended on BNN recently, in particular because Walmart represents about 1/4 of its holdings. Does this rationale make sense to you, and do you think SRU would be suitable for my new capital preservation portfolio? Any other suggestions would be much appreciated.
Thanks for your great advice, as always.
Read Answer Asked by Roland on July 31, 2018
Q: First off, my apologies to all the members for the recent sell-off in the markets. I should have warned your readers that I decided to put some money to use at the end of last week so there would inevitably be a sell-off not too long afterwards.

But seriously, I was wondering if you could provide any insight/feedback/critique into whether it makes sense to view the projected growth in market development in African nations in the coming years and decades as a viable investment thesis. If so, do you have any suggestions on how to invest in Africa? A cursory exploration led to Fairfax Africa (FAH.U) - does this seem like a worthwhile investment? Are there any other suggestions I could investigate further?

Thanks in advance,
Rory
Read Answer Asked by Rory on July 31, 2018
Q: I currently own the following ETF's/ Funds. Canadian- ZCH ZSP FLI CJP COW VE VEE XGD ; U. S.- IWO AWF BBH FEZ XLRE XLF KRE XLK. In your view, are there any which should be sold to reduce duplication or for other reasons? And which are worthwhile adding to in this market? Thank you in advance for your usual well-considered reply.





Read Answer Asked by Harold on July 31, 2018
Q: FOR CASH PART OF PORTOFOLIO YOU SUGGEST BONDS AND SOME MMF OR GIC
IN MY PORTOFOLIO I HAVE :
CDP-5 YEARS RETURN - 13.19% ( MINUS )
VAB 5 YEARS RETURN +1.35 % (PLUS )
TD MMF (165 ) 5 YEAR RETURN 3.54% (PLUS )
THESE ARE FIGURES FRON GLOBE AND MAIL 5 YEAR RETURN.
IT SEEMS MONEY MARKET FUND HAS BETER RETURN AN NO LOSS (EXCEPT INFLATION ) AND LESS WORRY.
I APPRECIATE YOUR COMMENT.EBRAHIM
Read Answer Asked by ebrahim on July 30, 2018
Q: Good morning, my US equity is entirely in ZWH, VGG, and VIG. Each about 5% of total portfolio. Monthly income from ZWH is convenient for RRIF withdrawals (over 80) but both VIG and VGG have significantly outperformed ZWH over at least the last 2 years. I am thinking of disposing of the ZWH (covered call ETF) and using equal amounts of VGG and VIG to total 15% of portfolio. I have available $US cash to do so. Any other ideas for US equity exposure are welcome.

Regards Ted
Read Answer Asked by Ted on July 30, 2018
Q: My portfolio lacks a serious commitment to technology although it is reasonably well balanced across the remaining sectors emphasizing a conservative income approach. To address the tech sector, I thought I would start easy, as it were, by investing in either ZQQ or XQQ. For an investor in his mid seventies, with a low comfort level in most things tech, that would appear to me to be the way to go. Appreciate your view.
Thank you.
Geoff
Read Answer Asked by Geoffrey on July 30, 2018
Q: Hi,
Is there an ETF that holds only a higher concentration of the FAANG stocks? I looked at the FNG but it does not seem to hold FB (could only find top 10 holdings). I’d like exposure to these growth names and maybe now good time to start a position with the declines in Netflix, and FB.
Thanks,
K.
Read Answer Asked by KERRI on July 26, 2018
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