Investment Q&A

• iShares Russell 2000 Growth ETF (IWO $320.60)
  • $320.60 P/E (TTM): 22.36X Cap: $12.47B
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• Vanguard Small Cap ETF (VB $265.51)
  • $265.51 P/E (TTM): 18.7X Cap: $75.05B
  • View VB Profile
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• iShares Core S&P Small-Cap ETF (IJR $123.76)
  • $123.76 P/E (TTM): 17.5X Cap: $90.94B
  • View IJR Profile
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Q: Which of the three main US small cap etfs do you prefer, IWO, IJR or VB, thanks Bill

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Read Answer Asked by Bill on December 16, 2019

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.86)
  • $13.86 P/E (TTM): 6.96X Cap: $1.06B
  • View CPD Profile
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• BMO Aggregate Bond Index ETF (ZAG $13.79)
  • $13.79 Cap: $12.22B
  • View ZAG Profile
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• iShares Convertible Bond Index ETF (CVD $18.43)
  • $18.43 P/E (TTM): 35.13X Cap: $117M
  • View CVD Profile
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• iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.45)
  • $16.45 P/E (TTM): 20.4X Cap: $1.06B
  • View XHY Profile
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Q: Hello,

I want to add fixed income to balance my portfolio and will hold it in a cash account. I'm targeting 15% fixed income with > 10 year hold.

1. Are the ETF's in the income portfolio appropriate? or should I have more concentration? Or a different selection?

2. If > one ETF do you have a weighting suggestion?

3. Will these be taxed as income or dividends?

Thanks!

Dave

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Read Answer Asked by David on December 13, 2019

• iShares Canadian Growth Index ETF (XCG $66.74)
  • $66.74 P/E (TTM): 29.94X Cap: $155M
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• CI Morningstar Canada Momentum Index ETF (WXM $47.94)
  • $47.94 P/E (TTM): 16.84X Cap: $1.42B
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Q: Hi Peter & 5i Group,
A few days ago you indicated that you liked the US growth ETF "IUSG" which has a very good chart giong back some years, and to date, which I purchased shares of.
Can you recomend a simular Canadian market growth ETF. that rivals IUSG or comes close.
Thanks, your team are so valuable to a invester.
Ken

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Read Answer Asked by kenneth on December 13, 2019

• BMO US High Dividend Covered Call ETF (ZWH $25.07)
  • $25.07 P/E (TTM): 19.98X Cap: $1.05B
  • View ZWH Profile
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• Global X S&P 500 Index Corporate Class ETF (HXS $95.21)
  • $95.21 Cap: $5.68B
  • View HXS Profile
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Q: I think HXS and ZWH have similar assets.
Do you agree ? Because I carry forward capital losses, I think I should buy HXS because it pays no dividend, and I can apply future capital gains against losses accumulated. Looking at the performance of both funds, I should do better buying HXS, does this make sense. Also please comment if one or both of these funds are worth buying at this time .
Thanks

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Read Answer Asked by Luc on December 13, 2019

• iShares S&P/TSX Capped Information Technology Index ETF (XIT $65.10)
  • $65.10 P/E (TTM): 54.87X Cap: $674M
  • View XIT Profile
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• RBC Canadian Equity Income Fund Series D (RBF1018 $49.28)
  • $49.28 P/E (TTM): 10.2X
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Q: My daughter holds RBF1018 (series D units) in her RRSP. I plan to sell all of it and buy XIT to improve her overall asset allocation. Are there any issues with pending year end dividends for either securities? Should I wait until Jan 01/20 or go ahead now?
Thanks...Steve

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Read Answer Asked by Stephen on December 13, 2019

• iShares S&P/TSX 60 Index ETF (XIU $48.46)
  • $48.46 P/E (TTM): 18.08X Cap: $20.79B
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• Vanguard FTSE Canada All Cap Index ETF (VCN $67.19)
  • $67.19 P/E (TTM): 18.1X Cap: $14.36B
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Q: What is your recommendation for the best ETF that represents the Canadian stock market?

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Read Answer Asked by David on December 13, 2019

• Mawer Balanced Fund Series A (MAW104 $38.38)
  • $38.38 P/E (TTM): 17.4X Cap: $4.76B
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• Vanguard Balanced ETF Portfolio (VBAL $37.24)
  • $37.24 P/E (TTM): 6.89X Cap: $4.84B
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Q: Greetings

I have a US dollar account with 10% in US cash at the present time. In Canada, I have MAW 104 and like its set up.

Is there a similar US fund company to MAW 104 available or would you suggest just going with a product like VBAL? If VBAL, what is the US designation name for the product?

Thanks

Peter

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Read Answer Asked by Peter on December 13, 2019

• Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC $24.20)
  • $24.20 Cap: $1.43B
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Q: I hold 7% of my portfolio in CBO. It's performance over the last 5 years has been less than I thought it would been. I was wondering if you could suggest an alternative. I was considering switching 3% to something else with similar considerations. What about VSC?

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Read Answer Asked by Wayne on December 12, 2019

• iShares S&P/TSX Capped Information Technology Index ETF (XIT $65.10)
  • $65.10 P/E (TTM): 54.87X Cap: $674M
  • View XIT Profile
  • View Questions on XIT

Q: I manage my daughter's investments and will be selling a mutual fund (RBF1018) and plan to purchase XIT, as her asset allocation is light on technology.

86% of XIT is made up of SHOP, GIB.A, CSU, OTEX. P/B = 5.3 and P/E = 35.2. Technology has had quite a run this year...the chart looks parabolic and might possibly be forming a double top. I heard years ago that after a big run, stocks may settle back roughly 1/3 of the recent gain. This would put the "settle" price to be around $25.

I know this is the same as market timing. OR....just buy it now. Your thoughts?

Thanks...Steve

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Read Answer Asked by Stephen on December 11, 2019

• iShares U.S. Industrials ETF (IYJ $150.51)
  • $150.51 P/E (TTM): 25.03X Cap: $2.36B
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• State Street Industrial Select Sector SPDR ETF (XLI $166.40)
  • $166.40 P/E (TTM): 26.42X Cap: $28.74B
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Q: Will have a bit of cash in my USD brokerage account. Need more industrial. Can you suggest a US ETF

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Read Answer Asked by GRAHAM on December 11, 2019

• WSP Global Inc. (WSP $225.35)
  • $225.35 P/E (TTM): 29.81X Cap: $30.38B
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• iShares Global Industrials ETF (EXI $186.26)
  • $186.26 P/E (TTM): 23.5X Cap: $1.20B
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Q: Hi,
I'd like to increase my industrials in both Canada and globally. Can you recommend 3 stocks and an etf in each?
Thanks.

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Read Answer Asked by Camille on December 11, 2019

• iShares S&P/TSX Capped Energy Index ETF (XEG $25.73)
  • $25.73 P/E (TTM): 12.58X Cap: $2.10B
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• Vanguard Energy ETF (VDE $165.75)
  • $165.75 P/E (TTM): 16.96X Cap: $9.25B
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• State Street Energy Select Sector SPDR ETF (XLE $58.74)
  • $58.74 P/E (TTM): 17.33X Cap: $40.50B
  • View XLE Profile
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Q: I have no oil stocks so I would like to buy an ETF. Can you give me some choices for 3% of my rrsp portfolio that pays a decent yield of 3% or more.

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Read Answer Asked by Helen on December 11, 2019

Q: one of the analysts featured on Market Call recommend this etf as a best buy!
would appreciate your comments on this selection.
ed in montreal

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Read Answer Asked by ed on December 11, 2019

• BMO Equal Weight Industrials Index ETF (ZIN $52.65)
  • $52.65 P/E (TTM): 20.48X Cap: $48M
  • View ZIN Profile
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Q: I will probably be purchasing ZIN shortly. Regarding the quarterly dividend, does it matter when I buy ZIN? I know the Ex div date is Dec 27, so I need to buy it before that, so it settles prior to or on Dec 26. And theoretically in an efficient market, the price of ZIN will drop the amount of the dividend ($0.13) on that date. What's your experience...does the ETF share price drop actually resemble the dividend amount?

Thanks...Steve

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Read Answer Asked by Stephen on December 11, 2019

• Global X S&P 500 Index Corporate Class ETF (HXS $95.21)
  • $95.21 Cap: $5.68B
  • View HXS Profile
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Q: Hi, I currently hold this ETF in my TFSA. Can you please explain the change recently made and how will it affect my portfolio going forward?

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Read Answer Asked by Penny on December 10, 2019

Q: What is your preferred ETF for junior gold stocks? Why?

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Read Answer Asked by George on December 10, 2019

• BMO Low Volatility US Equity Hedged to CAD ETF (ZLH $39.21)
  • $39.21 P/E (TTM): 21.25X Cap: $101M
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• iShares MSCI USA Min Vol Factor ETF (USMV $95.52)
  • $95.52 P/E (TTM): 23.25X Cap: $23.16B
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• Invesco S&P 500 High Dividend Low Volatility ETF (SPHD $50.44)
  • $50.44 P/E (TTM): 14.93X Cap: $3.31B
  • View SPHD Profile
  • View Questions on SPHD

Q: Would zlh be a fairly safe and effective investment for a 3 to 4 year holding? I need some more US exposure and would like to preserve my capital with some upside potential. Are their other low volatility US etf that you would prefer? Thank you.

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Read Answer Asked by Steve on December 10, 2019

• iShares S&P/TSX Capped Information Technology Index ETF (XIT $65.10)
  • $65.10 P/E (TTM): 54.87X Cap: $674M
  • View XIT Profile
  • View Questions on XIT
• State Street Health Care Select Sector SPDR ETF (XLV $150.24)
  • $150.24 P/E (TTM): 23.97X Cap: $39.46B
  • View XLV Profile
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• State Street Consumer Discretionary Select Sector SPDR ETF (XLY $113.18)
  • $113.18 P/E (TTM): 34.95X Cap: $22.11B
  • View XLY Profile
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Q: Afternoon 5i.

I'm looking for the top 3 sectors to buy into today.

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Read Answer Asked by Stephen on December 10, 2019

• BMO US High Dividend Covered Call ETF (ZWH $25.07)
  • $25.07 P/E (TTM): 19.98X Cap: $1.05B
  • View ZWH Profile
  • View Questions on ZWH
• Invesco S&P 500 High Dividend Low Volatility ETF (SPHD $50.44)
  • $50.44 P/E (TTM): 14.93X Cap: $3.31B
  • View SPHD Profile
  • View Questions on SPHD

Q: Good day 5i.
The only US position I now hold in my RRSP is ZWH.
I like this ETF, just leave it alone and let it spit money out.
I'm looking for another US ETF that will fit nicely with ZWH and t pays monthly. The new ETF position would be half the size of ZWH if that helps.

Thanks for you help.

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Read Answer Asked by Stephen on December 10, 2019

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.86)
  • $13.86 P/E (TTM): 6.96X Cap: $1.06B
  • View CPD Profile
  • View Questions on CPD

Q: I am wondering what is the reason CPD is at a lower level than the financial crisis of 2008. I am at a loss on it for a few years now and wondering if holding another year or two makes any sense.

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Read Answer Asked by Mahdi on December 10, 2019