Investment Q&A

Q: I understand there are some ETFs or possibly mutual funds that invest in such a way that dividends are captured as capital gains, to reduce income tax. But I also understand the government is considering legislative changes to prevent this type of structure. Do you have any insights/recommendations on these products?

Q: Hello 5i,
I am up 125% on Target (10,000) and down 25% (5,000)on ZPR. Should I sell ZPR and substitute it with something else that you can suggest and sell TGT. This to buy back in a month.
Would you suggest buying back TGT with the full amount gained or get back to the original amounts splitting the proceeds between your suggested replacement for ZPR and TGT?

Should I just keep everything as is, collect the dividends and watch TGT go up? I do not need the funds.
Thank you and please remove the appropriate amount of credits.

Q: Hi, Where would you rank this ETF compared to bond, balanced and equity funds on a scale of one to ten over a five year period in all different types of markets, just a general answer?

Q: Another re-balancing questions as my “fixed income” levels are about 20% below where they should be .... as a retiree. And am holding 20% of my portfolios in cash.
My question is regarding XRB and if that would be an appropriate diversifier to a bond portfolio consisting mostly or your previous recommendations: XLB - CBO -XTR - TLT - CBO and VSC.
At some point interest rates will go up and in the meantime XRB has a 1.86% yield which at least beats cash.
Buy? Pass on this - at least for now? Buy something else as a fixed income diversifier.
As usual thank you for your any guidance you can provide here.

Q: It has been suggested to me that over the long term, the the average investor like myself is better off buying the indexes VFV with a dividend of 1.64% and XIU with a dividend of 3.61% rather than buying a portfolio of individual stocks. Would appreciate 5I's observation of this comment. Thanks, Bill

Q: Hi Peter, For 4 Years remaining in RESP, I would like to start accumulating/moving money in the fixed income side. What would you suggest - ETF or Mutual Funds (this is with RBC direct investing).Thanks

Q: Within fixed income today, is it wise to move from longer term bonds into floating rate bonds...seems the longer bonds are beginning to slide while floating rates bonds are holding firm. both pay similar yields. thanks as always.

Q: If I buy an international ETF, from a tax perspective, is there any advantage/disadvantage to buying one based in the United States vs. Canada?

Q: 5i Team,

Please provide your guidance on US based ETF's that you believe could be a buy now, and perhaps others that could be placed on a watch list pending a market adjustment or a new developing trend line. Goals would be moderate growth (lean towards safety) with a steady and growing dividend. I currently hold VIG and would want to expand my US based exposure. Position would be held in either a cash or rrsp account. Many thx. Steve.

Q: My question concerns my rif which has 50% cash right now with u.s. div. stocks representing that 50% invested. I am considering investing equally in usmv - aem and cwb (convertible bond etf) in this rif. Does this make sense in todays investment market with the u.s indexes at all time highs and trading sideways or should i hold that cash into year end . That cash in the rif represents about 23% of my overall cash position. We are 70 yoa with enough income from canadian dividend stocks to supply us with our living so look at this amount as next generation money...thanks for the great service...

Q: You recently responded to a question on ZWC, and suggested that you also liked XTR for income.

What specifically do you like about XTR, and what happened to the share price in 2016 ?

Q: Silver stocks have had a run since mid-year; does the team have opinion on silver itself and a preferred method of investing in the commodity.
Thanks... your thoughts are respected and appreciated
Doug

Q: Hello 5i team,
I'm looking for a one stop global balanced dividend etf at this time, for the next 4 year time frame.
Maybe VGRO, Vbal etc. but not prefered, I'd like about 3% Canadian content in it.
Too much in Canada already.
Any ideas other than balancing MAW120 or XAW with a GIC ladder ?

Q: With interest rates predicted to go down why would a provincial long bond fund price drop? Lower interest rates should increase the fund price.

Q: Hi,
Are the monthly distributions paid out by FIE considered `dividend income' and eligible for the dividend tax credit? Thanks

Q: I want to get more defensive going fwd I suspect Utilities + consumer staples should be increased are ETFs or individual stocks the way to go?. What other sectors/ stocks should be favored thanks

Q: How would you play the US Reit space at this time? ETFs or specific stocks? Can you recommend a couple of each?
Dennis

Q: Back in June 2011 we purchased Scotia Dividend Fund 6372205 no load @ 41.95 today it's at $68.80 for RESP for Granddaughter.Initial inv. 2,763.29 and today worth 4531.41.We will be visiting them next week.Usually receive div. in December.She has 2 years to go before graduating.Should we sell and buy bond fund XLB to make sure we don't lose any value that has built up.Tks

Q: ZSP is an unhedged Canadian Dollar ETF. It has not done as well as the US Dollar ETF, symbol IVV.

Why would that be so? Shouldn’t their performance be identical?

Q: Good morning,
This is a follow up to one of my previous questions re: Horizons Total Return Index ETFs and more specifically HXT:CA and HXS:CA that I intended to purchase as long term core investments in my grand childrens' in trust accounts prior to recent proposed changes in the recent federal budget affecting the favourable tax treatment of Horizons Total Return ETFs (No distributions).
It is my understanding that Horizons ETF Management Canada plans to soon (end of Nov 19) restructure HXT-CA and HXS.CA along with several other of their ETFs into Corporate Class funds.
Given that one of the main benefits of Corporate Class funds is its ability to minimize and defer taxes, would you consider these Corporate Class funds and the Horizon Corporate Class funds in particular, to be a suitable long term hold investments for my grand children's non registered in trust accounts and if so would you please provide a few recommendations?
Thank you for thoughts on this.
Francesco