Investment Q&A

Q: Further to your reply to Andrew, it would seem that the continued distribution is reliant on the volatility of its marijuana stock holdings, and particularly the market’s opinion of the overvaluation of the holdings.

I would assume that the unit value is similarly based on that assumption. That is to say that this fund’s purpose and value is as a shorter.

Is this a reasonable analysis? Why would I want to invest here and pay the 0.75% fee, as opposed to shorting the holdings directly?

Q: Do you think CDZ and XTR etf's would compliment each other, or is there too much overlap, thanks?

Q: Thank you for your answer regarding the Can $ interest payment of ZAG. I would appreciate it if you could also please respond to the last part of my question, re XBB or ZAG purchase decision. (which I am copying below). The amount of purchase being suggested by the Portfolio Analytics is a significant (to me) value of $240,000, so I would like to get it right.
"Are there other pros/cons I should be considering ? Also, any thoughts on purchase timing of these bond etfs - or would you recommend a gradual entry over the next 6 months or so?

Q: Please comment on the above ETFs for gaining exposure to Africa, and more generally, whether you believe an investment in Africa is a good idea at this time.

Q: Consider the following ETF portfolio and associated weightings:
ZSP 20%, ZWH 5%, ZDV, 5%, SDIV 5%, BOTZ 5%, XT 5%, DGRC 20%, ZRE 5%, ZDH 5%, VEE 5%, VAB 10%, XSB 10%, TCSB 5%

The question has to do with SDIV. Given poor performance of SDIV, I am contemplating switching SDIV to PSI (Invesco Dynamic Semiconductors ETF); would 5i support this move? Or would you rather I add to one of my existing ETF positions, or can you recommend another ETF altogether?

Thank you.

Q: Your Portfolio Analytics recommendations was a good reminder that I really should increase the Fixed Income component in our RIFS by a fair amount. There were 3 categories each with two suggestions: 1) "Regular" Fixed Income 2) Fixed Income Defensive Diversifier 3) Fixed Income Aggressive Diversifier. In the 1st category - what I call "Regular fixed income, Two suggestions were given : ZAG and XBB. I was going to select ZAG as it has a better yield (3.86 vs 2.83 %) and a lower MER (.10 vs .19), however, I also notice that the distribution for ZAG is paid in US $. We do not have a significant need for US $ and do not have an active US account . Will the cost of conversion from US to Canadian $'s offset the better yield offered by ZAG ? Are there other pros/cons I should be considering ? Also, any thoughts on purchase timing of these bond etfs - or would you recommend a gradual entry over the next 6 months or so?
Many thanks as always.

Q: Can you tell me what am I missing what is the point in investing in Preferred’s his has lost 40% of its value since 2007 the chart looks horrible If you could time the market you could do better. You could be better off with just blue stocks and bonds.

Q: When looking at an ETF, sometimes I see, in addition to Management Fee and Management Expense Ratio (MER), Trading Expense Ratio (TER). I believe the TER reflects costs of maintaining the current holdings of the ETF in-line with what the ETF is trying to accomplish, and can be quite high when there is significant portfolio turnover. Is the TER included in the MER, or should one add the MER and TER together to arrive at the true cost of holding the ETF? I had always thought that the MER was the 'all-inclusive' cost, but I hear/read very little about an ETF's TER (and often, this is hard to find). Thanks.

Q: Hello
I just sold my mutual fund edgepoint and I want to replace it with a another global fund or ETF or closed fund like cymbria. I find the management fees to high for an investor in td webbroker. They dont have a serie D. Can you suggest me a similar investment better return or similar with lower risk or similar but with lower management fees. Its could be in US dollar or canadian $
Thank you

Q: Hi there, I like the risk profile of the names that you tend to select in the Balanced Equity Portfolio, however I am looking to build a growthier version that is concentrated in fewer names. Which 7 names would you remove to produce a portfolio with more torque?

Also, I am looking to layer on some US exposure at about a 25% weighting of my portfolio. I was thinking either going all HXQ, 50/50 HXQ/CYBR or 50/50 HXQ/VFV. Which do you think would be the best mix?

Thanks!

Q: Good Afternoon,
I am looking for a pure growth fund for a 25 year old. Perhaps a global growth fund that he can add to every month for years to come to maximize growth, any thoughts?
Thanks

Q: I have a well diversified RRSP which has me set. However, I would like to make more that 1.6% interest in my non-registered account. Can you recommend 2 ETFs for my non-registered account to make some travel/leisure money over 1 year?

Q: hmmj offers a dividend of 5+ %. I don't think many of the underlieing shares give any dividend . where does the cash come from to pay hmmj dividend. do you think it is reasonably safe long term. I would like to invest in the pot market but have difficulty picking a single stock.

Q: Hi
I've read that XTR is the income portfolio benchmark. My question is, and I'm assuming it is Canadian focused having not looked into it yet, is there a US equivalent ? If there is, would having a position in both be overkill?
Thanks
Mike

Q: Do you believe that it is a good time to invest in Africa and do you have any thoughts on the following ETFs: NGE, FLZA, EZA and AFK?
Many Thanks,
Michael

Q: I would like to understand better why preferred shares, as represented by CPD, plummeted in 2007-2008 and again in 2013-2016. They dropped about 35% in the first (recession) episode and about 36% in the second one. Most recently, between September 1, 2018 and now, they have dropped about 13%. How vulnerable would CPD be to another huge drop if the economy continues to weaken through 2019?

Q: Hi there,

I was wondering if you knew of any Canadian listed ETFs that would be suitable for cannabis US MSO exposure.

Also, if one wanted to exposure, would you recommend an ETF such as MJJ, HMJR or HMMJ - or would you sooner buy a basket of a few big Canadian players?

Thanks!

Q: If you followed the Balanced Equity Portfolio and the Balanced ETF would you be fairly well represented in each TSX sector based on previous 5i answers and would you also be well represented geographically ie Canada/US/International ...40% ,35% and 25%. If not what would you suggest to come close to these percentages and TSX sector allocations?

Q: I want to invest part of my portfolio in emerging markets. My present portfolio makeup is 89% CDN equities & 11% US equities. What percentage of a portfolio do you recommend be invested in emerging markets? What parts of the world do recommend for investment purposes & what ETF’s specialize in those areas? Thanks … Cal

Q: Hi Guys
I'm really starting to look at fund fees in my portfolio i.e.
ZWU management fee 0.65 & mer 0.71
SPY management fee 0.05 & mer 0.09
I'm not sure if its apples to apples given the covered call strategy of ZWU do you add the fees together for the total cost to reflect your total return.
Best Regards,
Tom