Investment Q&A

Q: In February of each year, iShares attributes a significant amount of Non-Cash Re-Investment of Capital Gains for the previous year for holders of CEW. For tax year 2018, it was about $0.533 per unit (roughly 4.3% of unit value). This increases my average cost, so when I sell it in my cash account, my capital gain is reduced (or loss is increased) an equivalent amount. I don't mind this too much in a taxable account.
1. However, If CEW is held in a registered account or a TFSA, am I correct in believing this non-cash reinvestment offers no advantage whatsoever?
2. Why don't these ETFs simply issue a cash distribution? That would benefit owners irrespective of which type of account the units are held in.

Q: Hi the dividend on this etf shows on iTrade as 3.43%. However the stated dividends of the big five show as being between 3.9-5.2% when I check them individually. Is the difference explained simply by the management fee/mer? Should I sell the etf and just buy say two banks and if so whIch two would you recommend? Thanks, Bill

Q: How is the dividend for this ETF taxed?

Q: What do you guys think of Larry Berman's new tactical dividend fund ? How safe is it in a market correction?

Q: Hi There,
PSJ is a US listed ETF.
How can I add this to my Watch List?
Currently, it doesn't show-up when I try to add it.

thanks

Q: I would like to invest in some Chinese ETF.s or stocks. Have thought of Alibaba for a while. What do you recommend? is there anything on TSX?
Margita

Q: Fund of funds.

as a follow up to my ZBAL question, when a fund is composed of the families funds (in this case BMO) , js the indicated MER the total Mer. Or are you paying the MER of all the funds, but the only one indicated is the one of the master fund, in this case .018

Q: How would you rate this mutual fund has a retirement income producer?

Q: Hi gang, If my portfolio is set up 50/50 with 50% in equities and 25% in bonds and 25% in cash, and if I take the 25% cash and invest in a inverse mutual fund or short the index would my split go to 25/75? Looking at ways to ease the pain during the next bear which we can start to see in the rearview mirror, whether its this year or next. Just don't like giving money back.

Thanks
Anthony

Q: I currently have 20% fixed income in my portfolio. 10% is laddered GICs and the other 10% is in ZAG ETF. I'd like to add another 5% to fixed income and was wondering if you think XIG would be a good source as it adds some US exposure and a slightly higher yield. How risky would it be? Or do you have other suggestions? Please note that I am not interested in junk bonds.

Q: Could I have your thoughts on the ETF, FIVG, and is there something similar in Canada?

Q: Larry Bergman was on BNN on Monday he likes this etf ( EMLC) to park cash . He suggested that the present 6% yield + some value appreciating in US currency Vs Cad could net 10% return - your thought's please. Any specific suggestion to park cash would be appreciated

Q: Good afternoon 5I.

When I bought CPD I thought it would hold its value better then it has. I did feel better when I looked at your income portfolio I see its down 20% and you still hold it.
What will it take to make CPD change direction?
Do you still feel like its a good position to have in a income account?

Thanks

Q: In response to your answer to my question. A capital gain cost on an interest vehicle removes any benefit of investing in the mutual fund (TDB8152), when the Canadian dollar is falling, as it surely is. It would be better to leave the money in cash. Is there a better alternative?

Q: Hi - looking for recommendation for ETF recommendations within my TFSA. 40% of TFSA will be for this ETF mix and 60% is in your Balanced Equity model. Long term investment horizon for me as in mid 30s. Any recommendations?

Q: What do you think about the Etf’s ZEF and EMLC at this time. If you had to pick one, which would it be or both.
Thanks

Q: Hi 5i,
I would appreciate your thoughts on these two CDN listed ETF's that employ two different methods for creating a US Low Volatility ETF.
ZLU uses individual stock Beta and XMU optimizes for minimum portfolio Variance.
ZLU reconstitutes/rebalances once per year and XMU does it twice per year.
ZLU trading volumes appear higher than XMU but, XMU underlying US ETF is very high and high market value.
ZLU holdings are 103 and ZMU is 215.
MER's are about the same for both at approx. 0.33
I intend to use these in my RRSP and TFSA and trade them based on monthly trends.
ZLU holds the stock directly so there may be some saving in an RRSP. XMU holds the underlying US ETF for exposure.
Which one would you buy for a RRSP/TFSA?
Can you suggest alternatives that might be better for US Low Volatility sold on a CDN exchange?

thanks

Q: What is your take on buying VEQT ETF? Do you see the potential of growth as the ETF is opened recently, or it is risky? thanks.

Q: Hello 5i,
I am not very bullish on the Canadian economy considering the provincial and federal politics and lack of leadership in regards to the Energy and now Agricultural Industry.
So I am thinking of splitting my portfolio up into 3 categories, Growth Stocks, Dividend Paying Stocks and ETF's for global and sector diversification. ZLU & ZWH for US low volatility and Dividend, CDZ for Canadian Dividend and VGRO & XWD for global diversification and growth. Your thoughts or recommendations would be appreciated.
Thanks,
SF

Q: Greetings,

i am trying to clean up my US 401K _ i own both of these for income - do i need both and will they act the same?

Thanks