Investment Q&A

Q: I hold small weightings in cdz,zwc,zwh,zwe as well as holdings in Canadian utilities. I am thinking of replacing cdz with either zdh or cyh to increase my international holdings. Would you please look under the hood of zdh and cyh and would you recommend this move or do you have another recommendation?. Thanx. Great service.

Q: Not too happy with the price fall of CLF. Would you consider switching to PYF a decent move....just looking for some relative safety and yield over the next 3 to six months. Thanks.

Q: Preferred Shares:
Can you explain the difference between Preferred and common shares ?
can they be considered "bond proxies"?
Is now a good time to add to "CPD"

Thanks, Peter

Q: Hi. Currently own BCE and T. Looking to increase my weighting in communications. Any suggestions.

Q: I've recently sold my ZRE position and am looking for some suggestions on what to consider purchasing with the extra funds on the fixed income side of my portfolio. My equity portfolio is balanced; I am about 8 years from retirement, and am conservative in my approach. I am about 30% in laddered GICs, 5% individual bonds, 3% CPD and 5% in cash. I don't have any bond ETFs (and am concerned about the principal in a rising interest rate environment). What to do with the extra cash? More CPD? Or an international REIT? Or a bond ETF, Canadian or International? Or something else?

Q: BMO ETF ZWH is seriously underperforming YTD, in a strong US market. According to BMO website it is negative YTD whereas ZWA is up over 7% in the same timeframe. Is there some reason for this ? Longer term ZWH outperforms ZWA. Thanks for your insight.

Ted

Q: Without regard for sector diversification and/or weight - If I needed to raise some cash in my portfolio, and wanted to sell some of my losers...which of these names would you sell in order of priority. Could you kindly provide rationale for why you might sell vs. hold. Thanks

Q: what would be your suggestion building a balanced portfolio using only us etf's portfolio size about a million, time horizon 10-20 years

Q: Does Royal bank have a etf energy.. Would you recommend it and would now be a good time two buy? She has to invest some cash. Thanx for everything. CLIFF

Q: During the Spring I liquidated my CDN Equity portfolio. I wanted to move away from managing indidual positions and move to a more passive approach. Then I read Ryan's excellent article, Why it's almost impossible to be a passive investor in Canada. I looked at HEW; but it is very small with only about $12m invested. Are there other ETFs that do an equal weight S&P 60? I also am considering VCN and CDZ. I also looked at Two mutual funds, Mawer Canadian Equity and Lester CDN Equity Fund. There are High Conviction funds available; but with very high MER's.
Would you please recommend a portfolio structure that would meet my needs, I am a conservative senior. Please have the suggestions add to 100%.
Thanks Guys for keeping us thinking outside the box.

Q: I have 2 questions. I am down 20% on clr and I would like your outlook for the next 6 months to a year. Time to sell or do you see upside? Would you look under the hood of xsi and comment on this etf as fixed income for a 1 to 2 year hold and what the influence of higher interest rates might be on the components? Thanx.

Q: CLF is often recommended as a good, safe place for money but it only moves down. While meager interest is paid that really only kicks in tax which further reduces, or most likely eliminates any gain...where is the benefit? What conditions would have to occur for it to move up?

Q: ZWA yield is 4.6%; ZWH yield is 5.8%. Is the risk higher in owing ZWH? Which one would you recommend? Thanks.

Q: Can you name a few Consumer Staple companies US or CDA, mid or large market cap, that have some revenue (top-line) growth.

Many of the old school favorites now seem to have decreasing revenue year after year.

Thank you
Stephane

Q: I Would like to buy a canadian ETF that has all us banks, preferably the large banks. Either hedged or unhedged, depending on your decision as to which is better. Do you think this is a good idea?
Thank you for all your great help.

Q: what is your favourite ETF or growth stock that is outside Canada. Is it a good time to buy it now?

Q: Hello again. I’m interested to know how to consider currency when deciding between hedged, unhedged, and US dollar ETFs. In your answer to my last question, you mentioned that you prefer VPL over VAH; how was currency a factor in your judgment? Also wondering if you would approach European ETFs similarly, with respect to fluctuations between the Euro, USD and CAD (e.g. VEH, VE, VGK). Are there separate currency considerations I should take into account for each region, including EM? (e.g. VEE vs VWO)

When I hear professionals recommend CAD-hedged ETFs when the USD is falling, it sounds tactical but what if an investor has a long time horizon in mind? I’ve heard that unhedged ETFs yield better returns over time, say for a period of 15 years, but I’m wondering if US dollar ETFs are even more preferable, considering that I’ve already got some US cash ready to deploy.

Thanks for clearing up my confusion!

Q: Hi Peter, Ryan, and Team,

I'm a bit confused with your answer to Florence about TXF. Your answer said "This one overlays 75% of the portfolio with call options......".

However, according to the First Asset website: "Distributions are paid quarterly and no more than 25% of the portfolio's securities will have call options written upon them at any given time".

If no more than 25% of the portfolio have call options, doesn't this strategy mean that an investor wouldn't be giving up as much as your answer indicates? Am I missing something here?

Thanks in advance for any clarification.

Q: Hello 5i,
I am looking to increase my U.S. and International exposure. I currently hold VIG-N, JNJ-N and a number of Canadian ETF's which also hold U.S. equities. I am open to either USD or hedged products and would like a yield in excess of 2.25% if practical. Since I look to yield for income I was considering ZWA. Would you have any other options you would prefer over ZWA?
On the Int'l. side I hold CYH and ZDI and am happy with both; I held VEE at one time, but the yield is on the lower side for my needs. Should I just increase my holdings in these two or, again, do you see a better option? I could move out of one or both of those if you think there is a more compelling option I'm missing.
As always .... thanks so much for all of your help - very much appreciated!!!
Have a great summer!!
Cheers,
Mike

Q: Realizing you don't cover US funds that much, but can I get a quick opinion on VIGI? Looking for a long term hold with decent dividend. Any risks you see?