Investment Q&A

Q: I like what Global X has to offer in their line of ETF's. However, I think I read one of your Q&A responses a couple months ago that their can be a concern with overloading the overall percentage of ones portfolio with a given ETF company. Did I understand that correctly? If so, just wondering what the potential consequences are in doing that, and if you do recommend spreading investments over a number of ETF companies.

Percentages are personal, but perhaps 5i has a ballpark-ish range that they would be comfortable with for a given ETF company (?)

Q: What’s the advantages or disadvantages in holding an s&p500 ETF in Canadian dollars (XUS) vs holding it in US dollars (SPY)? Which would way do you recommend? Would you still recommend buying in US when the Canadian dollar is so weak like it is right now?

Q: Is there a cash holding to invest in that is not locked into a term (like a GIC but with no term), so, with full liquidity? I'm thinking of a high-interest type account within an RRSP so I can go to cash a few months in advance of need for the cash, but still incur interest on the cash as I wait to make a monthly withdrawal. I invest with RBC Direct Investing in case that's helpful - perhaps there is an RBC product that suits my needs.

Q: What is your opinion of the Motley Fool 100 index ETF ticker TMFC ? It looks like they just copied QQQ holdings/weightings with a few minor adjustments.

Q: Hello Team,
What do you think of XHYC for the next 1-2 years? What is the downside? Better to do XLY instead?
Thank you!

Q: Today I asked the following question

"I am looking at hedged ETF's and specifically VSP. I was interested to see how well the ETF tracked the index and found that over a 5 year time frame - it underperformed by about 11%. (Total return for VSP is 81.0% and SPX is 93.33% - The Vanguard US ETF - VOO tracks SPX almost exactly.) I am assuming that this underperformance is because the hedging strategy is not perfect?? .......or does the 11% difference represent the cost of hedging?? Also - would other hedged ETF's have similar comparisons?? Thanks"

The answer

"The performance difference is not that the hedge doesn't work, it is because it does. VSP takes away the currency impact. The Canadian dollar has been quite weak over the time period noted, so VSP has not benefitted from the rise of the US$ vs the C$. "

This answer makes no sense.
If VSP takes away the currency impact - the returns should match the S&P 500 Index ....that is the whole point of hedging - but its 11% off - that is the question. It is either because the hedging strategy is not effective or its due to the cost of the hedge.


The unhedged equivalent Vanguard Canada ETF VFV outperforms the S&P 500 index as you would expect due to the weaking CAD........because it is unhedged....which makes sense.

Q: What is your opinion of this ETF. Would you consider it a buy at its current price. If not do you have any other reconmendations

Q: Hi Team
If you want to invest in Physical Precious Metal ETF US & Can
Your best choices 3 ETS in Can & Us ?
Thanks
Best Regards

Q: Regarding my previous question on Dec. 2nd. I want to make sure I understand clearly so would you please elaborate on what is meant by ¨we think a broadening out of market cap exposure (a little bit) into VTI makes some sense.¨? Thank you.

Q: I have owned an HISA ETF for a couple of months now - in this case UCSH.U. I had assumed these ETF types to be quite safe but am surprisingly already down 0.21% in a very short period of time. What are the dynamics that make this ETF go up or down in value over time ?

Q: I currently own HXY in my RRIF account and have been in a lost position for quite some time. It is a 8% holding in my RRIF. If I decide to sell what would you replace this ETF with?

Q: Do you know of any Consumer Discretionary ETF's that trade on the TSX?

Q: Hello, are there bond ETFs in CAN$ that would not pay interest, for a taxable account? Thanks.

Q: I am looking at hedged ETF's and specifically VSP. I was interested to see how well the ETF tracked the index and found that over a 5 year time frame - it underperformed by about 11%. (Total return for VSP is 81.0% and SPX is 93.33% - The Vanguard US ETF - VOO tracks SPX almost exactly.)

I am assuming that this underperformance is because the hedging strategy is not perfect?? .......or does the 11% difference represent the cost of hedging?? Also - would other hedged ETF's have similar comparisons??
Thanks

Q: Hello, thank you for your answer on the VGAB ETF. VGAB has about 50% of its holdings in the US, can you recommend CAN$ bond ETFs with 100% holdings in the US? Thanks.

Q: Hi 5i,

For a US ETF in a non-registered account, would it be more tax efficient to hold HXS because it doesn't pay a distribution, versus ZSP which does? Would you recommend ZSP over HXS for any particular reason?

Thanks

Q: I would appreciate your thoughts on US small caps and some ideas of how one might invest in US small caps for the next 2 to 3 years. Thank you.

Q: I read in Q&A today that HBB delivers it's yeald as capital gains. How does it work? I searched everywhere and haven't found the information not even on the Global X website.

Thank you all

Q: Could you recommend several Canadian and US ETF's to short the SPX and NDX ? Thanks So many gains with your help, I need to to find some protection.

Q: First off thanks for encouraging me in June to take a position in TKN
I'm up 33% in 6 months, so quite happy. Question is do you see TKN as a good medium to long term hold going forward?

Thanks for the help