Investment Q&A

Q: I have a question about VFV and index ETFs generally. If equity markets are facing headwinds in the next year or so as some analysts believe, would this be the wrong time to sell individual stocks in my investment account and go to index funds? My goal is to simplify and de-risk my portfolio and reduce some volatility. Thanks for your help, Ron

Q: This ETF has shown on May 31,2018 95 million Outstdg shares. On Nov 1 they had 99 million shares. which in my opinion diluted the value of my shares.??
I called them and they said, that they had to issue new shares as Institutional clients asked for it.I said why they did not come on the open market and bid up the price. He said it doesn't work that way. I said isn't it like a Central Bank who just prints more money.Can you clarify who is right? Am confused.Art

Q: Can you suggest a couple of low cost, US financial ETFs in CAD for me to follow up on? Thank-you.

Q: I am setting up a fixed income portfolio for 5 -10 years with little need for income. HISA @ 15%, HTB @ 5%, HBB @ 5%, PYF @ 5%, HFR @ 20%, MFT @ 50%. I would increase the Horizon's ETF percentages, but liquidity is low. Would you please comment on this set up. Thanks for your service.

Q: Greetings 5i,

My question is twofold, so please deduct two credits if you see fit. I have some cash to deploy into the bond portion of my fixed income allocation, and would like your advice about how to proceed. Currently, I have VAB.TO and AGG for broad based bond market exposure, and XRB.TO for inflation linked bonds. To this, I am considering adding an ETF strictly devoted to Canadian government bonds in an attempt to add increased long-term safety (I am becoming a little skittish of corporate bonds).

This addition would be a very long-term hold (likely 20 years or more), and would bring my bond allocation to roughly 15% of my total portfolio (the majority of my fixed income investments are comprised of GIC ladders).

I am 37 years old, debt free, and fairly conservative in my risk tolerance. My investments are solely for the purpose of providing for my retirement, and I will have no need of their funds for the foreseeable future.

My research has led me to either an overarching fund such as XGB.TO or VGV.TO, or to one with laddered maturities like CLF.TO or CLG.TO. Given my situation and style, do you feel as if the addition of a Canadian government bond ETF makes sense for my portfolio (as opposed to simply adding to VAB and AGG)? Moreover, if you do approve of said addition, which of the aforementioned funds would you consider to be the most beneficial?

Thank you.

Q: Is it time yet to pick up more HPR for long term " fix-income" hold?
Thanks.
Desiree

Q: 3 best etf for rrsp for cdn, us and international equity exposure?
MJE

Q: Can you recommend a US small cap ETF that is Canadian based or similar as I would prefer to stay away from US reporting on form 1135?

Q: Good morning, I have recently shifted from a third party manager and am reviewing the pref share positions I currently own. All are individual share positions. Am I better off going with CPD versus individual ownership to share risk and also to simplify my management overall. Thanks

Q: Is the decline in preferred shares overdone...how much further down could it go? and under what scenario? For a long term, safe(r), diversified investment, does it not seem like a good time to add to a position?

Q: Hello, HTB was suggested as a top pick on BNN recently. I had never considered such a long term bond fund, however I am not that smart...comments please

Q: Hi Team
Came across this etf on BNN. any thoughts? Would it have a place in a portfolio for this kind of volatile market? Thank-you in advance. Sam

Q: Good afternoon, looking to hold a 20% allocation of the American market through ETFs (CAD dollar preferred). Currently hold VUN, and I am looking to add another ETF to complement it - was thinking ZSP or VGG. Any opinions on either of these or any others? Thanks

Q: I am looking for a gov't bond etf /fund to hedge away some equity risk. Can you recommend a liquid gov't bond etf for US treasuries?

I would also be interested in a similar version for Can gov't bonds, if you thought it would produce similar results.

Currency is not an issue.

Thanks, Greg

Q: For a tfsa, just starting in 2019, what 3 eft would be best?
MJE

Q: In the preferred share space I own both cpd and Ecn.pr.a. I am down a fair amount on both. Does the market really affect prefs that much. I bought because of the reset feature . Assuming higher interest rates the reset rate would be higher. No indication yet of falling rates in which case I would sell CPD and take my losses. On the other hand minimum rate reset preferred guarantees a specific rate protection on falling interest rates while at the same time having a possible increase in the reset rate if interest rates rise. Looks to me the best of both worlds. My investment is for income. Final question , will price go back to par on reset date.
Can one expect the the closer to reset the closer the value will be to par.

Q: Hi 5i Team.

I have positions in the three ETFs listed above representing financial and Canad/US real estate sectors. The ETFs are at a reasonable cost and provide good yields. What is 5i's opinion about these three ETFs.

Thanks

Iqbal

Q: I have a 1/2 position in CPD. Do you think this is a good time to increase to a full position? I hold this in a LIRA and consider it a long term hold. Thanks - Richard.

Q: Good morning,
Both of our family TFSA accounts are currently invested in their entirety with a variety of Mawer Mutual funds (100% Equity). At 70 years old, I would like to reduce the risk profile of our TFSA accounts from 100% Equity to a more classic 60% (equity)/40% (fixed income) balanced portfolio.
Of the five investment options for our two family TFSA accounts which are used as an estate planning tool with the intention of never withdrawing any funds and leaving the proceeds to our grandchildren, which of the following options would you recommend, in what order and why?
Option 1: Staus Quo.
Option 2: Invest all TFSA funds in the Mawer Balanced or Mawer Global Balanced Fund.
Option 3: Invest all of the TFSA funds through a Discretionary Money Manager that currently manages our family RRSP and Non Registered accounts with total management costs of 1.30% (Money management fee, Sub Advisor fees, Custody fee, Transaction fee plus HST). The average long term target rate of return being 4.5% after fees for this balanced portfolio of which 25% of the portfolio is invested in alternative investments to supposedly further reduce volatility.
Option 4: In an effort to further simplify, reduce fees and perhaps improve long term performance of our TFSAs, invest all the TFSA funds directly in the Vanguard Balanced ETF portfolio (VBAL) through our discount brokerage account.
Option 5: Invest all the funds directly through our discount brokerage account in a combination of ETFs that covers 20% Bonds/32% Canada/32% USA/16%Global and if so what would be your preferred ETF recommendation.
I thank you in advance and look forward to hearing your response and recommendations.
Francesco

Q: Hi, are the interest distributions in bond ETF’s like XBB included in the price of the ETF. So when looking at the chart of XBB over time are distributions included in the price? Thanks.