Investment Q&A

Q: I don't currently have a stake in the US technology industry, and am thinking of using the recent pullback as a good entry point. What do you think of the US tech sector for a long-term hold? Could you comment on using XQQ to meet this objective and an appropriate percentage allocation? Are there any other TSX/CDN$ ETFs with large holdings in US tech that you would recommend instead?
Thank-you

Q: Good day,
Can you tell me why there was such a big volume spike in CBO today and is that a good or bad thing. Thanks

Q: Could you please list a few efts Canadian and US that would protect from a down turn in the market.

Q: Hi 5i team,
I currently have the above ETFs. I find that the dividend are a bit low (~2%). I was wondering if there are alternatives to the above in the 4-5% dividend range for income?

Andrew

Q: In my portfolio I am overweight in Canadian Financial (Banks) and the US tech stocks, but I have no exposure to the Materials sector (except gold.) Can you please recommend me a few materials and mining stocks (in the order or your preference) or do you suggest an ETF.
Based on the recent weakness of the sector is this the right time to get in this sector? or do you suggest that you should stay away

Q: Can you give your thoughts on holding this ETF for a long term hold. I have some for a few years and have done well and was thinking of increasing my allocation.

Q: Good Morning: I have been raising my cash holdings somewhat in light of a prolonged bull market with high equity valuations and increasing geopolitical risk. I have some of this cash in HISA's with an average yield of about 1.7% or so. However, I am considering putting some of it into a bond etf since I don't feel I have the know how to successfully put together a ladder of actual bonds. What I would like your opinion on is what would be the best 2 or 3 options in Cdn. bond etfs for preservation of capital combined with optimal yield (recognizing that the two are almost always working in opposite directions.) Of course, if you have another option for parking cash, that would also be appreciated. (I do have some preferred share holdings but past experience has taught me that they are not immune to market corrections.) Many thanks.

Q: To add some diversity to my Canadian holdings, over the last 5 years I've held VUS, VFV and VEF. VEF is about 11% of the portfolio. The 2 US ETFs have outperformed VEF almost 2 to 1.
My question is do you think it's necessary to have EAFE exposure? I'm thinking of selling VEF to raise cash so I'm ready for the next dip in north American markets. Thanks for all of your great advice over the years. cheers

Q: I have American money sitting in a US margin account and not earning any interest. Do you have a suggestion for a safe use for it that could earn us some income?

Q: Hi 5i,
Just a comment on Nino’s question and your answer about the choice between paying up for a REIT ETF like ZRE/XRE versus holding 8-12 individual REITs. My choice has been the latter and I have been happy with it. Your answer suggested that rebalancing 12 holdings annually would cost $120 at $10 a pop. My experience has been that the reality is much less than that. Because the REITs tend to move as a group more than their individual movements relative to the group, in holding 8-12 decent quality REITs I haven’t had to do more than 2 or 3 rebalancing transactions in any given year. Except for a couple of extraordinary years my REITs have really been low maintenance holdings. Cheers!

Q: VSB looks to include both government and corporate bonds. Is owning VSB the equivalent to owning CBO and CLF? Looking to reduce number of holdings and the MER on VSB is attractive. Is there something similar that includes corporate and govt short term bonds that you like better? Thank you for all that you do!

Q: I currently have, in ETFs, 20% in U.S. (VTI) and 10% in international (5% in VEF and 5% in VEE). I'm thinking that long term my U.S. and Int'l should be equal weight as one never knows what countries will perform the best. What are your thoughts on this and recommendations? Thank you.

Q: Greetings, I've always had a bit of a difficult time understanding bond ETF's or more specifically how they may be expected to react to economic events. Some observers interpreted recent comments from the BOC as perhaps indicating they may not be as opposed to a rate hike as they have been for the last 7 years. If rates were hiked even a little in Canada, I assume bond ETF's would react somehow. Does it depend on the nature of the holdings? Or is the underlying reason for the rate hike more important? Could a bond ETF ever respond neutrally (or even positively)? I think I understand how an individual bond reacts, and how if I held it to maturity it really wouldn't matter, but I am thinking specifically of ETF's like VAB and CLF. I would really appreciate your thoughts,
Thanks

Q: PSI.US is an ETF in the U.S. semiconductor industry.

I recently made the mistake of loading up on two of its better performing stocks, NVDA and LRCX.

Do you like PSI.US?

Thanks Peter,
Don

Q: Your thoughts on this etf : SKYY
Thank you.
P.

Q: Hi I looking for a long short fund and option short for down protection. I like Purpose and own some funds but I have had good returns with others as well. Your opinion is always appreciated! Thx, James

Q: I'm holding only ZRE in my TFSA for simplicity and ease, value is approximately $62k. It costs me .62%, wondering if I can buy 8-12 REITS equal weight directly (saving the MER), and have the same or better results as ZRE. Your thoughts and recommendations. I like the simplicity of ZRE, but dislike paying the MER if I can avoid it.

Q: I want to play the European financial sector in an ETF(s) that is(are) currency neutral. What would you suggest?
Thanks, Hugh

Q: Hello team,
I hold positions in VIG, VE ZQQ and CDZ. The ETF portfolio reads "trim 4% VIG/IWO and initiate VGT/XLY, 2.5% VE and 1% CDZ. Should I add to XQQ instead of initiating VGT?

Q: I realize you are not big fans of covered call strategies however if an investor is in a situation whereby they want the income only and do not care allot about the underlying growth in the ETF, is there something really negative about these funds that I am missing? Would an investor end up paying more tax compared to a straight forward dividend ETF?