Q: Just an endorsement: Subscribed yesterday to the ETF and Mutual Fund newsletter for two years and within an hour learned a couple things that will far more than pay for the subscription. I know there's lots of etf information available online, including within 5i. However, I find it beneficial to have it focused in one trustworthy place without ads, questionable motivations, or other distractions. So thanks!
Q: Greetings
As a follow up to a question from Paul, you might consider 'HACK' an ETF focused on the cyber security industry. 5i please feel free to offer your own commentary as to its suitability or performance, etc.
Q: Hi Team,
I am looking to buy gold bullion in US dollars backed by bullion held in Canada. I believe the Mint's MNT.U is my only option. Any concerns with a holding in MNT.U? Did I miss any other options?
Thank you, Michael
Q: What would you recommend for someone with a short term horizon 6M-1Year with a low risk tolerance. Should I put everything into bond etf such as ZAG or even VAB?
Q: I read on the FAQ's of an ETF Website the following question:
"Are an ETF's Assets Under Management and Trading Volume good indicators of liquidity".
The answer they gave was: "No. The most important aspect related to the liquidity of any ETF is that while the liquidity of the ETF itself (the ETF’s own trading volume on the exchange) may be deemed poor or limited, the key gauge of that ETF’s liquidity is the liquidity of its underlying exposure.
With the mechanism of creation and redemption of ETFs, a designated broker (DB) is responsible for ensuring that market prices track the ETFs’ net asset value (NAVs). If the underlying securities can be easily bought and sold, a tight fit between price and NAV is easily maintained.
Hence, an ETF with small AUM and little trading volume can still be highly liquid if its underlying basket of securities is liquid."
Is this essentially correct, and if it is I'm still not sure how this would work? I have avoided many ETF's for what appears to be poor liquidity and trading volume. If I want to sell an ETF and level 2 quotes show a large spread to sell for example 1000 shares, will additional shares in the ETF somehow be created to get a fair market price based on the underlying stocks held in that ETF if I put a Sell order in on what appears to be a low volume ETF? What I am getting at basically is - is there any way of knowing what the price spread will be on the sale if additional ETF units that are created "on the fly" by the DB? I may not be interpreting the answer given above so please try to expand and clarify their explanation.
Thank you.
Q: What is your opinion of adding VVL & VMO in equal weight for a global value/ momentum strategy to my portfolio? Or adding just VVL... also could you comment on currency risk here since these products are not hedged to CAD.
Thank you.
Q: Hi,
I have these 4 in my RRSP and have about $26,000 in cash to invest there. What would you suggest for this money and would you suggest changing of any my current holdings. Looking at a 5 year hold. Thank you.
Q: I have only about 5% of my portfolio in bonds. I own some VAB, but it is showing negative return of 3 to 5% in two different accounts. I am considering selling this and buying some relatively safe stock like BAM.A or BCe..would you agree with this approach..or is this a time to buy more bonds? Thanks.
Q: Hello,
I bought a sprinkling of TD E funds for my grandchildren. I am wondering if this is a good choice or if there is an alternative. These have been constantly increasing and are dripped.Should I just leave things alone and let them percolate?
thank you
Stanley
Q: With all these markets at record highs, what do you think about IWO here? I'm thinking of picking some up. What % would you buy here at record highs like this?