Investment Q&A

Q: What comments do you have about KBWD - Invesco KBW High Dividend Yield Financial ETF? On the surface this Powershares US ETF seems too good to be true with an average dividend of 9% and share price growth from $12.00 USD since inception in December 2010 to a current price of $23.34 USD on July 3rd with a 200 day MA of 22.46. Other than a 25% correction in early 2016, the share price growth has been steadily upward since inception. It has a very high MER of 2.4% but the PE ratio is 9.1, PB ratio 1.04 and beta is 0.754. Are there any reasons to avoid this ETF?

Q: I am interested in purchasing 1 or more of these 4 active Vanguard, ETF's. Can you point me to some good articles and research which would help me determine the %allocation and in which market cycles one product may be most suited. I was thinking of allocating approx. 100K to a combination of these 4. In your opinion can you rank these from 1 to 4 where 1 is the product you think is the overall best.

thanks!

Q: Morning,

I have a 2/3 position in ZWU and like it for the 3 sector exposure, covered call and high yield with DRIP. Would now be a good time to add the other 1/3 or wait until after the summer? What are your thoughts on it's exposure and stability for a long term hold?

Thanks!

Craig

Q: I am looking for a US dollar denominated ETF with a good yield and covering mostly large, stable companies. I was considering SPYV (I like the P/E, yield and expense ratio here) or DVY. Could I have your opinion on these choices? Do you have other suggestions?

Q: Hi,
I'm rebalancing my portfolio and I am underweight in US equities. Based on current market conditions and high valuations in the US markets I am reluctant to purchase US equities. My thought is to purchase an ETF like XHU that pays a decent dividend. In the case of a market correction I would have the dividend. Your thoughts on this strategy.

Q: To add to Julien’s post from today on bonds. I am in a very similar situation, younger (early 30s) with no bond exposure, all equities in the portfolio. I’d like to start adding some bond exposure through ETFs and did appreciate your suggestions on specific names. My question is, what etf would you say is a ‘one stop shop’ for bond exposure, as I like to keep it to one or two names at most. I’ve seen ZAG or VAB mentioned before. I’d like to keep it in CAD as I don’t want to add exchange risk. The purpose for the bond exposure would be to add uncorrelated assets and reduce volatility. Thank you as always

Q: could you please give me the ETF's if any in the nursing home field Can. and/or US
aso any top rated health care ETF thanks Paul

Q: What is your recommendation on
Dynamic global dividend funds series F
Or maybe an ETF that is similar
Thank you for your input
BD

Q: Hi. I hold a position of INVESCO S&P S/C HLTH CARE ETF in my portfolio. It's a diversified (75 stocks) US small cap healthcare ETF.
I would like your opinion please. Thank you.

Q: I currently hold VYMI for large cap international dividend income. There is a fairly new Fidelity product holding international large cap ( FIDI) . Do you see any advantages of FIDI over VYMI? Do you consider VYMI a reasonable ETF for international exposure? It is down recently. Would you continue to hold this investment? Thank you kindly for a comparison of the above efts and for your comments on continuing to hold VYMI.

Q: Hi Peter/Ryan
Are there any ethical type ETFs (CDN, US and foreign) or low cost mutual funds that you could recommend? Any thoughts on this approach.

Much thanks

Q: I have a fair chunk of U.S. money in a non registered account. What would be a good investment if any for this money, taking taxes into account. So far have just been benefiting from our sliding currency. I know that we are in the late stages of the market, and really cannot afford to lose a sizeable chunk.

Q: FAP seems to be a loser, and i am just now starting to weed out the bad and cut back on my stocks. i will be selling FAP, what would be a good stock to replace it with? i am heading into retirement.

k

Q: 5-I,

I am looking for an investment to cover the small cap market in the USA.

1) What are your favourite ETFs that I guess would primarily cover the Russell 2000. I own VTWO but am interested in ones in Canadian dollars, either hedged or unhedged.
2) What are your favourite mutual funds that cover this space?

Thanks

Paul

Q: Good morning,
A large portion of my non registered portfolio is comprised of a combination of Mawer Equity funds which over time have all performed very well.

In reviewing the annual performance of these funds, I noticed that the asset under management (AUM) for the Mawer Canadian Equity fund has grown to nearly $3B and that this fund has had difficulty beating its benchmark in the last two years.

My question is whether or not you would recommend switching to another Canadian Equity mutual fund or ETF with a lower AUM amount, lower or equal MER and better performance potential.

Thank you for your thoughts and recommendation.

Q: What is your opinion of the Purpose Tactical Asset Allocation Fund, RTA. Management fee is 0.75% and it holds essentially ETFs. Are investors losing too much to fees here considering the ETFs being held also receive fees. Thanks

Q: Hello,
How effectively can ZWC replace our ZWB and ZWU holdings?

Thanks for your efficient service and re assuring advice.
regards

Q: In your response to Julien today on bonds you said among other ETFs that you like CPD. Isn’t CPD holding preferred shares not bonds?

Q: I'd like to know how much you find important to diversify through asset classes for a young investor with little financial responsabilities and a salary covering well over his regular expenses.
In my situation, I have no real estate, but 95% stocks diversified across sectors and geographies and 5% cash position to cover 8-10 months of living expenses in case of emergency. I am 27 and wondering if it is OK to have no bonds at all and focus on stocks? If one can tolerate a severe market correction-recession and has 25-40 years ahead of him, would bonds only be useful to help the investor feel more comfortable and a full-stock portfolio still be a better option?
Is the %Stocks=100-age a good thumb rule or just an overrated commonality?
If you consider one should still always hold some bonds, what would you consider a reasonable weighting for a young investor and what ETF(s) would you suggest?
Thank You!

Q: Hello I am looking for your general thoughts on the growing MJ industry. I had purchased the HMMJ etf at the start of it's trading debut and once I had doubled+ I sold off enough to cover my initial investment. I am now playing with the house's money so to speak. With a date set for legalization I think these companies will start to have more pressure to perform and make money. If this is the case do you think a serious drop in stock valuation will happen if and when these companies don't make expectations? If you were in my situation would you sell and look to put the profit to work elsewhere? If yes then any suggestions? Please assume I am well balanced in all accounts. Deduct as many question credits as you see fit. Thanks