Investment Q&A

Q: ETF MERs and recommendations

I am in the process of educating myself through your insights and advice along with other research. My wife and I have used a TD adviser for the past few years and our returns have been reasonable. However, I am digging in the weeds and find virtually all our funds have MERs of 1.8% to 2.28%. Our adviser has balanced our investments to our comfort level of risk. I think we can do better with your advice on replacement ETFs.
The funds involved are: CIF843 2.01%mer, FID1222 2.23%, FID2312.28%, MFC291 1.89%, TDB171 1.79%, TDB2940 2.06%, TDB331 2.06%, and TDB619 2.26%. These funds combined gives an overall 60/40 equity/fixed income which is what we are comfortable with; breakdown is 40% fixed income, 15% Cdn equity, 25% U.S equity, 15% intl equity, 5% other (whatever other is).
Are there a funds or a single fund that you could suggest to help us consolidate these into something where the MER will be considerably less?
I do subscribe to the ETF site but see this site as the go to for my questions.

Thanks for your informative site and previous and future advice.
Best regards,
John

Q: Hello, I am looking to increase by Energy sector exposure from 2% to 5%. I was looking at XEG and HEE as possible options. I realize these are Canadian specific ETF's. I would prefer more of a balance between US and Canada. Any other suggestions would be appreciated.

Thanks for all your great advice.

Q: Is there an ETF with similar holdings to TXF but is NOT hedged. Thanks

Q: Would you initiate a full position in XMH for a long term hold in an RESP, thinking its a good way to get some diversification outside of Canada?

Q: What Canadian etfs follow the Russell 2000?

thanks ralph

Q: Any concerns with tech representing 26% of the S&P500 ? Is it time to move to a DOW etf which has a more reasonable 15% tech weighting?

Q: What do you think of TXF ?

Q: Am I correct in assuming pmif is 100% bonds and would it be a good fit for the fixed income portion of a retirement portfolio along with a GIC ladder with vbal to pick up enough equity for the balance.other thoughts appreciated. Thanks

Q: Friends given the higher price to earnings ratio of the growth stocks in the Russell as held in IWO what is your opinion of IWD the holdings of which have a substantially lower p e ratio from both a safety and a growth perspective (does a lower growth tilt in IWD get offset by these holdings' enhanced safety in your view). Do you think a half position in both makes some sense this late in the cycle or would you stick with the growth provided by IWO. What concerns if any do you have re IWD and do you have a different recommendation for a Russell value etf. Many thanks as always.

Q: I have owned HXS for some time and intend to keep it for a while. Can you advise on a similar ETF that encompasses US small cap stocks and would you recommend it in view of everything that’s happening - US economy, US/Cdn $ etc.

Q: I look after my daughter’s TFSA and Investment accts. Her weight in technology is 10% with one stock (KXS 5% weight) plus QQQ with tec portion about 5% of her portfolio. Looking for one more CDN tec stock plus preferably a non hedged ETF for additional US Tec exposure. Her holding period should be about 10 years. Help.

Q: Is this a good time to a initial a position.My understanding is that the tax reform is good for US small cap & tariffs wars has limited negative impact as mainly domestic.Thanks for u usual great services & insights.

Q: Can you recommend a small group of companies in Canada that are principally involved in Artificial Intelligence. I think you advised in the past; however, I can’t find your response.
Thanks, Jerry

Q: if interest rates were to rise 1% next year what would happen to clf it now pays 2.7%.has the low bonds in the portfolio now been discounted by the price. thanks as always brian w

Q: Hi Peter, Ryan, and Team,
What is your opinion of a recent suggestion by Larry Berman that "If you want to replace it (BCE), he would look at ZWU-T because it gives you all the Telco's. It gives you a couple in the US as well as pipelines and utilities. He is not looking for a lot more downside. It pays north of 6%".
We own BCE in my RRIF (up slightly) and my wife's RRSP (down quite a bit) and am wondering about Berman's strategy. As always, your advice is valued immensely.

Q: Is there any downside to buying ZWE for very long-term income purposes, i.e., would you anticipate a nasty price drop to this particular ETF?. Thank you.

Q: I have 25% in fixed income in the above ETFs. In my TD account they are all showing a small negative return. Wouldn't cash be better or a GIC. I would really like to understand the logic of holding these rather than say a GIC. Thanks so much.

Q: I very much appreciate 5i along with your ETF site. From your ETF site, I have been playing with the ETF sector balancer and have found it quite useful to see the % of the sectors my postions occupy .
My questions
1. I am considering a 1/2 position of XHC, XGI, and XCD and a 1/4 postion of VUN and XQQ. Is now the time to buy these or should I sit on my cash for a while or should I be considering some alternatives to these within their sectors?
2. If I execute #1 above, my overall holdings will be 57% CDA, 29% USA, 14% INTL and my portfolio will consist of 2% materials, 13% consumer cyclical, 5% financial, 3% communication, 10% energy, 10% industrials, 6% technology, 17% consumer defensive, 13% healthcare and 18% utilities.
I would very much appreciate your critique and observations.

John

Q: Hi 5i,

I need to create a fixed income allocation in my LIRA. Would you recommend an equal allocation to the following ETF's: CBO, XBB, ZEF, CPD and ZHY? If not what would you recommend for a fixed income etf position.

Thanks,

Q: ATCO is down 14% from my avg cost in my non-registered account. I am thinking do a tax loss selling and buy FTS or AQN or both. Do you think it’s a good idea?

Thanks.