Investment Q&A

Q: Hi, can u basically construct a medium risk, all equity well diversified portfolio of Etf's that cover the whole world for a portfolio of $25,000, for about an eight to ten year time horizon, thanks?

Q: Hello,

I purchased xfh (hedged) in early january 2015 and have ridden strong performance to this date. Given the strength in the CDN dollar would it be wise to hold on to this ETF or switch out for something else. If switch, what to?

Q: I am considering these two ETFs for my RRIF. Do you have a preference? I currently hold the following: SLF, BNS, TD, RY, AQN, BEP.UN, T, BCE, ALA, ENB and PPL. Thank you.

Q: I have been an investor in small and midcap stocks for over 20 years with a willingness to accept additional risk in my portfolio.I am now transitioning my portfolio to a more Income focus, as i will need dividends to supplement my retirement.
Questions i have are about construction of income portfolio?
Do you feel it is still important to diversify in other countries and regions outside of Canada?You would lose some of the favourable tax benefits!

In trying to classify many dividend stocks in sectors i find that they cross the line into numerous sectors,(example many pipeline stocks are said to be oil and gas stocks, many are said to be utility type of investments)
What sector do you put an ETf in?Seems like a lot of investors drive themselves crazy in the allocation to sectors

I have looked at your income portfolio and your fixed income portion that is addressed by a few Etf.I have taken positions in individual preferred shares,debentures, a couple of instruments with bond like qualities.What is the percentage you would advocate for fixed income or there proxies?

Many Blue chip income stocks pay quarterly dividends,when i prefer monthly dividends.This again can skew my portfolio so that diversifying by sector and country becomes difficult

I find that the construction of my Income portfolio has given me many grey hairs(which i dont need help with"thank you very much")

Q: You discussed ETF liquidity in your September 22 reply to Brian. Are you aware of any sources of information on the liquidity of particular ETFs? If not, what general guidance can you offer? Thanks.

Q: Peter and Team,

What index funds do you recommend for the following:
TSX
NYSE
DJIA
NASDAQ
S&P 500
FTSE
Nikkei
HangSeng

- James

Q: I'm interested in the robotics/AI space. Do you like this sector going forward? Do you prefer ROBO or BOTZ and why? Any other suggestions?
Thanks as always,
Dennis

Q: I have $75,000 that I would like to invest. It’s money that I may need access to in 1-2 years if I buy a home. Can you provide recommendations on where to invest? Thank you.

Q: I note that CPD is included in your Income Portfolio (with a unit cost of $16.19). I purchased a significant holding of CPD in Nov. 2012 (at $17.30), and am understandably upset with the current market price of $14.09 (i.e., down 18.5% on the unit price basis). I have held on to this ETF for the monthly dividend flow (which has continuously shrunk), and with the hope that, when the tide turned in GOC 5-year rates, the unit price would recover. While individual preferred share issues that I hold have shown a marked price recovery in recent months, CPD not so much! I am curious to know why you include this ETF in your portfolio while I consider it to be the worst investment that I have ever made! Do you envision a day when the market price will recover to your purchase price level?

Q: In your response to Brian about ETF and market panic, you say that in a market panic an ETF might have to sell a stock to meet rememptions (kind of guess you meant redemptions !?). Could you explain further? I thought if individuals panicked and sold their ETF, some other individuals would be the buyers, rather than the ETF having to do anything re holdings, and that the total shares outstanding would not change. Isn't this part of what separates an ETF from a mutual fund?
Thank you

Q: I am considering using ETF's to widen my coverage beyond Canada. Could you recommend three or four ETF's that would cover Europe, Developing markets and perhaps a US based ETF as well?
I continue to turn to your site for good ideas.
Thanks,
Bruce

Q: 250 k portfolio in a taxable account (tfsa and rrsp maxed out). currently have HXT (54k), VFV (77k), XEF(55K), and 65 k in cash. Want to add fixed income to the portfolio - currently looking at ZDB, HBB or GIC ladder - what etf should i be looking at adding or any other suggestions.
Thanks -you
Nina

Q: Good morning Peter and Team,

Thanks for answering my previous RESP question. In reviewing iTrade's commission-free ETFs, I note that they have a new bond offering HAF (although it appears to be a bit of a 'hybrid').

There have been no questions yet about this ETF, and I'd really appreciate your take. Interestingly, the sub-advisor is Fiera and I know that you think highly of them.

Thanks in advance!

Q: What are your thoughts on ZDI as a core holding in an RRSP for dividend income?

Thank You,

Joe

Q: Jim Rogers is calling for the worst bear market ever. In a recent interview, he said the following:

“When we have the bear market, a lot of people are going to find that, ‘Oh my God, I own an ETF, and they collapsed. It went down more than anything else.’ And the reason it will go down more than anything else is because that’s what everybody owns…”

“… If somebody can just take the time to focus on the stocks that are not in the ETFs, there must be fabulous opportunities in those stocks because they’re ignored… Some of them have got to be doing very, very well. And nobody’s buying them, because only the ETFs buy stocks.”

I’m curious to know what you think of these comments. Is he right that ETFs are bound to fall much more than stocks? Are some more at risk of a plunge than others? Also, if “ignored stocks” are better investments than the ones in ETFs, can you name a few examples? Thanks.

Q: I would like to invest in US banks. Can you recommend a USD bank ETF?

Q: Hi Peter and Team,

In our grandchildren's RESP (ages 15 and 16) I have been using accumulated dividends to 'top up' the above ETFs, as I'm able to do so commission-free through Scotia iTrade. The portfolio is balanced, with the majority of holdings from the 5i portfolios. Can you suggest a strategy as to which ETF(s) I should invest this extra cash at any given time? Since the 16-year-old is in grade eleven, and the 15-year-old is in grade ten, is it safer to use CLF and/or CBO, even though their charts don't look so great, as compared to CDZ and CUD?

Thanks in advance for your valued advice.

Q: I refer Richard's question of Sept.19th
Would this work for a RRSP as well, combined my wife I have $877,000. Sell our stocks and buy equal amounts of these etf'e.
This would give us a nice income should we take it out.
Also have a larger amount in cash and TSFA based on your portfolios.
We are 60 and also have pensions and no debt
Thank you and have a great weekend.
Mike

Q: If I was to invest 25K, I would receive approx $105/Mn dividend but the cost would be .72% or $180/Mn. Are my calculations correct and if they are, why would I invest in something that costs me more than I'm paid?

Q: Good day, I would like to know if you think RPD(RBC Quant European Dividend Leaders) would be a good choice for European exposure, would there be, in your opinion, a better choice (I also look at VE).
Regards