Investment Q&A

• Vanguard Total International Stock (VXUS)
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Q: Hello 5i team

Like many others I am in the process of re-balancing as we move into the new year. I feel I am well diversified with one glaring omission which is my ex Canada and US holdings.

Could you help me out? I'm looking for an etf that is strong and stable and covers the rest of the world.

Thanks

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Read Answer Asked by Peter on January 11, 2017

• BetaPro S&P/TSX 60 Daily Inverse ETF (HIX)
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Q: If I believe TSX and US Indices are overvalued and will decline in near future.
is there an ETF that I can invest in based on this view.

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Read Answer Asked by Harpinder on January 10, 2017

• Freeport-McMoRan Inc. (FCX)
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• Lundin Mining Corporation (LUN)
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• BMO Equal Weight Global Base Metals Hedged to CAD Index ETF (ZMT)
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Q: I own ZMT but don't notice much upside. Are direct mining holdings, such as the ones mentioned or others, be a bettter investment? What about cyclical considerations?
Your input is appreciated!

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Read Answer Asked by Sigrid on January 09, 2017

• BMO Equal Weight REITs Index ETF (ZRE)
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• iShares S&P/TSX Capped REIT Index ETF (XRE)
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Q: In the REIT sector I currently own ZRE & XRE. I am moving my REITS to my RRSP due to the tax implications ( ie no Dividend Tax Credit ). 1)
1) What are you favourite investments in this sector ?
2) Do you see a need to own individual REITS as opposed to an ETF?

Thank you.

Paul

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Read Answer Asked by paul on January 09, 2017

• BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH)
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Q: What is the best way to invest in US healthcare in a diversified portfolio seeing that they appear to be undervalued right now? Which ETFs/ stocks would you recommend?

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Read Answer Asked by Alka on January 09, 2017

• VanEck Russia ETF (RSX)
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Q: I know you dont advise on Russian Gas stocks, but what is the best way to invest in Russian markets in Canada. Is there an ETF that would focus on this or is there a Canadian stock as a proxy of Russian Gas

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Read Answer Asked by Ron on January 09, 2017

• iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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Q: Hi Gang,

I have a small portion of my portfolio in bonds (10%) and one of my bonds is up in a few weeks and was wondering your thoughts of where to put this money with rates going up eventually, would it make sense to find a floating bond fund?

Thanks
Anthony

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Read Answer Asked by Anthony on January 09, 2017

• iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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• iShares Core Canadian Universe Bond Index ETF (XBB)
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Q: Hello 5i
I have been using Preferred shares as fixed income strategy but would like to ask for your recommendation on traditional bond ETF and a Mutual Fund. (volatility dampening and downside risk protection)
Can you comment on return expectation and whether one should just stay in cash instead of select a bond investment?

Is there another strategy or investment that may be a consideration for inclusion in a well diversified equity portfolio to accommodate volatility dampening like Government bonds are suppose to do(but do not like 0 or negative return)?

Thanks
Dave

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Read Answer Asked by Dave on January 09, 2017

• Horizons Enhanced Income Equity ETF (HEX)
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• Horizons Enhanced Income International Equity ETF (HEJ)
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Q: Please comment on the above ETF's from Horizons. Are they good long-term holds for income and capital gains in a balanced to conservative portfolio? Thanks.

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Read Answer Asked by Paul W on January 06, 2017

• iShares Core S&P U.S. Total Market Index ETF (XUU)
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Q: I have shares in XUU in order to get broad unhedged US exposure. This ETF is small with low liquidity, but has only minor bid/ask spreads with large number of shares available for trade. Do you have any concerns with the low liquidity? Is this a good ETF for US exposure?

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Read Answer Asked by David on January 06, 2017

• Miscellaneous (MISC)
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• BMO Equal Weight Banks Index ETF (ZEB)
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Q: I have noticed that on TD's web broker that frequently a number of Canadian banks are making the new high list. Are you aware of any bank etf's that you would recommend and would you buy the etf at this time? With thanks, Bill

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Read Answer Asked by William J on January 06, 2017

• Miscellaneous (MISC)
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• BetaPro S&P 500 VIX Short-Term Futures ETF (HUV)
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Q: is there investments for the Canadian markets that take advantage of volatility ,should the incoming US administration do some things that start to take down the TSX ? Thanks and have a super 2017

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Read Answer Asked by jim on January 06, 2017

• Miscellaneous (MISC)
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Q: I want to put some money in semiconductor stocks. Do you have a company name or ETF that you would recommend? thanks

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Read Answer Asked by Brian on January 06, 2017

• BMO US High Dividend Covered Call ETF (ZWH)
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• BMO US Put Write ETF (ZPW)
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Q: Hi 5i team,
My US portfolio is currently about 9% and consists of GOOG, FB, SBUX, GE, MCD, PM & DEO. I want to buy ETFs to bring the % up to around 20%. In a recent newspaper article about the high valuation of US stocks and possible volatility, the author recommended ZWH and ZPW instead of buying broad base market ETF.
What are your opinions of these two ETFs? Would they be useful tool to reduce risk while still participate in the US stock market if it goes up and also earn some dividends? Which one of the two is more effective or they should be employed as a pair? Many thanks.

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Read Answer Asked by Willie on January 06, 2017

• iShares U.S. Preferred Stock (PFF)
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Q: I would like to hold PFF in my US$ portfolio for at least one to two years in my RRSP. Do envision any serious risks by way of interest rates over this term?

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Read Answer Asked by Greg on January 06, 2017

• BMO Covered Call Utilities ETF (ZWU)
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• BMO Equal Weight Utilities Index ETF (ZUT)
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Q: I'm interested in buying into the utility sector through an ETF. ZUT holds Canadian stocks and has a yield of 4.98%. 99% of the distribution are eligible dividends.

ZWU holds a mix of Canadian and US stocks with about 45% each of eligible dividends and ROC along with 10% foreign income. The yield is 6.64%.

If we factor in the DTC, there's not a lot of yield difference. What are the reasons for your choice of ETFs? Thanks

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Read Answer Asked by Tim on January 06, 2017

• MINT Income Fund (MID.UN)
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• iShares Diversified Monthly Income ETF (XTR)
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Q: Hello Gentlemen,

What is your opinion of MID.UN and XTR at this time !

Thank you

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Read Answer Asked by Frank on January 06, 2017

• WisdomTree Japan Hedged Equity Fund (DXJ)
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Q: Hello, What would be the best Japanese ETF in your opinion. DFJ is a small cap, EWJ is a large cap, or any other that you would recommend.

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Read Answer Asked by Deborah on January 05, 2017

• BMO Equal Weight Global Base Metals Hedged to CAD Index ETF (ZMT)
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Q: Happy New Year 5i team,
In an answer to a member's question regarding stocks for the Materials sector, you mentioned SJ, AEM and MX. How about a stock in Metals? Would ZMT do?
Thanks,
Antoine

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Read Answer Asked by Antoine on January 04, 2017

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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Q: Regarding your answer provided to Carla today on CVD and CPD, I understand your comments on CVD, but I am still not clear on how rising interest rates can impact CPD. How do rising interest rates affect a preferred share ETF such as CPD? Should I be cautious about buying at this time? Thanks for all the awesome info you provide.

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Read Answer Asked by Pamela on January 04, 2017