Investment Q&A

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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• iShares Convertible Bond Index ETF (CVD)
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Q: Hello,

Are the distributions for CPD and CVD considered dividend or income? Which would be better in a TFSA and which would be better in a non-registered? My understanding is that both of these ETFs should do well in a rising interest rate environment.

Best,

Carla

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Read Answer Asked by Carla on January 04, 2017

• Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (VBU)
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Q: I have bought XUS to benefit from stock growth and to hedge against a drop in the Canadian dollar. It has worked on both counts. I am becoming a little more conservative and wonder if there any similar ETFs on the bond side that are available in Canadian dollars but invest in US bonds.

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Read Answer Asked by Ken on January 04, 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: For a person with no bond or preferred share exposure. What would be your top 3 or 4 holdings to add at this time? Keep up the good work, you guys do a great job.

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Read Answer Asked by HEATH on January 04, 2017

• iShares Canadian HYBrid Corporate Bond Index ETF (XHB)
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Q: Please comment on XHB as an alternative fixed income vehicle to regular bond funds.
Thanks!

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Read Answer Asked by Paul W on January 04, 2017

• BMO Equal Weight Oil & Gas Index ETF (ZEO)
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• iShares S&P/TSX Capped Energy Index ETF (XEG)
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Q: Seasons Greetings!!
I see that the top two holdings of this ETF represent a 44% weighting. That seems too high to me. Is there another ETF that offers a better balance/diversification? Your sage advice is very much appreciated!!
Dave

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Read Answer Asked by Dave on January 03, 2017

• Chartwell Retirement Residences (CSH.UN)
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• Knight Therapeutics Inc. (GUD)
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• iShares Global Healthcare Index ETF (CAD-Hedged) (XHC)
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Q: Ryan,
I appreciated your recent blog post about the rebalancing trade potential for health care. Given there is so little to choose from in Canada would it be wise to look to US listed companies who have suffered as well. If so would it be better to go the etf route or do you have any company specific recommendations. Thanks again for your great service.

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Read Answer Asked by dan on January 03, 2017

• Global X Seasonal Rotation ETF (HAC)
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Q: What do you think of Horizon Rotation HAC for a fairly safe TFSA pick? I am semi retired, don't touch the TFSA for income right now but not exactly immune to a huge loss either.

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Read Answer Asked by Andrew on January 03, 2017

• Health Care Select Sector SPDR (XLV)
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Q: OF THE 2 HEALTH STOCK WHICH ONE DO YOU PREFER AND WHY ?THANKS.EBRAHIM

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Read Answer Asked by ebrahim on January 03, 2017

• Toronto-Dominion Bank (The) (TD)
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Q: Hello 5i:
Banks make up 23.5% of my portfolios - TD 18.5% and BAC 5.0%. I have substantial gains as purchases were made during financial crisis. Should I lighten up? If so should I reduce my TD holdings to half or any other suggestions?
Thanks for your great advice throughout the years
Tom

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Read Answer Asked by Tom on January 03, 2017

• Miscellaneous (MISC)
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Q: I have an allocation of about $66k for non Canada/USA equity Etfs. For maximum diversification (by country) Should I be looking at a few different ETF's in different regions (BRIC/Asia/Japan/AU) - or should I be buying one or two World (ex USA/Canada) ETF's - If so what what are your top 2 or 3. - Also is there a very broad international bod ETF as well?

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Read Answer Asked by Ron on December 30, 2016

• iShares S&P/TSX Global Gold Index ETF (XGD)
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Q: I have no gold holdings now. What is the best way to start.

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Read Answer Asked by Tom on December 30, 2016

• Vanguard Dividend Appreciation FTF (VIG)
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Q: Thank you for your wonderful service. I would like to purchase a couple of US dollar ETF that follows the large cap stocks, and is not hedged to Cdn $. Can you recommend one or two?

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Read Answer Asked by Anne on December 28, 2016

• Miscellaneous (MISC)
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Q: I am thinking of starting a position in lif the covered call lifeco etf on the Toronto exchange. Do you see this as a bit of a hedge against rising interest rates?

Thanks,
Doug

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Read Answer Asked by Doug on December 28, 2016

• iShares S&P U.S. Mid-Cap Index ETF (XMC)
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• iShares Core S&P Mid-Cap ETF (IJH)
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Q: Hello Team,
For US mid cap exposure, do you prefer IJH or XMC. The Canadian ETF appears to be have a market cap of only 38 Million. Is that a liquidity concern? Any other thoughts you have would be appreciated.
Thank You,
Barry

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Read Answer Asked by Barry on December 27, 2016

Q: ZQQ-T (BMO Nasdaq 100 hedged) and XQQ-T (BMO Nasdaq 100 hedged) appears to contain the same tech companies in the same proportion. What difference do you see between the two ? What would be the equivalents on the U.S. market and is it better to buy this type of etf on the Cdian market (hedged) or directly on the U.S. Market ?
Thanks for your good attention,

Jacques

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Read Answer Asked by Jacques on December 27, 2016

• Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Q: I'm 56 years old with no fixed income and have been quite comfortable with this choice up until now. I recently have decided to have 5% in fixed income but have no knowledge on bonds. I have a balanced portfolio of stocks and try and hold 5% in cash to take advantage of good stocks in a down market. I was thinking of VAB and a 5 year GIC for fixed income. What are your thoughts and recommendations. Have a wonderful holiday to all at 5i and your families. Merry Christmas!

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Read Answer Asked by Cheryl on December 27, 2016

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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• BMO Laddered Preferred Share Index ETF (ZPR)
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• Global X Active Preferred Share ETF (HPR)
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Q: I wish all 5i staff and they families Season's Greetings' I hope 2017 sees our portfolios grow ever healthier.

I want to gradually add some preferred shares to my portfolio, partly in lieu of some fixed income. In looking at potential candidates, I am attracted to the above three ETFs, particularly ZPR with its laddered feature. Do you have any thoughts? Are all distributions of such ETFs taxed as dividends? Thanks, Bill

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Read Answer Asked by Bill on December 23, 2016

• BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB)
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• Vanguard U.S. Dividend Appreciation Index ETF (VGG)
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• Vanguard U.S. Total Market Index ETF (VUN)
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• Technology Select Sector SPDR ETF (XLK)
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Q: With 17% of my portfolio invested in these US ETFs, I'm thinking about adding another 5-10%. However, I'm wary of the Trump implications. All of the above are near 52-week highs. As a long term investor, should I not worry about timing the market, or is it advisable to wait a bit before investing in the US? Is XUS worth buying or am I fine sticking with VUN, if I go ahead and invest in the US?

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Read Answer Asked by Ryan on December 23, 2016

• Vanguard Dividend Appreciation FTF (VIG)
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• SPDR S&P 500 ETF Trust (SPY)
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Q: I do not have much experience in investing in US stocks. I would like to add some US exposure as it does seem that Trump's pro business approach might turn into a reality. Is there an ETF you could suggest that would track the US market?

Thank you, Peter

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Read Answer Asked by Peter on December 23, 2016

• BetaPro S&P/TSX 60 Daily Inverse ETF (HIX)
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Q: My question is there any ETF like the "ProShare Short Dow 30 (DOG)" for TSX.
I am try to hedge on some of my Canadian holdings.
Thanks
Happy Holidays.
Tak

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Read Answer Asked by Tak on December 22, 2016