Investment Q&A

Q: Looking at buying vgt as opposed to individual tech stocks. Opinion please. Are there better etfs out there?

Q: Hello,
My question is portfolio construction strategies for a RIF. Assume the value allows for sufficient diversification to total 20 positions, as long as a max 5% (say $5,000.00 per investment) weighting is respected in each. Also assume one wants foreign exposure and uses ETFs for that portion with a goal of maintain a minimum 25% (say 5 positions) exposure.

Based on the above, that would mean +/- 15 individual CAD stocks can be purchased. I like the fact individual stocks can provide greater returns and outperform the index and/or its sector. But they can also produce far more portfolio carnage for a variety of reasons? Capital preservation is an important consideration but low volatility is acceptable. Other investments can be drawn on to avoid selling in a market downturn and I am still a few years away from reaching 71. I am assuming the value of the portfolio is stable and the strategy would change if the withdrawals started reducing the portfolio value below an amount where a reasonable diversification could be maintained. I believe it is a useful exercise to have an objective yearend review. It helps to understands risks and plan/structure investments going forward with a vision.

In your opinion, what factors might be prime considerations to simply move the funds entirely into ETFs?

Given some recent questions, I would like your insight into FOREX and Covered Call options on ETFs for my foreign exposure. Other than travel, our living expenses are CAD. Consider foreign bank ETFs ZUB and ZBK as a good example since you have provided responses on them . Would buying a block of each which add up to my desired individual investment weight also give some FOREX exposure but a defensive position thanks to the hedge? Similarly, would a strategy of picking two ETFs one with a covered call and the other full market exposure increase capital appreciation potential while enhancing monthly returns?

Thank you for your insights. Season's greetings!

Mike

Q: All of my RRSP bond holdings (25% of portfolio) are invested in two PHN funds, about 2/3 in the core government bond fund RBF1110 and 1/3 in the High Yield Bond fund RBF1280. Is there any value in diversifying a bit more using either XHY or CVD? The rest of the portfolio (75%) is equally split between Canadian equity (modelled from the Balanced Portfolio) and US/International Equity Funds and ETFs. I have about 15 years ahead of me before transferring to a RRIF and don't expect to have to rely much on this money because of my employer defined benefit pension plan. Thanks.

Q: Is there an ETF similar to HFR, but in US funds?
Thanks for your service

Q: Following your debate on Bitcoin stocks, I've done quite well and doubling on a few that I would NOT have known off except for following your esteemed Q & A. Now I'm trying to decide on GBTC, which I had bought @ $925 and sold half @ 1,826. I still have a few and am debating whether to sell before the CME Futures open on Sunday or wait. Nothing much happened when the CBOT did the same last Sunday. I'll make my own decision, but much value your insights.
Thanks as always!

Q: I tend to stay away from holdings that trade on US exchanges to avoid dealing with the withholding/reporting foreign tax rules. My portfolio needs an ETF with global exposure (mostly non-NA) Since there seems to be no good Canadian equivalent to VXUS, what type of trading account would you suggest to buy this ETF with the least/simplest amount of tax implication. Would the RRSP be completely exempt? Thanks.

Q: Would you be a buyer of zub here. Is the interest rate hike already priced in.

Q: I currently hold VTWV, and notice that you recommend IWO generally when picking a Russell 2000 ETF. Should I sell VTWV, which hasn't done very well, and replace it with IWO, and if so, why? It seems that IWO is doing better but I don't understand why, as I would think the two are comparable.

Thank you for this wonderful service. The new design is super.
Elizabeth

Q: Most of my international (non-USA) holdings are ETFs that trade in US dollars on US exchanges. This adds a layer of FX (US dollar) into the equation when considering the performance of these holdings. With the quick and drastic FX moves that are becoming more common, I’m starting to loathe the FX volatility and believe that my other US equity holdings already provide sufficient (US) currency diversification. What advantage/disadvantage is there in holding international equities in US dollars, and if I wanted to replace each of the above ETFs with a Canadian dollar equivalent what ETFs would you recommend?

Q: I am intrigued by the new BMO ZEUS etf.
The design seems interesting to me, but fees are higher.
Would this make sense in an era of increasing economic growth and high stock valuations, to look for value and adding a touch of momentum?

Q: Hi,
I would like to acquire a good cover in US financials. I am looking in particular at iai (iShares U.S. Broker-Dealers & Securities Exchanges ETF), zub (BMO Equal Weight US Banks Hedged to CAD Index ETF), zbk (BMO Equal Weight US Banks Index ETF). Can you explain the difference between zbu and zbk and what would you suggest for a good coverage of US financials with a solid growth prospect ?
Thanks in advance for your valuable assistance,
Jacques

Q: Hi 5I, I like the above MFs but dislike their MER and Mgmt. charges, can you suggest equivalent ETFs with similar or alike holdings.
Also, can I buy Maw102 in my RBC Direct (discount broker)? account?
Many thanks for your advise. J.A.P, Burlington Ont.

Q: I WOULD LIKE YOUR VIEW ON THIS AI ETF? THANKS.

Q: Which fund would you prefer ,and why?

Q: Would now be the time to buy Japanese equities? I have read that the Japanese currency is at a 30-year low relative to the US dollar which suggests buying a non-hedged ETF. However the only one I can find in Canada is currency hedged(CJP) an iShares product. And it is traded on the new exchange in Toronto which until today I wasn't aware of. I assume that if one buys the iShares Japan( which one can buy with no currency hedging) in the US that there is a 15% hold-back on dividends which may not be much of an issue. What are your thoughts on buying CJP and is there a Canadian version that is not hedged?

Q: Your opinions on these ETFs, please.

Q: PMM seems to be a good ETF for uncertain times like these (international, balanced, diversified, etc), but there is little interest/volume. Would appreciate your comments/assessment.

Henry

Q: I just read your comments regarding MLP’s, including AMZA as your preferred way to go. My question: the dividend on Globe Investor shows a dividend rate of approx. 25%. Even with the withholding tax that would still leave a dividend of about 15%.

Too good to be true? If so what are the downside risks?

Thanks.

Q: given current markets, what percentage of the above etf's would you hold for fixed income...thanks.

Q: Hi, for my US exposure, I hold the following 3 US ETFs at the following total percentages:

VTI - 50%
VIG - 20%
IWO - 30%

I have $10K USD to add and I'm wondering whether VTI and VIG are too similar or whether I'm fine to add to all 3 and keep the same rough percentages.

Thanks
Robert