Investment Q&A

Q: Have you changed your opinion on HBG since last year given the run up in many financials.

Q: want to invest in cyber security, please comment on these 2 ETFs or if there is other recommendation.

Thanks

Q: I have only 17 percent in fixed income, I am sixty, still working, with a fairly well balanced portfolio and no plans to use the income for quite a few years. I currently have most of my fixed income in CBO and CLF with some XHY. I would like to add another 5-10 percent and I am wondering if just adding to what I have is the best way to increase my Fixed Income allocation.

Q: I was asked to review my sons portfolio and he is a ETF investor mainly. I have a concern with the very high MER of 3.76% current for healthcare Leader income ETF It has a high yield (8.4%) that I think is tempting him but Brand leader fund by the same firm has a mer of 1.44 %. Why the big difference. I see the hhl is advertised and promoted heavily on BNN. Are they charging fund holders for their promo on a under preforming fund? I found a great site The Wealth Game (wealthgame.ca) that lets you calculate the true cost over time of fees. It can be an eye opener for younger people with longer time horizons that are sucked into what they may think are low fees such as 2 or 3 percent. Your views please.

Q: Could you please outline the risks in holding these types of high yield bond ETFs, with respect to the effect on the capital and yield components. I have a long term (15-20 years) view.

Are there scenarios where more stable bonds (ie. XBB) might outperform it over a longer period (15-20 years) of time?

Thank you

Q: Will HFR be adversely effected by rising US interest rates.

Thank you,
Frank

Q: Just an endorsement: Subscribed yesterday to the ETF and Mutual Fund newsletter for two years and within an hour learned a couple things that will far more than pay for the subscription. I know there's lots of etf information available online, including within 5i. However, I find it beneficial to have it focused in one trustworthy place without ads, questionable motivations, or other distractions. So thanks!

Q: I am looking for a low volatility ETF in the US. Which of the 2 would you recommend or would you have another recommendation?

Q: I am looking for US Healthcare ETF. What do you recommend?

Q: Can you please provide your thoughts on the high diversification funds offered by TOBAM through Mackenzie.

Q: Greetings
As a follow up to a question from Paul, you might consider 'HACK' an ETF focused on the cyber security industry. 5i please feel free to offer your own commentary as to its suitability or performance, etc.

Q: Hi Team,
I am looking to buy gold bullion in US dollars backed by bullion held in Canada. I believe the Mint's MNT.U is my only option. Any concerns with a holding in MNT.U? Did I miss any other options?
Thank you, Michael

Q: What would you recommend for someone with a short term horizon 6M-1Year with a low risk tolerance. Should I put everything into bond etf such as ZAG or even VAB?

Q: I own some CBO and with increasing rates and inflation has this ETF bottomed out or can you suggest a replacement.

Q: I read on the FAQ's of an ETF Website the following question:
"Are an ETF's Assets Under Management and Trading Volume good indicators of liquidity".
The answer they gave was: "No. The most important aspect related to the liquidity of any ETF is that while the liquidity of the ETF itself (the ETF’s own trading volume on the exchange) may be deemed poor or limited, the key gauge of that ETF’s liquidity is the liquidity of its underlying exposure.
With the mechanism of creation and redemption of ETFs, a designated broker (DB) is responsible for ensuring that market prices track the ETFs’ net asset value (NAVs). If the underlying securities can be easily bought and sold, a tight fit between price and NAV is easily maintained.
Hence, an ETF with small AUM and little trading volume can still be highly liquid if its underlying basket of securities is liquid."
Is this essentially correct, and if it is I'm still not sure how this would work? I have avoided many ETF's for what appears to be poor liquidity and trading volume. If I want to sell an ETF and level 2 quotes show a large spread to sell for example 1000 shares, will additional shares in the ETF somehow be created to get a fair market price based on the underlying stocks held in that ETF if I put a Sell order in on what appears to be a low volume ETF? What I am getting at basically is - is there any way of knowing what the price spread will be on the sale if additional ETF units that are created "on the fly" by the DB? I may not be interpreting the answer given above so please try to expand and clarify their explanation.
Thank you.

Q: Are there any equivalents to Canadian rate reset preferred shares in the US?

Q: Are there any etfs traded on the tsx like cwo that focuses on emerging markets but filters based on value metrics rather then broad market.

Q: What is your opinion of adding VVL & VMO in equal weight for a global value/ momentum strategy to my portfolio? Or adding just VVL... also could you comment on currency risk here since these products are not hedged to CAD.
Thank you.

Q: COULD YOU TELL ME YOUR VIEW REGARDING THOSE ETF, FOR AN INCOME PORTFOLIO.(CBO - XBB - BXF )
THANK YOU.
P.

Q: If you were 18 and had $5000 to invest thinking long term what would you do?