Investment Q&A

• Vanguard U.S. Dividend Appreciation Index ETF (VGG)
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Q: Hello,markets are looking real good,i'am thinking Trump will need some good news shortly to keep it going?It looks like the establishment is circling.
VGG as a dividend ETF has a fairly low dividend, does it only rely on capital appreciation or a special dividend at year end?
Could you recommend a ETF along the same lines that pay 4-5% dividend,or stay with VGG.
Thanks,great work Brad

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Read Answer Asked by Brad on February 15, 2017

• iShares Core U.S. Aggregate Bond ETF (AGG)
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Q: I currently hold significant USD in my RRSP and have no bond exposure in any investments (registered or nonregistered) and am interested in diversifying my portfolio. I also have very low risk tolerance and am happy to sacrifice on what returns I might expect. Thoughts? Thanks.

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Read Answer Asked by Peter on February 15, 2017

• iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Q: Hello 5i,
I am glad to see that you are still answering questions about bonds and bond funds. I sent in a question the other day about BND, an American bond fund and was told that you don't deal with bonds. These questions are important to us, however.

Regarding the answer you gave to Fred on Feb 15, regarding this bond fund. You said that with distribution for this year, the fund is still under water, only slightly, though.

I continue to buy bonds but with trepidation these days. With such a question and such an answer, for instance, I am asking myself why I would buy a bond fund if I was going to lose even a bit of money? Wouldn't I be better in a high interest savings account?
thanks for the great service

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Read Answer Asked by joseph on February 15, 2017

• BetaPro Natural Gas Inverse Leveraged Daily Bear ETF (HND)
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Q: could you please provide me a feedback on these stocks? I want to buy first two and last one I am holding since long.
Thank you,
KT

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Read Answer Asked by kaushikbhai on February 15, 2017

• Invesco Aerospace & Defense ETF (PPA)
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• iShares U.S. Aerospace & Defense ETF (ITA)
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Q: Could you please review the above ETF's and let me know your thoughts. With what is going on in the USA, I have a feeling that these ETFs will continue to do well. Your rating of most favourable, to least favourite would be much appreciated.

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Read Answer Asked by micheal on February 15, 2017

• iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Q: Will CLF fall if US rates rise in March or June?

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Read Answer Asked by Curtis on February 15, 2017

• Miscellaneous (MISC)
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Q: Appreciate your thoughts on Pro/Con. of holding IXP for long term (10+years) in my RRSP that is well diversified and 50% US equities. Hold BCE in cash account
Thanks
Cec

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Read Answer Asked by Cecil on February 15, 2017

• iShares Biotechnology ETF (IBB)
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Q: What is your outlook for US biotech sector for the next 2 years? There are concerns about drug price negotiation by the Trump
administration. Do you think this is already priced in? I plan to take a position using IBB.

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Read Answer Asked by Ron on February 15, 2017

• VanEck Russia ETF (RSX)
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Q: Hi; I read an excellent article in the Globe this weekend regarding Robert Schiller's CAPE valuation ratio. It implies that the US is significantly overvalued. It also implies that Russia is a deep value investment with a CAPE ratio <6. Is there a Russian ETF that you would recommend to provide exposure and perhaps benefit from this. Thanks for your excellent service.

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Read Answer Asked by Uthaman on February 15, 2017

• BetaPro S&P/TSX 60 2x Daily Bull ETF (HXU)
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Q: I have read of a strategy called "Doubling the Dow" in which something like Powershares ultra Mid cap MVV is used.

I know that there are dangers in this strategy. But, it may be better than buying on margin, because you don't loose as much, if it goes down as you would with margin.

So, the question is what you think of this strategy. and are there etf's for the TSX that could be used for the strategy in canada?
thanks

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Read Answer Asked by joseph on February 14, 2017

• iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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• iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
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Q: The high markets seem poised for a correction, do you think moving money into CLF, CBO, or any other bond ETF is a good way to go. Maybe ride out the next few months and move back into equities after a correction has taken place? Thanks.

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Read Answer Asked by Curtis on February 14, 2017

• INVESCO QQQ Trust (QQQ)
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• Technology Select Sector SPDR ETF (XLK)
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• GLOBAL X FDS (SNSR)
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Q: Looking to spread my Technology investments into US$ shares in one of these 3 positions. All seem to be doing extremely well and appear quite similar to each other. Share prices go from $128-$52-$17 and psychologically I have an aversion to paying over $100/share (I know there is no rational to that).
Would appreciate your analysis of these 3 and recommendation or any others in this arena.

thx
Rrichterr

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Read Answer Asked by frederick on February 14, 2017

• BMO Low Volatility US Equity ETF (ZLU)
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Q: Your opinion on buying BRK.B today, as a good proxy for the U.S. market in comparison to buying the S&P 500/ZLU ETF?

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Read Answer Asked by LEN on February 13, 2017

• iShares S&P/TSX Global Gold Index ETF (XGD)
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Q: What are your thoughts on gold as a hedge for inflation and rising rates? If favourable, what would be the best way to play it -- gold company stock, gold ETF or physical gold? Any suggestions on gold ETF's or stocks that look good to buy currently?

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Read Answer Asked by Tony on February 13, 2017

• BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB)
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• BMO Equal Weight US Banks Index ETF (ZBK)
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• Dynamic Active U.S. Dividend ETF (DXU)
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Q: DXU is a new ETF and would appreciate your thoughts on it. Is this a good time to purchase or would it be best to do a "wait and see"? I currently hold ZUB and am wondering if it should be switched to an ETF that is not hedged. Which bank ETF would you consider for the unhedged or would you go with a single US bank. Thanks for your advice.

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Read Answer Asked by diane joan on February 13, 2017

• Miscellaneous (MISC)
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Q: Hi Peter & Team: For a growth portfolio, what % would you allocate to Cdn,US,EM and other developed mkt. ? What ETF's would you suggest for EM & other dev.mkt, hedged or not hedged to the loony? Thanks. Fooklin

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Read Answer Asked by Fooklin on February 13, 2017

• Chemtrade Logistics Income Fund (CHE.UN)
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• BMO Equal Weight Global Base Metals Hedged to CAD Index ETF (ZMT)
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Q: Hello 5i team,
I hold in the materials sector Chemtrade Logistics, Methanex and Stella Jones; I'm thinking of selling CHE to buy a position in base metals
1. Is there any momentum left after the huge run up?
2. Nevsun has not participated in the run-up; wonder why
3. What 3 would you recommend, in order of preference
4. How about an ETF such as XBM or ZMT?
Thanks
Antoine

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Read Answer Asked by Antoine on February 13, 2017

• iShares S&P/TSX Capped Energy Index ETF (XEG)
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• iShares S&P/TSX Capped Materials Index ETF (XMA)
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Q: Hello 5i, For exposure to the energy and material sectors while maintaining a decent yield, I was wondering if I could sell XEG and XMA and replace them with OXF and MXF. Thanks.

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Read Answer Asked by Jean-Bernard on February 10, 2017

• Vanguard Dividend Appreciation FTF (VIG)
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• SPDR S&P 500 ETF Trust (SPY)
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Q: I have a well diversified Canadian portfolio. I would like to have coverage of the US market with one or two etf's. Can you suggest any that would give me a broad selection of US stocks.
Many thanks Dorothy

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Read Answer Asked by Dorothy on February 10, 2017

• BMO Covered Call Utilities ETF (ZWU)
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• BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
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• BMO US High Dividend Covered Call ETF (ZWH)
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Q: I currently hold ZWE, ZWU, and ZWH in my RRSP for a total weight of 4.8% .
Is this unnecessary duplication and / or is the weighting too high given
the nature of these products ? Joe

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Read Answer Asked by Joseph on February 10, 2017