Investment Q&A

Q: We are Seniors who do not need current income from investments. Have various accts. at TD Waterhouse - considering using their new ETF's to increase international exposure: TPU vs. THU; TPE vs. THE. What is your current thinking re hedged versus unhedged?
Any thoughts re investing in TD's new ETF's versus using TD-efunds?

Q: Hi Peter and 5iResearch Team,

Can I invest in US treasuries and TIPs in an ETF? Investing in both traditional bonds and inflation-protected TIPs?
Thank you. Linda

Q: Hi Peter and 5iReseach team,

Can you recommend the best US Dollar S&P 500 ETF?
Thank you, Linda

Q: Which is better, FIE vs ZEB?

Thanks as always for your informative answers! Austin

Q: Hello, I want to invest in oil, but when i look at most Canadian Energy companies, their share prices seem high from valuation perspective. I would appreciate if you can suggest a few Canadian ETF's for oil futures. Also is their an ETF that tracks Canadian oil. Appreciate your help.

Q: Could you please recommend 3 names of companies/ETFs/ that would produce monthly income, to be added to an otherwise reasonably balanced portfolio for a long term hold.
Thank you for the great service.

Q: could i please have your thoughts on this c-hedged u.s. momentum fund.

thanks, david

Q: I am a senior with RRIFs and TFSAs. I am not currently living off these but could in the future. I read questions in this space about income producing products such as XHY. These look good but, frankly, I have a great deal of difficulty investing in a product with a total return of just 21.08% over the past five years, or just 4.2% average per year, when I can invest in XST (Canadian Consumer Staples) with a return over the same five year period of 168.8%. Yes, XHY has a great yield but almost no capital gain. And yes, XHY is less volatile but am I wrong, at my age, to be more interested in total return than just yield? I am not afraid of some volatility and am not a believer in the old outdated dictum of holding bonds in proportion to your age. And the total of my investable assets could not produce adequate income if I relied on yield. The standard deviation of the Consumer Staples ETF is still quite low at 0.35 to 1.2 and it has been by far, the best performing Canadian sector of the past 14 years. No, I don't currently own either of these products but may in the near future.

Q: Hi Team,

I have very little bond exposure and would like your opinion on these two ETFs, XHY and ZHY as part of a balanced portfolio? Would you consider these to be a lower risk than an equivalent ETF holding High yield dividend paying stocks?

Thanks

Peter

Q: We would like to set up a RESP for our new granddaughter. If we spread the contributions over 15 years, the CESG is maximized. What would you suggest for annual investments if we followed this approach? Or do you think a lump sum RESP investment now would produce better returns, even if it means forgoing the CESG? Thanks!

Q: Morning Peter & team,
Looking at I5 Income on CPD now down a lot still with 5% yield, it seems a fairly good holding for my TSFA.
Your idea is very appreciated.
Tak

Q: Is there a way to play a decrease in the US dollar using the TSX or one of the US exchanges (an inverse ETF maybe)?

Q: For a long term hold in a rrsp what would ur preference be. Thks and keep up the good work

Q: Peter; Would this ETF be buying the " new" bank issued preferreds.

Plus re the " egg on your face" comment I would ask David to watch BNN Market Call guests explain their Past Picks , some down 25-75 %. If every stock 5i picked went up they would be under investigation !
Keep up the good work . Publish if you wish.
Rod

Q: I would like to purchase an ETF in a high yield bond fund similar to XHY but in US$. What are my options and which one would you recommend?

Q: Please identify CAD hedged ETFs that track the world index, the way that VT does (VT would work, but it is only offered in
USD). I just looked up VXC (all world except Canada) but it is not identified by Vanguard as being CAD hedged.
If one ETF will not do the job, please list a basket and I'll buy the separate ETFs in a ratio to match VT. The important part is that the ETFs suggested be Cad Hedged.
Also, I plan to put this strategy to work in a TFSA. Are there any tax consequences I should consider at the outset?
There has been much written at 5i over hedging. What would be 5i ETF strategy for global coverage, in a TFSA, for a long term hold?

Q: I have 50k in ZDV and 50K in ZPR, now wondering what to do with additional money I want to contribute on a weekly/monthly basis. I am thinking of adding XEI,or ZRE but not sure. I like continuous income that I can re-invest while my underlying security rises. I was also thinking of investing for international diversification but I will not get the dividend tax advantage, so also looking at taxes. I can always continue to add to my existing positions, sitting on the fence not knowing which side to go. Any suggestions for a middle aged man.

Q: Hi recently CPD has dropped so much, so my first concern is why. Secondly, since it is a preferred shares ETF, I thought it is very low-risk (dividends paid before common shares)and I suggest my parents to use their line of credit (interest rate lower than 3% annually) to buy it for retirement (use the monthly distribution to pay off monthly payment). Simply put, borrow money to invest in CPD. Let me know your views on my thinking and please be specific. Thank you very very much !!! Tony

Q: How would you design an RRSP for someone with no investment knowledge and no interest in acquiring it? The RRSP would, in effect, be an unmanaged black box. The parameters for the RRSP are a lump sum input and a twenty year hold. The holder has no other investments, but is likely to have a solid pension independent of the RRSP.
To me, a reasonable plan would be to distribute the initial sum 40% XBB, 20% ZLB, 20% ZLU, and 20% ZLI, then DRIP everything. I like low volatility ETF's in this context because they have a bit of formula-based active management built in.
What do you think?

Q: I am considering the Mawer international equity fund for some exposure outside of north america. Historically it seems to have had respectable performance and outperformed many of the international index ETF's that I have been looking at, although exposure does seem biased a bit to the UK.

Given that there are so many funds/ETFs out there do you have any favourites for international exposure that you currently recommend instead of MAW102? My only current international holding is a position in the Euro stoxx 50, FEZ.

Thanks, Jeff