Investment Q&A

Q: I am down 12% YTD on this investment. would you recommend that I hold or sell?

Thanks

Q: Hi Team! Looking at the XEI high-dividend ETF. The energy weighting is 27%. I believe that at some point next year, all energy companies will cut their dividends to below 2%. If that happens, wouldn't the ETF manager sell energy companies? It's called "high-dividend", so the rule must require a stock has a yield > 4% to remain included? If they didn't, it'd be a nice way to go long energy (diversification + 0.2% MER). Better go with ZEO or XEG and bite the 0.6% MER. What do you think?

Q: Could you comment on the effects of rising US interest rates on price appreciation and dividend growth of this ETF? Thanks!

Q: Is there a bank etf that covers the big banks that you would recommend for kids that may not have enough yet to invest in a single bank stock, or would you recommend a specific bank stock instead just to eliminate fees? Thanks again. John

Q: I have been considering buying ZWB and naturally prefer to buy when on sale. In light of the drop in bank prices, including this ETF, is this a particularly good or bad time to invest in ZWB for long-term investors seeking income? Thank you.

Q: Noticed on cnbc a pick of the day for one of the regulars was splv. could you give me a report on last years performance.thaks for all you guys do for us. regards CLIFF

Q: Wondering if 5i members looking for U.S. diversification might benefit from cherry picking equities from the top ten holdings of ETF funds. Not sure if there are conflicts of interest when ETF funds make their selections.
Happy Holidays!
Roger

Q: If I believe the price of oil will rise what Etfs would be appropriate to buy to take advantage of that rise in oil? Thanks.

Q: I am so glad you are now offering the same for EFTs! I just subscribed. I would value your opinion on BMO Low Volitality US Equity/ZLU & iShares S&P/TSX Consumer staples.

Thank You! Austin

Q: I have held SPDR Health Care E.T.F. XLV-N for some time. At this time, it is a hold or sell? Going forward for a longer term horizon, Is there another US ETF that I should take a position in?

Q: I was thinking of buying this ETF for my RRSP. RRP shares which are laddered - down a lot due to concerns about interest rates I assume - however, these type of preferreds would benefit from a slow increase in interest rates in Canada when that happens - rate reset means increased payouts. I think this would be a better bet than the CPD? Big potential for capital gains and get paid 6% to wait.

Q: I am a conservative retired, dividend-income investor with a pension and CPP. My portfolio includes mostly dividend-producing holdings (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WEF, WSP, WCP, ZLB, XIT, Sentry Cdn Inc, Sentry REIT, TD Health, RBC Cdn Equity, Fisgard, and Annuities).

I am looking to add ZWH-T for income and some growth, acknowledging the T1135 inclusion and the dividends being treated as interest income. This would be held in my non-registered cash account.

Question 1 = would any dividend withholding taxes be reconciled at tax time, due to the USA-Canadian tax treaty?

Question 2 = would ZWH be an appropriate investment for my profile above? At first glance, it doesn't look like we have much foreign investments, but when you prorate the foreign holdings and/or income we have 30% non-Canadian investments (AQN, WSP are good examples). Is 30% too high for our profile?

Question 3 = I don't read anywhere about any hedging of the Canadian dollar. Am I at any currency risk?

Thanks for your help...much appreciated,
Steve

Q: Hi team. I'm trying to find an ETF that pays a dividend of 4% or more that has NO canadian exposure. The best one I have found is a new ETF called ZDH (International dividend ETF). The good: The PE is 13.3, which is surprisingly low (if you could verify), the yield is 5%, it's hedged, no holding has a weight above 2.3%, the largest sector is 27%. The bad: I don't recognize ANY company in the top 10 holdings, the MER is 0.45%, the liquidity is weak (can be a good thing when buying). Also, the dividend is above 4%, which as we've seen on the TSX this year, that often means trouble (CJR, WCP, LIQ, WIN, TMC, D.un). Would you recommend this to someone 1 year from retirement? He would give it a weight of 15%. Please take your time to respond. I'm in no hurry. Just want to be extra careful on this move since it applies to my dad. Thank you and great work!

Q: Hello again gurus!

I am interested in increasing my US holdings.

I presently hold the Vanguard Total Market and like its very low MER. I intend to add to my US holdings. What is your opinion of the BMO's ZWH?

Would you suggest that I simply add to my Vanguard Total Market Fund or put my new money into something like ZWH which, while it has a higher MER, also has a higher dividend?

Either way, I intend to buy and hold the ETF's.

Thanks.

Q: You have XHY in the Income Portfolio. It has not performed well overall. I did a graphical comparison with ZWH and ZWH looks far superior. ZWH has increased in the last year whereas XHY has gone south.

I'm thinking of selling XHY and buying ZWH. May I have your thoughts on this move?

Thanks ... Ron

Q: Is there a significant difference between CBO and the Vanguard short term corporate bond ETF in your income portfolio? Joe

Q: Is this a good defensive ETF? It seems to go up some when the market goes up, and doesn't seem to fall when the market falls.

Q: If I anticipate a rise in silver prices would this ETF be a good purchase and hold till silver has risen. Any other thoughts on this ETF. Thanks.

Q: With all this talk about climate change could you suggest few ETFs that will benefit.

Thank you

Q: The Globe had a link to an article that described US shale oil producers as facing a "debt bomb" due to low oil prices, declining cash flow and high debt. The article predicts a serious meltdown in the first half of 2016. My question relates to the impact this could have on US banks? My ETF has been doing ok, and I expect banks to be favoured by rising interest rates. I suppose this question could be extended to other commodity areas and Canadian banks as well. Do you see significant risk in banking in the near term due to debt failure? Thanks