Investment Q&A

Q: What would your suggestion(s) be if one wanted to have the safest portfolio possible which generated a 4%-5% return? Would the 5i income portfolio be considered the lowest risk, lowest volatility option to get the desired return?

Q: My average annual return based on 5i guidance is 13.3% over 8 years. Can't argue with that. Thank you.

Question: XWD, for example, is a global ETF which invests in 5000 companies around the planet, which has returned a very steady (almost a straight line) 13.09% since inception.

So why not sell my 40 stocks and simply buy a combination of:
- XWD (growth)
- CBO (fixed income + security)
- XGD (security)
and call it a day? This would have returned say 11% - 12%.
Pretty close...

Maybe this should be addressed on your ETF site, but I thought it was worth asking here.

As usual, thank you for your sound advice.

Q: With the amount of interest in ETF'S both in this service and your dedicated ETF service could you issue an analysis as to the hype of a market meltdown driven by ETF'S. This view is getting increased support. I am sure their would be significant member interest.

Q: what do u think of emhy, an emerging market bond etf. How risky would it be. does it have a place in a portfolio

Q: Any thoughts on global/non-TSX low volatility ETFs as bond-like stabilizers for an equity portfolio? Which funds do you favour?

Q: Is it a good idea to have us bond etf in a portfolio. It would allow me to rebalance to us equities in declines etc in the us portion of my portfolio.

i currently have 20% in cbo. i could cut this to 15% and put 5% in a us bond etf. I have 20% US equities in my portfolio.

if you like this idea what do you suggest for etfs?

Q: Hi,

In an answer to Bill today you mentioned "some ETFs are specifically designed to own just a few stocks, or hold riskier assets. "

Could you list a few of your favourite examples of Canadian ETFs that fit that description?

Thanks,

Gord

Q: Can you confirm that ZUB is the better from a performance analysis standpoint. My take is that as both are priced (?) in CAN $, ZBK will reflect changes in the US/CAN $ relationship which are separate from the underlying bank performances while ZUB because it is hedged will be a more accurate measure of the underlying assets behaviour. Is this correct?

Q: Hi 5i
I know each stock in ones portfolio should not exceed about 5% of one`s total portfolio . Does this also apply to Bond ETF`s as well as Regular ETF`s .? My guess is that bond ETF`s can be upwards of 10% per ETF but regular ETF`s should be closer to 5%. Am i correct in this thinking ?
Thanks
Bill C.

Q: Could you recommend an ETF that trades in Canada with Canadian funds that.
A. Invests in US savings accounts and pays some interest
B. Is unhedged
Would this be an effective way to play a possible drop in the Canadian dollar. Is there another way that this could be achieved without the cost of converting dollars?

Q: Hi, what would you recommend for a few value etf's for Europe, Emerging markets, and the U.S. that trade in Canada,for about a ten year time horizon, thanks??

Q: Since tere are few healt care companies in Canada wouldnt it be better to invest in XHC, if not what company would you suggest

Thanks

Q: $IDV: iShares International Select Dividend ETF. I'm wondering your thoughts on this ETF - would you recommend holding this as a way to diversify dividend income outside of North American equity, as we don't follow much for international equities. Morningstar mentioned that it outpaced the category average by 80 basis points annualized, but with greater volatility, so its risk-adjusted performance was slightly below average. Are there any alternatives you would recommend instead?

Q: I now have control over a LIRA that contains BNS377, a bond fund with a MER of 1.47. Would you recommend holding BNS377 or switch out to a bond ETF like VAB? This is a large holding that needs to stay in safe,conservative fixed income, so perhaps VAB and ......? Thank You Ron

Q: How would you rank the Vangard Small Cap Index ETF VB for a long time hold

Q: Could you recommend some ETF's that would provide a good hedge against rising markets...I was thinking of buying a gold, materials, or bond ETF...Do you have any suggestions?

Q: I would like to add VIG and SPY to my RRSP account for both a 5% weight. Would you recommend both for a 5% weight? The only US stock that I own is RSG.

Thanks

Q: Hi Peter/5i Research Team,

If I was to take a position in gold, just wondering whether it would be better to invest in a gold etf such as GLD or in gold mining companies. Also would you please recommend some gold mining stocks.

Regards,
Harry

Q: A follow up on your recent response regarding XHY and BSJK.
What is the difference in risk factors comparing these two funds if interest rates rise as expected over the next 2-3 years.
I would expect BSJK to act like a single bond held to maturity ( 4% annual return with 100% of the principal returned in 2020 ). XHY yields 5.3% but rising rates could substantively reduce its value, resulting in a net loss if redeemed in 2020. Am I understanding this correctly?

Q: Hello,

I assume that VFV and ZSP are identical EFTs provided by Vanguard and BMO respectively. Their MER, asset allocations, sector breakdown are close to identical.

However I notice the following anomalies (VFV vs ZSP):
1) Dividends of $0.238 CAD vs $0.145 with yields of 1.565% and 1.789% respectively. Why the difference in dividends?

2) Portfolio turnover rate of 13.18% vs 31.90%. Why would there be a difference in turnover rate?

3) Benchmark: S&P 500 CAD vs S&P 500 TR CAD. What does the "TR" mean?

3) Market price (NAV?) of $56.33 vs $34.94: Is this due to dividend reinvestment and inception date?

If one were to buy one of these, which would you prefer and why?

Thank you for your excellent and unbiased opinion and service