Investment Q&A

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

Q: What are ur thoughts on this as a long term hold in RRSP? Thks much

Q: Hello Peter and the 5i team

I recently went to see a financial advisor from my bank (I personally manage about 75% of my equity portfolio and I allow my advisor to run about 25%, this is due to my company pension plan that puts the money into the advisors hands.). She asked me what my long term plans were with my portfolio, I said "1. To beat the market (tsx), 2. Find good companies that pay dividends and buy them for a fair price. 3. Focus on companies that have consistent Dividend growth. 4. Have the portfolio reasonably diversified. I also said that I would like it if I could make my portfolio large enough so that the dividends could pay for my retirement living." She seemed baffled by this comment, almost as if she had not seen a person live solely off dividends. I thought that getting a company like CHD in my basket of stocks was a great idea since it has paid a dividend for 114 years in a row or HRL that has increased its dividend for 50 years in a row, there are many many great examples of companies that would fit into this example. I sort of dismissed her confusion, but later it got me to thinking "Is my plan flawed"??? Is living off dividend paying companies not a excellent tax advantaged way to live in my retirement?? If my plan is flawed what is a better plan?? Another question I have "does the TSX 60 index dividend over time increase faster then the rate of inflation and the cost of living over say the last 30 years"?

Thanks you

Q: I have very little invested in the Materials Sector.I am currently a growth investor. What stocks and/or ETF would you recommend in this sector?

Thanks again.

Q: Hello everyone;
I need to have fixed (Bond) portion in my portfolio, which currently resides in hi interest savings account. This is primarily because I do not understand effect on bonds by market forces such as interest rates, etc and what optimum term should be. iShare core ETFs seem to make sense. They are as follows: XQB (75% of fixed portion, 8.6 yr avg term), XSQ (15% of fixed portion, 3 yr avg term), XSH (10% of fixed portion, 3 yr avg term). I intend to keep it for long term. Please comment on suitability and timing.

Q: Hi, I sent in a question a few months ago asking for a few gold stock names for my portfolio. I haven't bought them yet And have decided id rather buy a gold etf as its easier to manage. Should I buy a bulllion etf or a gold stock etf? This would be for a long term hold. And which etf specifically would you recommend? Or even half of each.

Q: Can you please give me your thoughts on POW and VEE? I am considering a 6% position in each, in my TFSA, with 3-5 year time frame. Thanks
Grant

Q: Hi,
I am looking at my bonds portion of my portfolio and would like to make some investment ($30K)into etfs. Can you recommend a few of the funds at this time. Thanks

Q: Hi 5i team,

Can you explain how this etf functions? Why would someone buy this type of investment and what would be some of the risks?

Thanks.

Q: Along with picking individual stocks. I wanted to started buying ETFs that would cover US and international markets. I was thinking VSP for the US (S&P500), VXC for international and VAB for a bit of exposure to canadian bonds.

What do you think of these choices? Are there better choices out there?

Thank You,
Andrew

Q: I'm starting an RESP with a yearly amount of $3,000 including federal grant for the next 14 years. Would investing 50/50 solely in XIC and CDZ make sense? Would appreciate any other suggestions. Thanks a million.

Q: As a followup to John's recent question on VIX, the ETFs VXUP and VXDN have minimal liquidity on most days and appear to have poor correlation with the VIX. May I get your comments on using VXX and XIV as vehicles for trading S&P 500 volatility. These ETNs have excellent liquidity.

Thanks, Tim.

Q: I have limited exposure to Europe / Emerging Markets. Do you think it is a good time to invest in either of them and if so how would you do it? What are the best ETFs? Would you use a CAD hedged ETF/am I correct in understanding that buying a CAD hedged ETF would protect against the CAD appreciating?
Thank you as always.

Q: I would like a clearer understanding of what the VIX is and when an investor would buy or sell it. THANKYOU!

Q: I am thinking this might be a good time to increase my exposure to Europe. I currently own Eur ( 3 % in an Rrsp portfolio that will be used to generate income) and I wonder if I should just add to that or take out an additional position in XEH.
Thank you.
Maggie

Q: Hi - I would like to top up my Gold/Silver Assets in my portfolio. I have a 10-12yr time horizon. - I own about 2% gold and silver bullion (in my safety deposit box) and would like to buy about $15k of precious Metals stocks but want them to be dividend producing stocks. - Can you give me a few of your favorite Precious Metals Stocks (or ETF's) that have a (relatively secure) dividend. I would like to buy about $5k of 3 different names if possible - also what do you think of Mandalay Resources (MND). - thanks again for this very valuable service!