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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello Peter and Staff;
Is there any downside to purchasing an ETF in December, in terms of distribution of units. I know in the past when I have held mutual funds, I have taken a hit early in the new year which pertained to a fund timing purchase in the last couple of months of the previous year. ?any similarity in operation of etfs and mutual funds in this regard?. Thank you very much
Read Answer Asked by Phyllis on November 27, 2014
Q: Regarding US$ portion of a well balanced portfolio containing 5i equity portfolio and A/B stocks, canadian large companies, a small bond ladder, no other international exposure w/ 15-20 year time line. Any US thoughts or advice?
4.9% Apple -AAPL
10.1% EAFE ETF -EFA
7.5% Russell 2000 -IWO
14.4% BIOTECH -IBB
39.5% S&P 500 -SPY
6.9% Consumer Discretionary - XLY
5.4% Tal International -TAL
6.8% Vanguard Dividend -VIG
4.5% Yum Brands -YUM
Read Answer Asked by William on November 27, 2014
Q: Good morning Peter and Team, The recent Q and A about ZWH has me thinking about my own strategy. I own a position in CLU.C, and its chart shows a 21% gain for the last 12 months compared to 14.91% gain for ZWH, even though CLU.C has a smaller dividend. What do you think of CLU.C? Thanks!
Read Answer Asked by Jerry on November 27, 2014
Q: What do you think of the strategy of moving some of the money from my small caps that have done well over the last 1-2yrs and gradually parking the money in this ETF? Is the dividend safe and what are the downside risks?
Read Answer Asked by John on November 26, 2014
Q: Could you please update your 2013 answer on the interesting ETF.
Many thanks !
Read Answer Asked by Nancy on November 26, 2014
Q: Hi Peter and team,

Could you please suggest several investments for a portion of a portfolio, in a non-registered account, where capital preservation and income (as frequently as yearly or more) are a priority?

It would be important to avoid the risk of losing capitol over a 5 year time frame. A distribution/interest/dividend/etc payment is also important for this investment.

With GIC rates being so low, I'm struggling with what to do.

Could you please recommend a few ideas which would yield more than a GIC while also minimizing risk and taking into account the tax implications of it being in a non-registered account.

Thank you very much for all of your helpful answers.
Read Answer Asked by Geoff on November 26, 2014
Q: I have parked US$ in a money market fund that pays 0.2 % pa. (RBF2014 in my case). That is a negative real return and money rusts away while you wait wait for the US market to cool its overheated jets. For parking C$ I use iShares CBO. Are you able to suggest any US$ short term* non-hedged US$ bond ETF? (* meaning 1 to 5 year). Funds would be required as and when reasonable prices are found or if US markets pull back. The holding period could thus range from several weeks to months.
Thank you. Best, Adam
Read Answer Asked by Adam on November 26, 2014
Q: Hi Peter & Team,

Which of these 2 ETFs would you prefer? ZUE or ZSP.

Thanks for your great advice.

Regards,

Henry
Read Answer Asked by Henry on November 26, 2014
Q: Hi,

Despite my doing quite well on stocks in the last couple of years, I've discovered I'm still trailing the s&p500 which is up 17% annually in last five years. This is what couch potato etf investing theory warms us about - statistically very unlikely to beat the market. Two questions.
1) given that we can't expect those kinds of broad gains in next two years, and that everyone is chiming 'its a stock pickers market", would you still recommend a s&p etf for a 20% position for the next few years?
2) can you recommend a couple CDn and US S&P etfs for me?
Read Answer Asked by Graeme on November 25, 2014
Q: When I assumed control of my RRSP from the broker , I found OCV-UN in overly large amounts. Broker piled in at IPO price of $12. (Broker was dealer-advisor). I left the holding as was for the wrong reason, namely : OCV.UN has dropped significantly from cost such that monthly distribution is now around 9 to 10% p.a. I am uncomfortable with O’Leary. Are you able to suggest one or more ETFs that could take the place of OCV.UN? In the alternate, if you feel it’s OK to leave it alone for now, I would be thankful for knowing that.
Thank you and all the best
Adam
Read Answer Asked by Adam on November 25, 2014
Q: Hi, could you please tell me what you think about XEI as quick place to add funds during a market sell off? It's for my income portfolio (40% fixed income, 60% equities)
I like the 4+ % yield and the holdings. I believe iShares lowered the MER on it as well.
My equity portion is made up of the following:
XEI Index 2%
Consumer 3% CTC.A , L
Banks 19% BMO , BNS , NA , RY , TD , TMC , MTG
Insurance 11% MFC , POW , SLF
Utilities 8% EMA , FTS , TRP
Telecom 13% BCE , MBT , RCI.B , T
Prec Metals 6% AEM , TCK.B , SLW
Energy 14% CNQ , CVE , CPG , FRU , SU , ERF
REIT 13% CAR.UN , CHP.UN , HR.UN , REI.UN , TCN
Tech/Industrial 10% ET , MG , MDA , RUS , WSP, MRE

Thanks as always
Read Answer Asked by Carlo on November 24, 2014
Q: India is doing well now; your opinion on India large caps ETF ?
thanks
MD
Read Answer Asked by Martin on November 24, 2014
Q: Hi Peter and team,
My US investment portfolio is 20% of my combined portfolios. In my Canadian (registered and non) I mostly have stocks from the 5i growth portfolio.
My US investments are full positions in VIG, BRK.B, IWO, QQQ, SLW & INTC and half position in FEZ. I also hold CRUS, VOD, VZ and GT.
I would like to get your thoughts(outlook) for the next 2 to 3 years considering the interest rates may be going(US) up and QE in Europe.
I am thinking of increasing my FEZ to full position but I have to sell something. In your opinion how should I rebalance my portfolio?

I value your opinion and really appreciate what you all do for retail investors like us.

Thanks

Read Answer Asked by Irshad on November 24, 2014
Q: You've mentioned CBO as a relatively good ETF to hold in the bond space. But when you look at the 5 year chart, it's on a downtrend. Is this really a good time to buy CBO?
Read Answer Asked by Eugene on November 24, 2014
Q: Would you consider this ETF a good add on to my portfolio for stability and decent growth. It seems to have been doing pretty good lately and wandering if that would be due to the consumer staples that it holds.
Read Answer Asked by Jacques on November 20, 2014
Q: Just a follow up on my previous question.
Do you have an ETF in mind that will work well as a replacement for the stocks.

Thanks
M
Read Answer Asked by Marios on November 20, 2014
Q: I would like to start an RESP for my 10 grand children. The oldest being 9 and the youngest just born. Do you have any suggestions for core positions that I should hold over the next seven years.

Thanks for your great service.

John
Read Answer Asked by John on November 20, 2014
Q: Is there an etf that holds Canadian or US securities eligible for a RRSP account that also mandates investing only in companies with worthy fundamentals/balance sheets. I know of a mutual fund that does this but I am hoping to acquire an etf. Sector diversification would be preferred but not necessary.
Thank you once again.
Read Answer Asked by Jeremy on November 20, 2014
Q: Hello Peter, Would you recommend 2-3 ETF funds CDN and US for
a significant investment?

Larry
Read Answer Asked by Larry on November 20, 2014
Q: Hello 5i team.

I have read that your favourite US dividend ETF is VIG. I own the TSX listed version (VGG) in my RRSP. Although, there is no withholding tax on dividends in an RRSP, there seem to be some erosion from taxes within VGG itself. Can you recommend a US dividend etf that is efficient to hold within an RRSP?

I note that the total return of VIG has been less than VV. Is this compensated for by lower volatility?

Thanks,
Hans
Read Answer Asked by Hans on November 19, 2014
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