Investment Q&A

Q: Hi
I am looking into getting into the stock market. I have invested in stocks in the past but currently don't hold any stocks. I'm 25 years old, have a long term horizon and a medium high risk tolerance,
I have about 10K to start investing with and am looking for the best way to diversify and also get into the stock market again. I hold GICs already.
I was thinking about starting off with the stocks in the balanced portfolio and from there (as i am able to save some more money) pick a few other key names,
What is your opinion of this idea, do you think if I start with those stocks in the balanced portfolio at the current prices is that a good start?
Thanks
Chris

Q: Could you recommend an Canadian utility ETF

Q: As a short term investment of say 1-12 months, could I get your opinion of this investment as opposed to a GIC investment and is VSB a safe place to park money. Thanks, Bill

Q: Hello Team
Trying to decided on which is the best and safest reit.I realize they are low risk.But if we go into a recession which would perform better.Thank You

Q: What is your opinion of First Asset Multi-Factor core ETFs

CED and CES ?

Thanks ,

Glen

Q: I am looking for exposure to the renewable energy space particularly in solar, as I think that in the next decade it will be a good investment. Could you recommend several ETFS that might fit that goal. I expect that we need to look outside of the Canadian market but do not exclude it.

thanks
Yossi

Q: I feel like rolling the dice a little on Greece. Is there an ETF out there that tracks one of the greek indices? Thanks!

Q: I liked the article you posted, The Truth About 99.3% of All ETFs. Given the contents of this article, would that make 5i review their recommendations for certain ETFs or have those factors already been considered?

In my portfolio are a few ETFs and even before I read this article I was pondering shedding them and moving into the stocks themselves.

Thanks for you response,
Ron

Q: Thank you for your quick reply and opinion today. The question concerned ZRE but the answer refers to XRE so I am wondering if you would consider XRE ( Market cap 1.24B) a 'better' purchase than ZRE at this time? Perhaps XRE is a typo in the answer?

If the ETf was closed out what would happen re: payment to share holders?

Zre only has a market cap of 364.5M - If XRE was a typo then I expect that you consider the size of ZRE is not a concern?

As a relatively new investor I appreciate the education you provide.

Again, thank you so much


July 31, 2015 (asked by Len)

Question: I have been adding to my holdings in the Income Portfolio and with the cost/share down I was considering ZRE at this time. In looking at the BMO site (http://www.etfs.bmo.com/bmo-etfs/distribution?fundId=80001 ) I note the following statement under 'distributions' -

" The distributions will either be paid in cash or reinvested in the BMO ETF at the discretion of the manager."

I am wondering your thoughts on how likely it might be that one would not get a cash distribution? If owning individual REITs could this be the case as well? Do you recommend buying ZRE at this time? We are looking for income.

Thank you ever so much for your insights.

5i Research Answer:
Each REIT would be different, but generally for non-ETFs shareholder approval would be required to get paid in units. ETFs do not require a unitholder vote on many items (including closing a fund). We would not consider it very likely that XRE would pay distributions in more units, and has not to date. Dividends coming in are fairly secure and the fund is large enough to avoid most cash liquidity issues. For diversied REIT exposure and income we would still consider it a decent buy.

Q: I have been adding to my holdings in the Income Portfolio and with the cost/share down I was considering ZRE at this time. In looking at the BMO site (http://www.etfs.bmo.com/bmo-etfs/distribution?fundId=80001 ) I note the following statement under 'distributions' -

" The distributions will either be paid in cash or reinvested in the BMO ETF at the discretion of the manager."

I am wondering your thoughts on how likely it might be that one would not get a cash distribution? If owning individual REITs could this be the case as well? Do you recommend buying ZRE at this time? We are looking for income.

Thank you ever so much for your insights.

Q: Hi, what are some of the Vehicles, in Canada or the US to play a rising $US. Given the exchange rates now I would rather stay with a Canadian ETF or Fund.

Thanks

Q: I'm looking at CDZ or PDF in order to add Canadian diversification to TFSAs for my children. Would you prefer one over the other for any reason?

Thank you.

Q: Re Sylvia's etf dividend question
Just my two cents but I think her question is a very good one. ETF dividends can be tricky. I hold a CIBC canadian index etf that I bought through a friend who is a broker. I didn't research the fund much other than note it has relatively low MER.
I learned though that the dividends are automatically reinvested in units (I was never consulted on this), and in any case are only paid once annually even though all of the underlying paying companies pay either monthly or quarterly. I never actually "see" any dividend. Seems like I am losing some compounding effect there, as the reinvestment occurs only once per year. Over a long period I think this may be significant. Anyway, suggest you research carefully before you buy. Email the fund directly and ask specific questions about the div.
Good luck fellow investors!

Q: Hi Peter and Team!!! It gearing up for a great weekend weather wise, Yay! I have 16,000 to deploy in my RRSP. I would like to buy one or two ETFs that cover the US market, broadly and perhaps dividend aristocrats. VUN and VGG...are in Canadian funds. I would like the equivalent listed in US dollars, paying out in US dollars as well. I asked my investment advisor, and she could not give me any alternatives except for the SPY. Could you suggest some ? And on that topic, is it a good idea to hold another currency (in this case US dollars) in the RRSP, or just have an ETF representing the US market in Canadian funds? Thank you, and have a great weekend!! Cheers, Tamara

Q: Hello Peter,
I have XHY and CHB as part of fixed income portfolio. However, wondering the benefit / role of these 2. Very volatile and the dividend not enough to offset the decline in share price ( net loss on year basis). Is it worth holding these with any specific purpose or would you recommend better alternate. My need is more stability and bit growth than pure income. Thanks.

Q: Hi Peter & Team: I have ZDV in both TFSA & non-registered acct, should I take the loss and get out as energy & financial are weakening? Thank you.

Q: Hi, this is a bit of a 30 thousand feet question and I'm trying to find investing idea's for the next 5 to 10 years. I am looking at three countries India, Iran and Ethiopia. What options do I have to play these markets now or in the near future. I'm just starting my search, any help would be appreciated

Thanks for a great site

Q: Any issues with these picks for my healthcare and tech allocations or would recommend better alternatives:
IBB
FDN
IYH

Also what would you recommend for exposure to the Nasdaq 100

Thank-you.

Q: Hi, I've owned this awhile, but I seem to be getting no "pop' due to the rising USD vs CAD. Is it hedged against a rise in the USD? What I was wanting when I bought this, was US Large Cap Div exposure with a USD exposure vs CAD. Can you recommend another US index fund that would participate in the continued CAD decline?

Q: Since my buy in May, 2013 ZPR is down 23% and continues to get beaten down as interest rates fall. Assuming the Bank of Canada reverses direction in response to the expected rise in US interest rates, is this a good entry point for ZPR as a long term hold?