Investment Q&A

Q: Preferred shares and fixed income

Hi 5i team : I own only common stocks in my portfolio and since I am a mature person that is near retirement, I have the feeling that my exposure to common stocks is very high. So far, to mitigate my risk, I keep daily of the market changes, so I do not get caught in a drastic downturn.
To get more protection, I have thought in buying some preferred shares , but I know nothing about them to start a position.
Are the P.S. a good way to go ?, if so, what should I learn about them and how (references, books, etc), also what would be a reasonable percentage of my portfolio to have in P.S.?
thanks for your help
Alex

Q: I'm considering adding a 3% emerging markets component to a growth portfolio. The two ETFs I am looking at are ZEM (C$) and EEM (US$). They both track the same index, ZEMs MER is about half that of EEM and its dividend is slightly higher. It is however, much smaller with a 157M market cap vs. 27.8 for EEM. Is the size differential a concern?

Q: Good morning Peter, Ryan, and Team,

I submitted this question about a week ago, but guess that it must be "floating" in cyberspace! Here it is again:

There was an article in the July 18th Globe & Mail called "It’s time
for investors to reassess their rainy-day funds". The author
believes that too many investors keep too much money in low-
interest bank accounts and money-market funds. Instead, he
states that "intermediate-term bonds, over the long run, are
superior not just to cash but to long-term bonds as well. So when
thinking about where to invest your fixed income assets,
remember Goldilocks: The best place to be is not too long and
not too short. The place to be is what is essentially a large “sweet
spot” between short and intermediate. That’s where the reward-
risk trade-off is at its greatest."

Assuming that one agrees with this thesis, what fixed-income ETFs would you recommend that could fit the bill?

Thanks as always for your valued advice.

Q: I'm looking at these two ETFs for the short term, as they are near a 52 week low and have fairly good liquidity. Which one would you recommend the most, or would have a better suggestion ? Thanks

Q: Now that the Brexit vote uncertainty has diminished a bit, would it be a good time to add to European market exposure? Presently hold ZWE for income. Would you add to ZWE or open a position in another etf? If so, which etfs would you recommend for income? Which for growth? Possible ZDI ?Looking at 2-3 year time frame. Many thanks for the terrific service.

Q: Please suggest an emerging market infrastructure etf priced in Canadian dollars. Thank you.

Q: Looking to initiate a 3 to 5 year position in either xmm or xec. Which do you prefer and why? Thanx.

Q: Hi,
My son is taking a break from active stock picking and has gone with this ETF model: VUS(15%), VBU(5%), VCN(22.5%), VAB(5%), VI(22.5%). His investing horizon is very long (10-20 years). Your thoughts on the individual ETFs? How about sector & geographic diversity? Any other concerns?
Thanks!

Q: XT-N
iShares Exponential Technologies

I am looking for an ETF that follows emerging new technologies. One that seems to fit the bill is iShares Exponential Technologies (XT-N). What do you think of it? Is there another you would like better? Are there any traded in Canada?

Q: HI TEAM :
I own ZWE and like it could you give a current assessment on it as well as a list of similar ETFS that offer geographic diversification out of US and Canada. Thanks
Yossi

Q: Total return index ETF; is it good ?

Q: On the fixed income side of a portfolio 5i has included both conv. debs. and prefs. Do you see them as having a similar risk profile? With new money would you choose CVD or CPD? and why? I am having a hard time finding CDs that are worth the risk, yet the rate reset pref. market seems like a "bargin" assuming rates go up in the next 5,10,15 years.

Q: I notice that the CDNX is in the process of what seems to be a dramatic turnaround since January of this year moving from 468 to its current level of 763. What is the preferred instrument for taking advantage of this index?

Q: What are your thoughts on this new ETF? Global Momentum Factor ETF (VMO)And the momentum strategy employed vs a plain vanilla index as the global portion of one's portfolio?

Q: Peter; I read a Globe article by the Avenue Group regarding the massive amounts of money flow into bond ETF's. Their main point was, if the bond market goes to a " no bid" situation, then the resulting problems with accurately pricing the Etf's could cause havoc if investors tried to exit. Today Larry Berman suggested buying his ZCS short term corp.bond
as a place to sit and wait for a pullback he thinks is coming. I realize that trying to time the market is pointless but first could you comment on the " no bid" scenario and second do you think buying some ZCS would be like a hedge if anything did develop?
Thanks.

Rod

Q: Wisdom Tree high international dividend fund hedged. This is a new Canadian fund and I cannot find info on constituents,total mer,dividends,etc. Can you help and what are your thoughts? Thanx.

Q: Good afternoon. Could you please recommend a CDN dollar ETF that holds U.S. online shopping companies, such as Amazon. As well as, a CDN dollar ETF that holds U.S. technology companies. Thanks very much. David

Q: Hi, I am considering replacing my IWo by IJR or SLY ( S&p 600 small cap growth). I was reading David Swensens book "unconventional success". Brilliant book. He talks about how Russell 2000 is not a well structured index as compared to S&P 600. Which has a better structure and therefore results in better performance. What are your thoughts on this. Also what portion of a portfolio would you suggest for small cap growth based ETF like this. This is for an otherwise diverse and aggressive portfolio. Your advice is most valuable. Cheers, Shyam

Q: this question is about i shares silver trust etf, slv:us, just in case your section above does not pick up the stock again!
Do you think this is a good way to invest in silver, my understanding is that it holds the actual sliver. also the forward calls on this product seem to have a very reasonable spread, as far as risk reward goes it seems like a good way to get some torque on a 3 to 6 month trade on silver, realizing of course your call premium could expire worthless.
thanks TOM

Q: BMO US Put Write(ZPW)
BMO Europe High Dividend Covered Call Hedged to CAD(ZWE)
PowerShares Preferred Portfolio(PGX:US)
BMO Laddered Preferred Share Index(ZPR)
BMO US High Dividend Covered Call(ZWH)
BMO Equal Weight REITs Index(ZRE)
iShares S&P/TSX Canadian Preferred Share Index(CPD)
iShares S&P/TSX Capped REIT Index(XRE)
BMO Covered Call Dow Jones Industrial Average Hedged CAD(ZWA)
iShares Convertible Bond Index(CVD)
BMO Canadian Dividend(ZDV)
Above are ranked as to yield - high to low. Can you rank as to risk - high to low?
Thank you for considering my question
G. Reynolds