Investment Q&A

Q: HTD
BEST WISHES FOR ALL IN 2014
Recently Jaime Carrusco recommended this ETF which is a bearish play on US 30 year treasuries, designed to double the daily movement. The basic ideas confirms my view of where the US long bond is going, but is there a catch. I am prepared to accept the risk of being wrong on the direction of the long bonds, but am afraid I don't understand the mechanics of the ETF. Is there a daily reset? Can I just buy and watch or does this need to be day traded.........something I can't do. Thanks. Robert

Q: Hi Peter and Team, Happy new year. For my TFSA account I was going to buy Horizon ETF. Trades on the S & P 500 symbol HXS. Is this a good idea? What are your thoughts or recommendations. Thanks. Ed

Q: Hi

I have been reading through you past answrrs to questions and seems you have been anticipating a recovry in metals

If you were to pick one or two, or three ETFs to play any metal recovey, what would you choose?

Many thanks

Q: What are your thoughts on the etf "uxm" by Morningstar for US exposure.

Thanks, and all the best in the new year to you and your staff.

David

Q: Can you recommend an emerging markets mutual fund?

Q: Peter; I have read your comments on EEM and VXUS. Is buying both a double -up? Thanks. Rod

Q: Happy New Year, Peter and staff!!
I am a relatively new subscriber to 5i but have been with Money saver for a long time (I love that magazine). And I really like this 5i service!
I look after the affairs of my mother who is 81, we have a bunch of GIC’s / bonds coming due in a non-registered account. The fixed income portion of her portfolio is about 50%. The rest is in dividend paying blue chips such as banks, telecom’s, insurance, energy. These have been held for quite a while and have been serving her very well.
I am looking at a few ETF’s for the income portion, I am interested in short term laddered government as well as corporate bond funds. Analyzing ETF screens, I have been looking at CLF, CBO, ZCS, VSC and ZCM. I am thinking of perhaps splitting her fixed income to 2 or 3 of these or similar accounts.
I would really appreciate your thoughts on these and other ETF’s that I should strongly consider.
Thank you, Dale

Q: I have a large holding in Yield Plus(yp.UN)and am wondering if you could give me an ETF name that would give me better growth together with dividends. Thanks. Ernie

Q: I deal just on the canadian markets. can you suggest an etf one for us and one for europe. thanks and all the best in the new year. vic

Q: happy new year;great job 5i; hyi seems to have a high pay out would it be safe at this time?short term corporate bonds. brian

Q: Happy New Year to the 5i staff
Do ZWB represent a good alternative to Financial income long term investment.I'm 71.

Thank You

Q: Hello, I've had CCM440 (IA CLARINGTON TACTICAL INCOME FUND T6) for 7+ years which has an MER of 2.48%. It also appears to be lagging the average return for this class of funds. I'd like to replace it with a good quality ETF with decent dividend returns. Can you suggest several?
Thanks Graham

Q: Hope you had a good holiday. My wife wants to inquire about etf YXM. We would appreciate your comments. TIA,
Gary

Q: Peter and Team,

With tapering beginning and possibly progressing, what are your thoughts on buying an ETF that is the reverse of the Thirty Year Bond in the US... something like HTD? It seems like interest rates are basically as low as they can go and will rise - its just a question of when.

Thoughts?

Q: Hi, Can I get your opinion on XFN for 2014.
Best of the season to you and your staff.
Thanks
Carl

Q: I am getting comfortable enough with the gold sector to actually purchase a few more stocks. On the more speculative side, I want to take a half position in Mandalay and on the more reasoned side, I am having a personal tug-of-war between XGD (I shares ETF) and GDX (Market Vectors ETF in the US). The purchase will be hidden within an RRSP portfolio, wherein I am ready to sit it out for a year or two, and I wish to begin with 2.5% position.

My question is in regard to the huge weighting that Barrick comprises in these 2 ETFs. Within XGD, Barrick has a 17.9% weight while GDX carries a 10.57% weight. Would this weighting have an abnormally negative impact on the ETFs if Barrick starts to circle the drain one last time?

I am less concerned about the currency differential than I am about the Barrick weighting: thinking GDX has a healthier percentage of Barrick than does XGD. Your thoughts would be sincerely appreciated.

I would also like to extend a Merry Christmas to the entire staff at 5i! Thank you for your helpful comments and insightful analyses on various topics, from individual stocks, to resources and strategies. Since joining 5i, and while following Peter on BNN, I have seen my portfolio strengthen enormously and is now consistently delivering my desired returns. I also feel more protected from the vagaries of the market, having chosen the 5i approach. All these letters of praise coming in to you must feel like a revivalist meeting of born-again-stock-pickers, but it is only because you really have made a huge difference in how people approach their portfolios. At this time of year, it only seems fitting that I add my voice to the choir, and say Thank You!

Q: I realize 5i's primary focus is Canadian stocks but, are you able to recommend a US Small Cap ETF? Thanks so much for all your help this year.

Q: Peter, I have added 17% cash to my non registered portfolio that holds 25 stocks recommended by 5i. I have let some stocks run but with the cash injection I no longer have any stock above 7%. I do not have any US exposure and was looking at adding SPY, VIG, IWO and QQQ. However, I would prefer hedging and am considering replacing SPY with HXS; I am aware the fees are higher but I do not have to deal with US withholding taxes. Are you aware of any similar ETF's that would offer hedging for VIG, IWO, QQQ? The reason why I want to hedge is that no one can rightfully predict what the exchange rate will be and all of my current and future expenses are in CDN dollars. I have had a fun and very profitable first year with 5i, many thanks! Stephen

Q: Could I please have your view of the ETF Powershares Global Private Equity,PSP, as a way of tapping into private equity companies? Do you see the 13% dividend as sustainable?

Q: I hold the iShares CWO Emerging Markets ETF. Its P/E is 8.1, the Price to Book is 1.00, its yield is 1.36%, and the MER is .69%. The performance of this BRIC ETF over the last several years has been flat.

Do you have any other recommendations for an emerging markets play? Should I be concerned that the daily volume averages 3.7K?

Thanks.