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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: Would you recommend a US dollar Corporate Bond ETF or somewhere to park some US dollars within my RSP? My apologies if it is already posted but I was unable to find anything. Thanks!
Read Answer Asked by Catherine on April 18, 2013
Q: The S&P 500 is at a high right now, and may be ripe for a correction. I was considering Horizons HUS.U as a way of getting any upside left in the market and protecting my capital in the event of a black swan event. Your thoughts on this ETF are welcome. Thank-you...
Read Answer Asked by David on April 14, 2013
Q: Hello
In reference to my previous qustion on HZU & HGU,will they ever go to Zer0 ^
I heard that some ETFs reset their value?.
Maybe I should keep them until until Gold start going up?
your feedback will be appreciated
thank you.
Read Answer Asked by Sam on April 12, 2013
Q: Just recently joined...what a great service you're providing!
I'd appreciate your opinion on iShares S&P US Dividend Growers Index Fund (CAD-Hedged) (CUD) held in a RRSP. Is this a good ETF for U.S. exposure or are there better alternatives that are hedged to the Canadian dollar? Thanks
Read Answer Asked by Jerry on April 12, 2013
Q: Could you help me to understand United Corp. - UNC ? What I have found out: UNC is a closed-end fund in existance since 1929 currently under management by the respected firm of Jarislowsky Fraser. It currently trades at a discount to NAV of about 31% which appears about mid-point of its historical range. It has an ETF-like MER of .46%. It is very illiquid. In Nov/12 it changed its mandate to eliminate its Canadian equity component to focus on global equities. Questions: Why the huge Discount to NAV which is the norm not an aberration? What would be the caveats in acquiring such a fund? Would you consider it a viable ETF alternative for global equity exposure? Thank-you.
Read Answer Asked by William on April 12, 2013
Q: Your opinion please on the following
-I bought HZU AND HGU in October 2012.I am almost at 50% losses thinking they will go up later.
With all the bad news on gold and silver, would you hold or sell ? What is your outlook on these 2 stocks ?
Thank you in advance
Read Answer Asked by Sam on April 10, 2013
Q: Peter, my Canadian investments are all individual stocks. However, I am not as familiar with individual US securities. So, I would appreciate your advise on 1 or 2 ETFs in the USA (investment of $100K)as well as your pic on the same for Europe, International & Global. Many Thanks
Read Answer Asked by Robert on April 10, 2013
Q: February 26th, you noted that FIE was a decent ETF for Canadian Financials. This ETF posts a trailing 12-month yield of 7.34% which it pays out monthly ($0.04) as a mix of eligible dividends and return of capital. In 2012, it paid $0.414 as eligible dividends. Based on the average NAV for 2012 of $6.50, this would be a 6.4% return. How is such a high return possible when 90% of FIE is in Canadian banks plus CBO and CPD which pay around 4-4.5%? Is this return sustainable? I have posed this question to iShare and, as yet, received no satisfactory answer. Am I missing something?
Read Answer Asked by richard on April 08, 2013
Q: For a retired person looking for a solid income stream would a laddered bond fund like CLF or CBO be a sound investment as part, say 5%, of an overall portfolio? Thanks and keep up the great work.
Ronald
Read Answer Asked by Ronald on April 08, 2013
Q: Hi, I have a question regarding investment strategy. I heard that you shouldn't invest more than 5% in any stock and I also herd that you should only hold about 5 to 7 quality stocks. That accounts for 35% or my portfolio. My question is...what do I do with the other 65% of my portfolio? Should I be investing that portion or is it better to leave it. This way I won't lose any money on this amount.
Thanks
Read Answer Asked by Rob on April 07, 2013
Q: Following up on Chucks question about the leveraged etf's. Given their structure and the decay that comes out of it, can't a prudent investor short both the hbd and hbu and come out ahead over time? For example, the hbd is off 25% in the past two years while the hbu is flat. I must be missing something or else someone else would have already thought of this.
Thanks,
Bill
Read Answer Asked by Bill on April 06, 2013
Q: Hi Peter
New member first question
Wondering if you can give your opinion on natural gas where do you see it 6 month from now.
as well if possible your opinion on HND and HNU on how they work.
thank you
Read Answer Asked by Sam on April 05, 2013
Q: Impeccable timing on the Goldcorp recommendation. I think the contrarians are right in calling for gold to continue its run. That being said, I would like your opinion on some of the "double" ETF's such as HGU, HNU etc that outperform in a bull market for gold (HGU) and natural gas(HNU), and take big hits in a bear market. Thanks
Read Answer Asked by Chuck on April 05, 2013
Q: To aquire a small stake in the US market, I am looking at these etf's. CUD, XSP, and ZUB. Do you think this is a good idea? what would a good entry point be? thank you.... Linda
Read Answer Asked by Linda on April 02, 2013
Q: Hello Peter and team. Do have any recommendations on how to best play commodities with out actually purchasing individual futures contracts. I'm particularly interested in grains, oj, coffee, sugar etc. Are there etf's that would be suitable? Thanks
Read Answer Asked by Ian on March 29, 2013
Q: Is there a Canadian tech ETF containing such companies as BB,DSG,
ESL,IM,MDA,MDF,SYZ, etc.? The tech sector seems to have some legs in the US, just wondering if Canada's tech sector may follow suit.
Read Answer Asked by Charles on March 27, 2013
Q: Hi. I have a few questions concerning buying a convertible bond ETF. There appears to be only one choice, iShare’s CVD, which is an advantaged fund. An apparent alternative, PCD.UN which is also advantaged, will probably be wound up either in September 2014 or earlier. I have several questions.
(1) Is there an alternative way to hold a fund of convertibles while staying away from Canada’s rapacious mutual fund industry.
(2) Both CVD and PCD.UN are trending downwards fairly steeply (for fixed income funds) over the last few months. Is this a good time to be buying convertibles?
(3) CVD will have to at least restructure when the government legislates against such tax avoidance funds. Does this increase the short to medium term risk?
(4) Presumably CVD will have a higher (but fully taxable) yield by about 0.5-0.75% once they restructure since the forward structure costs will disappear. Is this a valid presumption?
Read Answer Asked by John on March 26, 2013
Q: Hi,
I have held the major canadian banks over the past 20 years and as a result pleased to do so. I have always wanted to diversify into U.S. banks but just never invested my time to do the proper due diligence. Would the U.S. regional banks be a good area to begin my search? Or would you recommend staying out of U.S. financials totally?
Thank you,
Mike G.
Read Answer Asked by Mike on March 26, 2013
Q: What do you think will happen to the "advantaged" series of ETFs (e.g. CHB, CVD, etc) given the recent budget announcement regarding "character conversion" structures.

http://www.theglobeandmail.com/globe-investor/ottawa-targets-mutual-funds-using-low-tax-strategy/article10237720/
Read Answer Asked by Stephen on March 25, 2013
Q: Hi All, Please provide your opinion of CAB for use in a non sheltered portion of a portfolio, I have to get my bond portion balanced and it has to be non sheltered, is there another product you would recommend that would serve the same purpose as bonds for non tax sheltered.
Read Answer Asked by Peter on March 23, 2013