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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: According to Globe Investor the C$ hedged ZUB outperformed the unhedged ZBK over the last 5 days. Over 30 days and YTD ZBK has out performed by a wide margin. I was surprised after reading some analysts are predicting a 68 cent C$. For initiating a new position with new money today would you go with ZBK or ZUB. The last 30 days ZBK is up 2.44% while ZUB is down 1.23%. Thank you and I would like to wish you a Happy New Year.
Read Answer Asked by Richard on December 30, 2015
Q: Could you recommend a conservative US Equity or US ETF that pays a monthly dividend.

Thank You
Craig
Read Answer Asked by Craig on December 30, 2015
Q: Peter and Team,

How does an ETF like RQE work in terms of the expiry. For example, I believe RQE has a maturity or expiry of November 2017. Does this mean that, on that day, the fund "disappears" and you get the NAV returned to your account and you will have collected interest along the way?

I am trying to find this info in the RBC materials but I don't know if I am having a dumb day or what but I can't seem to pull up the prospectus for this series of funds (RQD, RQE, etc.)

Some insight on this and your thoughts on changing a position in HFR into half RQD and RQE would be appreciated.
Read Answer Asked by Marc on December 30, 2015
Q: Recently, Vanguard introduced a new etf that tracks international equities ex North America, VIU. I would appreciate your thoughts on this one and also, since it is new and small would you be comfortable holding it now, or suggest another that is similar.

Thank you
Read Answer Asked by Rose on December 30, 2015
Q: I'm looking at adding a US small cap ETF to my portfolio. I know your portfolio has chosen IWO.US but I see that IJT.US has the same MER and a higher yeild. I am already over diversified would a 600 stock ETF be sufficient?
Read Answer Asked by Cheryl on December 29, 2015
Q: Are there equal weighted world/canadian/US ETFs rather than ETFs based on market caps of companies? For example VXC is an international etf based on the companys market cap within the index. So a bias on the size of the company is reduced (or perhaps a bias is introduced towards smaller caps). Wouldnt this be better if the companies were equally weighted? What are your thoughts on this?
Read Answer Asked by Shyam on December 29, 2015
Q: I am retired and have some cash sitting in a bank savings account earning very little. I am thinking about taking a portion of that cash and buying a short duration Corporate Bond etf such as RBO,RQI or RQE. What are your thoughts on these funds/etfs and do you have any other suggestions.

Thanks Ken
Read Answer Asked by Ken on December 29, 2015
Q: RBC has Corporate Laddered Bond ETF'S ( Ex. RQE ,RQF etc )They mature in Nov of ea. year, interest paid monthly.Do you consider these a good option over other laddered products like CBO for ex.? Any disadvantages ? Other better suggestions?
Read Answer Asked by Gerald on December 29, 2015
Q: Can you give me a brief synopsis. Also would ZSU be comparable to CBO in terms of quality recognising that the former deals in the Canadian market and the ladder in the US Market.
Read Answer Asked by roland on December 24, 2015
Q: Hello and Merry Christmas!

Heading in to 2016 I am concerned about the impact of fx on my US holdings (about 25% of my equity portfolio). I have held the listed stocks in US$ for well over a year. Most are down on the purchase price but overall I am up in Cdn$ on account of the fx. My concern is a reversal in fx essentially wiping out any future gains in the underlying price of stocks like JCI or EMR where the strong US$ is often cited as a negative. As I see it I can: a) Sell and re-invest in an etf like CUD or XQQ that is currency hedged; b) hold and find some way to hedge against gains in the Cdn$ myself (any ideas here?); or c)do nothing . Any suggestions?
Read Answer Asked by Morgan on December 24, 2015
Q: First and foremost I want to wish all of you all the best for Xmas and for the New Year
You provide a great service and I want to thank you for your great advices and recommendations
Would you kindly let me know which Etf you would recommend for a Europe exposure as I think the market should perform better with all the stimulus they will provide thanks
Read Answer Asked by georges on December 24, 2015
Q: Dear Team,

I have a good portion of my portfolio in XTR. Why the sudden drop off in the share price. Shall I continue to hold or sell. Bought at $11.50.
Thank you and Happy Holiday!
Read Answer Asked by Frank on December 24, 2015
Q: Hello Team. I would like to start investing more in Europe and am looking at a few ETFs. Zeq, Ve and Xeu but leaning towards the Zeq as it seems a bit bigger. What is your opinion on this? Do you have another you would recommend instead and would you get a an etf that is hedge to the Cdn $ or non hedged and why?

Thank you and Merry Christmas everyone
Read Answer Asked by pietro on December 24, 2015
Q: A question about Purpose ETF (ex; PDF); in particular the corporate class funds. The implication is that even highly taxed interest income (or foreign dividend) can be distributed as a capital gain (less tax). I was under the impression that this would change and be now off limits ?
Thanks


Read Answer Asked by Martin on December 23, 2015
Q: Hi,

Just wondering if this fund is more favorable during current market conditions this past year(flat)? How would it perform in a very bullish (interest rates rising) market? I'm considering it for a long term hold and for it's distributions. I look forward to your comments, Thank you.
Read Answer Asked by Andrew on December 23, 2015
Q: Hello, my friend is starting a tfsa with about $6000. Low tolerance to risk but long term horizon (in her 20s) She was asking me advice and i wanted to run my thoughts by you : 35% zcs, 40% cdz and 25% xei. Is it sound advice ? Is it worthwhile to split the equity portion between those 2 given the amount invested ? Any suggestions are welcome. Thanks
Read Answer Asked by Pierre on December 23, 2015
Q: Would you or any of your members know how the distributions of XHY are taxed? I haven't been able to find any specific breakdown for income tax reporting purposes. Thank you!
Read Answer Asked by chris on December 22, 2015
Q: I would like clarification on hedging when buying USD securities via a CDN ETF: if the USD is going up and by comparison the loonie going down is it to your advantage to buy a hedged product or not? I am a little confused as I am sure there are times when hedged is good, and others, when it is not? Intuition tells me know is the time for hedged to protect loonie denominated ETF holding USD securities. The ETF XHY holds Us corp.: with interest rates going up in very small increments in the USA this should cause bond yields to go up as people move their money somewhere else - or not?
Read Answer Asked by James on December 22, 2015
Q: For a non hedged etf would VUN be a good choice for USA exposure?
Is there one you would recommend?
Thanks
Read Answer Asked by Michael on December 22, 2015
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