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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: 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
Q: What do you think of buying high yield bonds such as TSX: CHB, iShares Advantaged U.S. High Yield Bond Index Fund (CAD-Hedged)? Thanks.
Read Answer Asked by Eugene on March 20, 2013
Q: Peter; Not a question but have you seen today''s NP article , pge. FP 11, by Michael Nairne? It gives further
data on why to buy ETF's VS Mutual Funds. Those fees just keep rising !
Rod
Read Answer Asked by Rodney on March 20, 2013
Q: Hello - I have been comparing two global iShares ETFs, CGR and its identical US listed counterpart, ICF, and notice that CGR tends to outperform ICF more than simply tracking ICF.Is this simply a currency phenomenon and is CGR the better buy?
Read Answer Asked by Joseph on March 18, 2013
Q: I'm looking to add a few fixed income holdings; preferred shares and bonds. I see some of the larger cap names in your Model Portfolio have preferred shares and/or bonds. Would you recommend I add them as well as the commons (as opposed to just the commons) or do you have any others you could recommend for the fixed side?
Thanks,
Heather
Read Answer Asked by Gregory on March 16, 2013
Q: Hi All, I have very little exposure to the precious metals sector. I see that the sector is very beat up. I have two questions: 1. Do you think this sector may turn around this year? 2. Would BMO Junior Gold Index ETF (ZJG.TO) be a decent way to get exposure?
Read Answer Asked by Kim on March 14, 2013
Q: Peter; With the CAD down would you purchase a hedged or non hedged ETF at this time? Thanks.
Rod
Read Answer Asked by Rodney on March 13, 2013
Q: Thanks for posting ur Model Portfolio. To round out the portfolio with US, International, Emerging Markets and a bond component would you just use an ETF for each - and if so what ones do you like.
What % of cash do u recommend to hold for a retired person.
Many thanks Peter.
Jorge
Read Answer Asked by George on March 13, 2013
Q: Hi team, I have been sitting on some cash for a while and started looking at BMO ZUT equal weight utilities ETF. It is off its recent highs and generating a nice 5.3% yield. I was wondering if investors are beginning to rotate out of safer utilities and would this then be a buying opportunity? I am looking at it for an RRSP.Thoughts?
Read Answer Asked by Ray on March 07, 2013
Q: Can you please provide some comments on convertible bonds and the role they can play in the fixed income portion of a portfolio? Basically I would like to know if a convertible bond ETF such as CVD would be considered a legitimate fixed income holding, and how an ETF like this would be expected to behave in a downward market. For example, if I wish to hold 20% fixed income, would it be appropriate to have some of this amount comprised of a convertible bond ETF? Finally, as I plan to hold this in a non-registered account, any comments on the "tax advantaged" mechanism employed by CVD would be appreciated. Many thanks.
Read Answer Asked by Stephen on March 07, 2013
Q: Peter; What do you think of buying ZMT at the five year low price? Thanks. Rod
Read Answer Asked by Rodney on March 07, 2013
Q: Any comments on buying QQC for exposure to the Nasdaq? My broker offers this ETF commission free, but I am concerned about how thinly traded it is. Thanks.
Read Answer Asked by David on March 05, 2013
Q: HEE - Horizon's Enhanced Income Fund.
. The stock is close to its 52 week low.
. But the monthly dividend has dropped from a high of 8 cents to a recent 3 cents per share.
. Questions: 1. Would this likely be a good time to buy? And, 2. Would it be realistic to expect the monthly dividend to increase if the underlying stocks increase in price?

Thanks again!
Read Answer Asked by Donald on February 27, 2013
Q: Hi Peter & Team:
I have virtually no 'financial' sector weighting in any of my portfolios (RSP, TFSA or Cash/Margin). Could you comment on what approximate weighting you would feel is appropriate (looking at growth and some income). What do you think would be the best Equity or ETF choices in this situation and, how would you approach timing of purchase - everything now or a phased in approach ? Many thanks.
Read Answer Asked by Alexandra on February 26, 2013
Q: What are your thoughts on the thesis that by the end of the decade water will be taken seriously as a commodity/resource? In keeping with this line of reasoning, what is your opinion of CWW (iShares Global Water ETF) as means of playing this angle? Thanks.
Read Answer Asked by Stephen on February 22, 2013
Q: Hi Peter: I have read several articles recently pointing to Thailand, Philippines, Indonesia, Singapore and Malaysia as being the next designated "emerging markets". Do you agree and if so, could you recommend an ETF containing primarily these regions.

Thank you
David
Read Answer Asked by david on February 15, 2013