Investment Q&A

Q: In response to a recent question regarding US financial ETFs you recommended KIE as an insurance ETF. Do you have specific reasons for favouring KIE over IAK? Thanks.

Q: I would like your recommendation on ETFs for the US and Int'l portion of my portfolio. First a little background. My wife and I are both retired and in our late 50's with company pensions and CPP and OAS available when we reach age 60 and 65. Given that these income streams are secure and cover living expenses I have structured my Investment portfolio with 10% Fixed Income (CBO) and 90% equities of primarily dividend paying Canadian companies. I would now like to increase my US to 10%, Int'l exposure to 7% and Emerging Markets to 3% and want to continue to earn a good dividend yield. I would like to keep all my holdings in Cdn $ and am considering the following ETFs. The stock selection methodology of these ETFs should provide less volatility with a good and growing dividend. These would be for a long term hold.
U.S. - ZDY - 3.0%
Int'l - ZDI - 4.0%.
Emerging - RXD - 2.7%
Your thoughts on these choices or alternatives would be appreciated.

Q: Hi 5i:
I'm seeking your advice on my health care /biotech holdings, and I'd like to know if I should shorten the list (I tend to hold too many stocks), make any substitutions, or change relative weightings. I hold five: IBB (full position); CRH (2/3 position), and CXR, GUD and PHM, all 1/3 positions, approximately. They together comprise 11% of the stock holdings in my actively managed portfolio. Also, do you think this is a reasonable total weight for the present market? Thanks for your valuable advice.

Q: Hello.Could you please dive me a couple of etf in biotech, healthcare and pharma. In Canadian stocks with or whitout hedge.And in USA stoks in American money. Is ibb the best in class for bio.

Q: It's extremely difficult to get candid perspectives on Ultrashort ETFs. Structural issues aside, what is your view on the impact of "Seeking Alpha's" report that 30% of TBT's market cap had left as of June 5? Personally, I can't understand why they'd leave now that rates seem to be finally heading up....

Q: There seems to be a consensus that rising interest rates will benefit US banks. Does this favour the big investment banks over other commercial banks? If so, XLF might be the way to go as it is heavily weighted by the big banks. If not, what would be a good alternative US bank ETF?

Q: In a reply to Dave (jun08) re Fixed Income / Bonds, you mentioned CBO as being "preferreds". I understood that CBO was comprised of 1-5yr laddered Corporate bonds. Can you clarify if CBO is made up of preferred shares.
Many thanks to 5i.

Q: In Peter’s last appearance on BNN he made a brief reference to the Chinese stock market being in a bubble. I currently hold some iShares China Large-Cap ETF (FXI), and with the recent run-up have done very well with them. I greatly value Peter’s opinions, so I of course take notice when he uses the term “bubble” to describe any investment (for me the only term that invokes more fear is “irrational exuberance”). I’m happy with my weighting and allocation to China which are right where I feel they should be. However, the recent run-up and Peter’s comments have me wondering if it would not be wise to sell all of my FXI and wait this one out on the side. At present there just seems to be too much downside risk versus upside potential to be worth it. Any advice?

Q: I'm 37 years old and I have very little exposure to bonds. I would like to start building a position in Cdn Corporate and Government bonds in my RRSP. Do you suggest buying a little every month in a few ETFs, such as CBO, CLF and XHY or should I wait until interest rates rise and then start a position since the price will likely decline further? Is it smart to start a position if general wisdom dictates the price will fall in the future?

Thanks,
Jason

Q: I own JPM and BB&T and have noticed some nice gains in U.S. banks. As a broader-based U.S. financial instrument, would this be a good buy for both decent growth and a juicy yield?
Thanks

Q: Peter, With all the talk of cyber security, I would like to make an investment in that space. I know of no way to do that on a Canadian market, but maybe you do. Is there an ETF which covers this sector? Between the big players like Fire Eye, Palo Alto, Cisco or others, how would you play it? Or would you avoid this area all together due to valuations?

Q: Good Morning Peter. Thanks for your great service and am learning a lot from your reports and questions. Reply to my question may take more than regular of your time and efforts, hence feel free to deduct double the quota of question from my account.
I am a 41 year old, medium risk taker, can hold / wait for a 3-5 year horizon and looking primarily for growth. I started my portfolio back in 2012 , currently total investment over my tfsa, rrsp and resp is about 150k. I have not made any profits with this money in this 3 years thanks to my investments in BDI, Autocanada, HNL ,Entrec,Goldcorp and avigilion to name a few. I have sold most of my losing stocks, but not under water at this time. My current portfolio include Avigilion (3.4%), Wi-Lan(2.2%), Knight Thearauptics (3.8%) , CYB (2.25), Canaccord Financial CF(2%), CHP.UN.TO (2.1%), CIX (2.2%), SYZ (1.5%), RX (1.9%), ENT(0.6%). I also have mutual funds / Portfolios of banks like MAW106(10%), MAW150 (3.5%),RBF1025(3.8%), TD Monthly income TDB622(2.5%) , RBF209(14.4%) and RBF459(5.6%). I have couple of ETF’s VIG and IWO (total at 5%). I have cash and cash equivalents at about 29%.
I am planning to invest some of my cash , cash equivalents money and want to sell RBF209 and RBF459 and invest in individual growth stocks. Based on above , can you suggest me some growth stocks/mutual funds / etf’s to invest please? Do you see any stocks that I need to get rid of at this time?

Q: My portfolio is primarily stocks. Only bond position is XHY at 2.5% of portfolio. Want to add considerable fixed rate/bond holdings to get some balance. Could you make some suggestions. Thanks.
Dave

Q: I’m definitely more of a buy and hold investor than a trader, but with David Burrows’ words ringing in my ears – “The money’s gone! The market doesn’t know what you paid” -- I’m reassessing my Cenevous holding of two years (down about 30%) and I’m wary of the fact it’s close to breaking support, according to my Investorline data, at $20.23. In the same account (LIRA; currently has no cash), I also hold a small amount of the ZUB ETF. It’s at the upper end of its trading range for the last year and a half; is trending above its 20 and 200 day moving averages; on the verge of breaking out into a three-year high; and technically has moved up closing a gap with the S & P 500 trendline. I know it’s comparing apples to oranges, but I’m asking for a second opinion on dumping CVE for ZUB. (I have a full position in CVE, as well as full positions in WCP; PPY; and and a one-third position in SKX; in fact I’m considering clearing out all but SKX since there are bearish technical warnings for WCP and PPY as well). Other options: dump Cenevous for cash and either wait for another opportunity or buy Cenevous back at a cheaper price later in the year; or taking the Cenevous proceeds and putting them in Don Vialloux’ HAC ETF, which seems to trend steadily upwards, albeit unspectacularly, with his seasonal investing philosophy. ZUB, Cash or HAC? Your insight is very much appreciated.

Q: Do you have any opinions on Cyber Security stocks and this ETF in particular.Thank you.

Q: Good Morning Team,

BMO offers ZUB and ZBK. Both are equally weighted US bank ETFs. Both are sold in Canadian dollars. ZUB is hedged while ZBK is not. If they are both sold in CDN dollars could you please explain how one is considered hedged while the other is not? What are the tax implications for holding these in a TFSA?

Thanks,
Richard

Q: looking for growth stock or ETF suggestions for monthly contributions for kids under 18.This will be a taxable account. Monthly amounts would be small ~$100.
Thanks

Q: I'd like to get your opinion on recent changes to Vanguard ETFs. One of the changes is that VDU appears to change from ex NA to only ex US. For someone with an all-Canada portfolio looking to buy an ETF to diversify, what would you recommend now? Previous comments seem to suggest VXC is a bit small, and now that VDU includes Canada, I don't know if it's still a recommended product for diversification. Perhaps VGG or VEE? Thanks!

Q: Hi Peter,

I am looking for some global and US Specific (ex. Canada) diversification.
Can you please suggest some ETFS or Funds that would provide growth and some that would also provide some dividends for both global and US sectors. Please advise which would be suitable for a TFSA, for RRSP and for a cash account. US dividends in a TFSA are exposed to tax withholding, is it the same with dividends from the rest world.? Please advise if it still makes sense to hold US investments in a TFSA given that dividend taxes are withheld and not credited.

Joseph

Q: Could I get your opinion on these types of products? The idea is to prepare for the next correction or bear market, or is it better to just buy GICs? These ETF products seem very complicated and returns have not been that great.