Investment Q&A

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?

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.

Q: Peter; What do you think of buying ZMT at the five year low price? Thanks. Rod

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.

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!

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.

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.

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

Q: Hi folks, thanks for your helpful replies. I'm considering BMO's preferred share ETF, ZPR. It holds only rate reset pfds and uses a 5 year ladder. I think it would be a safe investment with a decent yield. I was poking around a few sites and came across prefinfo.com in which the following is noted about it's Malachite Aggressive Preferred Fund. "...for instance it is not required to hold such classes of shares as floating rate issues which are expected to underperform in the foreseeable future." I was of the view that the reset to a floating rate provides a mechanism to maintain the yield, provided the rate is somewhere in the range of 3% over a 5 year Canada, which is fairly common. What do you think about the reset factor as it pertains to yield and of the ZPR? Thanks Tim....

Q: Hi 5iResearch,

Can you guys comment on buying the TSX-60 at this point in time? Specifically can you comment on Horizons HXT etf?

Thanks again...

Q: Welcome back to all of you. I hope you enjoyed and a well deserved holiday. I want to add my voice to those praising your concept for sharing investing information. It's exactly what I needed to answer so many of my questions. Your research certainly relieves a lot of stress. I think I'm making better decisions and getting control over my emotions. I'm learning so much by reading the Q and A,reports and magazine. Thank you for using plain language.
I was wondering if I could get your opinion on XTR for an RSP? Would this be a good idea for the fixed income portion? Thank you.

Q: Hi 5i; I'm retired and would like to diversify my portfolio beyond Canada. Would you recommend the U.S. at this time? Which ETF(s) or proxies would you consider suitable for diversifying? Thanks

Q: Hi Peter - just joined - have seen u on BNN. Do u have a current REIT in the space you like and if not would XRE or ZRE be a good choice at this time?
Thanks
Jorge

Q: hello,with recent drop in gold price do you think its good entry level at this time for GDXJ
( Market Vectors Junior Gold Miners ETF)
thanks

Q: Peter; No rush but would owning a major Canadian bank plus the ZWB be effectively doubling up and increasing your risk ? Thanks. Rod

Q: Hi Guys! Can you explain how split shares work, such as SBC?

Q: Would you give your view on FIE.A. It holds canadian banks, some reits and insurance companies. Dividend sames OK.I currently hold it in my investment acct.
Thanks Harold.

Q: Hi Peter, I would like your opinion on XTR, XDV and XEI
From ishares website XTR is 60% bonds, XDV has 30 stocks with 60% financial and XEI has 75 stocks with 30% financial and 30% energy. Going forward and for income in an RRSP, I favor XEI. Do you agree? What is your recommendation please? Is now a good time to get in?
Thanks a lot.

Q: Hi team, over the last year I was having trouble finding individual stock to buy so I just slowly built up a fairly large position in XTR which is nearing 6% weighting in my portfolio. But quite frankly I have begun to enjoy the monthly income, so my question is in your opinion is the distribution sustainable, or should I sell a little off? I have it in my wife's RRSP and my kids RESP.

Q: Hi Peter
What do you see for the gold sector for 2013? What is your advice to have an exposure to the gold sector? ETF gold companies, Bullion ETF or individual company?