Investment Q&A

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.

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/

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.

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.

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

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?

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

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?

Q: Peter; With the CAD down would you purchase a hedged or non hedged ETF at this time? Thanks.
Rod

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

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...