Investment Q&A

Q: Peter and Team. Love this service and recommend it as often as I can.

Do you have a preference re IGV.US verses XLK.US ? I am a well diversified investor with the exception of tech and don't want to be a stock picker in this segment. An ETF seems the best way to play tech for me.

Many thanks, Nancy

Q: Sentry Infrastructure Series X(NCE1030): I want to sell because of high fees. Are you able to suggest an infrastructure ETF ? Global one would be fine , as would a broad North American infrastructure ETF. Thanks, Adam Okhai

Q: Sentry Energy Growth and Income Series X(NCE1029):
I would like to sell this high fee fund and replace with an ETF. Any suggestions? Thank you.

Adam

Q: I am thinking of investing in a European ETF for added diversification. The Vanguard FTSE (VGK) and the iShares MSCI (IEUR) look like good options to me. What do you think?

Q: With regard to Mark's question about BMO's covered call bank etf (ZWB) compared to individual bank stocks. I feel these covered call bank etf's are the biggest pieces of garbage you can buy. Take a look at their distributions from a historical perspective and you can see how their monthly distributions have gone from roughly 12 cents per month to currently under 7 cents a month. Compare that to the banks continually increasing dividend and the better investment, in my mind, is a no brainer. If you've held any of the Canadian banks for any length of time you're probably generating above a 5% yield and each time the banks' raise their dividend that yield climbs higher. Its a beautiful thing.

Apologies for the mini rant but I think its important to look at these two investments from a historical perspective, especially with regard to the distribution/dividend and yield.

Q: Hello
My broker once said to me something like 'most Canadians who hold our banks, intend to hold them throughout their lifetime, so if you intend to hold them that long, you may as well own BMO's Bank Covered Call ETF. Yes you give up some upside capital appreciation, but you get increased income and some downside protection as a result o writing the call option'. What do you think??

Q: Thank you for your terrific advice. Most of my investments are in 5i portfolio companies. However, I have about 30K that I want to invest short-term, between now and April, when I will need it for other purposes. The main goal here is not growth, but a fairly secure investment that will produce a reasonable return. What would you suggest. Should I wait until we get through September before putting this money to work?

Q: Is there an exchange traded " FOOD " stock. Thank s.ebrahim

Q: Hi, What is your opinion on XSH.to? Thanks

Q: My wife has a portfolio that is structured for income and growth. It currently consists of 30% fixed income, 16% utilities and Canadian Banks, 10% REITS and the following ETF's: ZUB 5%, CDZ 6%,CUD 6%, XLK 2%, DIA 6% and TTFS 6%. There is a 6% cash balance that we would like to invest in an ETF. Would you add to one of the existing ETF's or is there another that would prefer to add? Thank you.

Q: My TFSA is fully topped up. I currently hold AVO, BNS, CCL.b, IPL and SPB. AVO has been been a disappointment but I'll hang in.
I am thinking of selling IPL and possibly BNS and replacing with XHY ishares bond fund. Thoughts on this would be appreciated.

Q: HOW IS ETF DIVIDEND TREATED BY REVENUE CANADA FOR TAX PURPOSES .DOES IT QUALIFY FOR TAX EXEMPT OR INCOME THANKS FOR THE SERVICE.

Q: what is your opinion of mob.un and for a us play could in the mortgage space I have both the etf rem and stock agnc. they both took a big hit on the interest rate scare. is there a better choice out there and how would you rate them. thanks

Q: From Cindy,
To Peter and 5i Team,
I would appreciate your comments on the biotech stocks and etf for us as well as Canadian stocks. Thanks

Q: What do you think of the ETF XIT? I dislike how it has a small market cap, holds pretty much only 4 companies, and has a high MER (0.6%) but I really like buying the tech sector on dips caused by broad-market scares. It is free to buy (and sell) in an iTrade account. Holdings: 23% CGI, 23% OpenText, 16% Constellation, 8% DH. And unfortunaly, 16% BlackBerry. Any thoughts about this ETF?

Q: We current hold the following ETF's in our RRSP accounts. XEI,ZDM,ZEQ,ZWH,ZUE,VIG and IWO. These represent 20% of our RRSP holdings. The remaining funds are in equities, most of which are funds held in your portfolio. We have a Wealth Management team looking after the rest of our investments and they hold equities and fixed income. Averaging 45% equity and 55% fixed income. We are currently 65 and 69 years of age. We would appreciate your thoughts on the ETF's we hold and are open to different options. Thanks for all your help

Q: Hi Peter
What is your opinion of Harbour DSC 890 fund? My daughter has been contributing to it for many years and I would like to see her set up a self directed account with ETF's. She has no other investments at this time. Any suggestions would be appreciated.
Thanks for all you do.

Q: Hello 5 I Team

My US Margin Account presently represents only 1% of my total holdings. I intend to make contributions to it later in the year, but for now I would like to see the money "do something" while it's sitting there. Rather than engage in any futile stock picking, I thought I would invest in an ETF which could provide consistent, if modest growth. To that end, I had my eye on the new ETF Direxion iBillionaire Index ETF, (IBLN), or the Market Vectors Wide Moat ETF, (MOAT). I would appreciate your opinion on these choices -- or your suggestion as to what might be a better stock to hold in this context. Thanks for your help.

Q: What would you recommend for Canadian index ETFs? I'd like to use one to add more diversification to my portfolio.

Q: At the suggestion of an acquaintance, we have held for a year now, HPR (Horizons Active Preferred Share ETF); HYI (HA High Yield Bond ETF) and XSB (iShares Canadian Short Term Bond). I know next to nothing about bonds and preferred shares. All I know is that they are all in the red! I am holding approx. 25K in each fund. We are close to retiring in the next two to three years. My question is, should we continue to hold them, or find something else? If the latter, your invaluable advice would be greatly appreciated.
Many thanks. And all the best on your upcoming ride.