Investment Q&A

Q: I did increase lately the % of utilities ( stocks+ETF) in my portfolios ( up to 38%) , since 1) the entry price seems ok ,2) utilities should maintain long term dividends for revenue ,3) they should resist more than other sectors in case of bear or volatile markets,4) still have some capital appréciation potential.What is your point of vue ? many thanks..

Q: I currently own ZAG in a RRSP and wonder if you would add to this ETF at this time, I have a 3.5% weight. and looking at increasing to 6%.

Thanks

Q: I just asked a question about BIZD for RRIF income. In addition, what are you thoughts on LVHI? Would you recommend both or recommend a USD dividend stocks instead?

Thanks again.

Q: I need some USD income investments for my RRIF.

1. BIZD looks interesting for income. What are your thoughts?
2. Can you suggest other stock/ETF dividend paying options for USD account?

Thanks so much.
Dan

Q: CPSM is a new etf that "guarantees" 100% capital protection if purchased on May 1 and held for one year with a limit on upside tied to the S&P 500 of slightly over 9% even if that index climbs higher than that over the next year following purchase. Any gain on sale is capital gain if there is appreciation. There is no real guarantee but this company has experience using options to protect the downside and I see this as a reasonable candidate to reduce downside risk by forgoing some potential upside and could be a piece of my portfolio. I'd like your cautions which are expected but also if held longer than one year is there continuing potential benefit and downside protection such that it may make sense to hold for a period of years and delay any capital gains reckoning for tax purposes or is any of the fund's promise lost after the one year hold so that sale at that juncture makes sense. Appreciate your diagnosis on this one.

Q: I am looking for quality "dividend growth" focused ETF (not "high dividend" ETF) in CDA and US , with an optimal balance of sectors ( some of those ETF showing, in my vue,a disproportion of sectors, like an excess of financials (ex. 40-50%) etc..). Could you suggest your 2-3 choices in CDA and US ?

Q: Can you suggest 10 best (sleep at night) low risk, monthly/quarterly income, tax efficient, Canadian etfs. Monthly preferred but not essential. Held in non registered account.

Q: Hello 5i team,
I have HBND in my TFSA for US bond exposure (and the high monthly income). The ETF started in Sept of last year and was wondering what your thoughts are in general for this security?
Thank You,
Andrew

Q: Hi, l have some cash to deploy in my cash account. I have a full position in ZCN. Thinking of buying full position in BRK and also VEQT full position.
My question is for a conservative investor 65%safer, 35% conservative growth.Would this be too much overlap of similar positions and sectors? Do you have an alternative? Thanks

Q: Greetings 5i
I have a couple of follow up questions to yesterday’s question regarding a US replacement for vbal. You suggested a combination of spy and a bond fund. What would be an appropriate bond etf for this strategy? I imagine you would be indifferent between spy and voo for stocks? Is there any way to calculate the tax hit in a non registered account. Currently I have non dividend paying stocks in this account to avoid withholding tax. But, i guess if you follow this strategy you have to take the tax bite as part of the package.
With appreciation

Q: Thanks for all the great work you do.

To obtain the total return HXS adds the dividend to the NAV.

My question is, is this distributed say quarterly or annually, or is this done throughout the ex div dates of all the S&P holdings (seems like a lot of math).

Thank you

Q: Hi,

Just curious how these ETF providers are able to make money with these etfs with a very attractive rates.

Thanks,

Sunday

Q: Hello, My wife has recently retired. She has opened a LIRA account with her pension proceeds. We are leaning towards these two ETFs for a long term hold 10 + years. Can we get your thoughts and any recommendations.
Thanks

Q: Can I get your updated views of this fund. I've done well with it but now thinking of replacing it with a US small cap fund. Do you agree with this strategy?

Q: Appears interest rates have topped and will likely go down in Canada going forward, historically what sectors outperform in this enviroment? I'd assume the higher dividend payers would benefit,and am considering an out of utility etf in a cash account using debt to fund, for instance ZUW paying a montlhy dividend close to 1% higher than my Home LOC interest cost. I've used my LOC for many years funding this account and am well aware of the pro's and cons. Part of my strategy is the added tax benefit of the interest expense deduction, and would think long term should get a modest capital gain on the beaten up utilitites. Would you have a better idea than utilities, I need roughly an 8% dividend to cover interest? Thoughts?

Q: I currently own the VGT etf and would like to buy another technology etf but one that does not have apple and microsoft as the main holdings. What are my options?

Q: Good morning 5i
I sent in a question but it must have gotten lost over te weekend. A member recently said that if he should become incapacitated he left instructions for his wife to sell all stocks and buy vbal, as she was not interested in stocks and this would be a solution.
There are probably many of us in this situation. But,i wonder if one would not be better to sell gradually while alive and capable. After all, you will bot get the big tax hit. Also, in case of the death of one partner, it maybe better to start selling earl, even though it involves capital gains. Because the tax on the one remaining spouse , without the benefit of income splitting will be very high.

One problem i have with this plan is that i have a lot in US dollars. And i want to keep them. One solution i thought woul be to put much more in berkshire. But I don’t know of any US etf that works like vbal. Would you have suggestions on this?
Thanks

Q: On 9 Jan 2023, Horizons ETF issued a press release with the following comments on HSUV.U:
“suspension will help manage potential tax implications and ensure that HSUV.U can continue to reinvest its distributions”
“Horizons ETFs is strongly discouraging investors from purchasing shares of HSUV.U”
I was wondering what the risk was for: a) managing potential tax implications, and b) the inability to reinvest its distributions. The other point discouraging investors from purchasing shares was new to me and I’d be grateful for your views.

Also, in the not so remote possibility that the growing US Govt debt finally produced the anticipated “big bang” (ie. default, no new ceiling, … what else?), what would you expect to see just prior to the explosive event? If you were retired and had 65% of your nest egg presently in money market funds (100% safe), what number (% safe) would you apply to moving the funds to HSUV.U?

Your deep and practical insights into how the market reacts continue to surprise and impress me. I have learned so much since my first subscription to 5i and can simply offer a big thank you. And, of course, keep trying to do my own financing homework !

Q: replace zwu with umax to increase income. does this increase risk? thx james

Q: Hello, I wanted to buy XBAL for half of my TFSA, but realized there was 15% in the TSX and I already have plenty of that in my cash account. Instead, I am thinking of having 60% in XAW, 25% in XBB and 15% in VGAB. Does this make sense? Thanks!