Investment Q&A

Q: Pleas recommendation 4 ir 5 Cdn ETFS wuith a good yield and moderate risk. Thanks

Q: (1) Can you suggest an ETF similar to FEZ but that includes companies outside the Eurozone (i.e. includes Swiss, Swedish and UK companies). I am looking for an ETF that favors large caps, preferably holds not more than a hundred companies. IEV is the closest I could find but it holds over 360 companies. And VGK has over a thousand (>1200).

(2) Am I wrong to think that holding hundreds of companies tends to dilute an ETF’s performance?

Q: How would you invest in the Defence sector at this time? And would you? On that theme what do you think of BAE in comparison to others in the sector? And are there ETF’s which would be appropriate?

Q: Can you give me the two best ETF’s in the US that you would invest in that hold the best Ai stocks. Two ETF’s to hold for three years. Much too hard to pick the individual winners. It would be my first time buying ETF’s.

Q: Hi 5i
Thanks for all your great work, as always.
What would be your recommendation for a covered call international etf . I am looking for income and diversifying to outside of North America. I would appreciate a couple in CAD and a couple in USD if possible.
Thanks!
Murray

Q: Hello 5i Team,
Currently building out a small portfolio for my son, with a VERY long time horizon (30 years +). Looking to add U.S. exposure, but instead of picking individual names, I thought I would do this through an ETF or two. Was considering putting 50% of the US exposure into SPY, and the other half into VGG. An alternative to SPY would be ZSP, which I can buy in Cdn. dollars in Toronto. Your thoughts on this strategy and the allocations?
Thanks very much!

Q: This morning in an answer to Heather you quoted JEPQ as having a yield of 12.50% ..... My sources say 9.50% .... I'm interested at 12.50% but not the latter. Could you confirm the dividend yield ? Thanks for your terrific service .....

Q: Looking for your take on this ETF to determine if better alternatives exist?

Q: I noticed that Warren Buffet has sold his positions in VOO and SPY . Given that he may have just been using them for a holding pattern, that did not bother me too much. But, now I see that he is investing in Japan. This makes you think that he might have found something worth investing in. Do you think that may be the case in a strong way and that it may be profitable to follow his lead? If so, would the above mentioned value etf be the right choice or might there be something better? I don’t want to own the individual stocks.
Thanks as always

Q: I am looking for a ETF that favors value stocks in US and Canadian funds

Q: Could I please have your top 5 choices for Cdn ETFs - good yield - low risk. Thanks

Q: Hi group can you please comment on Capitol direct trust - last quarter they paid out 9% + over last 3 yrs they have averaged 7+ %. What is your assessment of the risk rewards in this sector i suspect that restrictions on liquidly and management fees are concerns but the attractive quarterly payout are very attractive in this unstable market overall your thoughts please. I am 74 and retired so steady income is a driver. Also please rate the above stocks (1-10 . 10 being best) Thanks for your help

Q: Hi Can you please give your opinion on two these ETFs and any suggestion on alternative if not in favour of them.

Q: Please recommend your preferred Japan etf or etfs. Your thoughts on a currency hedged etf is also appreciated. Thanks

Q: I am looking for a Value ETF in American and Canadian funds.

Q: Hi. What’s your opinion of this ETF? Thanks.

Q: Hello

Asked this question earlier but did not see a reply.

Just wondering if, in a rising gold price environment, would a covered call ETF benefit from increased call option premium income? And, if so, would this offset the increased risk of missing capital appreciation as a result of the underlying security being called away?

Brad

Q: I have decided I need to put more resources into income funds and wonder what you think of the three etf’s mentioned. Currency conversion is not an issue.
Thanks for your thoughts, Lesley

Q: Following up on Harrison's RESP question from February 10th, I'm seeking advice on ETF recommendations for my grandson's RESP. He turns two in March 2025, giving him approximately 16 years until he'll need the funds.
I appreciate your ETF recommendations, particularly the split between Canadian and US markets (VGG, ZSP, ZCN, XCG, VDY). I'm also considering ZUQ (BMO MSCI USA High Quality Index), but I'm wondering if it's too similar to ZSP? Your thoughts?
I do not like CDZs holdings as much.
You also mentioned two balanced ETFs in your response (XBAL and VBAL). The fixed income allocation is approximately 40% for these balanced ETFs. In contrast, XGRO and VGRO have a fixed income allocation of around 20%, and XEQT or VEQT have no fixed income. What I like about these allocation ETFs is they have some international exposure.
Considering the long-term horizon, I'm leaning towards XEQT/VEQT, which have no fixed income. My main question is whether the 20% fixed income component of XGRO/VGRO or even the XBAL/VBAL (40% fixed income) is necessary for a two-year-old’s RESP? Or are XEQT/VEQT too aggressive, considering the other ETFs mentioned?
Finally, wouldn't it be more appropriate to introduce a 100% fixed income ETF closer to the withdrawal age or perhaps three years before we start accessing the funds?
Deduct as many points as you think necessary.
As always thanks for the great advice.
Élaine

Q: As a follow up to my question on international ETFs in CAD, you pointed out ZEQ. Two questions: 1. In a comparison between ZEQ and HXX, the former is CAD-hedged, but not the latter. On performance, HXX has outperformed. Please advise your advice on currency risk, and if willing to accept the Euro risk, which you would prefer and why. 2. HXS and XIU and tax efficiency - if your preference is for XIU, please explain pros and cons and why XIU. I note in 2022, XIU outperformed.