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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i, how would you be approaching the Brexit vote from a portfolio perspective? I have a few names that are very exposed to the GBP/USD exchange rate (i.e. CXR, IT and ESL). Should I be taking some off the table prior to this vote or is it too late and most of the fear is baked in to current prices? In your opinion what direction do you see the GBP going if there is indeed a Brexit? I've heard arguments both ways on long and short term. Thanks again.
Read Answer Asked by Mark on June 08, 2016
Q: Given today's market and the expectation of a US rate hike, could you identify 5 ETF's that you would be comfortable with to provide safety of principal and income. Thanks.
Read Answer Asked by Curtis on June 03, 2016
Q: I am thinking about parking some cash in one or both of these ETF's (perhaps a 50/50 split) for the next 12 months. I understand that rate increases could adversely impact the unit price but given that rates are not expected to increase in Canada anytime soon and these are Canadian corporate bond funds not American would there be any impact from a US rate hike? If so, why? Secondly, what do you think of the downside risk and is there a better option you would suggest.
Thank you
Read Answer Asked by Douglas on June 02, 2016
Q: This ETF in your Income P/F has been pretty flat since 5i started it, I think in 2014, and do you think it will remain a long term hold? How much of a hit would you expect it to take with a quarter point rise in the Fed rate and what is its duration? Thanks, J.
Read Answer Asked by Jeff on May 31, 2016
Q: Hi again,
Sorry the symbol I was asking about is HEU. I've copied the question again below.

Hi 5i, I think over the next 3-5 years oil is going to rally up. In doing some reading I found this etf. The management fee is definitely higher than I like. I'm not exactly sure how the 200% correlation works but it sounds like if energy goes up it would be a good thing. Could you give your opinion on this fund, also could you give some better options for getting some more energy in my portfolio if you know of some. Thanks!
Read Answer Asked by david on May 27, 2016
Q: I read with interest your recent article in the Post and was intrigued by the comment that research shows 90% of portfolio returns come from sector allocation - if a person wanted to take advantage of that, in a simple, easy to manage and inexpensive way (ignoring taxes for the moment) what would be your view be on an approach where one's equity component of their portfolio consisted entirely of a number of ETF's with each one of the ETF's focused on a particular sector, with a periodic (say quarterly) rebalancing? What specific ETF's would you suggest for such a portfolio? Thank you.
Read Answer Asked by RICHARD on May 20, 2016
Q: Hello Team,
In one of Peter's recent articles he indicated that sector selection was more important than the choice of specific stocks within the sector.
Could you advise which sectors you suggest would have the greatest momentum over the next year or two.
And, if you want to throw in a couple of sector gems I won't complain.
As always, really appreciate your help.
Read Answer Asked by ralph on May 18, 2016
Q: I understand that some individual reits are considered 'fully valued' on a P/E basis - based on historical 'norms'

question: looking at ZRE can you provide a 'rough' calc on the overall P/E with an eye to whether you feel it is at, near or over its traditional long term valuation range

or, more importantly, based on metrics you (5I) would use, what is your currently concern about reit valuations?

thank you in advance
Read Answer Asked by Robert on May 18, 2016
Q: Hi,
Thanks for the tip of TMXMONEY to identify the sectors. It turns out I had miss-classified 3 of my stocks (SJ, IPL and ECI). I'm now questioning my weightings. I currently have the following:

Cons. Cyclical 11.9%
Cons. Defensive 0.0%
Financials 17.1%
Healthcare 3.6%
Energy 14.7%
Precious Metals 13.9%
Real Estate 0.0%
Industrials 9.2%
Utilities 0.0%
Technology 24.5%
Materials 4.6%
Communication 0.0%

I'm ok with some risk, which is probably evident from above. My precious metals may be a little high due to the recent bounce in this sector.

Based on the current market environment, do you see these weighting as appropriate? Are there any particular red flags that you see?

Thanks, Ian
Read Answer Asked by Ian on May 09, 2016
Q: What do think about comparing the current dividend yield to the historical yield of a stock as a way of assessing its value as an investment? i.e., if the current yield is greater than the historic yield (the average yield over the past five or ten years), than the stock would be a "buy" (notwithstanding other factors) or a better value than companies in the same peer group with yields lower than the historical average yield.
Read Answer Asked by David on May 06, 2016
Q: I own ZWB. When interest rates rise, I suspect that individual high quality rate reset preferreds will have a greater increase in price than ZWB. What do you think? If you agree, please provide the name of a few rate resets with the 5 year renewing base rate. Thanks.
Read Answer Asked by Tim on April 27, 2016
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