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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,
A few days ago you answered a question to James and recommended using TD US Money Market Fund as a place to park US cash - (I believe the fund code for this is TDB166). Information of TD's website says there is a distribution yield of .46% and MER of .27%.
I have been using TDB8152 - TD Investment Savings Account as a place to park US$ cash when I am not invested in US$ equities as a place to collect some interest on this money instead of just leaving it in my margin account. When I buy a US stock I sell sufficient amount of TDB8152 to pay for the stock purchase and then return the money to the Savings Account when the stock is sold. I know I receive interest payments every month (in the form of additional shares purchased) - but when I look at the information page on TDB8152 there is no distribution or yield figures available to allow a comparison against TDB166.

So my question here is - which of these 2 funds is the best place to park US$ cash when not invested in US equities - i.e.- 1) which pays the higher yield and 2) are they both equally safe when it comes to protection of principal? As far as I can see both of these trade at a constant price of $10.00 throughout the year - so is only the yield / distribution different?

Thank you.
Read Answer Asked by Alan on May 24, 2017
Q: I have decided to look outside of Canada for small cap exposure. I am interested in either a mutual fund or ETF in a non emerging market economy. Currently own Russell 2000. What other recommendations would you have for both USA and elsewhere. Can be either Canadian or U.S dollars.

Thanks

Paul
Read Answer Asked by paul on May 24, 2017
Q: I would like to ask a question about mutual funds that take a global approach. (Sorry I am a ETF Newsletter subscriber and I do not know where to post a question there so I did it here). According to the high-profile consulting firm, McKinsey & Co., the expected return on NA and western EU will be far worse than 30 years ago. See the link for detail.
(https://www.bloomberg.com/news/videos/2016-05-12/millennials-don-t-worry-you-ll-be-able-to-retire).
If it is for the long term, I personally agree with the global approach combined with active management, what do you guys think?
I would like to also ask you for a list of global-approach funds. I remembered you mentioned "Trimark Global Endeavour Fund" in the newsletter. Can you give some more names here or please do it on the next issue? Thanks, Tony.

Read Answer Asked by Tao on May 23, 2017
Q: HI PETER, MY QUESTION IS ABOUT PPS (PERSONALISED PORTFOLIO SERVICE) PORTFOLIOS OFFERED /PITCHED BY CIBC IMPERIAL. MY ADVISOR IS OFFERING THIS AS 1 STOP SOLUTION FOR RRSP @ 200K. HIS SELLING PROPOSITION IS TACTICAL ALLOCATION BY THE PORTFOLIO BASED ON MARKET CONDITIONS. ARE YOU AWARE OF THESE PPS. NOT SURE IF THIS IS WORTH THE FEE AROUND 2.2% FOR A BALANCED PORTFOLIO. WOULDYOU RECOMMEND OR SUGGEST ALTERNATE. THANKS AS ALWAYS.
Read Answer Asked by RUPINDER on May 15, 2017
Q: Hello I5, I would appreciate your help selecting or suggesting a couple Indian based equities, your assessment of the above ETFs. Also your opinion of the funds above,the difference between the ser.F and Ser.D, which one would you pick?
Many thanks, P.S. I have submitted a request w.r.t the above and was ignored in your resent reply. J.A.P. Burlington
Read Answer Asked by Joseph on May 11, 2017
Q: Greetings 5i,

Looking to further enhance geographical diversification in my overall portfolio. I have fairly balanced exposure to NA, about 8% Europe, but only 1% Asia so I am looking to bring up my exposure in that region. My question is regarding exposure to India specifically. I wish to dollar cost average into this geographical region therefore I have been looking for a mutual fund rather than an ETF due to cost prohibitive transaction fees of $9.99 with my institution. What are your thoughts on Excel India Series D fund (EXL770)? I have it as No load, Mer 1.75, Min $250 and subsequent $50. Im open to suggestions and or direction keeping in mind the dollar cost averaging is preferred to me over a big initial commitment to a geographical region like this.

Cheers!
Read Answer Asked by Duane on May 01, 2017
Q: I have owned this fund for a very long time and averaged over 8% return through the time I have owned the fund. The fund has a monthly distribution which is reinvested and additional units distributed annually which are also reinvested, a healthy gain in NAV over the years.I'm now 1% over a full position in the portfolio should I continue to let it run, I have not added a dollar to this fund in 10 years or would you trim back to a 5% postion
Read Answer Asked by Thomas on April 26, 2017
Q: Having recently become eligible for the company RRSP matching program, I have a small investment in the Mackenzie Ivy Global Balanced fund.

I am limited in this program to the Mackenzie Funds, so it seems I am stuck with the high MER as a trade off for the company matching.

I have limited experience picking mutual funds and the advisor's picks would have seen me with 55% fixed income at age 35 which I feel is far too conservative given the high MER for this companies funds. As the current value in these funds is insignificant compared with my own funds, I just directed most of the funds to the balanced fund, and skipped the advisors other suggestion with the high bond allocation for the time being.

Is there anything specific I should watch out for when reviewing/selecting funds when my annual meeting with the 'advisor' comes around. If I stay where I am for the long term this will represent the bulk of my RRSP contributions for the foreseeable future.
Read Answer Asked by Jeffrey on April 20, 2017
Q: Dear 5i
What can you tell me about the following in terms of quality , MER and yield .
!-Mutual fund BMO Tact GBL EQ ETF SER F-NL
2-Mutual f. fixed income DYN Active core BD PRIV F-NA
3-Mutual F. fixed income BMO Tact GLB BD ETF SER F-NL.
Are these keepers or can i do better elsewhere ?
These 3 represent approximately 68% of my current portfolio with my financial planner . I`m 62 and plan on retiring in 2 years .The rest of the portfolio is in various growth stock .
Thanks
Bill C.
Read Answer Asked by Bill on April 17, 2017