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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: RE: -- Stephen's 2020-01-22 question on VGG & IWO --

Comparing VGG vs IWO over last ~ 7 years (details below), VGG has less risk/volatility (beta), a higher dividend, and a better return (based on risk for the ETF category). As I slowly adjust my portfolio this year to reduce downside risk when a market correction eventually hits, what do you think of moving some or all IWO to VGG. Most interested in your thoughts here.

As always, thanking for you wise advise.

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Ticker IWO VGG
MER 0.24% 0.30%
Dividend 0.70% 1.20%
Beta (Risk) 1.12 0.74
Style Small Cap Growth Large Cap Blend
P/E 25 26
Mkt Cap $9.8B $625M
Risk vs Category Average Risk Average Risk
Return vs Category Average Return Above Average
Morningstar Rating *** ****
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Read Answer Asked by Paul on January 22, 2020
Q: Like many CDN Investors, I am overweight Canada. Plan to reduce that in 2020. Looking at candidates I find some "Canadian" investments have the majority of their assets outside the country. Example: BGI.UN - only 20% of assets are in Canada, yet it pays quarterly $CDN income. Seems it would meet my objective. Please provide names of other CDN-based candidates that hold a lot of ex-Canada assets and derive much/most of their income from those. Looking for US/International diversity and some $CDN income. I hold some US Pharma stocks directly and a Vanguard S&P 500 Index ETF (10% of total portfolio). Thank you.
IslandJohn
Read Answer Asked by John on January 22, 2020
Q: Hello Team, thanks for providing a wonderful service! Would you have any recommendations for an Emerging Markets or Japan ETF?
Read Answer Asked by Jennifer on January 22, 2020
Q: Hi guys

Thanks for all you great information.
I have held both Morguard Corp (both MRC and MRG.UN) and Mainstreet Equity for quite a time period and done quite well in both, more than doubling my initial investment.
All these stocks have always traded at substantial discounts to net asset value, which has given me downside risk protection, and at one time I thought they might trade closer to NAV. In the past year I have heard from multiple BNN guests that Rai Sahi who runs Morguard, and apparently owns more than 50% of Morguard, could pay much more attention to delivering shareholder value, including moving the share price closer to NAV. So my question is, looking 5 years out, which company, MRC or MEQ, do you feel: 1) has better MGMT, 2) is in the better real estate sector to deliver value and 3) is most likely to see the share price come closer to NAV. A last question would be do you think either company is likely to receive an offer and be taken over by another REIT or pension fund, and if so would it be at NAV or above?

Thanks in advance

Stuart
Read Answer Asked by Stuart on January 22, 2020
Q: Hello, I'd like to know what you think of Roxgold and Semafo. Their latest press releases seem promising but on the other hand, the fact that their activities are concentrated in Burkina Faso may add a considerable risk. Is the business risk already included in the share price? With the rise in gold prices, this could be an interesting investment opportunity. If you had to choose between the two, which one would you take with the assumption that the risk is not considered too high. Thanks a lot.
Read Answer Asked by Stéphane on January 22, 2020
Q: Hi 5i,
I am just going to ask about your new U.S. disclosure policy when Sal asked first. So, I would just comment I have absolutely zero concerns about your staff’s potential investments in U.S. stocks and the integrity of your advice. The U.S. names are typically so big and liquid that 5i’s endorsement or not, in all due respect, would have absolutely no influence on the price movement of AAPL, AMZN, GOOG, ROKU or others. So, keep up the great work and the presence of these disclaimers, or not, on the U.S. names cause me absolutely no concerns.
Thanks again for your sage advice.
Dave
Read Answer Asked by Dave on January 22, 2020
Q: hi, with respect to new BYD ticker not being updated on some portfolio tracker financial sites, I think the issue lies with the financial site's delay in adding/updating the new symbol. I use Globe Investor, where new ticker was available after 1-2 days. But,I had to record a sale of all BYD.un units and a new purchase of BYD shares, after 2 days when ticker was available. The security/ticker and holding is not replaced/updated, automatically. Hope it helps. Thanks
Read Answer Asked by rajeev on January 22, 2020
Q: Hi guys I know you are probably a bit sick of answering questions about Sylogist but just trying to get my head around how they operate. During the last year the company stated "the Company repurchased a total of 191,900 common shares at an average price of $12.81 for a total cost of $2.5 million." So with no debt and 53 million of cash on hand why wouldn't Mgmt. buy the bulk of the shares that are now being offered up at below $9 a share. IN other words if the shares had value at $12.81 wouldn't the shares be even a more prudent purchase now? Also I show a Return on Equity of above 30% yet the shares are trading for what they were 5 years ago. How does one square that? Has the P/E multiple come down that much, and if so why?

One strange idea that runs through my head is this company does so little to support the share price (e.g. also no press releases) maybe this is intentional so that Mgmt. is buying up shares at these much lower values?

Much thanks to any insights you may to give.
Stuart
Read Answer Asked by Stuart on January 22, 2020
Q: Hi 5i, We hold 6% of our portfolio in this fund which has done OK and provides nice monthly income. It's our last remaining mutual fund. Any suggestions on how I could replace it with similar ETF(s) and still achieve a decent yield and some growth. Monthly distributions are not necessary. Thanks for your help.
Read Answer Asked by Martha on January 22, 2020
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