Investment Q&A

Q: Everyone, what have you learned about the markets so far this year? Clayton

Q: Hi 5i team,

My daughter and her partner are investing in their RRSPs through a work plan. They are in a number of Mutual funds, some with quite high MERs range about 1.5 to 2.5%. Also high redemption rates (some up to 5% in first year or two). I have tried to find the mutual funds from their statements, but mostly listed without codes so difficult to be certain of all data.

They have :
20% Balanced funds
47% Canadian Equity
13% Global Fixed income
20% Foreign Equity.

Amount invested is significant but not really high - includes 3 years of contributions/investment. I think they would be best to withdraw the money now and invest in ETFs. I don't think they need to similarly replicate the funds above in ETFs.

2 questions:

A. Any suggestions as to most efficient way to withdraw from these funds? Are there questions to ask that might help reduce redemption bite or should they just make the switch.
B. They are late 30's and 40 yo, so time horizon of approx. 20 years or more before needing money. They are interested in investing but are very early in this. Wondering what you would suggest for starter ETFs right now with bias towards growth. Perhaps you could suggest 4-6 ETFs that would give them age and time horizon appropriate investments.

Please use as many questions as needed.
Thank you in advance for your usual great service and the very helpful advice.

Q: Can you recommend 3 US ETFs for a long-term hold.

Thanks as always.

Q: I look after a RESP and have IWO, VGRO, VGG and BN. The weight is 16% for each. Would you be comfortable adding to the ETF'S to a 20% weight or should I buy a ETF like XIC? If you have any suggestions of what I could buy for this account I appreciate your input! It will be 12 years before needed.

Thanks

Q: Hi,
I am under weight in both international and fixed income.
I have US$ cash in both my RSRP and TFSA that I'd like to invest in these areas.
Can you recommend some US$ ETF's.
Much appreciated.

Q: I have a grandson who has just graduated from university in the United States. He is serious about investing and wants to know whether the best way to get started for long-term wealth accumulation is starting a high-yield savings account or an IRA?
Or, is there something else you would suggest.

Q: Can you recommend any small or medium cap, US dollar denominated ETFs, that don’t have any dividends, phantom dividends, ROC, etc? Only looking for a capital gain/loss.

Q: Indications are that the market breathe is improving and therefore various analysts are recommending the small cap Russel 2000 index. Would you agree and therefore have a suggestion or suggestions of how to invest in this potential opportunity. My other question is would there be a Russell 2000 ETF that you would recommend and a Russell 2000 high growth ETF that you know of?

Thank you

Kim

Q: Is there an Canadian ETF that is like IWO and IJR?

Thanks

Q: Happy New Year everyone!

Can you please update us on your outlook for US Small Caps in 2024? Is it better to invest in US or Canada? A few selected stocks or ETF? If ETF what’s best for top return?

Sorry for all the questions please take as many credits as necessary.

Thanks happy investing!

Q: Performances of these ETFs over the past 5 years seem similar. What should I be looking at in deciding which one to buy at this time? Thank you.

Q: Opening a fund for my grandson (5 months old). Could you recommend a few ideas please.
Thank you and Happy Holidays To All

Q: Hi. I have been nibbling away at both IWO and IJR and would like to bring each up to a full position (5%) in my portfolio. Given their run during the past month, do you still see them as under-valued and buyable?

thanks,

J

Q: I am looking to set up an RESP for grandchildren aged 8 and 6 with about $40k that will be added to annually. I am thinking of purchasing 8 stocks in roughly equal amounts - ISRG, CROX, GOOG, NVDA, BN, LMN, SMCI, HPS.A

Is 8 stocks too limiting and should I look at ETFs for some sectors or should this give the plan a good start and greater diversification can occur as the plan grows?

Anything you see here that raises a red flag or are there other stocks I should consider?

Appreciate your insight.

Paul F.

Q: The U.S. is growing much faster than Canada. Canada’s much slower economic growth relative to the U.S. seems to be related namely mortgage debt, Given this situation, can you suggest 1) Individual U.S. stocks for capital gain 2) Individual U.S. stocks that pay dividends, and 3) U.S. ETFs? Thank you

Q: I manage a small TFSA (~$25K) for a young adult family member, with a long time horizon. We would like to get some exposure to small caps, which you have mentioned are likely due for a bull move. To get diversification with a purchase of only ~$5000, an ETF probably makes sense. There are several that have been mentioned in the past Q&A, so I am looking for your advice / recommendation as to which would be the best choice for a young person looking for long term growth. I am considering IJR, IWO, IWY, VBK... but feel free to add any other(s) you like.
Thanks.

Q: Dear Peter et al:

This is more of big picture and history based question even though I am old enough know that the past performance doesn't mean anything going forward!

Has there been a period when Small cap growth or value stocks outperformed the Large caps growth/value during deflation/stagflation, recession with with a capital R or a lower case r, or even in a nominal sideways market? Do you see such a scenario evolving in 2024/2025? If so what are the ETFs that one could employ to benefit from such a scenario? Lightening up the large caps and switching to small caps for a year or two , is this a good strategy going forward?
I have included some of the ETFs that you are fond of from your Q&A. However feel free to add or delete!

Many thanks.
Mano

Q: As grandparents, we are interested in making a long-term investment for our two grandchildren that will be held for the next 20 years. Could you please recommend the most suitable type of investment account to avoid personal investment and tax implications? Additionally, we would appreciate your suggestions for a few ETFs to consider for this extended investment period. Thank you.

Q: Peter; I own the IWO - what is the difference between the two ?Thanks.
Rod

Q: Adding to a TFSA for a 20 year window.
Please advise 5 ETFs to buy and hold for the duration.