Investment Q&A

Q: Hello
Considering , tariffs and the impact that they have on the financial sector, what sector and which company stocks/etfs would you consider that are paying similar yields

Thank you

Q: Good morning all; I've a two part question for you, First, the listed investments are in a RRIF. The current plan is to extract only dividend income, and have some modest stock growth.

I have funds for one more position and I'd like 3 of your suggestions that would add decent dividend income with modest growth of stock value.

Second question is about XLB. It was originally purchased as a post-inflation investment looking for some appreciation as rates declined. While Canada may get a bit more downward adjustment I believe Trump policy will be inflationary. What would be a sound replacement, meeting the dividend and growth goals for the account?

Thanks as always.

Dave

Q: It is rare that I ask this question coming from an 84 year old senior, but all the above equal weighted ETF's are presently in my TFSA and can't decide how to invest for the 2025 contribution. Which ETF I should I be adding to the above list or should I be adding a new one that is not in the portfolio?
Also are any of those listed that do not belong in a TFSA?
Thanks for your usual great service.

Q: Do you consider that Canadian utilities ETFs (my impression..) ,or even other ETF categories, offer a protection against future potential US taxes on foreign countries ,and in such case, which ETF would you favor ,(or a mix) ?

Q: Can you give me your top CAD picks in each of the following sectors based on current price and long term worthiness. ETFs are fine as we are looking for steady long-term growth.

consumer defensive
healthcare
utilities

Thanks as always. Kevin

Q: I have both ZWU and ZUT in an RRSP account. For the next 5+ years, should I continue to hold both, or only one. If one, please supply your reasons. ZWU pays a much higher dividend, and has ZUT as it's largest holding, but over the last 5 years it has underperformed ZUT. Is it a case of deciding whether I want more potential growth or more potential income?

Q: I am a senior citizen now with a lower tolerance for risk and accepting of a lower rate of return on my investments for that. When interest rates increased, I invested in MM funds; now with rates going south, I am looking to get back into some more conservative stocks/ETF/Mutual funds with growth prospects.
Can you provide 5 stocks/ETF's you believe would fill this request. I am looking at Canadian but if there isa US one that makes sense, I would look at it.
As always, thanks for your advise.

Regards

Jim

Q: Retired, dividend-income investor. Sitting on roughly 5-6% cash for topping up existing positions to, over time, hit Asset Allocation targets.

Candidates = BCE, GSY, HHL, HMAX, XST, ZUT. If I was deciding to deploy funds to create the largest total return over the next year or two, from their existing valuation, a) in what order would you deploy the funds and b) a short qualifier for each position?

My view = buy in this order:
ZUT = good momentum, room to run before hitting earlier peak
GSY = good value, $150-155 should be excellent value
XST = graph against 50 and 200mda...very tight chart....could buy anytime
HMAX = good value, banks should run
HHL = healthcare stocks should get over their fear of their new boss in a few months....or not. Give it some time.
BCE = last on the list. Just rebought after cap loss capture. Give it even more time.

Thanks for your help....Steve

Q: What are your favorite ETFs in Utilities sector? In the US and Canada. Also in Europe.
(I have a small position in VPU. Not sure if it meets your approval)
Want to structure an asymmetric barbell, just in case there's more
than expected pullback!
Many thanks in advance.

Q: Retired (70 yrs old), dividend-income investor. Been meaning to ask this question for a long time. We run a concentrated portfolio of roughly 10 ETFs and 10 stocks, plus fixed income on top. Our pro-rated MER for the equity ETFs is 0.64 and for the entire portfolio is 0.38.

I use the ETFs above that are sector ETFs (like HHL, NNRG, XIT) as my proxy for the sector and am ok with the trade off of paying fees for a sector ETF instead of having lots of stocks.

I then add my individual stock selections to achieve my targeted Asset Allocation for the entire portfolio (like AD, BCE, FTS, GSY, RY, NWC, PBH, TRP, WSP, etc). I weight each of these relative to my risk tolerance.

Does this make sense to you? Does my "sector ETF" make sense, especially with a potentially large weighting in one ETF. Virtually all of my ETFs are capped at around 7% of the equity portfolio and the stocks are capped at 5% max.

Your thoughts on my strategy and on my MER....thanks...Steve

Q: Can you share your top picks for Canadian and US ETF's that would cover the relevant sectors (e.g. tech, industrials etc.)? Please take as many credits to answer this as required.

Q: I currently own ZEB, ZUT AND ZDV for income. I'm considering to add one of either XEI or XDIV or sell my holdings and consolidate into one of either XEI or XDIV. Please advise whether adding or consolidating is better and which of XEI and XDIV is the better one. Please take as many credits as required.

Thanks 5i !! Ken

Q: Why did both companies prices drop Aug 2022? Interest rates had started going up well before, in Feb 2022.

Q: Could you pls suggest a hedged and the related unhedged US Utility EFT that will earn about 10% including both dividend plus yield over 1 year?

Q: Can you please recommend 3 CDN Utility ETFs and 3 US Utility ETFs that will provide in one year 10% yield including both dividends and capital appreciation?

Q: hi 5i, if picking one (today) which one would you choose , for my RRSP.
thanks

Q: Setting up a simple-to-manage, taxable account, with the goal of reasonable stability/safety of capital and the generation of tax efficient income of 4-5% (ideally dividends so Canadian Div tax credit can be used) . Could I please get your comments or alternate suggestions on the following:
25% in VDY, ZUT, HTA and the final 25% split between EIF and BAM. I believe all of these distribute eligible dividends, other than HTA which seems to be Return of Capital / Capital gains.
Registered accounts are held in diversified equities.
Many thanks.

Q: Can you please recommend CDN ETF for REIT, Utilities and Financial sectors. Would you be comfortable holding 10% in each sector

Thanks for the great service

Q: Retired, dividend income investor. From a value point of view, which has more rebound potential....FTS or ZUT? Ya, I know...single company vs ETF, so tough to compare. I own both and have mostly full positions, with a top up in mind for both. Just wondering which one to do first...I am leaning towards ZUT.

When I look at the charts over various timeframes, it looks to my amateur eyes, that ZUT is much more closely tied to interest rate changes. It looks like ZUT started to really take it on the chin during 2022 when interest rates were being cranked up. Also, I am hearing/reading that the worst might be over for the renewables and they might start to rebound...which would benefit ZUT (for the record, I am overweight Eric's NNRG, so I have that end of the Utility-Energy spectrum covered).

Your thoughts?

Q: Hi, With CDN interest rates maybe coming down I'm wondering if a switch from a covered call utility ETF (ZWU) to an equal weight ETF like ZUT makes sense? ZUT though has a fairly high MER, so is there a better option, or maybe better to just buy individual stocks. Thanks.