Investment Q&A

Q: Greetings 5i,

I will be adding the following ETFs / Mutual Funds to my portfolio over time in order to round out my sector and geographic imbalances. Could you please suggest the prefered account to hold each of these in. RRSP, TFSA, or Regular Trading Account.

VXC, MAW108, ZWU, QQQ, VEE, ZCH, EWL, REET, ZDI, ZWE

Cheers!

Q: Hi,

I own both these funds. Both are held in a TFSA, and I am looking for "total return". I was thinking of selling one and adding to the other.

1. Is there a lot of overlap between the 2 ETF's? (I noticed on some trading days, they sometimes have a negative co-relation).

2. If you were sell one and add to the other, which would you sell? Or would you simply keep both "as is".

Thanks,

Craig

Q: I am looking to add a little to some positions the criteria is :
1. capital preservation
2. dividend safety
WIR.UN, ENB, IPL, ZWE, BEP.UN, CHW, PIF, SPB SYZ, HEP, AD, SIS, NVU.UN, HOT.UN

please order the above and if you could give some reasons that would be helpful.ThanksYossi

Q: I have 50k to deploy from Crius. Amusing no overweight , time or sector considerations.
Top considerations
1. safety
2. income
3 less sensitive to recession
could you rate the above from best first.
PLEASE ADD OTHER OPTION THAT FIT THE CONSIDERATIONS
thanks you

Q: your opinion for now going forward, are they safe?

Q: Hi Peter and Ryan,
We currently have a 3% position in ZWE as our only European exposure. Currently we are down 6.6% on the ETF but only 3.8% when taking dividends into account (nice dividend). What is your opinion of investing in Europe? Do we retain the ZWE ETF, switch to a different ETF, or exit Europe due to financial and economic headwinds? We will cash in 3% yearly from our RRSP portfolio in 5 years.
Cheers
Jerry and Debbie

Q: Good Morning 5I.

I have the following positions in my RRSP ...
BNS 6.5%
TD 5%
BCE 5%
ENB 4%
BEP.UN 4%
SRU.UN 4%
MFT 3?
CDZ 5%
ZWE 4%
ZWH 9.5%
The list above cover the equity side of my portfolio.
The other 50% is in a GIC ladder yielding over 3.0%
I plan to retired within the next couple years.
Could you please comment on any changes needed that stand out to you?
I think I should add more US exposure and possibly another reit, what would you suggest?

Look forward to your reply.

Q: I have the above securities, as well as RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry Global REIT, and fixed income via Fisgard Capital, Annuities, a company pension, CPP and soon-to-be OAS.

I really focus on asset allocation and am a little light on Consumer stocks, holding CGX, PBH and TCL (although some consider TCL to be in the Industrial sector). I am normally a buy-and-hold investor who trims-adds around core positions.

Question 1 = I am looking to add 1 more consumer stock and am looking for a dividend ideally > 3%. Based on my stock-ETF-MF mix, are there a few stocks you could suggest that would fit in my above set of securities.

Q2 = if I was to consider ideas from the Income Portfolio, is there an issue with having multiple food stocks....like PBH and A&W and NWC. Why have more than one food stock?

Q# = because A&W is a ".UN" company, how are their dividends treated for tax purposes? Are they eligible for the dividend tax credit?

Deduct as many credits as you deem appropriate....got loads and will never use them all up.

Thanks as always...Steve

Q: Hi, I'm a dividend/ income investor new to 5i and have a question on portfolio allocation % with regards to geographical location. ie - I have ETF's ZWA (USA) at 8.6% and ZWE (Europe) at 5%, (13.6% total ) of my overall portfolio. I have a general rule that no one position should be over 10% and no one sector more than 25% of my portfolio. What is 5i's perspective on this and would your recommendations be higher when you're talking ETF's that hold a basket of stocks?

Q: I have held ZWE for a couple of years. I see BMO has released (in March 2018)
an almost identical ETF, ZWP. Has the same top 10 holdings and all other metrics are close, except the daily volumes.
Can you tell me why they did that?

Q: ZWE is down 15% from my purchase price but with the 7.54% dividend I'm still up; however, the MER of .65% is a bit high & I'm wondering if I should stick with this ETF or is there a better alternative for an RRSP? Thanks as always for the great advice.
Dave

Q: Conservative, retired investor who loves dividends. I am normally a buy and hold investor, who trims-adds around core positions. I have a 3% position in ZWE. I've owned it since Oct '17 and am down 8%, including the dividends. So capturing some capital losses is an option.

Two questions...#1 is regarding the currency hedge. Normally I like the hedge product, since it takes some of the risk out of the investment. Your thoughts of keeping ZWE vs switching to an unhedged version, based on your "currency" crystal ball?

#2 is regarding the prospects for securities within ZWE and the current turmoil in the EU (Brexit, etc.). Has the market already priced in a lot of this turmoil? Should I consider adding or should I accept this is one of those investments that just did not work out and take my losses?

Thanks...Steve

Q: Folks can you recommend one or a few ETFs that trade in US dollars that would compare with the ETFs listed. I want to put some US cash into lower beta equities and strategies and am thinking that the ETF fees may be worthwhile to gain the covered call approach and enhanced income that results at the additional cost of sacrificing upside in rising markets. Also any comments on this intended approach for an equity investor who is transitioning from a balanced to an income tilt is appreciated - all the best.

Q: I have the above securities as well as RBC Cdn Equity Inc-D shares, Sentry Cdn Income, Sentry Global REIT. I am a retired conservative dividend income investor with a company pension, CPP, annuities and Fisgard Capital for fixed income.

I currently own ECI and will sell and look for a Consumer stock to replace it (not interested in BIP...I have a full slate of Utilities). I filtered several candidates using fundamental metrics (P/E, beta, P/BV, P/CF, P/S) and technical metrics (200 dma, etc), as well as yield and price targets (for what they are worth).

I will keep my CGX and PBH. I'm looking for a long term hold (conservative, liquid stock with a good and growing dividend). My short list of candidates include CLIQ, CTC.a, PLC, TCL.A. I already flushed ADW.A, KBL, RSI and since I already have 1 food stock, I flushed L and NWC.

Please provide your insights into the appropriateness of these Consumer stocks (CLIQ, CTC.A, PLC, TCL.A) for my portfolio, given my circumstances and existing stock positions.

Are there other securities I should consider, even those that I have flushed?

Thanks for your help...Steve

Q: Is there any downside to buying ZWE for very long-term income purposes, i.e., would you anticipate a nasty price drop to this particular ETF?. Thank you.

Q: My question is about ETF weighting. For a stock I don't like to exceed 5% but is it okay to go higher for an ETF ? I am considering increasing my weight in QYLD from 4% to 6 % and ZWE from 3% to 6% . What would 5I consider a maximum weighting for these two ETF's or ETF's in general ?

Q: Hi 5I.

I'm looking for ETFs that are comparable to ZWH and ZWE..
I have these in my RRSP now and would like similar ETFs for my TFSA for more diversification or these are diversified enough?

Thanks

Q: Hi 5i- The 4 etf mentioned are all ca. hedged. As such my concern is the cdn. dollar direction going forward. I don't see any good non hedged options. Should I stay the course or do you have a better suggestion. thanks for yur input.
peter

Q: I'm looking for some safety in European Investments. As a quick way in to Europe's best ZWE seems to have it all (at least what I am looking for; income, some growth, great companys). With a P/E less than 20 and P/B less than 2, and with a high dividend, great ROE in the high teens not bad MER of 0.7%, playing the devil's advocate, what could possibly go wrong?

Thank You

Q: I am interested in zwe for the European exposure and the high dividend. However I don’t understand what a covered call etf is or how it works. Can you
explain the mechanics in layman’s terms.

Thanks