Investment Q&A

Q: Is this a a good play to the US market in a TFSA. Thanks

Q: I need to increase my US holdings. Please comment on buying BRK.B:US vs something like HXS in a cash account. Thanks

Q: Good mornng,
Thank you for your prompt and very helpful answer to my question re: Mutual funds/ETFs that do not pay any DISTRIBUTIONS and only generate CAPITAL GAINS.
As a follow up to your general HORIZON Total Return ETFs recommendation, what are your thoughts in terms of appropriateness if I were to split the amount to be invested in each of my minor grandchildrens' Non Registered in-trust accounts as follows: 50% in HXS.CA and 50% in HXT.CA? Your comments/thoughts on these specific ETFs would be most appreciated. Feel free to recommend other ETFs as need be . Thank you.

Q: Good morning,
My wife and I wish to put $$$ into our minor (twins 7 yrs old) grandchildren's in- trust accounts to help them get an early start in building an investment portfolio. Moreover, this would allow them to start contributing to their TFSA when they reach 18 years of age and when I am perhaps long gone.
I understand that if I put $$$ in my minor grandchildren's in-trust accounts that ALL INCOME would be taxed in my hands until they reach 18 years of age but that any CAPITAL GAINS would be taxed in the hands of the grandchildren regardless of their age.
Assuming that my understanding is indeed correct, I am looking for a few suitable investment vehicles and more specifically a few good quality ETFs that DO NOT generate any form of INCOME or DISTRIBUTIONS other than CAPITAL GAINS.
I would very much appreciate your thoughts on implementing this strategy along with a few of your best ideas as to which ETFS you would recommend for my purpose.
I thank you in advance and look forward to hearing your response along with your ETF recommendations.

Q: Looks like Horizon swap indexes will have a limited life expectancy.
From budget:
"Improve existing rules meant to prevent taxpayers from using derivative transactions to convert fully taxable ordinary income into capital gains taxed at a lower rate."
Comments?

Q: Looking to bring some growth to a small ($110,000) SDRSP with 5 years before it needs to be converted to a RIF. Could you recommend a tax efficient , medium low to medium risk ETF (or ETFs) that would be used to invest the total portfolio . Income not required until conversion made to a RIF.
Many thanks, as always.

Q: Good Morning,

Which would you choose for a TFSA, long term core holding? Currently mid thirties. Thanks

Q: I manage a portfolio for my mother and I am looking for an investment which will NOT generate any income (Interest or Dividends). This will be about 20% of her portfolio and reside in a non Registered account. I have come up with the two ETF's above to provide diversification in both CA and US. Would there be better alternatives I could consider in individual stocks or other ETF's. All other investment's are in TFSA and RRIF accounts and she will never need the capital. So this is a long term investment.

Q: I would like to set up an simple and safe American portfolio that does not deliver any dividends (no tax consequences). Berkshire Hathaway comes to mind as a diversified holding. Are there any others that you could suggest?

Q: Trying to get a bit more geographic diversification in a TFSA account that is, at present, all Canadian equities. Would you suggest something like HXS for US diversification with the swap arrangement to limit tax implications? Or would something like VGRO make more sense with greater geographic diversification and a little fixed income?

Thanks for the great service,

Doug

Q: Hi 5i team,
I would like to purchase a US equity ETF in C$ fund for my TFSA. For a conservative investor, would a dividend growth ETF be more suitable? What would be your top pick ETF for this purpose, hedged and unhedged? Is the dividend income subject to tax withholding? Or should I be looking at HXS, though the swap fee may cancel out the tax advantage? Thanks

Q: What's your opinion on this allocation: 40%HSX, 35% VCN.TO and 25% VRE.TO for a medium risk TFSA portfolio?

Q: Do you recommend US-based, Total Return Index ETFs (which use total return swaps) for TFSA to avoid US withholding tax on dividends? For example HSX.

Q: Good day and best wishes to 5i team for 2019! Regarding the swap arrangement for these etfs in lue of dividend distributions. If for example they had a 3% yield.and say I owned 1000 shares at a book value of 10$per.share. would the distribution show up as more shares similar to a mutual fund. So if I then sold after distribution.i would have a capital gain of say 300$and no concerns regarding dividend? And second question do you see some good interest in this as a way to shelter income or would you more lean towards say vcns or vbal? Hope I do not confuse. Tks Larry

Q: Can you please coment on the proposed tax efficientiancy promoted by horizon.ie total return distribution yearly if any.does it mean you only have capital gains to be reported? Great service and tks

Q: Total Return ETFs... Do you have an opinion on this type of vehicle? I am setting aside monies for a niece with special needs> I do not expect to use the funds for many years - it is for her years as an adult. I do not want dividend income.

Q: I am constructing a new equity portfolio 60% US & 40% CND. On the US equity I am using the following ETF's:
HXS @ 15%
IWO, XMH,XSU @ 10% total
VGG @ 20%
HXQ @ 15%
I also want to limit taxes, dividends and any US reporting on form 1135.
Could you comment on this set up. Thank you for your service

Q: Hi, I have my portfolio distribution
10% in a short term bond (RRSP)
50% in XUS (Registered)
25% in HXS (TFSA)
15% in my Non Registered Account (HXT).

Is it time to move to a more definsive strategy. I am thinking of shiftin about 30 % in the likes of BCE and another 20% to short term bonds. Would you be ok with this?

Thanks

Q: I am considering holding VFV and XQQ in my personal unregistered accounts because they produce dividends. I could borrow money to invest in them and write off the interest. On the other hand, would it make sense to put HXS and HXQ in my passive corporation (no active income) as these two produce only capital gains and no distributions? Is there a big difference in dividends earned in a passive corp vs
personally? Also all of these will not count towards the T1135 limit. Any thoughts?

Q: Does Horizons or similar company have a tax deferred ETF that would be similar to VGG. I understand HXS does for US exposure, though I am interested in one that focuses on dividends which are only taxed as capital gains once the stock is sold. Thank you for your service.