Investment Q&A

Q: Please name half dozen of your top choices for an income portfolio.

Q: I am looking for monthly income. So far I am considering ZEB, KEY, PPL, and either HHL-B or HHL-T. Your opinion on those, and any suggestions you have, please.

Q: After selling a rental property I now have cash that equals approx 25% of my investment portfolio. My goal with this cash would be to create a mini portfolio within 2 TFSA's to produce dividend income to help with everyday expenses for the next 5 years or so. After this time the investments would be sold and incorporated into my balanced portfolio as the income should no longer be needed. I am looking to keep the portfolio to a max of 6 positions that are diversified from a geographical and sector standpoint. I do not have an exact income requirement, but 4% was my initial target. What investments would you suggest to meet my goals? Feel free to deduct as many credits as required.

Q: I am looking for retirement monthly cash flow to supplement retirement. Can you please recommend some etfs and dividend aristocrats. About $400,000.
thank you.

Q: Good morning,
Although a big fan and long time holder of all Mawer equity funds in my family portfolio, I'm now looking for the second time at dumping the MAW106 as a core holding given its inability to beat its benchmark index in the last few years probably due in part to its increasing popularity and size.
Would you kindly suggest a suitable ETF and/or a mutual fund replacement for MAW 106 or should I simply add to some my other existing core ETF holdings. I currently hold XIU, XIC, XDV and XEI.

Q: Hello,
Can you recommend high or dividend oriented etfs that fall under the following category:
1) From at least more than one ETF company
2) Focuses on dividend payers and moderate growth
3) Covers CDN,US and the rest of the world (not necessarily in one ETF)

I like to pick and chose and change as needed. Not a huge fan of asset allocation ETFs at this point.

Q: I plan to retire in the next few years and have in mind to replace employment income with dividends. I have moderate to high risk tolerance. What dividend generating index funds or ETFs do you recommend to be in each of the following. My funds are split as noted below.
RRSP: 70%
TFSA: 10%
Cash account: 20%

Q: Can you suggest an alternative to CDZ? I believe one was mentioned some time ago but I can't find the reference.
Thanks

Q: First a big thank you for the terrific returns we received in 2020 thanks to your stellar guidance (our largest holdings we first discovered through 5i -hello LSPD,XBC and WELL!). We gifted our kids memberships in December and praise your service to everyone. This is truly an invaluable service.
Now to the question, my brother is tired of paying high fees for his CIBC pension holdings. When I looked into this for him last year, some pools had MER in the 2% range! He’s moved the following into cash and is looking for lower fee/higher return alternatives in the following areas of his pension account:
-Imperial Canadian Dividend Income Pool
-Imperial Canadian Equity High Income Pool
-Imperial US Equity Pool
-Imperial International Equity Pool
-Imperial Short Term Bond Pool
-Imperial Long Term Bond Pool
Please charge as many questions as required.

Q: Hi Team, Wondering if you could please suggest a good
ETF for growth - Canada and US.
Also a good ETF for Dividends - Canada and US.
This is for RRSP account.
Thanks

Q: Looking for 2 dividend paying ETF's, one CDN and one USA with low MER.
Suggestions please, thank you

Q: Most major North American indexes have recovered to within 5% to15% of their previous high. However the ETF "XDV" is still 22% below its high. What is your opinion for that lag?
Secondly, at a current dividend yield of 5.7%, do you recommend it for income and a long term buy and hold at this price?

The same question applies to DVY, the US equivalent which is 25% below its high and yielding 4.5%
Thank you.

Q: Hi 5i
Hope you can help me. I've managed my and my wife's registered and unregistered accounts for a number of years and I'm satisfied with the results. Those accounts primarily hold equities and I spend quite a bit of time overseeing them and tweaking as I think necessary.
I've now been put in the position of acting as trustee of funds for two minors. The time frames the two trusts will run are 7 and 9 years respectively and the principal amount of each is approx 75K. I want to invest the funds but I don't want to put them in individual equities and manage them as actively as I do our personal accounts. I would prefer to put them into ETF's that I can keep an eye on monthly or quarterly and not worry too much about tweaking.
Being optimistic by nature I'm hoping to arrange to get it all for these two trusts - capital appreciation, income, sensible degree of risk, Canadian, US and international exposure, favourable tax treatment, etc.
There are an awful lot of ETF's out there and I really don't know how best to evaluate them to shake out a reasonable number to look into further - especially considering how difficult it can be to identify individual holdings to effectively avoid overlap and provide diversification.
With all that in mind, could I ask you to list 5 (or so) equity based ETF's for each of CDA, the US and internationally that you think might accomplish the goals I've listed, so that I can then look into those ones further and make some decisions about where to put these funds I'm charged with managing.
Also, if you do have any general or specific advice that you think might be useful to me in the situation I've described, I would certainly appreciate your including it in your answer.
Thanks very much and please deduct credits as you feel appropriate.
Peter

Q: My son approached me on some advice on investing. He is just starting off. My inclination is to suggest to him to stick to ETFs. Ideally a mix of CDN, US, Bond and International oriented ETFs . I have my preferences, but would like to know what you would suggest? I am guessing he is looking at a year window to start.

Q: Good morning,
This past week, I've been reviewing each holding in my Non Registered account to identify suitable tax loss harvesting candidates. Before selling any of these tax loss harvesting candidates, I must identify the best proxy replacement.
One my tax loss harvest candidates is XDV which I've held for many years now but like so may other stocks and ETFs these days, is now quite underwater. Although I still like XDV as a core holding and it pains me to sell it, I'm looking at selling XDV and purchasing CDZ as a proxy. Your thoughts on this tentative plan would be appreciated along with any other proxy that you would consider more appropriate. Thank you.
Francesco

Q: Retired dividend-income investor. I currently own ZLB (in RRSP, max'd out, love it) ZRE (Cash account, purchase for LT hold-distributions, plan to add to it over time) and ZWC (Cash account, purchased for LT hold-dividends).

I have a sizeable capital loss in ZWC....2 choices. #1 = Keep it, top it up over the next several months. #2 = Sell it, save the capital losses for future years (don't need them for 2020) and replace with either CDZ or XDV. I flushed XDV right away due to the very skewed asset allocation (to financials & utilities).

So that left the comparison between ZWC and CDZ. Their metrics are, for the most part, similar (beta, P/E, P/CF, ROE, MER).

ZWC is down 39% YTD, pays a current yield of 11%, has a reasonable asset allocation (the 22% energy allocation initially may seem high but might be good for the eventual rebound). However, I don't have the knowledge on how the Covered Call part of ZWC may impact the comparison with CDZ.

CDZ is down 43% YTD, pays a current yield of 6%, but has a slightly more diverse asset allocation and has performed better than ZWC over a 3 year period, but has a higher Beta.

I entered the comparison exercise believing I would conclude to sell ZWC. Now however I might just periodically top it up. Your thoughts please?

Thanks....Steve

Q: 5i Team,

Please provide your guidance on US based ETF's that you believe could be a buy now, and perhaps others that could be placed on a watch list pending a market adjustment or a new developing trend line. Goals would be moderate growth (lean towards safety) with a steady and growing dividend. I currently hold VIG and would want to expand my US based exposure. Position would be held in either a cash or rrsp account. Many thx. Steve.

Q: Hello,
I would like to know if there is an easy way to find ETF's which provide dividends on a monthly basis. Is there a list out there I can use or would you have a short list of such dividend payers? I do own XDV which is a monthly payer. I believe that using a DRIP in my account with monthly dividends should grow my portfolio faster over the long term.

Thanks for all your help.

PS: I love the portfolio analytics feature you have added.

Q: Hi. Given the current market and economic situation, what is your opinion of ZWC as part of an income portfolio for the next 12 months. I had thought of using both ZWC and XDV to generate some income. Thanks

Q: Hi. What are your current favorite Canadian high-yield dividend etf's? thanks, JR