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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Thinking about taxation and witholding taxes.
Are there any of these holdings that should not belong in a CELI?

ISHARES CDN SELECT DIVIDEND INDEX ETF XDV
ISHARES CORE MSCI EMG MKTETF IEMG
ISHARES CORE S&P 500 INDXETF(CAD-HEDGED) XSP
ISHARES CORE S&P/TSX CAPPED COMPOSITE INDX ETF XIC
ISHARES MSCI EAFE IDX ETF(CAD-HEDGED) XIN
ISHARES SEL DIVIDEND ETF DVY
ISHARES SP/TSX CAPPD REITINDEX ETF
HYG
ISHARES TR-RUSSELL 2000 VALUE INDEX IWN
SCHWAB STRATEGIC TR US REIT ETF SCHH
VANGUARD FTSE DEVELOPED MARKETS ETF VEA
BMO US DIVIDEND ETF ZDY
ISHARES CORE S&P 500 INDXETF XUS
ISHARES CORE S&P/TSX CAPPED COMPOSITE INDX ETF
Read Answer Asked by Serge on January 09, 2023
Q: Hello 5i Team,

We recently settled my parents estate and the 3 sons (me included) received a fairly large transfer in the form of 5 ETFs including ZAG (9%), XEF (11%), XUS (3%), XIC (13%) and VFV (12%). This now represents almost half of the total portfolio whereas the remainder is invested in diverse stocks and some other ETFs mostly on your advice. I think you like ZAG for bonds but I’d like to ask if any of the other ETFs seem problematic to you or would you switch any with a similar focus? We also own some XQQ, WXM, IWO and VUN (all at about 2% each). Looking to retire in 10-15 years and with a pretty good risk tolerance.

Thank you for your help!

John

Read Answer Asked by John on May 10, 2022
Q: Good afternoon,

Looking for some general guidance.

I currently have 25% of my portfolio in CAD-listed US ETF's - 14% XUU, and 11% ZSP. I have a few questions for you guys....

1. Would you ever put just 25% in (either) ETF or do you like that fact theyre different (I think you recommend no more than 15% per ETF max? is that correct?). I'd see the advantage of all-in one being better for DRIP'ing but think you (and me) prefer diversification.

2. I would like to add more American holdings in general (maybe 8% more to get to 33%). I am mostly interest in CAD-ETF's to achieve this. Would you view XQQ or XUS as a way to add some 'torque'?

Thanks for your help.
Read Answer Asked by Jeff on August 20, 2021
Q: Good morning,

I have some cash and am looking to add more non-Canadian content to my stock portfolio which is 79.5% Canadian stocks. I have only 4.5% in Europe in FEZ (US$) and XEU (C$), and 16% in individual US stocks. I have no emerging markets. I am thinking of adding to XEU because the European market is cheaper than the US and the large number of value stocks in the ETF should benefit from re-opening in Europe. For a balanced investor would it be reasonable to double Europe to 9% by adding to XEU bringing foreign content to 25%?
Read Answer Asked by Ken on May 18, 2021
Q: So I'm a lot less diversified than I thought and have something like 35+% of my investments in Tech. I have a good deal of money in XUS, XUU, and XAW. I thought I was getting diversification, but I didn't realize how heavily weighted in Tech (25% or more) these ETFs were. A few smaller investments (SKYY, IGV, GOOG) put me far more into the Tech space than I realized.

What's the best way to invest in broad ETFs without being so heavily invested into Tech? I feel like 20% is already a high weighting for this sector
Read Answer Asked by Michael on March 16, 2021
Q: Hey Guys,

I'm thinking of building up my portfolio with ETF's, currently my companies are BTCC.B, ARKK, XUS, HCLN, PSYK. Any suggestion on good additions, and thoughts on these ETF's.

Thanks
Read Answer Asked by Rodney on February 25, 2021
Q: Looking for a 2nd opinion.
My wife has stayed out of the stock market for quite some time. I think now's a great time to get in.
We've got about $75K in her RRSP/LIRA My strategy for her is as follows:
XBB 20%
VCN 15%
XUS 40%
XAW 25%
The plan is to buy in in installments over the next 3 months.
Are there alternate ETFs that may be better than the allocation above?
Does this strike you as reasonable ?
Read Answer Asked by Michael on March 24, 2020
Q: Considering buying US large caps ETF when things turn more positive.
To hedge or not to hedge with the Cdn$ having fallen so much largely but not only because of the Russia/Saudi war on the price of oil - which will get resoved. I understand under normal circumstances your preference for not hedging.
Thanks for your great service especially during these uncomfortable times.
Read Answer Asked by bill on March 23, 2020
Q: Hi 5i,

The recent run up is starting to make me a little nervous.

Everything else being equal, is this a time to think about reducing weightings in something like an SP500 or other broad market ETF and perhaps move to something more defensive?

Thanks
Read Answer Asked by Ryan on February 14, 2020
Q: Since the tax benefits for HXT, HXQ, HTB, HXS have or will be diminished, is there any reason to continue to hold them or should we be switching to other etf's, is so which ones would you recommend?
Thanks for your service.
Read Answer Asked by Ozzie on April 24, 2019
Q: looking for an S&P 500 ETF with low fees. do you prefer a hedged or unhedged ETF? i am considering the ZSP and TDB902 or any other you would recommend. 20 year time horizon.
Read Answer Asked by Don on April 09, 2019
Q: Other than VFV , can you please recommend a US etf that you like ,that sells in Canada
What are your thoughts on XUS.
Thank you
Read Answer Asked by Michael on March 18, 2019
Q: With a 20 year time frame, my daughter has some money to invest in her portfolio which consists of:
Canada: PDC (25%) ZAG (30%), Money Market (10%).
US: XUS (20%), ZQQ (5%),
Europe: XEU (10%)
If the US and China reach a trade deal she might move 5% from Money Market to ZEM.
Given that the bull market is long in the tooth, would it make sense to move XUS to VGG? The composition of VGG appears more defensive and the reduction in technology stocks is compensated by her position in ZQQ. Growth has been similar, the dividends and BETA are about the same, and VGG's MER is lower (.08 vs. .11). Your advice would be appreciated.
Read Answer Asked by Ken on February 25, 2019
Q: Recently read John Bogle, "Common Sense Investing"

What are my choices for purchasing the s & p 500 index, please compare MER, do all offer a canadian hedge? and what are the pros and cons of buying it hedged to canadian dollar?

thanks

Ernie
Read Answer Asked by Ernest on January 03, 2019
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
Read Answer Asked by Abhishek on December 04, 2018
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