Investment Q&A

Q: Hi,

My web brokerage rates XIT as hi risk and lo reward. When I look at its performance over the short or long term it has underperformed its peers. What do you think it as a long term hold? Is there another tech ETF you'd prefer as I'm not good at high volatility?

Q: In our grand-daughters' trust accounts, they each have exposure to banks, insurance, pipeline, energy E&P, utility, and REITs. There is available cash in the accts to open a new position. Would you add to a present sector or start a new one (i.e. materials,industrial, health care, etc) If starting a new sector, which looks the most promising at present and could you recommend 2 or 3 dividend paying ETFs in the sector ( ideally over 3%). Looking at a 5-7 years time frame. Thanks so much for a great website and much valued advice. don

Q: I am a retired, conservative dividend-income investor with a company pension, CPP, annuities, Fisgard Capital and the following equities:
1. 17% Mutual funds (RBC Cdn Equity Income, Sentry Cdn Income, Sentry REIT)
2. 10% ETFs (ZLB, XIT, ZWE)
3. 41% stocks (listed above)
4. 32% fixed income (annuities, Fisgard, but not including my pension nor CPP).

I plan to reduce my Sentry Cdn Income holding from 9% to 5% and purchase ZWC. The benefits would be a) saving $1k in hidden MER fees, b) receiving an extra $1k in dividends and c) a better asset allocation. I like the covered call strategy that ZWC provides, as well as the 30 companies inside the ETF.

Question = is this the right ETF product? Are there other Canadian Covered Call ETF choices that offer this diversified asset mix that I should consider? Are their other ETFs that have slightly less financials, less utilities, and more industrials that would result in a better asset allocation for me?

Thanks for your help...Steve

Q: Have over 20 years until retirement. VVL has been a disappointment , seems to be holding too many stocks that underperform and has substantially low dividend yield compared to VCN/VUN.

RRSP Account
ZUH 10%
VVL 7%
ZGI 8%
COW 10%
XWD 6%
ZLU 7%
ZLB 7%
VXC 5%
ZID 2%
VUN 7%
CWW 9%
XGD 6%
XIT 8%
Cash 8%

What would be your top 5 etfs for a long term hold?

Q: My daughter would like to invest in something Robotics related in her RRSP...thinking long term. Would ATA be a good offering even though it is near a high?
Any other ideas? Would XIT be too broad?
Much appreciated, Paul

Q: Hi Peter, I have 2 of your tech companies, but was thinking of adding some XIT to bring my IT up to 10% to 15%. Is there a better ETF?