Investment Q&A

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: Dear 5i
I'm always a little confused as to which companies are CDN hedged and which are not . Just because it's listed on the TSX doesn't` always mean that it is hedged I'm guessing . I'm also assuming that it looks like the CDN dollar is going to be weak compared to the US dollar for awhile .That being said which of the ETF`s listed above are CDN hedged and is it wise to have a balance of hedged and unhedged anyways ?
Typically you expect share prices to rise as earnings increase . With the state of the economy ie covid19 it is likely that earnings will be lower for the next couple quarters at least so there are few expectations for higher earnings from most companies .Given this , would you expect the market to rebound higher even before there are rising earnings simply on the anticipation that higher earnings will eventually happen once covid19 is proven to be under control , or do you think we would actually have to wait for increased earnings to occur before we would see any meaningful bounce in the markets ?
Please deduct points appropriately .
Thanks
Bill

Q: My wife has this mutual fund with a 2% MER, very little growth and a small dividend. Would you kindly suggest a couple of replacements (ETF or Index fund or Mutual fund) with a similar risk level and sector coverage but without the high MER.
Many thanks

Q: what are your favoured Precious metals ETFs and you favoured CDN Dividend ETFs?

Q: Hello Peter , I like divi , performance and low fees on this. What I dont like in VDY is high concentration to FINANCIALS ( and then ENERGY). Do you have any alternate suggestions with bit more rounded of sector holding and offering similar benefits.
Thanks

Q: I am looking for a low fee Canadian equity fund or, preferably, ETF with good diversification. More specifically, less financial content than the TSX.
In 2017 you seemed to like MKC but there are no recent comments on it. What do you think of it today?
Are there better options I should look at?

Q: Hi gang, I own this funds. TML735 & AIM24823. Both have not done well for me . I would like to switch to another family fund or should I just cash out and buy an ETF . Your thought please. Thanks

Q: Have $20,000.00 sitting in a LIRA account. Please recommend 3-4 ETFs that I can hold for the next twenty years. and drip (no bonds) would like to double every 10 years. Would Dividend Growth ETFs a good choice over that time frame or just growth stock ETFs?
Thanks Cec

Q: I have about 150k in an RESP account for my 2 kids ( grade 9 and 12) so next year kid 1 will start withdrawing funds and kid 2 in 4 years. I've maxed out the match up grants so no new contributions. I hold mostly global growth mutual funds and am thinking I should shift to a more conservative dividend aristocrat type of holding. This would maintain equity and start generating some income vs more global growth focus I have used to get to this point. Do you have a suggestion for 1-3 low cost mutual funds or ETFs to generate some income and be good holdings for the drawdown period over the next 8 years.

Q: Most of my information is supplied by your insightful replies in this form but now require a little more direction.
Need to convert about 105000 from rrsp to rrif .
Am looking for 4 or 5 ETFs that are dividend payers as all our needs are covered with
oas and cpp plus company pension.
We also have tfsa, US and Canadian trading accounts so this would be for discretionary spending.
Thank you
Barry

Q: I have the following ETF's in the noted ratios and dividend yields %: HDV (3x) 3.32%, ZDV (2x) 5.37%, XTR (1.8x)5.88%, ZWU (1.7x) 6.60%, and CDZ (1x) 4.66%. I'm a dividend investor and good for 3-5 years. If we hit some hard times which of these would be hit the hardest? Any duplication? Should I drop one or more and add to others?

Q: I am looking for an ETF for my TFSA that has broad coverage and that is not so heavily weighted in financials and energy. Would you have any concerns with owning these two ETFs.

Q: How can I make XTR, CDZ, IGRO, CLF & VAB tax efficient? Which should be held in registered accounts and which in non registered accounts and why?
Thanks
F

Q: I am retired and have gone with a strategy of owing Canadian Dividend Aristocrat stocks in my unregistered account and Canadian ETFs in my TFSA. My RRSP and LIRAs holds US ad International ETFs such as VYM. I would appreciate you opinion on this strategy and can you make a recommendation for the best ETF for my TFSA.

Q: Hi, I currently have $11,500 to add to my TFSA with a long term horizon. I currently hold CNR (2.53%), NTR (2.88%), PLC (5.04%) PPL (2.98%), TD (4.21%), V (4.71), WCN (6.15%), XLV (3.31%) MAW 104 (25.11%). I am wondering if I should add to the current companies or might you have any other suggestions?

Q: Hi,
I have held CDZ in 2 accounts almost forever. I even added to them in Jan 2017.
It shows a 3 % gain after all this time.
Does that seem right ?


I

Q: 10,000.00 to invest one year, looking for Dividend income and growth
Which would you purchase and why?

Q: Hello 5i, I currently own the BMO Monthly Income Fund (25% of porfolio) and some xtr(2%). I wish to liquidate the fund and get another etf or 2 to replace it and am considering the above dividend etfs. I would like the best of both worlds high yield/low fees and some growth with low volatility Which of the 4 would you consider adding to my xtr etf and why? Should I also increase my xtr holding. I have some GIC and am trying to be on the conservative side with this account but do hold some reits and utility etfs.
Thanks

Q: Could you offer me a suggestion for a dividend income etf. Also going forward with a corrrection coming would this be a moderately safe position thank you Ken

Q: Hello i5 crew...I am repositioning my cash account for retirement dividends to supplement my RIF account withdrawals. I like the tax favoured Canadian dividends and have blended ZLB, ZWC and ZDV for that purpose. There is a lot out there and would like your suggestions for long term long term dividend generation. Thank you in advance...