Investment Q&A

Q: Of the above Canadian dividend ETFs, which one do you think has the best diversity and investment strategy for a very long-term hold? CDZ seems to have the highest 3-year return, followed closely by VDY, but the latter ETF seems high on the financial services at 59%; not sure how VDY determines their allocations.
Thanks!

Q: I am looking for a good Canadian high dividend ETF. VDY seems to have the best performance following the FTSE Canada High Dividend Yield Index. Can you tell me a bit more about the latter index and stocks are selected. I know the CDZ, also has some set criteria for selecting stocks based on dividend payment history. Thank you in advance for your comments!

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: Is there a index measurement for Dividend funds/ETF's for Canadian and US portfolios? How did these index's perform in 2020?

Q: Happy New Year Peter and the 5i team! Thank you for another year of useful steady independent information flow to guide 5i members.

I am considering adding 5 large-cap or mid-cap Canadian sustainable dividend growth stocks that are currently under-valued in unloved sectors and now yielding at least 3%. MFC and SU stand out. What is your opinion about both as medium risk investments over the next 3-5 years?

In addition, please indicate your 3 best stock alternatives, and 3 best ETFs, in the medium risk large cap or mid-cap Canadian space with a solid record of dividend growth.

I realize this is a broad request so please deduct points as you deem appropriate.
Thank-you.

Q: Hi, if I hold ZDV, VDY or XIC in a TFSA are there any tax implications whatsoever. Do I need to keep track of ACB? Thanks.

Q: Hi

I am retiring in the near future and am looking at increasing my income based positions. I am looking for a REIT or ETF. Can you suggest any? Currently I am not holding any.

Q: Hello:

It seems b/c DGRC is not heavy on Energy and Financials, it has done better than ZDV/VDY.
Going forward, should one add to one's DGRC position or VDY/ZDV. Out look for energy is still bleak, isn't it?

My main aim is to enhance Dividends, get tax credits in our non RRSP portfolio. Safety is always a concern and I presume all of them offer some safety though not 100% as they are all based on stocks after all.

Also how do these ETFS compare with VCIP which I presume will be safer but less tax efficient and less growth?

Thanks for your service.

Q: Would you please recommend a couple of dividends ETFs issued in Canadian dollars - containing Cdn and or US stocks. The objective is yield more than growth with medium or lower risk. Thanks

Q: Which Canadian dividend ETFs do you recommend? I am thinking in particular of dividend growth or high dividend.

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 currently have $115 K saved in my children's RESP with the chikdren’s ages almost 14 (grade 9) and 12 (grade 7).

Currently I have $46,600 in 1-2 year GICs
$9K in Fortis
$25k in VDY
$35k in VFV

Considering cashing in Fortis or $10K of gains out of VFV for another GICs as I am concerned about markets and will need this money in the next 4-6 years for both children. Should I stay at 60/40 or reduce to 50/50 at this point?

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: Good Day 5i,
Which Canadian Dividend ETF's do you recommend, The main choices I have been looking at are CDZ, XDV, XEI, VDY, ZDV. I Currently hold CDZ and XDV.

Thanks,
Dan

Q: Hi,
I’m looking at a long term (30 year) rrsp portfolio. What do you think of making it up of these 4 etfs? Do you think long term it’s better to have the hedged or unhedged versions (where applicable)? I’m thinking 25%vfv, 25%vef, 20%xqq and 20%vdy. Then 10% in cash for buying dips when I see them. I’ll also be using any drips (even proxy drips if needed) as well as adding new funds every 3-6 months and rebalancing annually (unless there’s some major movement before that). Do you see any areas that are too redundant or underrepresented?

Thanks

Q: Would you please recommend:
A couple of well diversified Canadian equity dividend ETF’s
A couple of well diversified Canadian equity High dividend ETF’s.
Thanks.

Q: Do you think these 3 ETFs, provide a diversified enough portfolio? I plan to invest equal amounts in these ETFs and re-balance every year. They would be held in a RRSP, RESP and TFSA. Does it matter in which accounts I hold these ETFs? I plan to supplement my income I receive when I retire. I am basically looking to put together a portfolio that I know will be around long after I die. I'm only 30, but I've been listening to John Bogle and Warren Buffett speak about what they believe individual investors should do with their money.

Q: Hi 5i,

Can you recommend a Dividend Appreciation/Growers ETF for each of the following regions: CAD, US, Europe, Asia? I would prefer to have all CAD Hedged.

Thx

Q: What would be the Pros and Cons to invest in a new ETF such as DGRC with a total asset of 1.3m?
Would you rather invest in VDY or CDZ?
Really enjoy the new website
Well done
Sylvain

Q: Hi5I
We are giving our 3 grandchildren $5000.00 each, so they can each open a TFSA account. Our intention is to give them the same amount for the following three years.
Considering the size of the deposit, and the fees for the accounts, your recommendation on where to open the accounts and what to buy inside the accounts would be greatly appreciated.
Thanks MJ