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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: Hello 5i, I am a new DIY dividend investor (switched from mutual funds from various industry advisors). My spouse and I have TFSAs and RRSPs which we have invested in companies traded on the TSX (banks, utilities, etc many of them reference in the portfolios). My question is how do I get USA and international exposure and still stay within the Canadian market; we are not ready for US$ accounts or other international exchanges. I assume the answer is ETFs but I am overwhelmed with the number of choices. Investment timeline is 20+ years and want to focus on dividend growth. Thank you.
Read Answer Asked by Patrice on October 27, 2020
Q: In recent questions, you have recommended VEE as a Canadian emerging markets ETF. In the past, you often recommended ZEM. Is this observation correct? If it is correct, why do you now prefer VEE to ZEM?

For a TFSA account, would you still prefer VEE to ZEM? If I am reading the company information correctly, ZEM appears to be more tax efficient and has had a higher return over the last 5 years.

Your advice is most appreciated. Thank you.
Read Answer Asked by Dale on October 20, 2020
Q: For international exposure in taxable account, what is your thought on:

EUFN: playing on european banks. pretty depressed but room to run with rebound?
EWT: a play on taiwan rebound?
EEM: emergering markets.

any other thoughts on CDN $ equivalents?

Should be aggressive in taking position now or buy in over time?

Read Answer Asked by Chris on October 15, 2020
Q: While Canadian dividend stocks are my preference due to their favourable tax treatment, etc. some emerging market exposure can't be all bad, especially if you can get a reliable dividend. Is BBVA an example of a suitable emerging market dividend payer to your mind? Thanks.
Read Answer Asked by David on October 07, 2020
Q: Hi,

I use these two broad ETF's to get exposure outside N.A. I'm in my late 30's and a growth investor. I know you can't give personalized advice, but what would be your suggested allocation towards these four buckets, VEE, XEF, Cdn, and US stocks? I have a spreadsheet to keep track of my holdings and allocate my holdings based on where they trade, although many companies may generate revenue in other countries. Is this too simplistic? I'm just trying to keep it easy to manage.

Thanks!
Read Answer Asked by Keith on September 23, 2020
Q: Can you help us understand the value of holding an ETF such as VEE for foreign exposure and why it is highly recommended to own this ETF? Returns are low with high volatility. The ETF remains below 2018 levels when BABA and Tencent were ~30% less and they make up 12% of the portfolio. Maybe we are nuts but something seems amiss. Why not just buy BABA and Tencent instead? Are there other recommendations for capitalizing on Asian growth outside of China as we do not believe VEE is going to deliver returns for the expected growth in those regions.

Thank you for the great Service
Debbie and Jerry
Read Answer Asked by Jerry on August 26, 2020
Q: All of my international holdings in my portfolio are in XEF and ZDI. I'm an income investor primarily. Do these two holding offer enough diversification? Is there a international dividend ETF that your prefer over ZDI?

Thanks,

Joe
Read Answer Asked by Joe on August 20, 2020
Q: I have 4 questions:

1. I have not diversified my assets outside the TSX and would like to do so. Between a TFSA, an RRSP, and non-registered account, which is best to purchase US stocks (for tax purposes)?

2. If I wanted to buy an ETF on the TSX for US exposure, what would be a good one?

3. If I wanted to buy an ETF (also on the TSX) for exposure to emerging markets, what would be a good one?

4. Would you buy an emerging markets ETF in your TFSA, RRSP, or non-registered account?

Thank you for answering my questions. The information you provide is very valuable.

Best wishes,
Terri
Read Answer Asked by Terri on July 23, 2020
Q: 5i Hello,
I have these EFTs on my RRSP and not feeling happy with them, can you suggest some possible candidates I could switch to, or just sell them all and with profits buy CSU LSPD SHOP GOOG AMZN.
Thank
F
Read Answer Asked by Fernando on May 21, 2020
Q: I am working on setting up an RESP for my Granddaughter. We have about 10 years to grow the RESP before changing it to a more conservative approach. Looking for 3 to 5 solid Canadian ETF's - one of them being the best to track the S&P 500. What 3 to 5 ETF's would you recommend for growth and diversity? I would like to keep dividends in Canadian dollars to avoid withholding taxes. Thank you, Patrick
Read Answer Asked by Patrick on May 12, 2020
Q: International ETF overlap query. I have the first four above now (more or less equal amounts) constituting 9.72% of total portfolio. Considering adding some more international exposure for geographic and currency diversification objectives, i.e. either VXUS or VIGI but wondering about the overlap with current holdings or should I just increase current holdings. Generally attempting to increase sector holdings in USA (fdn, ihi, hack, fivg, ipay, vbk), under-represented in Canada and more international geographic exposure. All are/will be in CDN & USD non registered accounts. Views?Suggestions?
Read Answer Asked by William Ross on May 01, 2020
Q: Hi 5i
Thanks for your sage advice during this pandemic period, I have found it very helpful.
My portfolio is pretty well balanced with a good mix of primarily Canadian stocks ( 5i) plus Cdn & US ETF's. I would like to add some exposure to the global markets, can you suggest a couple of ETF's that I should consider - either Cdn or US...
Read Answer Asked by William on April 28, 2020
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