Investment Q&A

Q: Hi All at 5i! I would like to invest in a broad ETF ( in Canadian dollars) Which covers the US market, and one that covers emerging markets. Could you give me your choices and why. Thank you for all you do especially your hand holding when I am feeling a little unsure of what I am doing. You make my learning curve in the world of investing a little smoother!! Cheers, Tamara

Q: Dear 5i
I own VGG , VFV , and ZWH ETF`s that all trade on the TSX . I bought these ETF`s because they hold all US stocks and i needed some US exposure. It seems however that when the US markets are up big but the TSX is down a bit on the same day the US ETF`s are down . So my question is if one expects the US markets to outperform the the TSX then would it not be best to buy said ETF`s on the US exchanges ? It just seems like i`ve got the US exposure but even on big US market days coinciding with low TSX market days i`ve lately been missing out lately on the current US market rally . Should i stay the course or switch some to the US exchanges ? This is assuming that we believe that the US markets will do better then the TSX this year .
Thanks
Bill C.

Q: Hello,

I have been holding TDB902 Mutual Fund which tracks the S&P500 over the last few years. The approx return for TDB902 from Jan 2014 to Jan 2018 is 77%, XSP has been 52% and VFV 78%. However, the one year return for TDB902 has been 16.21%, VFV 16.42%, but XSP has been 22%. XSP is CAD hedged, and I'm looking for the best investment to track the S&P 500. Is it better to have XSP/CAD Hedged ETF? My understanding is that on average CAD to USD has been approx .80 (outside of the few years when CAD was on par with the USD), I think there may be some fluctuation between .75-.81, but will stay around .80 (or decline). Which ETF would have the best returns and track the S&P500 accurately, and should I consider a CAD hedged ETF?

Q: Your thoughts on ZQQ as a long term (10+ years) RESP hold or would you just buy a low fee S&P 500 (maybe VFV) ?

Q: Hi Peter and 5i staff,
I have a portfolio of Canadian stocks with reasonable sector weightings. If I were to add an ETF like VFV comprising of US Stocks, my weightings would seem quite high in many of the sectors. Do I need to re-balance ?
Thanks for all the great advice.
Ivan

Q: Hello,
I am in the process of taking over my mother's portfolio and getting her out of mutual funds. She likes the idea of ETF's to reduce risk vs: specific stocks. What would your top 4-6 ETF's be for a sleep at night portfolio that is well diversified globally and covers all sectors, time range 20 years? Starting portfolio value $750,000 cash by the end of January. Also how would you intelligently step into these ETF's as the markets could be positioned for a correction sometime this year?
Thank you

Q: I plan to shuffle my RRSP to include your Balanced Equity Portfolio and the three ETFs above. Would you recommend any exposure to bonds through a fourth ETF?

Q: My daughter has approx 10000.00 in cash in her TFSA and no other investments. Could you suggest a carefree long term growth oriented equity ETF(s) as a basis for future investments.
Thanks for your service.
NA

Q: Capital preservation and sustainable growth at reasonable cost is key for us . Not looking for income . Long term timeframe . Don't do momentum . Have portfolio of Canadian large caps that have significant operations outside of Canada . For more diversification , we need exposure to U.S. large caps (not financials or commodities ).U.S. estate taxes major consideration for us. Directly held U.S. equities would be U.S. situs assets . Current U.S. deliberations re Federal Estate Tax will not eliminate this concern in the longer term . We plan to add a portfolio of sustainable U.S. large caps that have significant international operations .Mawer U.S. Equity Fund (MAW 108) is a possibility. The 1.19% MER is a factor, given the amounts involved . Could you identify one or more "Canada-Domiciled " ETF/s that would reasonably align with our objectives ? Could you also identify pertinent sources we could access . Thanks.

Q: Hello, One of kids just turned 18 and I would like to start a TFSA. What would you recommend to invest in as a long term goal so that they can also learn about investing. The money will not be required for next 5 years at least
Thanks
Ravi

Q: I am holding all of these ETFs in fairly equivalent amounts in both TFSA and Cash accounts. I will need to sell some to pay my 2017 tax bill, as the sale of an investment property has me realizing some significant capital gains.

Do you have a recommendation for which ones to sell over others, or would you maintain an equal weighting? These will be long-term investments.

Q: What would you pick as the best handful of etfs to own to build a beginner, well balanced portfolio for building up investment dollars? At what dollar amount would you see it to be more beneficial to split the money among 20-30 individual stocks rather than a few funds?

Q: Good afternoon,

I am looking for exposure to the US market, in my RRSP. According to your previous answers on this type of inquiry, an ETF would be the easiest way to go, since it automatically brings both diversification and exposure.

My time horizon is minimum 10 years and don't mind a medium amount of volatility, as long as the returns are there in the end. My plan is to invest into the chosen ETF each year, so that my exposure to the US market is taken care of.

I have been looking more closely at VGG, VFV and VUN, mostly out of the reputation of Vanguard products. The dividend growth orientation of VGG sure is appealing, but I am not primarly looking for income. Aside from that they all seem pretty similar.

I would like to know your point of view on these ETFs I mentionned and if there are any others that you consider that would fit better in a long term plan.

Thank you very much!

Q: Awhile back you suggested for my daughter age. 27 the following ..50% VCN,30% VFV,15% XIN and VEE 5%. . IS this still recommended as she has some more funds to invest.and only wants ETF's .Happy Thanksgiving Paul

Q: I will reword my last question to be better understood, which equity Etf's would you recommend for each region of the world outside Canada, in other words, your favorites, thanks?

Q: I've been unsuccessful picking my own stocks thus far but have roughly 15k sitting in cash (afraid to lose it). What/How would you suggest investing this amount to return consistently over a long period.

Thank you

Q: HI, XUS OR XSP or anything else. For S&P 500 in cdn dollars, what would be best choice. thanks.

Q: Hi Peter: I currently hold ZWH in my rrsp and as it is the only U.S. exposure that I have, am wondering what you else you would suggest as a compliment to it. ZWH currently is 6 % of my overall portfolio. I am looking for something of a moderate risk to hold for 3-5 years or longer.

Thanks, David

Q: I have a large investment in VFV and would appreciate your opinion if I should sell my position in favor of VSP S&P 500 hedged? With thanks, Bill

Q: First of all,many thanks for your valued services.My granddaughter is starting her first investing at 23 years old and possessing $6000.We assume she should open a TFSA and would like your advice as to what to put into it. Thank you, Anne.