Investment Q&A

Q: Hi, looking to invest long term in one etf for income first , growth second. Would it really matter which one I pick ? I’m thinking zcn for lower mer and higher dividend.
What etf do you like for retired investors (include any other you might consider) Thanks,

Q: Hi Guys,

My son is opening his first RRSP and is looking for a basket of ETF's with a bit of a longer term horizon. What would you recommend?

Thanks,

Q: Hi there, I'm building a portfolio based on the 4% withdrawal rule. I read a study where based on country specific stock market data, the 4% withdrawal rule only worked in Canada, US and maybe 3 other countries. Based on this study and using history as a guide - if one were to build a portfolio with 50/50 Canada and US exposure, would it be best to use VCE and VFV or VCE and XSP? Also, if VCE is not the most appropriate Canadian ETF, what would be the most suitable? I've seen XIU, XIC and VCN often mentioned, but it appears like VCE has a slight outperformance?

Thanks!

Q: I own an Ishares all in one ETF to round things out. I just found out they hedge the currency on the non Canadian holdings. I tried to find out the cost to hedge but was unsuccessful. After doing more research I found the costs to hedge can be 1-2% a year. When doing a back test between IVV and XSP the hedged EFT lagged by 1-3% a year over 20 years. From 2002-2012 the lag averaged 2.1% a year but in the last 10 years the average lag was 1.1% a year. Do you know any all in one Canadian ETF's that don't hedge the currency?

Thank you.

Q: Peter,

What etfs would you recommend for consideration that would cover equities outside of North America, in Canadian dollars. I am looking more towards the more established economies rather than emerging markets.

Thanks

Paul

Q: Hi , which index fund do you recommend that follows the S&P 500
Thanks

Q: Hello, would you be buying VFV or VSP for a long term hold for a passive investor? Does it really matter? Would you own one right now and rotate to the other in the future ? Thanks.

Q: Dear 5i,
If one were to hold either VFV or VSP (CAD hedged) for approx. 25 years would you expect the Total Return to be the same for either ETF?
If VFV has long term better performance would it be because there are no CAD hedging expenses?

Q: New retiree caught with pants down. Need to sell some stuff in RIF to cover current cash needs. Horrible position to be in with current market. Lesson learnt. Maybe (tough to be on the sidelines in a bull market)
Please help with sell sequence, which I guess should be based on which of these holdings is least likely to see near term growth from here OR which is most susceptible to further declines in near future??

Please list in order starting with the holdings you think should be sold first, ending with the holdings you think should be retained longest, and advise your rationale. All will need to be liquidated by mid 2023

Your crystal ball will be better than mine.

Thanks,

Jim

Q: Hey Peter and Team,

I have a new investor in the family. He's 24 years old. He is looking at starting to invest and has a long term horizion. In todays volatile market do you have a suggestion for where he could put $2,000.

Thanks for all you do

gm

Q: My son has uninvested $ in his RRSP, and no other investments at all. Can you suggest 3-4 positions to get him started? He'd like something that he doesn't have to pay too much attention to. Thanks.

Q: Dear 5i
The above noted ETFs are the ones i commonly use in my RRSP , TFSA and non registered accts .
CDZ and ZLB are used for CDN content and the rest for US content.
I believe there is probably some redundancy in these and was wondering which ETFs could be left out .
Which ETFs would you use for RRSPs , which for the TFSAs and which for the non-registered acct .?
Thanks
Bill C

Q: Hello 5i Team,

We recently settled my parents estate and the 3 sons (me included) received a fairly large transfer in the form of 5 ETFs including ZAG (9%), XEF (11%), XUS (3%), XIC (13%) and VFV (12%). This now represents almost half of the total portfolio whereas the remainder is invested in diverse stocks and some other ETFs mostly on your advice. I think you like ZAG for bonds but I’d like to ask if any of the other ETFs seem problematic to you or would you switch any with a similar focus? We also own some XQQ, WXM, IWO and VUN (all at about 2% each). Looking to retire in 10-15 years and with a pretty good risk tolerance.

Thank you for your help!

John

Q: Based on your reply to Paul on May 9th...."We think buying over a year will end up looking pretty good in two or three years". Of the following Companies that make up my portfolio what would be your TOP 3 conviction names to ADD to over the next year based on long term growth potential, good valuation, well run, good management, no brainer this will be a good investment type choice. There is opportunity here so don't want to miss the boat. Yes everything is down. Yes people are panicking. But it will go back up and simply want to focus my energy on the ones with more conviction. I don't need the money for the next 15-20 yrs but don't want to be a moron either and be happy with a bit of dividend here and there when I could see larger returns by making a good decision today. Thanks again.

Q: The S&P 500 looks good in the current market and long term, with about 72% in the follow: big tech 26%, financials 14%, health care 13%, communication 10%, consumer defensive 6% and utilities 3%. 5i seems to prefer VFV, but its yield is listed at 1.12% on Yahoo and ZSP at 1.3%: is this because VFV has deducted the 15% withholding tax on US dividends? I assume the 15% would still be withheld in a registered account? Thanks!!

Q: Hi 5i.
Thanks for your continuing great service.

I am trying to find a way to hold US stocks without being subject to US Estate Tax or the need for T1135 tracking.

Are CDRs on US stocks subject to US Estate Tax?

Are CDRs on US stocks subject to T1135 reporting?

Are there other vehicles, besides selected Canadian- company-managed ETFs, that enable ownership of US stocks without exposure to US Estate Tax or T1135 exposure?

Which Canadian companies managing US stock EFTs are not subject to these issues?

Are the Canadian branches of US companies that manage US stock EFTs deemed by CRA to be US or Canadian?

Any additional comments or suggestions that you may have on these topics would be greatly appreciated.

Please deduct as many question credits as appropriate.

Many thanks !

Q: Please rank in order the following etfs in a non registered account.
Main criteria being growth, dividend and mer.

Xuu
Vfv
Vun

Q: What ETF funds you would recommend

Q: Hello. In reviewing my portfolio, I realize that I lack exposure to US markets. I am therefore thinking of purchasing an VFV ETF. I am 66 years old and receive a reasonable pension. While I have an RRSP, I have not contributed to it for many years, choosing instead to build my TFSA. Given that my TFSA is now topped up, would it make sense to add VFV to my RRSP (better tax advantages??) or add it to an open investment account that I currently hold?

Q: If you were to sell any of the above, list in order your top 5 or 6. Or would you keep the portfolio as is for next 3 years.
Roy