Investment Q&A

Q: Hi 5i,
3 questions I believe, so please deduct accordingly:
In each of the following groupings which name do you see as having the largest gain (dividends and capital gain) after a three year hold and, if you would, brief reasons for your choices. Also, if any seem to you a bad idea to buy and pay little attention to for three years, please say so,
1. BIR; ARX; CNQ
2. NWC; EMP.A
3. ZQQ; TXF
I look forward to your thoughts. Thanks.
Peter

Q: I have a small RRSP account that is half in TXF.TO and half in US cash. I will not need access to this account for at least ten years. Overall, my portfolio is very diversified. But I am trying to decide what to do with this account. I was thinking 1) about putting the US cash into VOO 2) and/or selling TXF.TO and only holding VOO. My other thought was 3) putting the US cash into a US REIT or 4) a US ETF paying a good distribution. Would you have any thoughts? And if you think a US REIT or US ETF would be a good idea, could you provide a few suggestions? Thanks.

Q: this etf now pays an enormous dividend of 15 per cent. is it sustainable?

Q: I'm down 33% on TXF in an unregistered account.

For tax loss harvesting would ZWT be considered an acceptable proxy for TXF by Revenue Canada? If they are too similar, what do you feel would be an acceptable proxy?

Alternatively, if there isn't an acceptable proxy would 5i suggest leaving the proceeds in "cash" on the basis that it is doubtful that TXF would increase enough in 30 days to offset the tax gain?

Thanks!

Q: Is it safe to add this for growth, later and the dividend thru this debacle . Thx James

Q: Hello:

Wondering if TXF is beaten down enough to provide a good entry point. Is there a better ETF for similar exposure in CAD?

What are 5i's thoughts on HHL for weathering the next year or two with possible recession and general market uncertainties? I expect healthcare may see less volatility but would like your perspective, please.

Thank you for your great service!

Q: Just curious your thoughts on getting tech exposure. Could you please provide your preference (not individual names) on a basic etf like TEC or the covered call strategy? Pros and Cons of each one if you could please.

Q: Hi there, have a fairly large position in Txf and am down on the etf. I am thinking of adding more and would appreciate your judgment on the sustainability of dividend and prospect for future growth. One year hold Thanks, James

Q: I am thinking of adding TXF to my portfolio, however, am not sure which account would be appropriate. Considering that most of the Tech. companies in this ETF are U.S., would that not attract a 15% withholding tax. If this is the case, then would a registered account be preferable to a TFSA.

Thanks for the great service

David

Q: I have modest positions in these two holdings and am thinking of selling the Choice prop. REIT and buying more TXF. Do you have an opinion on this move. I recognize that they are very different holdings but my reasoning is as follows.
Chp has a nice dividend but very little growth. Txf has now dropped in price to a point where the downside potential seems more limited than its upside potential. It also pays a dividend that is enhanced by the covered call strategy. I know you prefer to own tech companies directly (which I do) but have also found Txf to be a way to own a basket of tech that would be hard for me to reproduce in my own portfolio. Any thoughts or opinions would be appreciated. Thanks.

Q: In view of multiple technology stocks decline would you be in favor of gradually add such ETF to a portfolio to achieve desired technology sector and US geographic diversification percentage in someone portfolio ? Eventually such large technology stocks will be again dominating force in the economy growth. Do you have a different view for such approach?

Q: I am looking for some TECH dividend exposure in an etf within a rrif I am 75 hoping to have a 5 year hold. Any suggestions welcome. Safety and Dividend growth would be nice. Thanks have a great day

Q: What are your thoughts on ZWT, a new offering in the field of income focused tech ETFs? How would you rate this against TXF? Are there other ETFs in this area you would recommend instead?

Q: I have owned and been happy with this fund for several years now. Now I see it is involved in an ETF merger and "objective change with Wisdom tree. I am not clear on the funds status as it is not shown as a "terminating ETF" continuing as a new ETF, But is listed as an "objective change etf in the voting sheet. Does this fund carry on with the same name and ticker for trading? If the vote is not approved is it to be terminated as part of the "terminating etf's? Finally are the objective changes enough to hurt or help the funds prospects going forward? As always Thanks for the great service you provide.

Q: Hi 5i,
This may well be 4 questions, so please deduct points accordingly.
Portfolio Analytics indicates that I'm underweight in Communications Services, Consumer Defensive, Industrials and Consumer Cyclical, and I'd like to top up these sectors.
I try to be a balanced investor and like income, but I don't mind taking on more risk and little or no income on something with a solid premise. Especially right now I'm looking for companies that are poised to benefit from the return to (more or less) normal life that 2021 might bring.
My present Communications Services weight all comes from the following ETFs - TXF, ZDI, DISC and ZWU. Can you provide a few Canadian equities to look at in this sector at this time, other than the big four?
My present Consumer Defensive weight comes mostly from NWC, with a smidgeon from ETFs like ZFI and DISC. Are there two or three Canadian equities in this sector you'd currently recommend looking at?
My present Industrials weight is in FTG (which I'd be happy to sell unless you think it has the potential for recovery in the coming year), QST and XBC. Are there another two or three Canadian names you presently favor in this sector?
And finally, my only Consumer Cyclical other than whatever might be in the listed ETFs is NFI (although I'd have thought it would properly be classified as an Industrial). Again, could you recommend two or three Canadian equity names that might qualify as viable Consumer Cyclical holdings going forward?
Thanks a lot and Happy New Year!
Peter

Q: Hello 5i,
Two questions (or maybe its three...) this morning so please deduct points accordingly (all arising out of Portfolio Analytics indicating I need to increase my US exposure and also my tech and health care holdings - all of which I'd like to do while staying on the TSX).
First regarding tech, each of TXF or TXF.B appear on their face to be promising investments, for their distributions if nothing else. Although the MERs are a little high, and net asset values and volumes are low, are there reasons why a buy and hold (3 to 5 years) in either is not a wise choice? And if a buy is warranted, the hedged or the unhedged?
Second, regarding health care I'm looking at HHL and HIG and would appreciate your thoughts on their comparative merits - and also to be told if you think either or both are best kept away from - again with a 3 to 5 year hold in mind.
As a wrap to all the above, if you think the ETFs I've asked about are best avoided for the 3 to 5 year term I've got in mind, can you offer some alternatives?
And finally just a comment: Portfolio Analytics has really allowed me to step back and get a much better objective look at my investments which had gotten spread all over the board and need some discipline, and has given me both the tools and the confidence to structure them (I think and hope!) securely and profitably.
Very glad I found you. I gave a year of 5i to my son recently and I hope he uses it a lot - did you get that Geoffrey?
Thanks for everything.
Peter

Q: Can you give me pros and cons of these ETFS, TLF, TXF, VFV, ZQQ. I'm looking for a long term hold without too much volatility. Can you recommend one or two? Can you also comment on the bizarre divide from TXF and its covered calls.

Q: Hi,
Which of these 2 stocks provides a more reliable income stream with lower risk? Thanks.

Q: Hi 5iTeam,
TXF currently pays around 8.5% in dividend. From what I can gather, the underlying stocks in this etf pays minimal dividend and some don't pay a dividend at all. So I just wondering how TXF manage to pay such a high dividend. Your thoughts on this would be appreciated.
Also I would like to know the average yield of this etf going back the last 10 years.
Thanks again for your great work...

Q: In general, what is your advice on covered calls in this market? If favourable, for technology QQQX and BST are on my watch list. There are many others. What do you advice as to most preferred ETF, if any?
As well, there are more complicated ETFs which factor in covered calls - RPAR, SWAN, and NTSK, for example. What is your view of such financial products?