Investment Q&A

Q: Good morning.... we are 15 years away before we may need to access our RRSP..
We sold all enegy (although would be okay with one "best of class" or ETF)..
I have a solid mix of similar weightings (BCE,BEP.UN,BNS,PBH,ATD.B,FSZ,SJ,GUD SIS). I would like fixed income/US/International exposure...I will be adding XHY..
I am looking for suggestions for either a few ETF you recommend for US/International exposure...keeping in mind we would not need to withdraw for at least 15 years..and if you think should have a minimum of 5% in energy or alternate AI ETF...

Thanks
Matt

Q: Dear 5i,
During the past week I had been deploying extra cash to rebalance my lower weighted holdings. I hold most of your BE Porfolio, some growth and a handful of US stocks. I have limited dry powder left to deploy and have significant losses in RRX and AEM (only energy / gold holdings except for ENB). I know you don't recommend buying the tsx index b/c it is weighted in resources and financials. I also have a little USD $ left. I am thinking of selling the loosers above for the capital loss and just buy the TSX index and the S&P 500 index with my remaining USD$. What do you think of this plan? Which index funds do you recommend?
Thanks,
Kerri

Q: Hi 5i
I like CMS ETF portfolio choices.
One of your ETFs is SPY.
My question: Does it have to be SPY?
Or can I replace it with ZSP or XSP?
If not, can you let me know your reasons?
shanthi

Q: I would like to get your thoughts on an equal weight approach vs a market weight approach with the S&P 500. This would be for long term performance holds of 10, 20 years.

Q: Currency question:
I want to buy an emerging market ETF and a US market ETF. If we assume that the American dollar continues to drop, are we better to have a Canadian dollar hedged fund or to purchase in US dollars? Thanks in advance.

Q: Would SPY be comparable to ISUG ? Or would ISUG have a higher concentration of tech stocks?

Q: I am setting up an all ETF portfolio for a 20 yr plus holding period and I have a two-part question. The first part concerns the makeup of the Canadian/US component. Is it better to go with a combination of SPY and XIC or would including CDZ and VIG provide stability and perhaps a bit more growth to the mix (keeping in mind that I intend to hold at least 5% of each but don't need income yet)?

Secondly, I am looking for higher risk assets for my TFSA. I was thinking of IWO. I know that there are specialized sectors I could include but I looking for a fairly hands-off approach. Do you think this approach would serve me well - I know that it is only one asset type - or is there a better mix out there that would still be quite manageable?

Appreciate your insight.

Paul F.

Q: Hi All at 5i! Could you tell me what the difference in holdings are in these broad ETF S ..which would be the better to hold for the best broad exposure ? And a second question ..could you suggest a Us Money Market ETF. Thanks, Tamara

Q: I am very heavy on Canadian equities within my corporate investment account. My personal accounts are all a bit heavy on Canadian equities as well. Plan to purchase ETFs to balance. Which of your current ETF portfolio names would you add right now and is there any advantage to doing so within my INC., TFSA, RSP or personal unregistered account. Would invest a 5% positon in the next few weeks. Balanced equity portfolio is the target, 10 year horizon.

Q: I've been a member of 5i for about two years and your help has been substantial. Thank-you. I currently own a portfolio that closely mirrors your balanced portfolio.

My question today relates to one asked recently about Warren Buffet's wishes regarding his investments should he die. I believe it was somethink like 10% to short term bonds and 90% to the S&P 500. I'm seeking advice regarding what a kind of portfolio a Canadian should develop in a similar situation. My wife has no interest in day to day stock analysis. Should she inherit our portfolio, I'd like to construct a 'buy and hold' ETF portfolio, in addition to our current portfolio, with exposure to Canada, the United States and the rest of the world. This would comprise the equity part of a more complete portfolio. Hopefully, it would have the potential to show resonable gains with little attention by the owner. My question is: which 3 ETF's would you choose to gain exposure to the 3 markets for a Canadian who simply wants to buy and hold? What % would you put into each ETF?
All the best to you and your families for the holiday season.

Q: May I please have your opinion on taking a new position in gold? I am an ultra conservative investor, retired for 14 years, who covers all my daily living expenses through company and government pensions, and use investment income primarily for holidays and extra pursuits. Most of my investments are in fixed income such as GIC's, preferred ETF's, and bond ETF's. Would you recommend a gold ETF or a specific equity? Thanks!

Q: Good morning,
It 'appears' GE's downward trend will continue. That would soon take our current US$23k investment below our book value. I prefer holding, but don't like the notion of underwater for years waiting for this ship to turn around. So I'm 'inclined' to move on, in which case probably by adding that to SPY which most of our US$ are in. Your thoughts will be appreciated.

Q: Greetings 5i,

I realize that you do not technically cover American stocks, but would value your opinion on this matter if possible.

I currently hold TPU.TO (slightly more than a half position), as well as a larger position (slightly more than my other "full positions") in BRK.B (held in US dollars). I am 36 years old, conservative, and greatly prefer long term holds.

My question is two-fold, so please deduct two credits if you deem it appropriate. First, given the enormity of BRK, as well as its ability to often outperform the S&P 500, do you feel as if both should be owned for broad American exposure, or would a single, consolidated position in BRK be more appropriate (I essentially look at BRK as a very low cost mutual fund)?

Second, if you feel that owning both BRK and an S&P 500 ETF is beneficial, would you recommend holding the ETF in Canadian or American dollars? If the latter, could you suggest a suitable US dollar replacement for TPU?

At present, these two holdings are my only direct exposure to US Equity (I also have XHY for US bond exposure), although I am planning to add a few single positions over the next year or so.

Thank you.

Q: Your portfolio review was helpful and appreciated. Am gradually tweaking our savings re diversification. Presently no healthcare. Am mulling a 3 - 5% (of equity) stake. We can do this in either Cdn or US$. The US healthcare sector is our preference. If we use our Cdn$, it appears you favour ZUH? Can you recommend an equivalent etf if we use our US$? I'm also hoping for your thoughts on whether now even the time to take a position in healthcare (given the current confusion down south) or would we be better off just to add this cash to our SPY or XSP. Thanks for your help.

Q: Great article on equal sector weighting in the blog! I wonder if the same theory is applicable in the US stock market as well? If so you definitely have a solid case! Thanks.

Shyam

Q: Greetings Peter and company,

Having been a do it yourself investor for over 50 years and a committed index ETF investor for the last 10, I am very impressed with what you are doing.

Assume that investors put half their money into a US index ETF (say SPY) and the other half into a US money market fund. They re-balance when the ratio changes by 10% in either direction and withdraw 1% quarterly to cover living expenses. Will this no-brainer portfolio grow over the next decade? Will it equal or even outperform the i5 Growth Model Portfolio? (Projected 12% annualized long term return. Since the bottom of 2008, the S&P 500 has had a 14.5% annualized return.)

I would appreciate your views on this. Your responses, as far as I have seen, have been uniformly thoughtful.

Thank you.

Milan

Q: I would like to add VIG and SPY to my RRSP account for both a 5% weight. Would you recommend both for a 5% weight? The only US stock that I own is RSG.

Thanks

Q: Hello.
I need some advice on ETF, one Canadian and one US. I was thinking Spy for US but not sure for Canadian ETF. I own 27 equities 65% CDN & 35% US. I have two accounts that I would like each one to contain an ETF. I would then twice a year take all my dividends and repurchase shares in the same ETF. Seeing that the ETF holds many equities in different sectors to my way of thinking I would not have to think of asset allocation nor the size of my position.? Or should I? Right now all my positions are below 5%. Good Strategy?

Regards.

Q: Hi 5i, I'm moving money from my broker (40+ stocks, 500K) to a few ETFs (Equal Weight) , I'm considering the following ETFs: XIC, IWO, CDZ, SPY, FDN, and FIE; would you please help me choose four or five ETFs from the list, I'm looking for moderate growth, and of course preservation if capital.
Thanks

Q: Gentlemen,
If I want to buy puts to protect $1.5 million in S&P500 Index fund against a 10% decline in the market in the next 6 months how many SPY options do I need and how much do I have to fork out. Does it matter where your broker is? That is do the options listed on TD have the same price as those listed on Scotia.

Let’s say the expiration date is September 15, 2017.

I appreciate it if you detail the math and where you are getting your price from.

Thank you for taking the time to teach me and my fellow 5I members regularly.