Investment Q&A

Q: I’m looking to replicate IWM and IWO with US growth companies but with a Canadian registered ETF. Any suggestions or is that not a possibility.
Thank you

Q: Hi, US Small caps are finally showing some love, with IWM - Russell 2000, up more than 10%, in past 4 days, after trading sideways for over 2 years. Experts seem to be watching this move with great interest, due its significance, pointing to expanding breadth of the market beyond a handful of Technology mega cap stocks.

My question is about the Small cap sector in TSX, which still seems to be lagging its US peers, except some strength in the materials. Is this normal, historically? What could be the reasons for this divergence and do you see this gap narrowing, in the near term ?

Your perspective would be really helpful as many of us follow your advice and Model Portfolios. Small Caps are your expertise, without doubt and you ( Peter, Ryan and Team ) are regarded as one of the Best Portfolio Managers in US and Canadian stocks.

Thank You

Q: I have some cash to deploy. Do you think yesterday's shift into 'other' stocks is a meaningful moment? I am not looking to sell any of the big US firms (GOOG, NVDA, etc.,) that I hold but wonder if it is an opportune time to put some of this money elsewhere. I am specifically looking at the US market and the move yesterday into RH and the like. Any sectors or specific stock suggestion that might fit this theme would be appreciated. I am thinking of US mostly, but not exclusively. Thank-you.

Q: i would like to increase my US equity exposure which largely consists of VUN and VIG currently. I don't have a specific small cap holding but feel the lagging performance might indicate it is a good time to buy TQSM. Would you advocate buying now or waiting until October?
Thanks.

Q: Could I get a list of the best Small Cap ETF's to buy for Canada, USA & International?

Thank you.

Q: I had high hopes for small caps this year, and it looks like, in the past 30 days, they finally started moving up with IWM at 5% gain and IJR at 6%. Unfortunately, my choice for small caps ETF was CALF and it barely moved up in the past 30 days. What is wrong there? I know that it is actively managed and has less holding in its portfolio... is there some problem with one of the holding? Should I sell it and switch to IJR or IWM? I know that CALF overperformed these two over longer periods of time, but the lack of momentum in the past 30 days when the small caps are up worries me.

Q: I am interested in buying some mid- to small-cap stocks. I am tracking some of the ones you mentioned and am considering them.

For non-experts though, it seems like it would be better to go the ETF route on such companies. Do you agree and can you recommend a couple of options in CAD and USD.

Q: 3 short questions:
(1)XSU:CA is the TSX listed hedged version of IWM:US. Is there an unhedged version of IWM:US on the TSX?
(2) Is there a listing on the TSX for IWN:US; either hedged or unhedged?
(3) XSMC:CA (100% IJR:US) has net assets of only $35M compared to net assets of $544M for XSU:CA (100% IWM). Can I conclude from this that IWM is the more popular US small cap ETF in Canada? 5i research has suggest the IJR holds larger, possibly more stable US small caps compared to IWM.
Thanks!

Q: I want to add a US small cap ETF and am looking at IJR, IWM and IWN. I recognize that all small caps bring higher risk, but can you please rank these 3 ETFs, with the ETF with the best quality stocks first, ie. rank in terms of lowest risk to highest risk. Does IJR generally hold stocks with higher market caps?
Thanks!

Q: Hi, Can you please suggest the best way to invest in Russell2000. both Hedged and not.

Q: Can you recommend any small or medium cap, US dollar denominated ETFs, that don’t have any dividends, phantom dividends, ROC, etc? Only looking for a capital gain/loss.

Q: Indications are that the market breathe is improving and therefore various analysts are recommending the small cap Russel 2000 index. Would you agree and therefore have a suggestion or suggestions of how to invest in this potential opportunity. My other question is would there be a Russell 2000 ETF that you would recommend and a Russell 2000 high growth ETF that you know of?

Thank you

Kim

Q: Happy New Year everyone!

Can you please update us on your outlook for US Small Caps in 2024? Is it better to invest in US or Canada? A few selected stocks or ETF? If ETF what’s best for top return?

Sorry for all the questions please take as many credits as necessary.

Thanks happy investing!

Q: What would be your recommendations for small cap ETF's in Canada and the US?

Q: https://www.rbadvisors.com/insights/4-for-24-year-ahead-outlook/

RB advisers recommend the following 4 themes for 2024 and as a value investor I am looking for ETF recommendations:
(1) US small caps: I am using XSU (100% IWM)
(2) US cyclicals: I found IYC but P/E is 27! Recommendation?
(3) Non-US and emerging markets: I have been using XEF and ZEM. I like XEM (100% EEM) because it posts a P/E each day.
(4) Theme 4 is "Industrials: deglobalization spurs infrastructure". No idea what ETFs to use here.
Thanks for your recommendations/comments!!!

Q: I currently hold SPDR S&P 600 S/C VAL ETF (SLYV). It is currently 2.78% of my portfolio. What is the prospect of SLYV in comparison to IJR, IJT and IWM in 2024. Would you recommend to switch to any other small cap ETF from SLYV?

Q: I am looking for a US small cap ETF that is hedged to the CAD. I have been looking at XSU. Fundata in the globe and mail indicates that it follows the Dow Jones US small cap RT index but has been doing worse the this index. My questions are:
1) Do all small caps follow the Dow Jones US small cap RT index?
2) what is your impression of XSU?
3) is there another US small cap ETF that you would recommend?
thanks

Q: I know you don't believe in timing the market but after the last few years i've ended up with a fair bit of cash on sidelines, yielding around 5%.
Post pivot i'm now thinking about when/how to deploy. Assuming interest rates have peaked and we start seeing cuts in 2024 i expect cash yields to start decreasing as well.
So if you wanted to "broadly" deploy your cash reserves throughout 2024 how would you proceed? Thinking some mix of SPY, RSP, EMV (much smaller allocation) as I have retained most of my high convinction Canadian stocks.
Dollar Cost Average monthly or quarterly
Wait for next broad pullback, we know it's coming just not sure when. Can still get a nice cash yield while waiting.

Q: Given your view on small caps being undervalued what’s your opinion on
iShares MSCI USA Equal Weighted ETF
Symbol EUSA
Is there a better choice?

I asked about wrong ETF, I am interested in small cap equal weight ETF(s)

Q: Dear Peter et al:

This is more of big picture and history based question even though I am old enough know that the past performance doesn't mean anything going forward!

Has there been a period when Small cap growth or value stocks outperformed the Large caps growth/value during deflation/stagflation, recession with with a capital R or a lower case r, or even in a nominal sideways market? Do you see such a scenario evolving in 2024/2025? If so what are the ETFs that one could employ to benefit from such a scenario? Lightening up the large caps and switching to small caps for a year or two , is this a good strategy going forward?
I have included some of the ETFs that you are fond of from your Q&A. However feel free to add or delete!

Many thanks.
Mano