Investment Q&A

Q: I am about to triple the size of my investment in the portfolio above and give equal weighting to all. Virtually all of this new money will be in non-registered accounts. In total, this self-directed portfolio will represent 20% of my holdings; I also have 40% in a growth-focused pension fund, and 40% in a mix of ETFs through a robo-advisor.
Do you have any suggested changes to the list of names? I am primarily focused on growth, with a 3-5 year horizon.
Do you recommend a different weighting e.g. heavier on some, lighter on others?
What are your thoughts regarding timing? I am tempted to put all of the new money in now, betting on the sustainability of the recent recovery. But I understand that a phased approach will reduce risk.
Thanks for your help.

Q: Hello,

I am wondering what your thoughts are on the eventual recovery? We won’t know 100% until the virus plays out further but best guess, what do you think a recovery will look like?

My thoughts are that once the virus is under control we may see a quick turnaround in the equities market due to the economies ramping back up, but I am concerned that if this virus continues to provide more questions then answers we may be stuck in a longer downturn.

Keeping the recovery in mind, what are your thoughts on picking away at a Russell 2000 position over the next few weeks/months and what effect will a rising loonie (if Russia and SA work through this spat) have on the dollar hedging. Is it best to buy the Canadian version or the US version with this drop in the loonie and hopefully the eventual recovery in it.

TIA

Q: Happy New year Peter & Ryan!

Very happy with the Growth portfolio performance last year. Quick question on the US ETF exposure. What is the argument for taking the growth 'style' IWO over IWM or the value based IWN?

I know the performance has been better for Growth in the last 10 years, but most of the perhaps 'dated' literature I've read suggests value biased ETF's tend to do better over the long haul and would be curious to get your opinion.
eg) https://tandfonline.com/doi/abs/10.2469/faj.v55.n5.2300)

Thanks!

Q: Would you have a preference between IWM and IJR for small cap exposure? I know IWO has been a favorite but was hoping to capture some growth and value names. Are there any significant fundamental differences between these 2 ETFs. Also, could IJR be added to data analytics pls. I tried adding it but the system did not recognize the ETF. Thanks as always.

Q: Hello 5i team,
I have noticed from looking in the past 3 years that most of my losses have been from small cap stocks (BOS,MCB,RRX,RHT,etc...) and almost all of my gains have been from mid to large caps. I would still like to have a certain percent exposure to small caps without buying individual stocks.

-I was wondering if there are ETFs that track small caps in Canada or the US (or and ETF that tracks both) for the very long term?

-Are there some that would have a decent dividend?

-What is an ideal percent allocation for small caps in a diversified portfolio?

Thank You,
Andrew

Q: Hello is ther a way to invest in the Russell 2000 on the TSX, hedged or unhedged. Thanks, Bill

Q: Friends given the higher price to earnings ratio of the growth stocks in the Russell as held in IWO what is your opinion of IWD the holdings of which have a substantially lower p e ratio from both a safety and a growth perspective (does a lower growth tilt in IWD get offset by these holdings' enhanced safety in your view). Do you think a half position in both makes some sense this late in the cycle or would you stick with the growth provided by IWO. What concerns if any do you have re IWD and do you have a different recommendation for a Russell value etf. Many thanks as always.

Q: Why the small cap sector has been lagging for the last 6 years. Its been underperforming for a long time. Also, why the millennials are not interested in his sector. I just do not understand why the sector is so unloved.

Last question, what is the difference between the US small cap vs Canada small cap.

Thank you in advance for your comments.

Norwood

Q: I’m looking for US small cap exposure and would like to know the differences between IWO and IWM?

Thank you

Q: Is it a good time to invest in the Russell 2000 Symbol IWM