Investment Q&A

Q: My 28yr old son is looking to build a diversified ETF portfolio with 100% equity exposure with a bent towards growth given his long investment horizon.  These will be spread across his TFSA, RRSP and Non-Registered accounts.  Since he will be contributing smaller amounts on a regular basis a zero commission platform such as Wealthsimple is appealing.  However, they charge 1.5% fee for all currency conversions making it only practical to hold Canadian traded ETF's.  As a result he is considering the following:

ZSP 40%
XIC 25%
TEC 20%
VIU 10%
VEE 5%

ZSP + XIC + VIU + VEE together create a mix of ETFs that are globally diversified and very similar to the structure of XEQT/VEQT.  Versus XEQT/VEQT This portfolio has a slightly lower weighted-average MER at 0.16% and also has 20% in TEC (in place of something like QQQ) which is more growth oriented. Here are how the sectors would be weighted with this portfolio:

Info 31%
Financial 15%
Cons Disc 11%
Industrial 9%
Healthcare 8%
Communica 7%
Cons Staples 5%
Energy 5%
Materials 4%
Utilities 2%
Real Estate 2%

These would be the top 10 holdings with this portfolio and these top 10 would account for 24% of holdings in this portfolio:

AAPL5.1% MSFT4.9% AMZN3.2% GOOGL1.8% FB1.7% GOOG1.7% TSLA1.5% SHOP1.4% RY1.2% NVDA1.2%

If this was you at 28, can you please comment on
- are the 5 ETFs he has chosen ones you would go with given his objectives, if not, what changes/substitutes would you make along with recommended % allocations?
- is his % allocation across the 5 appropriate or would you make changes? For example I thought there might be too much overlap between ZSP and TEC as they are both highly invested in AAPL, MSFT, AMZ and FB and he is looking at 60% going into these 2 ETF's. That may well be what you want at his age but  I wonder if he is better served by reducing ZSP to 25% -30% and TEC to 15% and add  the remaining 15-20% to CDZ or VGG (or something else?)
- given he will be making contributions to his TFSA, RRSP and Non-registered, which ETF would be best in which account and why? 

Thanks for all your help, 
Scott

Q: Good morning team!

Would AAPL's new privacy policy affect ROKU as it has with SNAP? If so, how exactly would it be affected? If not, do you think this is an opportunity to buy/add?

Thank you!

Q: When I try to buy Google, it gives me a option to either buy GGOG.C
or GOOG in canadian as ALPHABET INC.CDR hedged.

Which is better for a cash account.

Also, whenever I buy any US stock, as soon as it shows up in my TD Waterhouse account, it is a couple of hundred down ( even if the stock price is the same ), why is that so.

Q: Hi 5i - From the following 9 US stocks - which 3 would you have the highest conviction for (with a short why for each): AFRM, ABCL, GOOG, AAPL, COST, CRWD, FLGT, NVDA, NKE

Q: Hi There,

Can you please explain the emergence of the Canadian Depositary Receipts (CDRs), how they work, under what circumstances one should buy them ie. what kind of investor how they trade, and your overall opinion on them?

Thank you!

Q: What technology stocks would you recommend investing in right now, US and Canada?

Q: What do you think of canadian and us dollar. Would i be better off to buy goog on tsx or nasdex

Q: Thanks to rising oil prices, I have cashed out of an oil stock at the original price paid 5 years ago. I feel lucky to have done so as this is a sector I wish to avoid. This makes my TFSA ( small part of total portfolios and is my fun money ) 50 % cash.
Knowing that momentum is important to you, what are your thoughts on the momentum of the S&P 500 ? The growthy small caps seem to be out of favour at the moment. Do I wait until market sentiment has changed back or look at other larger growth stocks ? Your 3 suggestions for a risk oriented TFSA is appreciated. Derek

Q: Which of these two stocks is preferable to buy?
Thanks, Rose

Q: With the recent recent drop in the market, can you please provide 5 US and 5 Canadian stocks which would be good buys at today’s prices. For holding 3-5 years.

Q: HELLO 5i TEAM, I'm looking to add a couple of tech stocks after this down draw is past. Please advise the "NET DEBT" for each of the above companies, and which 5i would recommend a buy in a month or so.

Q: Do you think high inflation or even stagflation will come to fruition in the near future? If yes, is it best to save and build up your cash position or continue to invest in great companies in both scenarios?
Which stocks/sectors would be best to invest in a high inflation or stagflation environment?
Thanks

Q: Markets are going through a correction the past couple of weeks, particularly today (Tuesday). Tech is being hit hard. Can we have your assessment of the situation and what you see unfolding in the next few months? Do you view this as a buying opportunity or is it too early for this? Can you provide some names that have sold off too much in your opinion and might lead the rebound, when it happens.

Q: Hi 5i Team,

I have approx. $100k USD of capital to deploy to a portfolio with a 3 to 5 year hold outlook with a focus on High Growth. Comfortable with higher risk.

I’d like to have meaningful position sizing so want to limit the # of stocks to 4.

The pool I am considering is COIN, SI, ROKU, NVDA, SHOP, AFRM, SQ, CRWD, and ZM.

My inclination so far is to go:
45% - NVDA – This just seemed like a must own to me. Semiconductor exposure in a supply-short environment along with the multitude of other things they support – AI, Gaming, Genomic sequencing etc. Hard to see how they won’t be over a trillion dollar market cap especially if the ARM acquisition is go (Risk factor).

25% - AFRM – BNPL adoption in North America is far behind that of Europe/APAC and I like AFRMs positioning as a consumer first proposition with transparency and AI with strong partnerships with AMZN, AAPL Canada and SHOP.

20% - COIN – Continued adoption of Crypto. Would use this as a proxy instead of going with ETFs/Fund exposure

15% - CRWD (Valuation risk so smallest position, but cybersecurity industry hasn’t matured yet with lots of runway remaining for a stock with strong MOAT)

I decided against SHOP due to how much growth they've already seen and potential impact on consumer spend from an inflationary environment.

Could you comment your thoughts / advice on the above? Any stocks that you would switch out or position sizing you’d recommend to reconsider?

Q: Hi Peter, Ryan and team.

I was wondering if you could give a US list for the question asked back on September 17, "Would you have a short list of 5 companies that should be on a watchlist for when (if) a 10% downturn comes before Christmas ?"

Thanks.

Q: Any recommendations for US or international (listed on US stock exchange) stocks for RRSP and TFSA accounts to help overall diversification with non-registered accounts that are overweight Canada geographically and within that financial, energy, and utilities overweight. Thanks.

Q: Balanced Equity Portfolio (Cdn & US Stocks): If 5i were just starting business today what 20 stocks would make up the portfolio?

Q: Hi 5iresearch team

On a scale of 1 to 10, 10 being certainly, how likely do you think a stagflation scenario will happen in the US economy?

Second question, what types of investment will likely win in stagflation (gold, certain stocks, bonds, real estate, cash … etc)?

Third question: can you recommend 3 Cdn and 3 US stocks that you think will do well in stagflation? Can you please rank them if possible?

Thank you for your great service, I really enjoy reading your answers everyday in the Q&A section.

Q: I currently own these companies. I have some US cash to add to my TFSA and would like your recommendation on 5 additional best of breed companies. Or would you increase number of shares in the companies I already own.

Thanks, Donna

Q: If you had to pick only ten stocks or ETF's to hold forever which would they be?
Thanks