Investment Q&A

Q: Hello Peter and 5i Team! it is an RESP account.

A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.

For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:

ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)

Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.

I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.

So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.

Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?

Thanks for your excellent insights and wisdom!

Q: Looking for investing suggestions for someone in there mid twenties that has a very good job and are just starting out investing, I was thinking buying a few ETFs that auto buy every paycheck through a big bank brokerage arm kind of set it and forget till they figure out if they want to learn more about investing. Also what would be a good basic investing book that teaches how RRSPs and TFSAs work? Is Gordon Pape still around, lol.

Q: I currently own the above ETFs in my unregistered account and they have performed well. I have funds to be invested in my LIF account and am considering purchasing one or more ETFs. How would you rank these ETFs for a LIF account? Would you suggest equal contributions to these ETFs? Are there other ETFs that you would recommend for a LIF account? Thank you.

Q: Good Morning. I have US dollars that I want to invest for my recently born grandchildren so there is a 15-20 year timeframe. Please advise 5 ideas, US $ stocks or etfs, and rank in order from low risk to high. I will likely purchase a mix and compare how they perform over time. Thank you.

Q: Could you suggest some ETFs in a non registered account ($100k) and in TFSA ($60k) for a retired person who would not need those funds for the next 10 years?

Q: Hello Team,
Which of thes two ETFs do you prefer and why. My though is that topt is not diverse enough. Also, what percentage in a portfolio would you be comfortable allocating to each?
Another question! Bkng has been off some lately. Do you consider it to be basing or is it a larger issue in your opinion?
Thank You,
Barry

Q: On November 14 , a question asked by Trevor 5i said that IUSG could be a buy and forget ETF .Is this etf also in Canadian currency and if not what would you recommend as alternative?
Thank you

Q: Good day,

I am setting up TFSA and FHSA accounts for an 18-year-old with a 15-25 year investment horizon. The goal is to contribute the maximum annual limit each year, which is $7,000 for the TFSA and $8,000 for the FHSA in 2024, and continuing at those levels in subsequent years. From an aggressive growth perspective, without restricting the investment options to Canadian markets, what would you recommend? Also, do you recommend making an lumpsum investment or spread the purchases over time? If so, how do you suggest I spread the purchases.

Thank you

Q: What are your thoughts on the philosophy of a 3 etf portfolio (growth, dividend and foundational) from a retires point of that has the basic expenses covered by pension income. And some etf's you would consider candidates if you were to agree with this philosophy?
As always thanks for your point of view.

Brian

Q: I am down 1/3 in ATS in a TFSA and want to move into something with some momentum.
Please provide a handful of suggestions for a growth name I can buy and forget in the short term.
Any sector. Canadian and US, but US preferred. I may also consider a growth-oriented ETF that might prove low-maintenance for the next 10 years.
Thank you in advance, your input is always appreciated and certainly helpful.

Q: Good morning- for a thirty year old looking to build a US ETF portfolio, which ones would you suggest. He already has a full position in VOO and a smaller one in IWO. Also, can you suggest a couple of international ETF's, say for all Asia ( with and without China) and for Europe, to round out a preponderance of US ETF's.

Thanks

Q: On September 24 you answered a questions in which the person asked about a RRSP but in your answer you mentioned RESP so not sure if the answer is for a RRSP or RESP but would IWO or IUSG be better for a RESP. Money is not needed for 10 years.

Thanks

Q: I am trying to decide which ETF to purchase for an RRSP. VFV and VIG have been performing well. About a 3 year hold. Any other suggestions?
T Steve

Q: Hi there! Long time subscriber here, and love your platform!

I'm currently developing a plan to align with my goal of purchasing my first home in about eight years, alongside a long-term investment strategy. I’m seeking your insight on how a person in this situation could responsibly proceed (I understand that nothing here is considered actionable financial advice).

I'm currently contributing $400 biweekly to my FHSA, aiming to reach the $16,000 contribution limit this year. I also have approximately $5,000 in my TFSA, with all funds currently held in cash in both accounts.

For the FHSA, I’m considering investing in a high-growth American ETF, such as VFV, IUSG, or IWO, to balance growth and risk over the eight-year horizon. However, I would only like to invest in CAD (I'm not sure which ones only allow USD). Could you provide guidance on which ETF might be the most suitable for this approach, and why? If you have other recommendations, I would appreciate your insights.

For my TFSA, I'm interested in an aggressive investment strategy, potentially utilizing one of your growth or balanced portfolios. Given my exposure to cryptocurrency, I aim to diversify into equities for greater stability while still pursuing substantial growth over the next 45 years. I'm comfortable with higher volatility during this period. With $5,000 currently in my TFSA, would you recommend specific securities or a strategy that balances high growth with diversification?

While I’d prefer to follow your portfolio exactly, my current funds are only 5% of the $100,000 needed to follow it exactly. As an alternative, I'm considering selecting stocks from your portfolio and eventually investing evenly across the entire growth portfolio when my TFSA grows to an appropriate amount. Given my current $5,000 and my $100 bi-weekly contributions, which companies would you recommend selecting from within those two portfolios? Should I allocate $1,000 each to five different stocks or focus on three stocks with an initial $1,600 investment in each (the more I diversify on such a small number the less the potential return)? Your advice on which equities to select for both approaches and your opinion on the most responsible approach would be greatly appreciated.

Thank you in advance! :)

Q: Hi Everyone at 5i!
I have a 27 year old nephew who would like to open a TFSA. He is putting $5000 in to start which he will gradually add to. He is looking for a growth ETF concentrated on the US market. Would VFV suit his needs, or should he consider something else??

Cheers,

Tamara

Q: My grandson's TFSA has done very well, in large part due to excellent advice/info from 5i Research. He now needs to raise some cash to make a down-payment. Of the following stocks (ordered by size, i.e. NVDA is his biggest holding and LMN is smallest), which would you be most inclined to sell, given he is in his mid-20s and has a growth focus? Top 5-7 sell candidates would be sufficient.
Thanks again for the excellent service!

XQQ:CA
IUSG:US
VFV:CA

NVDA
GSY
CSU
TOI
TECK.B
SHOP
BYD
TOU
KXS
ATZ
HPS.A
ISRG:US
REAL
BEP.UN
BEPC
LMN

Q: Hi,

I'm looking for an average beta US ETF with some growth, to hold forever.
VOO has a beta 1. Over five years its done 17.86 % annually
IUSG has a beta 1.1 Over five years, its returned 23.4% annually
VGT .has a beta of .9 over five years, 31.46% annually.
So both IUSG and VGT have lower beta and higher returns than VOO?? And both VGT and IUSG have done much better in the recent tech selloff? Seems hard to believe? While past performance is no guarantee, the numbers suggest I should choose VGT. What do you think?

Q: Hi everyone and thank you for your good service.

I own both stocks. 200 of IUSG and now with the split of NVDA, I own 52 shares.

Both are up 65 % in my portfolio.

Should I sell 100 shares of IUSG to buy 48 shares of NVDA? I had a good experience with stock splitting in the pass with Tesla and I was wondering if it worth the trade.

What do you think?

Martin

Q: I am hoping you would be able to make some suggestions for my Grandsons RESP. $20,000 dollars. The boys are 1 and 4 years old.
Thank you.

Q: Good evening, would your team be able to recommend a growth oriented ETF for purchase in TFSA, either Canadian focused or internationally focused?

Cheers