Investment Q&A

Q: Looking at the REIT space given what seems to be a general decline in share prices of most real estate ETF's and general real estate related shares over the last few years. I already own DIR.UN and now I'm looking to add a REIT to the mix that offers at least a 6% dividend. I know you also like GRT.UN and CAR.UN. What are your thoughts on MREL and HGR as ETF options? Can you compare the two for me? Also would you suggest an alternate ETF to those tow ... or even a single REIT stock that you think can do well over the next 2-3 years and offer 5% dividend and capital protection.

Q: One year ago I decided to choose 6 reits ( avoiding shopping centers and offices),+ one professionaly managed reit etf (mentionned above) .The final result is that the managed ETF did loose 15% +,and the 6 "amateur chosen" ETF gained more than 15% ,the choice was based on the "basic observation"of a slowing economy and specific individual REIT performances,I did then favour industrial, data centers and some real estate REITs.Is it normal that a professionaly managed ETF could underperform so much versus personal choices and why? I wonder if I should trust actively managed products on the future,considering the fees etc..,instead of just choosing stocks or ETFs in safe sectors according to observable macro-economic tendancies.

Q: MREL is actively managed by "experts in real estate",but has an extremely disapointing performance in my view,I just sold most of my shares in order to reinvest in a new ETF.Is it a good time to invest in a REIT ETF , or do you suggest another sector (materials,finance,etc..) considering the macroeconomics and present global context?

Q: Hi 5i
I'm doing some portfolio clean up based on the assumption that the next 12 to 18 months are going to bring economic doldrums as the economy reacts to interest rate increases which, I think, take a while to filter down to where they effect corporate profits generally and, possibly, to where manufacturing and construction falls off enough to directly affect these names.
I'm thinking about selling DXT, CSW, WJX, LIF, and MREL (all at modest losses but in a registered account so no tax benefit) on the premise that they will not do so well over the next year and will take quite some time thereafter to recover such that there is a significant opportunity cost to holding them. (I was happy enough to hold them for their respective dividends/growth in the before times, but not so much now when growth seems unlikely.)
Could you give me your thoughts on my thesis in general and on how I've applied it to these names - is it sensible to sell them now at quite small losses given what is likely coming for them over the next year or so, when compared to what might be made of the money they are presently tying up if I handle it right.
Thanks!
Peter

Q: Hi 5i,
I wonder if you could give us some guidance. My wife holds the above in her RSP, with all being more or less a full position except for ENB at 2X, BCE, CM, and SU at 1.5X each and CHR and DXT at .5X each.
She has until the end of 2024 to convert to a RRIF and currently has $40K to contribute to her RSP and has the room for that contribution.
She would like to invest in some different names, or divest/reinvest in those she has, with an eye to maximizing value before the conversion to a RRIF and to continue thereafter. She's not asking for much - just safety, capital appreciation and income ...!
Based on this info, can you offer any thoughts on new names to add or which of the existing to either pull back on, or dump entirely if that extreme measure seems warranted?
Thank you 5i, and we wish you all an excellent holiday season.
Peter

Q: I have held Middlefield's IDR for a short time in a RIF and am down 6.05%. Found it has been merged with 2 other ETFs or funds. I am feeling very uncomfortable with it. Can you comment what has happened and if MREL is worth holding? Losses do not bother me much & I can easily move on.
Thank You