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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi,

In a previous response you indicated that you would use ETF's to complete the fixed income portion of a portfolio. Could you explain your rationale for this as I have been under the impression that any ETF, even a bond type, carries substantially more risk that purchasing a bond directly. I have a couple of short term bond ETF's but have more money allocated directly to bonds/GIC's in my portfolio.

Thank you.
Read Answer Asked by Sue on July 20, 2021
Q: POAHY:US is the symbol in NY for Porsche Auto in Germany (it’s an unsponsored ADR and is not in your data base) . This business is held in the EWG (Germany) ETF. In addition to holding a modest amount in EWG, I also have a tiny position in POAHY. I thought of topping up after reading some near-rave reviews in Barrons on July 6, 2021. Barrons also listed it as a PICK in its "Picks and Pans" on 6 July. I would appreciate very much if you would please care to comment on Porsche Auto Company.

POAHY pays a healthy dividend (4.85%). More troubling than the high dividend is that it does appear to be seriously under-valued. Is it a value trap, you think? And do UNSPONSORED ADRs carry more risk? Thank you.
Read Answer Asked by Adam on July 19, 2021
Q: Is it a red flag when a company has a consistently much higher depreciation and amortization costs on the cash flow statement than it has CapEx spending? I have been researching a small UK company involved in online fraud detection. It is in a good space but this is one thing which worries me, together with rather low cash return on invested capital. Any comments appreciated.
Read Answer Asked by Andrew on July 12, 2021
Q: I need to increase my material sector weighting. So what Canadian & US growth and value oriented material sector stocks would i5Reseach recommend. Thanks … Cal
Read Answer Asked by cal on June 23, 2021
Q: What are you thoughts on using broad based ETFs as "cash" in a portfolio? It seems like that's how the ARKK funds operate, except they are using stocks (I think GOOG and AMZN). To give you some context, my portfolio is mainly VGRO/VEQT, with some 5i stock suggestions for growth mixed in. I dollar cost average into the ETFs every two weeks but I'm wondering how I should approach adding to some of my stock positions and/or start a new position. Thanks as always.
Marc
Read Answer Asked by Marc on June 11, 2021
Q: I have to laugh about inflation/CPI gaining ground versus same time last year? Really? With lock downs and pent up demand who would expect anything else. I read a great article from the head of the Fisher group in the USA. To summarize: this is transitory for the two reasons I mention and others. Be interested in 5i comments. Oh, the huge debt precludes any significant move up for interest rates. Would be happy to send it to you - very bright guy.
Read Answer Asked by James on June 11, 2021
Q: Answer to Gary (June 8) about budget records. We use Quicken Home and Business. It keeps track of investments (records security percentages and updates easily) and day to day banking. It is a lot of work to initially input information if a large number of securities and accounts so we will likely stick with it. No longer use Mint as we had to go to card websites to check balances and activity anyway.
Read Answer Asked by J on June 08, 2021