Investment Q&A

Q: Hi 5i - I have a portfolio weighting question. Assuming I have a portfolio with 60% Canadian, 30% US and 10% Other International, would the 60% Canadian portion be considered on its own for individual stock weightings? For example, if I consider a 5% position in BNS a full position, should I have 5% of my total overall portfolio in BNS or 5% of the 60% Canadian portfolio?

In general, what would you suggest?

Thanks, Neil

Q: The TSX appears to be shrugging off the US/Canada trade agreement without much interest, once again by far the worst performing north American index. Are you surprised at the lack of response? Would you expect much going forward or should money be moved into US markets?

Q: On Sept. 24 I asked where I could find forward PE for the TSX, and you kindly supplied a link (thank you) but I don't see forward PE there, trailing yes but not forward. Nor anywhere else I've tried. Any ideas?

Q: A U.S. based financial advisor who specializes in ETF’s and is bearish on the market states in his weekly newsletter that a retired individual should hold an equivalent percentage of bonds as their age in their portfolio:

What would be your thoughts on this degree of allocation and what would you suggest?

Would your allocation change if the individual has already accumulated sufficient capital to take them to the end and still leave a nice inheritance?

If you do think that a retiree should have a percentage of bonds in their portfolio can you provide some ETF’s?

Thank you for considering my questions.

Q: I recall reading in Q&A earlier in the year that in determining percentage of sector allocation in our portfolio we use the stocks only total sum and not include the sum of our ETF's. Did I understand that correctly? If so, then to understand our sector allocation of our ETFs do we take the average of the ETFs' specific given sector allocation(i.e. for Financials in VFV,SPY and VIG approx. 14.30%) ? So if we have Financials sector allocations of 15% in Stocks and 14.30% in ETF do we view it as approx. 15% Financials in our total portfolio or is is understood to be the sum of the two(29%)? In addition to our personal investment accounts we have an investment account within our small family business.Should I be adding the sum of this investment account to our personal accounts for tracking sector allocation? Thank you for your assistance with clarifying sector allocation .

Q: TFSA and US listed stocks. Recently you recommended SPY a NYSE stock and various other US listed stocks for a TFSA. Is it not true that US listed stocks are not tax exempt? That there is a withholding tax on dividends? An example would be HOT.UN . XSP is in CDN funds and therefore not subject to tax in a TFSA?
Thanks for clarification if I am wrong.

Q: Hi Peter/Ryan,

I would like to get your opinion on TDF(Templeton Dragon Fund) a closed end fund yielding 8.4%. Bill Gates recently disclosed a 5% position in TDF. About 80% of TDF investments are in Chinese FANG stocks which are at a good valuation currently. What are your thoughts about TDF and are there any disadvantages of investing in a CEF. There could be further correction in chinese stock markets because of the trade war. Is this the right time to invest in emerging/chinese markets and which alternate ETF would you recommend.

Appreciate your expertise
Thanks
Ninad

Q: After the 2008 recession, which stocks/commodities made the quickest comeback. Also, which market US or Canada?

Q: can you help me understand why a stock earning 6% dividend and growing the dividend annually by 4% is not as good as a stock earning 4% and growing the dividend annually by 6%

Q: Hi Guys,

I mentioned to a friend of mine about your great service as he complained how his mutual funds have gone nowhere in the last 5 years with all the fees. He has signed up for your service and was wondering how would be the best way to utilize your service, he is 50 year old business owner and busy being a soccer Dad, should he divide his money in your 3 portfolios or simply look to go for a 60/40 split with 60 in your balanced portfolio and 40 in bonds. He did mention he had an interest in ETF, any thoughts how he can put his money to work over the next year. Thanks Anthony

Q: I have been a long term Investor of the Mkt . I have my own rules which work o.k for
ME . I have been approached by a neighbour`s & friend son asking for advice re the Market .
I don't want to give or show him ALL of my bad habits. I wonder if you could suggest a couple of books to introduce this lad to the Mkt.He is about 22 & has some university under his belt. I always appreciate your wise advice
Thanks ----- don

Q: Hi 5i
I know you typically add ones equity ETF`s plus all individual stocks to determine the total equity exposure in ones portfolio , but I'm not sure what the best method is to determine max exposure to any one stock when ETF`s make up a good chunk of the portfolio . There are some ETF`s that you would want a greater percentage then maybe the 5% max you might want for most of the individual stocks and some you might not want more than the 5%. . So if i have determined that i don't want more than a 5% waiting in any one equity do i add up all ETF`s and individual stocks and calculate the 5% or am i best to calculate the 5% number just on individual stocks since ETF`s are inheritantly diversified anyways ? Thanks in advance for your clarification .
Bill C

Q: I sold DOL today at a loss today as it missed estimates 2Q in a row plus guide lower on SSS.To me this is a receipe for short term weakness until there is a catalyst .I am looking to replace it with some of the following(likely 2 or3) & any of your suggestions,BNS,BCE CLS,NFI,TOY,VET,PBH ATA TFII SJ,BB. Please list your order of preference. Thanks for u usual great services & views

Q: I think that 5I offers incredible value for the money. But, what other services would you recommend for a fairly active investor. What do you think of services/newsletters like
insider trading, Contra the Herd, President's club, Bloomberg news. My budget would like be no more than $2500/year. Thanks kindly.

Q: Trudeau's Canada is dead for business. No Pipelines, he wants to wean off Tar Sands, farmers can't get grain to markets Railways too busy hauling Oil, major international Oil Companies have left Canada, Why would any International Company want to expand into Canada ?, Uncertainty towards NAFTA is overhang to stock markets. Do we have to wait for Conservatives to come to power for our Stock Markets to improve. I guess the alternative is to be fully invested in the USA , Frustrated Investor RAK.

Q: A portion of my portfolio is cash and invested in an investment account with my discount brokerage. Current rate is just shy of 1.00%. Seems too low when I compare to various 1 year GIC now at 2.00% or more.

Would you know a better alternative within a discount brokerage account. I would appreciate members comments as well. I will add the topic in the forum. Thank you.

Q: Good morning Team

I am about to rebalance my Balanced PF. Companies like GOOG have now been classified as Consumer Cyclical and Tech. Where can I find a list of sorts of other companies which have been re classified. ?? Does 5i have such a list?

Much thanks
Elann

Q: Dear 5i
I know this question may not be in your area of expertise but I'm sure you have a good idea of the answer .
I have an RRSP , my wife has an RRSP , and my wife has a spousal RRSP .
She has an income (employment ) as do i so you might argue that both of us have contributed to her spousal RRSP .
The question is , at the time of retirement when we are drawing income , who claims the income coming out of the spousal RRSP .
Knowing the answer to this determines at least to some degree what investments are in what account . The aim of course is for each of us to draw out the same income so as to be tax efficient .
Appreciate your input .
Thanks once again .
Bill C

Q: Helio 5i
My wife and i are setting up our RRSP`s largely in fixed income , ETF`s and large dividend paying stocks in preparation for retirement so as to have steady income when the time comes .Assume that all RRSP accts are balanced appropriately.
We also have a fairly large sum of money in both of our TFSA accts (maxed out) and in a margin acct.
The question is , if we are set up appropriately in our RRSP`s in terms of balanced portfolios , how should we approach the monies in the TFSA`s and the margin acct ? Should be mainly go with higher quality equity stocks or should we balance those two accts similar the the RRSP accts ie stocks, fixed income etc ? ( note the margin acct is not borrowed money). Are ETF`s appropriate for TFSA accts ?
Thanks
Bill C

Q: Dear 5i;
I am planning on retiring within a year and would appreciate your opinion on my proposed portfolio.
1-40% bond etf`s -CLF,CBO,CPD and XHY.
2-15% in large cap high dividend paying stocks.
3-25% in combination of US and CD stocks.
4-15% inUS ETF`s VFV , VGG ,and ZWH.
5-5% in Asian and European ETF`s -ZDM , VEE .
Do you see anything glaringly wrong with this setup and are there any percentage changes you would recommend ?
I realize a portfolio is a very personal thing but would appreciate your input .Income is important but I'm having a tough time deciding between percentages of fixed income assets versus equity . I`d say that I'm a moderately conservative investor so not opposed to some degree of risk .
Thanks so much for what you folks do . You provide very valuable information to investors like myself and and I'm sure are highly depended upon by many similar to myself . Please deduct several points for this .
Thank you
Bill C