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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: I went to a large cash position in my rrsp a few weeks ago, and now I’m interested in putting part of my retirement portfolio (I retired Jan 1) into high interest etfs that I can buy and forget while they generate income via yield. I’ve added a few I’ve been looking at to the ticker box. I’m looking at bond etf’s but I don’t fully understand when to get in and out of bonds - can an investor buy and forget? I’m also looking at covered call leveraged etf’s based on the S&P and Nasdaq indexes. I realize an investor has to have a strong stomach for the volatility associated with high interest leveraged etfs, but for purely an income vehicle, can you provide a few names based on the above criteria? Assuming about 10-15% positions, what percentage of a retirement portfolio would you invest in high interest etf’s, Hoping to generate 8-10% annually from the portfolio. The remainder of my portfolio is mid cap large cap US and Canadian equities. The usual suspects.
Read Answer Asked by Kim on April 16, 2025
Q: Hi there. Looking for an update on POWL. I note that you seemed to have a favourable opinion in early February and the PE has come down since then given the market. What further downside might you expect or do you think it has found a floor? What does it need as a catalyst to move back up? Finally, POWL or HPS.A or 1/2 of each?
Read Answer Asked by Tim on April 15, 2025
Q: Good afternoon 5i
I just had a meeting with the wealth division of my bank. Normally, I don’t pay much attention to sales pitches. But, this time I went to see about their resources for estate planning. Estate planning was in the background. But, portfolio management was in the foreground. The portfolio manager explained his system to me, which he called a momentum model. That is , by looking at the moving averages of both the indexes and individual stocks, they see when they should get out and when they should get back in again. He says it is not market timing because it is fact based. It looks like they have made some good calls recently, anyway.

I am wondering what 5i people think of this. I forgot to mention that the fee is about 1 percent for one million and goes down with more money added. I think it is that when, say the 50 day moving average, for instance, falls below the 25 day moving average it is time to sell. I am sure they have other criteria, as well. I am probably simplifying it.

Is this a reasonable approach? Would it be very difficult for me to set up a system to survey the moving averages of both stocks and indices?

Thanks for the great service
Read Answer Asked by joseph on April 15, 2025
Q: Can I get recommendations for the following:


Best Europe ETF (cad listed)

Best Emerging Market ETF (cad listed)

Just vanilla etfs, though would like a dividend
Read Answer Asked by Patrick on April 15, 2025
Q: HI Peter,
Would you continue to dollar cost average into Dollarama at $164+? Or do you think it's fully valued? The investing site I use for company historical data shows the current PE as 38.3 (high) and in between the 38.3 and 20.9 for the last 10 years. The forward PE for the next 2 years as 36.3 and 32.5. We've been slowly DCAing and it's worked out OK thus far. Thanks for stellar advice during these tumultuous times.
Read Answer Asked by Dennis on April 15, 2025
Q: What is your current opinion on TXN? Seems to be struggling.
Read Answer Asked by David on April 15, 2025
Q: Hello, I have some US cash in my US TFSA, can you suggest a good place to park cash for the short term (1-2 year) needs given the current environment with tariffs etc ???
Read Answer Asked by Robbie on April 15, 2025
Q: Hello I am new to 5i (one week!) and am really enjoying the Q&A as a learning opportunity. I use one of the banks to invest our personal retirement funds (ie we don't have company pensions) and am keen to learn to self invest.

As a 60 yr old I have recently started an incorporated and am wanting to invest my incorp dividends appropriately. I have invested about 20% of my available funding and have a high cash position at present.

The information I have gleaned online is that a an incorporation should invest accordingly:

Corporation:

1. Corporate Class Mutual Funds/ETFs
2. Broad market ETFs (stock and bond ETFs) *capital gains only taxed when sold, reducing annual tax drag. Be mindful of whether dividends or capital gains.
3. Canadian dividend stocks (eligible for dividend refund mechanism)
4. Growth stocks (Capital gains taxed at 50% when you sell) but no Dividend reduction management benefits compared to Canadian dividend stocks.)
5. Investment Real Estate (Rental income is considered passive and taxed at 50%. Can reduce small business tax rate eligibility if passive income exceeds $50K)

The online information also indicates that incorporations should not invest in:

1, High Interest Savings accounts and GICs
2. Foreign Dividend Stocks and REITS
3. Actively managed mutual funds

As well - I have completed your portfolio questionnaire which tells me that I am an Alpha Balanced Investor. This happens to align with the personal portfolio that I hold for our retirement which is invested 70% in equities.

Based on the guidance you have been providing in the past week, I feel it is time to start $ cost averaging for my incorporation funding. I believe that my husband and I can live off of our personal portfolio and do not need to pull $ out of the incorporated for 3-10 years.

Given that my current interest is to starting investing my incorporated revenues, can you please recommend the selections?

I understand that you cannot provide personal recommendations. However, I suspect there may be additional members who have set up their own businesses recently and can benefit from a tutorial and investment recommendations. Thank you !
Read Answer Asked by Kathryn on April 15, 2025
Q: Does the combination of its recent stock price declines and today's apparent negative reaction to CPX's acquisiton provide an attractive entry point?

If not at the current price, is there a price you would consider attractive or would you prefer FTS, other utilities or an ETF?

Thanks
Read Answer Asked by Ian on April 15, 2025
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