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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: Re todays acquisition announcement I assume this should prove to be a positive move for the company, and I assume the share issue is needed to complete the takeover. However, I am puzzled and do not understand the forward purchase arrangements that appear to accompany the deal. Can you explain the latter please and comment on their acquisition. Thank you.
Read Answer Asked by Mike on October 15, 2020
Q: I am looking to deploy some U.S. dollars into a basket
of U.S. smaller cap stocks with growth potential as that
appears to be what you recommend in Canadian holdings.
That strategy appears productive. Would you be willing to
identify candidates for such a basket?
Thank you, Calvin
Read Answer Asked by Calvin on October 15, 2020
Q: Hi 5iTeam,
TXF currently pays around 8.5% in dividend. From what I can gather, the underlying stocks in this etf pays minimal dividend and some don't pay a dividend at all. So I just wondering how TXF manage to pay such a high dividend. Your thoughts on this would be appreciated.
Also I would like to know the average yield of this etf going back the last 10 years.
Thanks again for your great work...
Read Answer Asked by Harry on October 15, 2020
Q: In general, what is your advice on covered calls in this market? If favourable, for technology QQQX and BST are on my watch list. There are many others. What do you advice as to most preferred ETF, if any?
As well, there are more complicated ETFs which factor in covered calls - RPAR, SWAN, and NTSK, for example. What is your view of such financial products?
Read Answer Asked by sam on October 15, 2020
Q: For international exposure in taxable account, what is your thought on:

EUFN: playing on european banks. pretty depressed but room to run with rebound?
EWT: a play on taiwan rebound?
EEM: emergering markets.

any other thoughts on CDN $ equivalents?

Should be aggressive in taking position now or buy in over time?

Read Answer Asked by Chris on October 15, 2020
Q: Hello, I am generally not good at buying commodity stocks..usually end up buying high and selling low..but kl looks attractive with 850 million cash and a dividend increase, no debt and high gold prices.Is this a good time to start a position?
I have no other commodity stock except small positions in ccl.b and wpk. Thanks.

Shyam
Read Answer Asked by Shyam on October 15, 2020
Q: Hello 5i Team,

I am holding fairly large position for a while on TOY and down 20%, they will have thier ER report upcoming soon, given TOY ER history with most of the time disappointments with excuses, except that last ER had some encouragement from mgmt that things were improving both on top line and DC operation side. Could you highlight your thoughts going into ER, street seems to be cautious given the selling last few days.
Read Answer Asked by Francis on October 15, 2020
Q: Just read your email update on preparing for potential increased volatility. One of the measures was to focus on lower beta stocks, which I do anyway. I went though all of my holdings (easy because beta is one of the metrics I track).

I was surprised with one of my holdings = CDZ, the Canadian Dividend Aristocrats ETF, whose beta is 1.1. I would have thought that with the very nature of this ETF that it would have a much lower beta. Can you explain why the beta is as high as it is?

Thanks for your help...Steve
Read Answer Asked by Stephen on October 15, 2020
Q: I am trying to build a TFSA asset mix and have looked at the top companies in a number of ETFs. I already have investments in Oil & Gas. I would appreciate any suggestions for companies that I can add that would be stable and not high risk as I am 70. I have been mostly looking at dividends and growth companies of Canadian companies due to the tax implications of a TFSA. Thank you.
Read Answer Asked by Nancy on October 15, 2020
Q: What are your thoughts on ONLN, an ETF for online retailers?

Thanks!
Read Answer Asked by TK on October 14, 2020
Q: What are the best bond etfs to own in Canada and US in your opinion? Please provide several options in both countries. Thank You.
Read Answer Asked by Mirjana on October 14, 2020