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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: Came across ZFC - BMO SIA Focused Canadian Equity Fund ETF Series in doing ETF research. Holdings are 100% Canadian ... Top 10 holdings account for about 67% of the fund (AC, QBR.B, CAE, WCN, BAD, GIB.A, CSU, CAR.UN, EFN). MER is on the high side .75 What is the 5i opinion on this for a more aggressive ETF for Canadian holdings ? Thanks as always for your advice, Steve.
Read Answer Asked by STEVEN on July 29, 2019
Q: Hi Everyone at 5i! I am in the process of reducing the number of holdings in my US portfolio . I own several related to healthcare. I just recently sold off my JNJ at a profit. I am under water on CAH and WBA. I propose to sell CAH and WBA at a capital loss to offset my gain on JNJ. I intend to keep MDT. Does this seem reasonable to you?. Cheers, Tamara
Read Answer Asked by Tamara on July 29, 2019
Q: Hello 5i,
This is not a question, merely a comment from my perspective. I hold VET in two separate account and it is held for dividend income as opposed to looking for any significant capital gains.
On paper, my "losses" are substantial. However, in reality, unlike others who have sold, I have actually lost absolutely nothing - and I fully expect that by keeping this holding for the dividend (cut or not), should the time arrive when I do choose to sell, it will likely be because I am back in the black on it and will realize a gain. Meanwhile the dividend helps keep me "in the lifestyle to which I have become accustomed".
While it could happen that VET will go to Zero, be de-listed and cease to exist as a viable company, I am betting against it.
In a sector decline such as we are seeing in the Canadian energy space, I am not sure selling out at a significant loss is necessarily the only solution unless one can really benefit from the tax benefit on the loss - and in the case of VET, they have a great deal of exposure outside of Canada as well.
Anyway, I am happy to hold, collect the dividend and wait until the tide turns, which I am convinced it will do over some unknown period of time.
Just my perspective, nothing more.....
Cheers,
Mike
Read Answer Asked by Mike on July 26, 2019
Q: I currently have no investments in the REIT sector and have about 10% cash. Would you say this would be a good time to step into WPT Industrial or Canadian Apt Properties for income and some growth? Please provide your insight on a comparison. On the US side how do you view XLRE? I am retired and looking for some stability and wouldn't mind allocating to 2 properties. Thanks.
Read Answer Asked by Harvey on July 26, 2019
Q: Good morning 5i,
In the interests of simplifying my financial affairs for those who may have to look after them at some point, I have been moving in the direction of efts in my rif accounts on the US side. Up to this point I haven't considered doing the same for Canadian stocks, for two reasons: One is the capital gains that must be paid, as they are in a taxable account for the most part. Second, because of the fear that Canadian efts, like the Canadian economy, concentrate on only a few sectors. I thought, therefore, that I could simply make up my own etf out of individual companies that I buy. I can see, though, that one could suffer a real loss if one of these blew up, something like SNC Lavelan, which had previously been a staple in Canadian portfolios until recently. Also, there is the difficulty of managing these stocks by someone else, not used to doing so. I could approach it over a number of years to avoid some of the capital gain problem. So, I was wondering what you thought of this move in general? Also,I would appreciate your view on the relative dangers of holding Canadian efts? Which Canadian efts would be the best, general market or more focused? Appreciate greatly your reflections on this question.
Read Answer Asked by joseph on July 26, 2019
Q: I bought some stock in HIVE and MAV two years ago and the performance is down a lot since.
I do not need the money now.
Based on your experience, do you see the HIVE coming back to its stock price of around 3 to 4 $ and MAV coming back to around 14$ in the future ?
Do you recommend me to hold on to both stocks or do you recommend me sell them at a loss?

Thank you
Read Answer Asked by Kristelle on July 26, 2019
Q: Husky is in an unloved sector and has never been a preferred name in that sector for various reasons, but at $10.70 is it getting to a point where it should be considered over some of the usual go to names. The yield is decent and the balance sheet is good... not sure why it is getting punished so severely for a q that seemed within expectations.
Read Answer Asked by Jason on July 26, 2019
Q: I am hanging on to Quarterhill pending news on the Apple court case. It has been in a narrow trading range for three weeks now. They offer no press release but I think earnings is August 12. There are rumours that the US courts may consider all patents worthless. Is this true. If so, Quarterhill could be worth nothing. I own a lot so am a little concerned about this rumour, true or false. Thanks.
Read Answer Asked by Helen on July 26, 2019