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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 5i team,
My US portfolio is currently about 9% and consists of GOOG, FB, SBUX, GE, MCD, PM & DEO. I want to buy ETFs to bring the % up to around 20%. In a recent newspaper article about the high valuation of US stocks and possible volatility, the author recommended ZWH and ZPW instead of buying broad base market ETF.
What are your opinions of these two ETFs? Would they be useful tool to reduce risk while still participate in the US stock market if it goes up and also earn some dividends? Which one of the two is more effective or they should be employed as a pair? Many thanks.
Read Answer Asked by Willie on January 06, 2017
Q: I'm interested in buying into the utility sector through an ETF. ZUT holds Canadian stocks and has a yield of 4.98%. 99% of the distribution are eligible dividends.

ZWU holds a mix of Canadian and US stocks with about 45% each of eligible dividends and ROC along with 10% foreign income. The yield is 6.64%.

If we factor in the DTC, there's not a lot of yield difference. What are the reasons for your choice of ETFs? Thanks
Read Answer Asked by Tim on January 06, 2017
Q: Can you please describe the key differences between these two seafood companies aswell as identify your preference for growth with a bit of income. I am interested in the sector in general and both stocks have pulled back of late.
Do you think either is attractive at these levels? I have very little overall exposure to the food/consumer sector as is.

Thanks!
Read Answer Asked by Scott on January 06, 2017
Q: Please enlighten me on how bought deals work, using the most recent EIF bought deal as an example.

EIF floated new common shares at $42.45 per share recently and it was a bought deal so the underwriters bought the entire issue (plus the over subscription shares) for $42.45 per share. Thereby EIF received $42.45 per share (less the underwriter fees), while the underwriters assumed the risk in case if they cannot sell those shares at $42.45 or more. Am I correct so far?

In that case, with the EIF SP lingering under $42 a share, can I assume the underwriters will suffer a loss? After all why would you buy the new shares from the underwriter at $42.45 if I can get them cheaper in the open market?

Also if I were the underwriter, would I not be trying to drive up the EIF SP to over $42.25 to protect my deal?

Kindly shed some light on this type of transactions. Much appreciated.
Read Answer Asked by Victor on January 05, 2017
Q: I am interested in purchasing the above securities, but currently only have the capital for one. Without regards to sector exposure, can you please rank the three in terms of potential from current price levels ?

Thanks

KR
Read Answer Asked by Karim on January 05, 2017
Q: Hello

I am going to re-balance my family portfolio (by sector/industry mix and bond / stock mix) once the Dec 2016 statements come in.


In my family we have 2 RRSPs, 2 TFSA, and 2 RESP accounts.


In the past I would add up all the portfolios together and make a pie chart in Excel to find out our bond & stock mix and our sector/industry mix.


Before I start this exercise this year I wanted to have your opinion.

How do you recommend balancing? Each account separately or other???

Should I even consider BONDS inside my kids RESP since they are just 2 and 4 years of age?

Thank you for your help.
Regards
Stephane



Read Answer Asked by Stephane on January 05, 2017