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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: thanks again for the service you provide. my question is this I held engh for a long time and sold it and replaced it with abt - gps - also msft and csco in the u.s. because they tended to perform better than engh until it's latest rise. other than this stock I own all of the balanced portfolio in the proper percentages. do you think that I should still own engh considering the above. thank you
Read Answer Asked by gene on March 28, 2017
Q: Preference shares
Following your reply, I conclude that, even on a reset date, preference shares may not trade at face value. Therefore, there would be no point in time when an investor is assured of full repayment of capital. Why then would these shares ever be suitable for investor adverse to interest rate risk? The only exception would be the investor willing to hold the shares for an unknown period until the shares are worth more than face value or the issuer decides to redeem them. Also, I wonder whether investors generally understand that, if they pay more than face value for the shares, the dividends represent in part a repyment in capital. Preference shares appear to have an undeserved allure, suitable only for investors willing to gamble with interest rates (perhaps having a trading strategy) or remain invested for an unknow period of time. Perhaps they should generally thought of as speculative and/or suitable only for sophisticated investors. I question whether even investment advisors understand this instrument well, particularly the range of attributes among issues.
Read Answer Asked by Carl on March 28, 2017
Q: Recently we were surprised to see that my 86 year old mother in law sold an etf and purchased Manulife simplicity portfolio FE (568). I say surprised as the broker is well aware to discuss financial changes to her account with my husband and ETFs were specifically chosen to avoid buying mutual funds. What can you tell me about this fund and does it generate monthly income. It looks like the broker is selling shares every month and sending her a cheque. I do not see any info around fees (which I thought had to be disclosed under the new rules) on her monthly statement. My husband is meeting with the broker so any info you can provide or questions he should ask would be appreciated.
Read Answer Asked by Maggie on March 28, 2017
Q: What is your opinion on this ETF? Pros? Cons? Is it best to hold it in a registered account or TFSA?

"I’ve started to buy one of the newest additions to the BMO ETF lineup - BMO Canadian High Dividend Covered Call (ZWC-T) strategy. It’s expected yield is around 6 per cent and it has less risk than the overall index. It holds a basket of some of the best quality dividend payers in Canada with a yield enhancement from a 50-per-cent covered call overlay."
It was mentioned in this article:
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/larry-berman-its-time-to-get-defensive-after-a-troubling-budget/article34414534/
Read Answer Asked by Helen on March 28, 2017