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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: Hello Peter and team,

I am looking to get some exposure to the US market via an ETF in a non-registered account. My criteria is that the ETF must pay a dividend and have some growth potential; this is for a 3+ year hold, medium risk investor. Searching through the Q&As it looks like your favourite US ETFs would be SPY, IWO and VIG. Based on the current market environment which is your favourite ETF that will meet my criteria today?

Can you remind me about the withholding tax issue? Is it worth the hassle of the withholding tax, or is it better to get a Canadian $ hedged ETF instead (and which one)?

If I buy before the end of the year, will I get a large taxable distribution (e.g. IWO in Dec 2012)? Is it better to wait until January to buy? Many years ago I bought a mutual fund in a non-registered account in November, and got stung by a large tax bill when they paid out the distribution in December even though I was not in the mutual fund for most of the year. I don’t want to repeat that, and I am not sure if ETFs work that way as well.


Paul J.
Read Answer Asked by Paul on October 06, 2014
Q: Hi team. I would like your opinion on (FCU)Fission Uranium.
Read Answer Asked by Robby on October 06, 2014
Q: How this company can offer a dividend of 8.25% when the ratio is 157% for D/E, total debt of 350% and interest coverage of only 1.09?

Still the P/E is at 29 for a company that seems in poor financial situation.
Read Answer Asked by Claude on October 06, 2014
Q: Trinity has dropped from 52 week high of 50 to 41, i know you liked it in the past do you still recommend. Dave
Read Answer Asked by david on October 06, 2014
Q: Hi Team,
I am getting very tempted to buy some stocks that have sold off(pembina, td bank etc...). I keep telling myself to be patient and wait for some evidence of buying however, there seems to be some good opportunities to at least start a position or add to an existing one.

Seeing this great clip from Warren Buffett is also influencing my decision (clip #4) http://thereformedbroker.com/2014/10/02/warren-buffetts-tv-appearance-october-2nd-2014/.
I am normally against averaging down, but I have noted that it can work well with GOOD QUALITY companies in case the correction still has legs. Anyways, could you and the team recommend how you handle the correction and give 2 names from each sector that look attractive for a long term investor.
Thanks again guys
Read Answer Asked by Marie on October 06, 2014
Q: Storm Resources seems to be resisting the current pullback in share price that many energy companies have suffered. Apparently the market likes the fundamentals of the company but do you think this strength will continue once the next quarter results roll in, given a continued weak commodity price environment?
Read Answer Asked by James on October 06, 2014
Q: Hi 5i Team;

I'm thinking of buying this because it has a high yield (6.86%). Would you recommend buying it or is there a better buy with this yield?

Thanks
Larry
Read Answer Asked by Lawrence on October 06, 2014
Q: Peter and team:
What do you think of xlk as a broad brush play on the technology sector? Is there a Canadian equivalent? (either Canadian companies or American companies in can. funds). Could you briefly touch on how etf's are handled vs. pure stocks @ tax time?

Thanks for such a great service!

Phil
Read Answer Asked by Phil on October 06, 2014
Q: I was considering investing in Cogeco for the telecom side, what is opinion on that? I already have some Telus which are not doing great but not too badly thanks to dividents. But cogeco I was thinking of as a growth stock also Cogeco has CGO or CCA does it matter which one? I was thinking of CGO because I understand they are thinking of entering the wireless sector.
Read Answer Asked by Shyam on October 06, 2014
Q: As a relative newcomer to this industry (fracing sand), and holding no stocks in this area, would now be a good time to step in given the recent pullback in share prices?

If the answer is "yes", would you have a preference for HCLP over EMES or SCLA, or would you advocate a basket approach and buy all 3?

Thanks for your guidance and help with this.
Read Answer Asked by Donald on October 06, 2014
Q: I have been under water with this fund since 09, it pays a good dividend but will there be an improvement now that Bill Gross is gone? Thanks, Jack
Read Answer Asked by Jack on October 06, 2014