Investment Q&A

Q: Hello 5i

I am planning to switch my RRIFs from Corp Bonds held during contribution yrs to US index ETFs now that I am well into compulsory payout phase. I am looking at VUN or VFV. VUN is only 6mo old with a much smaller subscription and a more diverse index, and better current trading volume despite its smaller size. (you made some comments on why size matters which don’t seem to apply to these 2 funds given that they hold only the US$ equivalent Vanguard funds).

The only reason I am considering the C$ unhedged funds is to avoid the 2-2.5% charges BMO levies for both Buy & Sell transactions. So Vanguard is providing these currency transactions at no cost. Is there some trick of the light here here that I am missing

Your comment appreciated.

Q: Hello 5i,
I’m raising cash by selling US stocks and looking for a few good buys in the US small/mid cap area, sector isn’t a priority with the exception of REITs/oil/gas/pipelines, but I would like a 4% div. minimum. I know you folks like technology and healthcare anything there? Please help with some ideas.

Q: Hi Peter,
I have just read a comprehensive report on LNG. Please give me your expert opinion on which of these companies Entrec or Petrowest would most likely be successful over the next few years.
tks Gord

Q: GPS, DHX, and AYA, these three stocks are of interest and I believe still have good growth potential by 5i. Is this still correct? Which stock would you put in which account when looking at a RSP, TFSA, and non-registered account. Is there an account you would not put one of these stocks into, meaning more potential downside risk. I tend to have a buy and hold approach.
Thanks

Q: Hi Peter and Team
Alacer Gold has mines in Turkey. Do you think there political turmoil and currency crisis will have any long term negative impact on ASR. I do believe ASR stock has not done as well as the sector in the past 2 weeks. In general how would you rate the risks for this company? Thank you for your time and insights!
Dr. Ernest Rivait

Q: The pipeline utilities IPL PPL ALA ENF are trading well above their moving averages on lowish volume, some setting new highs in the face of generally higher interest rates and a weak market, while TRP has been quite volatile on high volume. What should a holder read into this? Thanks, J.

Q: Is this a relatively sound strategy:
"Buy all stocks in a single sector (100% market share) to mitigate risk of competition between the players."

For example, in a stable and growing market like Canadian telecom, I'll just buy Telus, Rogers AND BCE which makes up for 90% (?) of the telecom market. Sounds like a no-brainer. Of course there is risk from outside competition but it sounds like since the Verizon entry into Canada didn't materialize, there isn't much competition anyway.

There is over-concentration risks etc and also regulatory risk, however.

Q: Hello,
I started a small trading account for my kids (9 year old and 6 year old). I would like to purchase a few stocks that pay a dividend that they may have fun to follow. Any recommendations?
Thanks
Rob

Q: Hi Team:

In my RRSP, I have about 25 to 30% in bonds, mostly in short term
and one of the mutual funds where the bonds are, MD Bond funds is well managed; the bonds have taken a hit due to the impending rise of interest rates, I have some in Mawer Balance fund in the RRSP as well
I have taken a small position in MFC recently. I wonder if moving another 5% of the bonds to US equity like SPY VIG would be appropriate, I have already have 10% of the RRSP portfolio in XTR, a monthly income fund yielding about 5%; thanks team; I hope that I am not confusing you, let me know if you need more information

Q: I have been a subscriber for nearly a year. I like your service very much and found it of great help.

I hold Wajax(WJX), I noticed that you rate it only as a hold. But it seems that you like both Stantec(STN) and Cervus (CVL). Do you think a switch to one of them is a good idea? Which one? I am Ok with lower dividends.

Thanks,

Q: Hello Everyone:
If one wishes to protect portfolio from sudden drop what might be your suggestion. I am toying with selling HXD Puts. Is this a viable strategy? and how many Puts I will need for a $100K portfolio?

Thanks

Q: Could I please have an update on Horizon's Floating Rate Bond ETF - HFR? Thanks!

Q: I am considering a switch from HNZ Group to Contrans. Other Industrials holdings are BAD, GE, AVO, KBL, NSC & STN. Any comments on this idea would be appreciated. Thank you.

Q: RRX - big insider selling this week - any concern, and would SGY be a better alternative for the next while?

Q: What would be your preferred choice between Morguard NA Residential REIT (MRG.Un) and Tricon Capital Group (TCN) as a play on US residential properties?

Q: HAWK, NYSE: FPE=24, ROE=63% -business to do with digital transactions. What are your thoughts on this one for my USD portfolio??
Have a great weekend..JP

Q: I bought this stock on a recommendation a couple of years ago
OSGIQ - Overseas Shipholding Group Inc. What are your thoughts
Buy, sell or hold; seams to be coming back to life??

Q: I have owned Legacy (LEG) for a while at about $7. I understand they have some debt and the market seems to like the dividend model of other companies in the sector instead of the Legacy growth model. I have thought about biting the bullet and following the dividend herd. Could you suggest a Legacy strategy for me for this year?
Awesome service guys!!!!

Q: I would appreciate your thoughts on High Yield Bond ETFs for a long term hold in a registered account. I am looking at HYI, CHB or XHY. Which of those, if any, would you suggest (or something else).

Q: Would you give me your pros and cons on the proposed following offer as part of the "fixed income" portion of a portfolio.

Canadian Western Bank 4 .40% 5.25-Year Rate Reset Pfd
Short Description: Treasury Offering of Non-Cumulative 5.25-Year Rate Reset First Preferred Shares, Series 5


Thanks