Investment Q&A

Q: Hi 5i!

New member and I have found your wealth of knowledge very helpful in providing guidance for a relatively new do-it-myself “Core & Explore investor” and have prompted me to make some changes to my investment strategies and portfolio. My question is “Core Portfolio” management based and specifically regarding switching to Index ETFs from Index Mutual funds. I’ve been a regular monthly contributor to my RRSP built up and directing most of my funds towards a TD Canadian Index Fund TDB900 – e series and a lesser amount to the same e series TD International Index Fund TDB911 as they have very low MERs of 0.31% and 0.51% approximately. My strategy, since I dollar cost average into the indexes, is to continue to contribute to these TD mutual funds monthly but then funnel from them to ETF index funds so I can take advantage of the lower MERs of the ETF. Could you recommend ETFs to replace my current TD mutual funds? Would you also recommend adding a DOW Jones Index or another US index? What ratios would you consider appropriate for a portfolio? Any other thoughts are welcome and I’ll save my “Explore portfolio” questions for a later date.

Cheers!

Q: Not sure if you follow this at all. I am looking to purchase shares in ARCO (Arcos Dorados Holdings Inc). The stocks has done well, perhaps part of the Brazil bounce, but still looks cheap. My thinking is that with McDonald's once again doing well, this stock may also. Thank-you very much.

Q: I'm thinking of investing in China to capture the middle class growth there....Baidu reminds me of an Amazon in the early stages?? Or Alibaba; which would you place in your personal portfolio for China exposure or would you suggest something totally different?? Thanks so Much!

Q: I've been to China 5 times in last 24 months and on my recent trip I observed more and more people have smart phones than previous trips. Speaking with one of my Chinese colleagues on this trip, we discussed how most people in China with a smart phone use WeChat as their messaging app. WeChat is not just a messaging app, you can make payments and shop. Travelling thru several cities, most retailers requested payment thru WeChat. I was amazed at the adoption of this app. It is owned by Tencent and trades OTC in the US. Do you know anything about this company and do you have any concerns with buying stock on the OTC?

Q: Hi 5i team,

As infrastructure in various countries are now in an expansion/renewal phase, infrastructure stocks may be the new 'utility' stocks of the future. I currently already owned BIP.un. Given the current market conditions, please recommend some Canadian or US listed infrastructure stocks or ETFs that are worth investing in now. Thanks

Q: can you comment on Russells diversified Fund for income and a little Growth, thank you.

Q: What is your opinion of vanguard ETF VXC ? Would you buy sell or hold?

Q: I understand that LG Display Company is an undervalued stock that is likely a good growth investment. Do you have any comments on this company?

Q: I currently hold BPY (up 50% over cost) and H&R in my portfolio 4% and 3% respectively.
I am considering swapping BPY for BEP for the additional income. Your thoughts?

I also plan to crystallize my capital losses and purchase the following ETFs:
Non registered:
ZPW – US Put Write
ZWE – Europe Covered Call hedged to CAD.
ZWH – US covered call
CPD – CAD preferred
XRE – Capped REIT

Registered (RRIF):
PGX:US – Preferred.

Each would constitute 2% - 3% of my portfolio. Diversification is my intention, but risk and surety of income is the primary consideration in all of the above noted.

Again, your thoughts.

Thank you for considering my questions

Gail

Q: Hi, I have been comparing low-volatility developed ETF options traded in Canada with the options (to my knowledge) being ZLI and XMI. My analysis has sided with ZLI and I want to layout the logic here to hear your thoughts. Positives for ZLI: Smaller market cap while not too small offers better opportunity for alpha, Fewer holdings so more opportunity for alpha, Not based on major index (MSCI) so less opportunity to be front-run, BMO has a good track record for other similar funds (e.g. ZLU). Positives XMI: Longer operating history , Slightly lower MER, more resources for investment research(?). Thanks as always.

Q: I have very little in the way of investments outside Canada except for TD's US exposure, ATD.B's exposure in Europe & the US & TIO 's US exposure.Which of the following ETFs would you consider to be good ones to expand my exposure outside Canada & if you don't like any of them can you suggest some alternatives you like better? The ETFs are:ASHR , DXJ ,LEMB

Q: Now that the Brexit vote uncertainty has diminished a bit, would it be a good time to add to European market exposure? Presently hold ZWE for income. Would you add to ZWE or open a position in another etf? If so, which etfs would you recommend for income? Which for growth? Possible ZDI ?Looking at 2-3 year time frame. Many thanks for the terrific service.

Q: Please suggest an emerging market infrastructure etf priced in Canadian dollars. Thank you.

Q: Looking to initiate a 3 to 5 year position in either xmm or xec. Which do you prefer and why? Thanx.

Q: Hi,
My son is taking a break from active stock picking and has gone with this ETF model: VUS(15%), VBU(5%), VCN(22.5%), VAB(5%), VI(22.5%). His investing horizon is very long (10-20 years). Your thoughts on the individual ETFs? How about sector & geographic diversity? Any other concerns?
Thanks!

Q: XT-N
iShares Exponential Technologies

I am looking for an ETF that follows emerging new technologies. One that seems to fit the bill is iShares Exponential Technologies (XT-N). What do you think of it? Is there another you would like better? Are there any traded in Canada?

Q: HI TEAM :
I own ZWE and like it could you give a current assessment on it as well as a list of similar ETFS that offer geographic diversification out of US and Canada. Thanks
Yossi

Q: Can you explain the difference between RDS.A and RDS.B units? I'd also like your opinion on whether now is a good entry point for Shell. Thanks

Q: Wisdom Tree high international dividend fund hedged. This is a new Canadian fund and I cannot find info on constituents,total mer,dividends,etc. Can you help and what are your thoughts? Thanx.

Q: I would appreciate you thoughts on Manulife Asia Equity Fund. I own a small amount with a slight capital gain. Would you recommend buying the fund to diversify my holdings outside of Canada? Is the fund well managed?