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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: Do Canadian ETFs that track US tech firms underperform? I was looking at these and a few others on the G&W and the Canadian ETFs with the exception of HTA and HTA.B (up 35%ytd) seem to have significantly lower returns. And I think HTA uses covered calls.

XLK is up 32% ytd, IYW 35%, IGN 31%. The most popular Canadian ETFS seem to be ZQQ(ZQN) 26%, XQQ and HQQ 26% and TEC 25%. Some of this is due to currency moves, but the hedging costs of the hedged ETFs surely aren't that large. Is it better to just buy XLK or are HTA/HTA.B a better alternative?

Read Answer Asked by John on December 08, 2021

Q: When purchasing International ETS's within in an RRSP is there any withholding tax advantages to holding US traded ETF's?

Read Answer Asked by Joe on December 08, 2021

Q: I'm replacing ZWU and ZWC since I would prefer to hold stocks at this point. What 5+ stocks would you recommend to replace ZWU and ZWC each. Thank you.

Read Answer Asked by Peter on December 08, 2021

Q: Hi 5i Research Team -
I've done very well on SHOP & TSLA. Mr. Buffett said buy low and sell high. Would you recommend that as well and transfer those savings to ETF's to protect investments against a possible melt down? If so could you please recommend some ETF's or other transfers.
Thankyou!!! Frank

Read Answer Asked by DOUG on December 08, 2021

Q: Hello 5i team:

At this particular time, which ETF do you think worth buying? US based XLE or Canadian based XEG? Is there a ETF based on Europe or the rest of the world?

Will you underweight or overweight energy in one's portfolio? I know in the US energy doesn't play a big role. But in Canadian index, they do.

Thanks in advance.

Read Answer Asked by Savalai on December 07, 2021

Q: Recommendations from portfolio analytics indicated i should increase my holdings in healthcare and industrials. Please provide your comments on XHC, XGI and WSP. Are there other options that i should consider?
I am considering investing in sector specific ETFs. What are comments on SOXQ and IWO.US? Are there specific sectors that are expected to show high growth in the next few years?

Read Answer Asked by Don on December 07, 2021

Q: I have been looking at HCAL, for the dividends. I not sure I understand the Non-Cash distribution. They are showing a non-cash distribution in the amount of $2.324 payable in December. They state the distribution will not be paid in cash but will automatically reinvested in additional units of the ETF and immediately consolidated so the number of units held by the unitholder and the net asset value of the ETF, will not change. So, what does change, with the non cash distribution?

Read Answer Asked by Edgar on December 07, 2021

Q: Hi Peter, Ryan and associates,

I am an investor residing in Canada, and I am considering investing in US ETFs. What is your opinion of the following two ETFs: ETFMG Prime Cyber Security ETF and Global X Robotics & Artificial Intelligence ETF? Would you invest your own money in these ETFs?

Thanks for the great service you provide.

Read Answer Asked by Michel L on December 06, 2021

Q: I have historically held my investments in mutual funds through a financial advisor. I subscribed to 5i Research approximately 3 years ago and made my first investments in equities and an ETF based primarily upon information obtained from 5i Research. The returns on VGRO ETF and my equities have been 2 to 4 times the gain for my mutual funds. I recently upgraded my subscription to include Portfolio Analytics. Based upon portfolio analytics, my current portfolio is reasonably well balanced with recommendations to add healthcare and industrials as well as some international exposure. I have cash on hand that I want to invest. I will hold my investments for the next 5 to 10 years. I am looking at purchasing some additional equities and an ETF with good growth potential at moderate risk. Please provide top 10 recommendations with rankings for stocks that I should consider adding to my portfolio. Please provide recommendations for top 5 ETFs with rankings that I should consider adding to my portfolio. What is your current view on VGRO? Would you suggest topping up my investment in VGRO?

Read Answer Asked by Don on December 06, 2021

Q: Can you suggest some short-term bond ETFs that are investing in government and/or large blue-chip companies? 3 for Canadian market and 3 for internal markets please? This is to provide regular income after retirement.

Read Answer Asked by CK on December 06, 2021

Q: I own XIT within both my RRSP and TFSA and I have done very well holding it. It is mostly (72%) made up of SHOP. CSU, GIB and OTEX.

Question #1 = It recently has dropped from the $59 level to around $51. Do you believe the current drop is overdone? My amateur eyes think the next support level is around $50. At what price would you consider adding?

Q#2 = Is the drop related to the potential for interest rate increases? When you look at the 4 main players, where do you think XIT is heading in both the short (< 1 year) and long term (3-5 years)?

Thanks for your help...Steve

Read Answer Asked by Stephen on December 06, 2021

Q: I have been watching KraneShares Global Carbon ETF for a while now as an interesting investment with no correlation to the general market. It seems to do nothing but go up regardless of markets. I have been waiting for even a slight pullback that never seems to materialize and if I buy in at this point I feel like I would simply be chasing the hot money. Do you view this ETF appropriate for a long term hold or is it more for trading? How closely does it track the actual cost of carbon credits and does this correlation decay over time? Can it trade at a large premium or discount to the underlying moves in the cost of credits? I would really like a better understanding of this fund. Your thought and advice. Thanks.

Read Answer Asked by Steven on December 06, 2021

Q: Hi Everyone at 5i! I need your advice. I have a non registered portfolio, half I have invested in Canadian and US growth and income stocks. The other half I would like to invest in something more secure. GICs come to mind, but with low interest rates, inflation and unfavourable taxation, they seem like a loosing proposition. Any low risk suggestions??? Thank you for all that you do!!! Cheers, Tamara

Read Answer Asked by Tamara on December 03, 2021

Q: Dear 5i,
I have CCPC and my savings in this corporate account are significant (over 1M). I am comfortable with 80(stocks)/20(bonds) portfolio and my time frame is 20+ years.

My plan was to buy the following etfs:
Canada - VCN.TO (24%)
US - HULC.TO (32%)
Developed Markets - HXDM.TO (16%)
Emerging markets - HXEM.TO (8%)
Bonds - HBB.TO (20%)

1) Do you think this geographical asset allocation is adequate?
2) Horizon etfs consist 76% of this portfolio. Do you think this is good idea, or should be limit my exposure to horizon stocks. If yes, what percentage of exposure would you recommend and which etfs I should replace them with?

Read Answer Asked by Atal on December 03, 2021