Investment Q&A

Q: in reference to Joseph's question and comments on Peter's personal portfolio, is it fair to ask which 'covered call' ETF's he prefers...

Q: DRAM has only been around since March 30 . And I notice today it is up close to 5% whereas MU is up 3% ..... In a very short history { one month } has DRAM consistently out performed MU ? And if so what do you attribute it to ? I notice that their makeup includes derivatives though I have no idea how that influences the price of the ETF ? ...... But If DRAM which is a diversified memory ETF out performs MU .... Why would I even consider buying MU ? ..... Thanks for your terrific service .....

Q: Hello 5i Team,
What are your thoughts on Ninepoint ETF's?

Thanks
Brent

Q: Do you think these funds are good to own? What are the pros and cons?
What are the mer rates?

Patti

Q: Would you buy DRAM or MU for short term (1 or 2 years) and potential for greatest return. DRAM gives some diversification and exposure to Asian memory stocks, but is MU valuation (PE forward ratio) still too good to pass up ?

Q: Peter would you be willing to share some of the 15 stocks you hold personally along with the 3 etfs? If this is not in my subscription range of questions No worries


Thx

Q: Bmo has an etf zwk that pays around 6% and some new funds that are target cash flow (zwk-t) that say they are looking for 12% . I know they are both covered call but is one more leveraged ? What is your take on these target funds ,with yields over 10% they look interesting

Q: Peter; Could you refresh your thoughts on these- inflation seems to rising in the US. Thanks.
Rod

Q: If one were to choose to allocate some money to the "Outer Space" investment theme, but not want to try to pick a specific stock, what would be your recommended ETF's with that theme? Are there any Canadian denominated ETF's that are potential candidates?

Thanks as always,

Dave

Q: Looking at these EFT's how would you rank them as investable in a RRSP for a long term hold.

Q: Good afternoon,

Just to follow up on an earlier question regarding HHL. I held this for ~ 2 years, mainly for income. I started to question relative underperformance several months ago, and then made a decision to exit. I did so not so much as a result of having a view on US healthcare, but more on the sustainability of the monthly dividend of $0.06. The yield is currently approaching ~ 11%, and I wonder if the YTD price action has more to do with general price decay as a result of not cutting the monthly dividend as a result of lower option premiums, and less to do with the individual stock holdings represented in the ETF.

Curious to know your views on this, and whether or not this is an inherent risk in an environment where option premiums can't always cover monthly distributions on their own for covered call ETFs. And at what point do the fund managers make a call to cut the monthly distribution to a more manageable level in order to avoid this price decay?

Thanks as always.

Q: Dear team,

As you can see above, I have begun buying broad spectrum EX-North America ETF's to diversify my portfolio. Could you please suggest a few more I could add to that theme ?

Thank you very much - Nick

Q: A current Globe article by Kevin Foley discussed "short-term investment grade prospectus credit funds" as a place to park cash that pays significantly more than money-market funds. Here are some highlights from the article:

-- A representative group of five of these credit funds averaged 6.3 per cent annually over the last three years and 5.0 per cent annually over five years., besting the usual funds by something like 2.5 %.
-- They buy an investment grade corporate bond and simultaneously short sell a government bond of the same tenor to eliminate the interest rate risk, thereby isolating the credit spread.
-- The average annualized standard deviation across this representative group of funds is 2.25 per cent - less than half the 5.18 per cent of the FTSE Canada Universe Bond Index, which most Canadians consider safe and not volatile.

In the article he does not make specific recommendations, just putting forth this list from the CIFSC:
https://www.cifsc.org/alternative-credit-focused/

I would appreciate your comments on this as a place to park cash, and wonder if there are any on this list that you might prefer, or if there are any to stay away from. Any reasoning for your choices would be most welcome.

Thanks!

Q: Hi! I recently sold a property in order to access regular income from the proceeds. I'd like to make 3% on an investment that pays on a monthly basis, and that has some potential for growth. If paying out on a monthly basis is too limiting, I can bridge for a quarterly dividend. I'd love to get your suggestions. Thanks!

Q: good evening,

All my investments are in north america, can you suggest ETF's in USD, no dividends, to cover other geographies that you deem fit to invest in at this time.

Many Thanks for all these years of profitable investing.
Growth has been amazing even with mistakes I made. Been hoarding way to much cash and thinking of using more ETF's to free up some time.

Thanks again! Been quite a journey! When you've been through the meat grinder repeatedly not as scary anymore. LOL
NEVER would've made it this far without 5i.

Q: Are Funds in the Alternative Credit Focused category a good and safe substitute for money market funds?

Q: I am trying to understand what's going on with HHL this year. It's the worst performing ETF in my portfolio, down 12% YTD, almost double the drop of the US-listed VHT which is in my taxable portfolio. HHL is held in RRSP, so no capital loss :( I am wondering whether to keep it for the income, or drop it and buy another healthcare ETF hoping that the healthcare will eventually recover and ETF like VHT will likely recover faster than HHL. Due to underperforming healthcare ETFs, my portfolio allocation in healthcare is now down to 6.5% from the 8% target. Any suggestions/thoughts?

Q: For international exposure in my portfolio - what would you consider the best ETF's for this. I presently own VEU (at around 10% of the portfolio) as I already have about 35% of portfolio in the US. Are there better options to get international exposure? What percentage of international exposure outside the US would be a good target?
Thanks for all your insights.

Q: My international holdings (ex-US) currently include positions in Germany, broader Europe, and Japan. I am specifically considering initiating or adding to positions in China-focused ETFs, such as MCHI (MSCI China), FXI (FTSE China 50), and KWEB (China Internet).
I would appreciate your perspective on the following:
- Geopolitical Stability: Given what appears to be a more predictable and stable global posture from China relative to the current erratic US Administration , do you view Chinese equities as a viable "hedge" or a diversifying force against U.S. domestic policy risk?
- Trump is to meet Xi in Beijing May 14-15. Given the erratic nature of relations, is it more prudent to initiate positions now while valuations are compressed—particularly in KWEB, which remains down ~17% YTD—or wait for clarity following the meeting?
- ETF Selection: Between the broad exposure of MCHI, the large-cap/SOE focus of FXI, and the tech-heavy KWEB, which vehicle do you prefer for a 12-to-24 month horizon? Furthermore, are there other US-listed China ETFs (e.g., ASHR for A-shares) that you believe offer better risk-adjusted exposure? :ao:

Q: I need to move most of my investment funds to high yielding stocks or funds. I am thinking in terms of managed ETF’s that pay elevated dividends, I also know they generate these via covered calls.

I already own JEPQ and previously JEPI. I would appreciate a list of 10 similar investments (if you can find that many) that have solid game plans and management to continue to deliver the same level of dividend for the next 3 - 5 years.

Thanks.