Investment Q&A

Q: Goldman has ETFs that are advertised for downside protection. The 3 ETFs that I stumbled across are GBXA , GBXB AND GBXC. Are these good for investors who find their portfolios are heavily tilted towards aggressive growth? If not these ETFs, any other method or ETFs you can suggest ? (US markets only). This question is prompted by an uneasy feeling that too many US businesses are again overshooting to unjustifiably high valuations. (I did trim but the related capital gains taxes around 34%, make me wonder if I should perhaps have left all those flowers in peace. Understood, one should not allow tax considerations to influence a decision to trim. Nevertheless, I am reluctant to trim more than I already have. Hence the search for a safety net that is available at a reasonable cost for downside protection. Thank you.

Q: Hello,

A new ETF from BMO: BMO Covered Call spread Gold Bullion ETF Methodology (ZWGD). Any thoughts? Still too early to judge?

Thanks

Dave

Q: Is TDB8160 as good as these others? What is the advantage or disadvantage to the others, and is one more liquid/safer than the other? Thank you!

Q: Looking for a foreign bond fund to round out my fixed income portfolio. Would PMIF fit the requirement? Thanks Ron

Q: Good day! Could you please recommend a couple of income etfs with a bit of growth for an unregistered account? Etfs with no ROC please and a reasonable expectation of preservation of capital.
Thanks in advance!

Q: I am preparing to invest cash again.

Where we sit...a low point..in the economy and sentiment....could you suggest 3 Cdn dividend stocks ( and 3-5 US growth stocks and 5 ETFs (balanced and global) that represent a good buying opportunity in these poor markets...that have the potential to show very good returns over the next 5 years out.am preparing to deploy cash into the market.

I would say I am a investor that can tolerate 80 in the medium risk category and up to 20 % in higher risk holdings.

Timing is not a good thing to factor in, but things appears a like a recession is coming if not already here...would you sugest averaging in? and over what period of time.
Thank you

p.s. Currently all I own is RBC, Sun Life and PIMCO Monthly Income.

Please deduct the appropriate credits for this expanded request.
Richard

Q: What is the best way to hold and invest in euros?

Q: looking for an ETF that covers non-North American securities. I need to increase my international exposure.
Also do you suggest to hold it in a non registered or registered account?
TIA

Q: I’m looking for a way to assess the correlation of certain holdings to determine whether it makes sense to consolidate positions.

How would you think about this? Are there any free tools to pull correlations? What kind of correlation figure should one look for when assessing whether two holdings are too correlated to provide diversification value?

Just as one example, I’m looking at VVL and VUN. But please keep your answer focused on the general questions above.

Thanks very much.

Q: Would I be correct in concluding that Trump's on again off again tariffs are good for covered call ETF's ? When he announces a tariff the market takes a dive. When he backs off the market rises ..... Under those conditions can not the call writers charge a higher premium ? I've noticed GDXY yielding 43% was at 52.9% the previous month. And SLVO is yielding 23.2% . Even the US treasury ETF HPYT is yielding 20% .....Even boring old UMAX a utility covered call ETF is yielding a hair under 16% ..... Do you see a relationship between the amount of the premiums covered call ETF's can get to " Yeah I'm going to tariff the snot out of you " to " Nah, i was just kidding " ..... market swings ?
Basically I'm wondering if Trump is the perfect storm for options .....

Q: What do you recommend for an ETF or actively managed fund which holds high quality (blue chip) stocks, and pays out some dividends?

Q: Hello,

I'd like to invest a portion of Industrial allotment to European defense and aerospace. Are there any ETFs that you recommend? Preferably on TSX, but I'm ok with US markets as well.

Thanks.

Q: In an effort to balance my portfolio, I’ve invested in both short-term (XBB, currently +0.9%) and long-term (XLB, currently -2.74%) bond ETFs, all held within a registered account. Despite these being commonly recommended by industry analysts for portfolio diversification and stable returns, I’m seeing losses across both and finding it difficult to understand how to generate positive returns from bonds in the current market environment.

Given this, I’d appreciate your guidance. Should I consider:
• Selling XBB and XLB and moving the funds to a high-interest savings account?
• Adding to my bond holdings by including alternatives like XSB or VAB?
• Holding my current positions and staying the course?

I’m open to adjusting my strategy but would value your insight on how best to approach bond investments right now.

Q: With so much media attention recently to the Middle East do you see investment potential there? If so is there one or 2 companies listed in the USA that you could recommend? Alternatively, perhaps you could suggest an etf.

Thanks

Q: Hi All at 5i!! A young friend is starting to invest in his TFSA. He has a long time horizon. Basically, he wants to just put the money into the TFSA and let it grow until retirement in an uncomplicated manner. (IOW no individual stocks). If you were to suggest an ETF, would VFV fit the bill, or would he be better off investing in a more structured ETF which encompasses several markets (US,Canadian etc) and a small bond holding as well?. What would you suggest?


Cheers,
Tamara

Q: Hi 5i, I am looking for some new options for relatively conservative, monthly income funds. I would prefer no leverage and no return of capital. Over the years, you have mentioned these three funds (ZMI, XTR, FIE). Are there any new options that you would add to this list? Have the fundamentals changed on any of these three that would cause you to no longer recommend them? Thanks so much.

Q: What is your opinion of this ETF ? Is this a good option to have Large Cap Equity exposure to European Large Cap equities ?

EUZ is up about 24% YTD. Do you see more upside to it, considering current geopolitical and trade uncertainties due to US administration policies ?

Would consider it as a good long term holding to add for diversification ?

I like its Sector breakdown as the largest weight in Financials, Industrials, Technology and Consumer Discretionary at 24%, 20%, 12% and 12%, respectively. Your comments, please.

Thank You

Q: You recently answered a question about HDIV and ETSX. I currently own ETSX and have been happy with the income and growth it has generated. I am thinking of adding HDIV or EIT.UN.
Could I get your comments on EIT.UN as a comparison to the other 2 funds?
I am a retiree looking primarily for steady income with some growth.

Q: I listened to a CIBC webcast today outlining the fact international equities were cheaper then US and possibly Canadian equities based on P/E ratios and are expected to outperform US and possibly Canadian equities in the near term. Interesting sectors discussed were international infrastructure companies, defense, e-commerce and semi-conductors. Could you provide a few Canadian ETF's that would provide exposure to these themes and list you favourite?
Thanks
Jeff

Q: Is viu a “derivative” of vxus? Total overlap?