Investment Q&A

Q: Hello
I hold these two bond funds which are down. Do you think they will rebound if interest rates start to drop?
I certainly could be putting the cash to better use.
Thanks
Jeff

Q: Hi 5i,
I am trying to find the ex-dividend and payment date for Hmax....Td web broker info only shows a dividend payment date of Nov 07, but have not received anything in my account yet as of Nov 14.....in your experience does that seem unusually long or does this fund require additional time to show up or do i need to take action?
thx

Q: I am looking to simplify the management of my RRSP and my wife’s RRSP by shifting from stocks to ETFs. I’m thinking that it would be easiest to manage if I have 1 ETF for Canadian Equities, 1 for US equities, 1 for International Equities and 1 for bonds/ fixed income.

We have a 10-15 year time horizon so ETFs with a growth orientation would be preferred.

Thanks
Greg



Canadian Equities
US Equities
international Equities
Bonds/ fixed income

Q: ETF's. Is this true? Thank you.

Most funds allocate assets in one of two ways. The first and most straightforward way is equal-weighted, which means the money you invest is equally split between the stocks the fund holds. If a fund has 500 companies and you invest $500, each would get $1.

The other primary method is distributing investments by the companies' market capitalizations (market caps). In this case, companies with a higher market cap receive more of the invested amount. For example, if a fund has 500 companies, a $1,000 investment could mean $5 to the largest company in the fund, while $0.10 goes to the smallest. The exact distributions will vary based on the range of market caps in the fund.

Q: Hi. Which bond ETFs do you currently recommend? US or Canadian. Thank you.

Q: SCHRODERS IS OFFERING .09% BONDS. THUS, HOW SAFE ARE THEY? D0 THEY HAVE GOOD CASH (BALANCE SHEET),CASH FLOW, LOW DEBT?

Q: On Nov 10, "Dave from Montreal" asked if you knew of a Canadian based ETF that focused on Canadian growth companies. You said you couldn't help, but I think you mistook his question as asking for a Canadian small cap ETF. There is the iShares Canadian Growth Index, XCG, which is for Canadian Growth stocks. The MER is a bit high at 0.55%. The 5 year total return is 8.78% annualized. Top holdings include SHOP, CNR, CP, BN, ATD, CSU, WCN, NTR, T, AEM, which seems a bit of a mixed bag, frankly, for growth. The ETF is based on the Dow Jones Canada Select Growth Index.

Q: “Horizons ETFs Management (Canada) Inc. said that since no distributions are expected to be paid, the ETF will be more tax-efficient for investors who hold it in non-registered accounts.”

Can you please recommend me a few Canadian and US listed alternatives that I may want to consider?

Q: Hi,

Currently have no exposure to crypto and have been a spectator on the sidelines mainly. I held positions in HUT and HIVE awhile back but sold those. With almost certain approval of a spot bitcoin ETF, the market is gaining optimism and it seems investors are more bullish on crypto. What is your view on the current crypto market? Is this run up going to be followed by another crash or do you see more sustained rally with the new ETF? Is this rally going to be followed by another selloff once the ETF news is approved?

What are some low, med, higher risks positions to gain exposure if one wanted some small exposure. Here are some I'm watching. Can you rank whether they are low, med, or higher risk.

HUT, HIVE, BITF, RIOT, DGHI, MSTR, RIOT, COIN, GLXY

I know you own GLXY in the model portfolio already. Also, what would be your top ETF for exposure?

I'm a very disciplined investor, but on the edge of FOMO ; )

Thanks!

Q: Hi all,
What makes the crypto market move ? Relationship to stock markets, currency, politics ? Where do you see the cryptos in the future, a good bet or rather risky ?
Any interesting study on this ?
Good day, Denise

Q: In light of the current interest rate environment and the possibility of a US recession in the coming months, what is your current opinion on ZHY and generally high Yield US bond funds? Do you remain comfortable owning these funds in a relatively conservative income portfolio?
Many thanks.
John

Q: Your thoughts about purchasing the above in my TFSA and/or RRIF accounts . Do you see any major downsides?

Q: I've been trying to find a Canadian based ETF that includes Canadian "growth companies" to no avail. There's a small cap one (XCS I believe) with volume that is too low for me and isn't really growth oriented in any event. Are you aware of anything that is similar in structure to your own growth portfolio (ignoring mutual funds which are way too greedy fee wise for my liking)?
Dave from Montreal

Q: I looked at the graph for XHY on your site and noticed that it is different from the one I find on the TMX site. For example on the 5i site the closing value for February 2nd is listed as $15.469 and for the TMX site it is $16.53. That is substantial.

Q: I really don't understand how bonds work.
But I sense there is a good opportunity to purchase bonds now that interest rates are close to peaking.
It took me about 2 years to come to an understanding of the stock market. My first stock purchase was a pretty frightening experience, and the next 10 or so were not much easier.
I'd be grateful if you can guide me to some good literature which I can study on bonds and which also covers the current market backdrop.
Thanks a lot.

Q: Can you please help me understand HISA ETFs - for instance, I see HSAV dipped down to $108.75 on Oct 30, then bounced back up. In an ETF where there are no distributions, what would explain the dips? In theory, shouldn’t it continuously increase in price?

Q: I have held KRBN in a registered account since early 2022. At the end of last year they paid out a huge dividend representing about 20%. I recall being very surprised at the time and couldn’t really find a lot of info or a clear explanation. Could you shed some light on why the fund paid out such a large dividend last year and is this a regular occurrence that can be expected again at the end of this year?

Q: Hello 5i,

As always, thanks for your sage advice.

I am light on international exposure. I am thinking of adding an Indian and Mexican ETF as both economies are robust and likely have a long runway.
Firstly, would you agree? and if so, could you suggest a go to fund for each.

And if no, could you advise what you think would be a better path?

Much appreciated,

Ralph

Q: I have a RESP for my son with equal weighting of IWO and VGRO. With money to deploy I was thinking of splitting it between these two ETFs. Any concerns with that approach?

Q: Do you think ESG investing still make sense today? If so please provide the best ESG ETF candidates and whether right now is a good time to invest in those ETFs. I am a long term investor. Thank you very much!