Investment Q&A

Q: Good morning,

I am looking for the best ETF to hold in my TFSA account that follows the S&P 500 index along with the reasons for your particular preference?

I understand that since HXS does have any distributions, there is no withholding tax to be concerned with which is an advantage. On the other hand, due to the distinct tax efficient structure of HXS, the MER on the HXS is higher than VFV and other similar ETFs that track the same index.

Given that both ETFs track the same index is there a clear winner for a TFSA account?

Thank you and I'll await your sage advice.

Q: ICLN I have a small position in my TFSA. The share price has more than halved since I bought it in early 2021. Is it time to sell and move on?

Q: Can you explain, in simple terms, how these 2 ETF’s are soon to have a management fee of 0% .
Is it something unique to these 2 products or could it occur on others having the same properties ? Thanks. Derek.

Q: !What can you tell me about these Besides paying a monthly dividend, they seem to be stagnant in appreciation. Is it worth keeping or exchange for something better.

Thank you

Steve

Q: Good Morning 5i,
I have held VEE for a number of years as part of my global exposure in my portfolio. I would like to replace it with another global ETF. Could you suggest 3 other ETF's that would provide more upside over the next 5 years. I also hold XWD so avoiding any overlap is a consideration.
Thanks for all you do for us each day.
Dan

Q: I’m looking for some niche type ETF’s that would have companies that supply electrical parts,/equipment suppliers for the electrical infrastructure build that many people are suggesting is coming. It would possibly hold companies like WIRE.
Also if there is an ETF that would contain companies that will benefit from the large data centres that AI companies will require to be built. This ETF would hold companies like FIX.
If there are none than maybe you could drop a few names under each category. HPS.A has been a great find. Thank you. Looking for others in the same field.
Terry

Q: Why is XGD down 14% while ishares global gold hedged EFT up 4.4%?
Also physical gold is up 6.4% over the year. (percentages taken from google finance).

Q: Hello 5i team,
You recommended in a previous question TUHY instead of HYI (being terminated in March of this year). I also have XHY in my TFSA. Is not TUHY and XHY almost the same except that XHY is CAD-hedged and is larger in market cap?

I am wondering which one has Canadian high yield bond exposure as well as US? Or is it that there is not much coverage in CAN in general?

Andrew

Q: Tom Czitron had an interesting article in the Globe and Mail for January 30. Would you agree with his thesis? He concluded with this paragraph: "This year may prove to be a wild ride for financial markets. An increasingly volatile global political situation adds to the appeal of North American bonds, and mid-term government bonds may be a relatively headache free place to be. A good way to gain exposure is the BMO Mid Provincial Bond Index ETF. It covers a promising area of the yield curve with some extra yield and no corporate credit risk." The ETF he recommended is ZMP.

We have decided to allocate 80% to equities, and 20% to bonds, and would appreciate your views on ZMP being part of our fixed income holdings.

Thanks for your insight.

Q: Hello 5i team,
I received notice that Horizon will be canceling certain ETFs including HYI affective March 20 2024. Can you give me other ETFs that are equivalent?
Andrew

Q: Hi 5i team,

My daughter and her partner are investing in their RRSPs through a work plan. They are in a number of Mutual funds, some with quite high MERs range about 1.5 to 2.5%. Also high redemption rates (some up to 5% in first year or two). I have tried to find the mutual funds from their statements, but mostly listed without codes so difficult to be certain of all data.

They have :
20% Balanced funds
47% Canadian Equity
13% Global Fixed income
20% Foreign Equity.

Amount invested is significant but not really high - includes 3 years of contributions/investment. I think they would be best to withdraw the money now and invest in ETFs. I don't think they need to similarly replicate the funds above in ETFs.

2 questions:

A. Any suggestions as to most efficient way to withdraw from these funds? Are there questions to ask that might help reduce redemption bite or should they just make the switch.
B. They are late 30's and 40 yo, so time horizon of approx. 20 years or more before needing money. They are interested in investing but are very early in this. Wondering what you would suggest for starter ETFs right now with bias towards growth. Perhaps you could suggest 4-6 ETFs that would give them age and time horizon appropriate investments.

Please use as many questions as needed.
Thank you in advance for your usual great service and the very helpful advice.

Q: Can you suggest other ETFs to play growth without the mag 7 -do you think AiQ is a good alternative?

Q: Could you please give me a Canadian ETF for each of the 11 GICS sectors within the TSX? An ETF that best represents the respective sector would be ideal. Thank you very much.

Q: Could you please give some recommendations for a Canadian listed U.S. dividend growers etf and what might be the best for a 2 to 3 year hold. Thank you

Q: Hi

I hold ZSP in my non-registered account and VIG in my RRSP.

My understanding is that it doesn't really make a difference from a withholding tax perspective where I hold ZSP but that the RRSP is where I should hold VIG.

Do you agree?

Q: Portfolio Analytics indicates that across all accounts, we are underweight in the Basic Materials sector. The two stocks and CGL.C listed above are the only holdings in this sector. (CGL.C is a small holding. as it can be traded with zero commission)

Please suggest some additional Canadian and U.S. stocks in this sector to improve diversification, include reasonable entry points, and rank them in order of what to purchase first.

For a Canadian ETF, what is your opinion of XMA?

Please deduct as many credits as necessary.

Thanks

Q: Hi, looking to invest 70,000 in two etf’s one Canada one U.S in a rrsp. (or two U.S. etf’s as I have no U.S holding yet)
Two suggestions that are a conservative sleep at night, and longer term hold, with a 2+% dividend.
Also would like to have if possible a balanced sector allocation. I already have lots of financial and oil- gas stocks, which is heavy in Canada.
Hope this makes sense?
Thanks

Q: Looking to add 1 of above etf to my tfsa for a 3 to 4 year hold would you please analyze and compare. Which would you recommend? Is there a tax implication to consider? Thank you.

Q: I have 18 K in US funds, do I convert it to CAD$ and buy VFV or do I keep it in US $ and buy VOO?

Thank you.

Q: hello 5i:
could you comment on the liquidity for this ETF? Is there something of the same vein that would have better liquidity?
thanks
Paul L