Investment Q&A

Q: What would be the closestCanadian ETF that has characteristics similar to US SCHD?

Q: Hi Peter,
Regarding bond and US treasuries ETFs, if the ETF yield on my purchase date is 5%, would my annual interest income remain to be 5% as long as I hold the ETF, similar to my buying a bond with a yield to maturity of 5% and hold it to maturity? What are your top choices for 10 year US treasuries ETFs US listed, and Canadian listed and what’s their current yields? Thanks.

Q: Recently I asked a question on HBND. Could 5i give me a similar analysis on HPYT ? As well as comparison of the different structures between the two . The only one I am aware of is the 50% position of HBND that is not covered calls . Not sure what the situation is with HYPT ..... The yield on the two is considerably different with the former yielding 10% and the latter 15% ...... Please compare what you would suspect would happen differently with each under rising/stagnant/falling interest rates ?..... Thanks Garth

Q: Dear 5i team.

Can you list US and Canadian small cap ETFs that are options currently, and which you prefer given the outlook over the next few mths?

Many thanks for your help.

Q: NTSX/VUN Peter; Would owning these two be too much overlap? Thanks.
Rod

Q: I was updating my asset allocation model and took a closer look at XST (Consumer Staples (ETF).

RBC has it as 75% Staples and 25% Discretionary. What are your thoughts...should I use 75-25 or 100-0? My model is very easy to update.

Thanks...Steve

Q: Peter is HHL etf a good choice for income investors.?? Is div Safe thanks Ken

Q: May I have your current thoughts on the iShares U.S. Medical Devices ETF (IHI). After a tough three months and today's 5% dip would you consider it an opportune time to add for medium to long term investors, or is it better to let it find its feet first?

Q: Peter; Would this be one to buy if, as and when rates start declining- or are there better options?Thanks.
Rod

Q: I am an income investor in my 80’s, largely in large cap Canadian equities and with 30 percent in GIC’s. Approximately 5% in U.S. stocks through ETF’s. I feel that I should have a larger U.S. presence but lack the knowledge to invest in that market. Can you make a few suggestions, bearing in mind that preservation of capital is important?

Q: I have about 80,000. in cash that I would like to collect interest on for a while. Can you suggest some options for this.
Thank You
Peter

Q: This morning you responded to a question from Ralph regarding TXPDDV. I checked my SDRIF and I see that for my shares of VFV I receive a TXPDDV. I understood that there was no withholding tax in a SDRIF.

Q: Hi 5i,
FLEE is a Europe ETF which includes UK and FLEU is a Eurozone ETF excluding UK.
I am interested in investing 5 to 10% of my TFSA in one of these ETF's to hold for the long term. In your opinion which one might offer the best total return and why?
If I also hold approx. 20% in S&500 do you think I need to buy any of these?

Q: What do you think about taking a new position in Russell 2000 at this time? Dan Niles was on CNBC talking about how the index may outperform some of the big tech names. I am also considering a position in SPY and/or the QQQ. I tend to buy and sell stocks too quickly and my thought was to buy an index fund with a view to holding longer term so that I don't have to worry about individual names. Thank you,

Jason

Q: hello 5i:
we're interested in starting a small position in HBND.
First, can you clarify something.
You said, in reply to a previous question: "But if rates stagnate or decline, and for an investor seeking income, the yield on this ETF may come under pressure, but its unit price can see capital appreciation. "
Are you saying here, that if (for example), the 10 year Treasury were to fall from 4.8ish to 2.4ish, that HBND would then yield around 5%? Along with a capital gain?

Second: would the decrease in HBNDs yield matter that much, as Treasuries and GICs, etc, would have a similar decrease in rates (a 1 year GIC paying around 2.5% vs a current rate of around 5%?

Third: isn't a stagnant yield almost ideal for a covered call bond, as nothing is changing, other than the seller continuing to collect the premiums from the sale of the covered calls?
thanks
Paul L

Q: If we had $75K in an unregistered account, would it be accurate to say that purchasing an ETF like HSAV would be better than putting this money in a GIC or high interest savings account, due to the fact that there are no distributions and thus, only 50% of any income are taxable?

In other words, if I am deciding between a 6% GIC, or HSAV (which I believe has a similar yield), I would pick HSAV correct?

Are there similar ETFs like HSAV that have similar characteristics (ie do not pay out dividends) that you would prefer over HSAV?

Q: My son, 25, recently married and working in USA, has just begun contributing to ROTH IRA matched by employer and looking for advice on on initiating investment in top 4-6 etf's to achieve long term gains with appropriate market diversification. Also, could you please suggest weightings for each considering moderate to high risk tolerance? Thanks so much. Tony

Q: Hi, I’m a little overweight in these sectors, and thinking about selling one, and adding XIU or ZCN for diversity and dividend.
Which would you sell ( T or Becp) and which would you add ( XIU or ZCN) for a long term hold. thanks.

Q: EWW (Mexico ETF) has been doing well until very recently on the basis that Mexico now comptetes favourably with China on labour costs. Are there any new developments to explain the sudden drop on the valie of this ETF?

Q: There is a ( very) new ETF, coming out from Horizon with ticker QQCL being a covered call Nasdaq 100 with anticipated yield of 14.10 %.
This seems to be attractive for my TFSA for higher growth (with volatility which I can handle), along with a high yield.

I have bought several of these products, HTA, HHL, UMAX for both my registered and non registered accounts. They seem “ too good to be true “ and am wondering if that’s true. I have seen many of these enhanced products ( remember flow through shares ?) and hope these do not repeat.
Your thoughts on QQCL and on these ETF’s in general would be appreciated.
Thanks. Derek