Investment Q&A

Q: For an income component, would you lean to a bond holding like PFIA at this point or more to a high interest account like HSAV?

Thanks

Q: I am at a point in my life where I am looking to my investments more for income than growth. My question concerns how you might incorporate a strategy that are includes "dividend" stocks that pay a low yield. eg HD, TRI, CN etc. Assuming you wish to obtain an overall yield of 4% - 5% from your portfolio (in order to satisfy RRIF requirements while maintaining some growth) I would think it best not to load up only on high yield stocks and continue maintain a balanced portfolio. To achieve the necessary income should one invest in low dividend payers and sell a portion of the low yield dividend payers annually in order to achieve the be needed income; go a bit overweight on high yield equities in order to juice the income; or just forget about balancing the portfolio?

Any thought you have would be greatly welcomed.

Appreciate the insight.

Paul F.

Q: thoughts about Evolve ETFs?

Q: I am considering buying HXS.U and HXQ.U in my non registered account for tax purposes. When looking at the 5 year charts of these 2 etfs I noticed a very large drop in both of them on the same day. For example HXS.U went from $85.38 on June 28 2021 to $43.03 on July 5 2021. These drops did not occur in the BMO etf ZSP.U or ZNQ.U. These drops did not occur in HXS or HXQ on that day either.
What happened then? Is there a risk that it could happen again. To lose half of their value is quite a scare.
Thanks
Victoria

Q: Interest rates likely peaking and many real estate stocks are trading at discount. I am considering adding to real estate. Would you comment on this thought and suggest a stock and index.

Q: For tax efficiency in a non registered account do you recommend HXS and HXQ over ZSP and ZNQ. For US dollars do you like HXS.U and HXQ.U.
For a long term hold what are your thought of HXT in this account?
Thanks

Q: Hi

Have a 33% gain on ATH.

Would you let run or change to VDE for safety.

Also this is would be in my cash account. I know the withholding tax would apply to the dividend but no big deal.

My goal is to reduce my Canadian holdings.

Thank you for your time

Mike

Q: One year ago I decided to choose 6 reits ( avoiding shopping centers and offices),+ one professionaly managed reit etf (mentionned above) .The final result is that the managed ETF did loose 15% +,and the 6 "amateur chosen" ETF gained more than 15% ,the choice was based on the "basic observation"of a slowing economy and specific individual REIT performances,I did then favour industrial, data centers and some real estate REITs.Is it normal that a professionaly managed ETF could underperform so much versus personal choices and why? I wonder if I should trust actively managed products on the future,considering the fees etc..,instead of just choosing stocks or ETFs in safe sectors according to observable macro-economic tendancies.

Q: Hello i would like to add some Zwu to my TSFA account strictly as income,hovewer i noticed that Zwu isn't part of your income portfolio any reasons? i'm 80.

Thanks.
Dan

Q: Dear Peter et al:

Thanks for your nice answer to Don's question today. (Friday, the 8th of September) regarding commodities. You gave a nice selection of ETFs. Looking at them they all have high concentration of energy sector and metals. MER in 70 or 80 basis points.

I wondered however if it would be better for me to hold XBM and XEG instead and lessen the fees plus opt for these bigger fund names with much higher market cap.
However I know I will miss sectors like corn, soybean, cotton etc.,

BNN had Mr. Rick Rule yesterday and he is of course a Metals and Mining Guru! This plus your answer to Don's question made me think of taking a small position in commodities . Looking at the most efficient and cost effective way to do his. Any thoughts?

Thank you in advance.

Q: Can I please have your opinion on this etf for an income investment.
Thanks

Q: Do you have any strong opinions about this ETF from Horizon for a long term hold? It tracks 6 Canadian bank stocks with 25% leverage. Is the cost of the leverage cheaper for them than it would be for a retail investor to borrow to invest?

Q: Am looking at adding some QQQ (or similar) in my TFSA but am wondering if now is the best time. Also, I am not as familiar with Invesco and usually go with iShares. They have XQQ but it is in Canadian dollars and hedged. Would IYW be similar to QQQ? Are you quite comfortable with QQQ? Would you be able to suggest an entry price for whichever one you recommend? Thank you.

Q: Hello. My portfolio is currently composed of all equities and approximately 10% cash. I would like to move some money 15-20% out of equities into fixed income. What would you suggest is a simple, yet effective way to achieve this? Invest directly into bonds? Buy a bond ETF? Bond mutual fund? Short or long-term bonds? Corporate or government? Can you suggest some bond ETFs or mutual funds?
Thank-you.

Q: What ETFs would you recommend to use to represent the international portion of a portfolio? What ones would you use for:
1. Europe
2. India
3. Japan
4. South America
I have excluded China because I don’t trust their reporting. How would you divide that 30% up? Is there any other countries/areas that you would view as investable that I am forgetting.

Thanks in advance.

Q: Hi- I am wondering if a small cap ETF would be a good choice for a RSP account (e.g. XCS and XSU specifically)? Aiming for low risk in this account.

Thanks

Q: Would you say selling VAB and buying HBB would be a superficial loss in CRA's eyes? Or are they different enough? They do track different benchmarks (by title, at least).

Q: I hold ZWU ( significantly),in my RRSP +my non registered account,since my belief was that 1) utilities offer stable yields+ are quite essential even in a recession 2) call options from BMO are made for 50% max of portfolio, so ZWU could also benefit from some growth( in theory ..).But in fact,ZWU share price is in a constant downtrend since the last 10 yrs (17 $ in 2013,10$ now).The dividend is for more than 50% ROC, the rest being mostly eligible dividend.Do the clear fiscal advantage+ the 8 % yield compensate for the capital reduction over those 10 years ?

Q: Now that I discovered that RBC has opened its direct investing accounts to high interest saving ETFs, I am interested in moving the cash portion of my portfolio. HSAV is interesting because of the capital gains tax advantage. However I noticed that it has been fairly volatile in the last few weeks - swinging by almost 1% in a single day. That is more volatility than I would’ve expected from an investment that primarily holds bank savings accounts that reprice daily. Is there something else going on here?

Q: A query on your statement the other day about this high-interest savings ETF. You stated its indicated yield was 6.10% but on the Evolve website the gross yield is indicated as 5.48%