Investment Q&A

Q: I currently have little emerging market exposure and would like to move some surplus funds into that sector. The transaction would be in my USD non-registered account. I've been looking at a few ETFs and think that DEM:US would be a good pick as a start. Of course if you have other suggestions please include them with your response.

What should be the maximum allocation to an emerging market ETF given I am retired and this income stream would supplement my pension, LIF and RIF income.

Thank you.

Q: Good afternoon,

I've owned the MAW 108 & MAW 106 mutual funds in my RRSP and TFSA accounts for a number of years and although I've been reasonably pleased with the absolute return of each mutual fund, the relative annual return compared to their benchmark index has not been that great...

Given that the MER of both funds is substantially higher than that of an ETF tracking the S&P 500 and the S&P TSX, I'm thinking of selling both Mawer funds and replacing them with one ETF that tracks the S&P 500 and another that tracks the S&P TSX, both with a much lower MER.

Q1. Do you agree with this course of action given that there would be no tax issue in selling these Mawer mutual funds and replacing them with two appropriate ETFs.

Q2. Would you kindly recommend your two best ETF ideas that would achieve my goal of reducing my MER fees and that track the S&P 500 and S&P TSX indexes.

Thank you and as always, your sage advice is much appreciated.

Q: Can you please recommend an equivalent to VDY that holds U.S. Companies and is Canadian Hedged?
Thanks

Q: Is it true the companies in IJR small cap 600 are requred to be profitable and 45 % or the companies in the Russell 2000 are not profitable thus making IJR a safer and better investment, Is there a covered call etf similar to IJR? Thanks for your expertise.

Q: Hi, I'm not sure if my question went through previously, but I was wondering if you could provide more information on the ETF Fund Growth Model Portfolio with respect to proportions of different sectors and different country involvement?

Q: Over the long run these two technology ETFs show comparable returns. However while ZQQ has significantly outperformed RBF1030 over the past year, the trend has reversed over the last month. RBF 1030 has a higher healthcare component than ZQQ and recent healthcare news (diabetes, weight loss drugs) seem to be driving it forward while stumbling tech shares recently are holding back this component. Given the big run up in technology over the past year, do you think RBF1030 with its higher healthcare component might be safer or provide better performance over the next year or so.

Q: Hi there, do you have a view on any specific emerging markets (eg single countries) that are particularly investable right now? Ideally accessible via a targeted ETF. Thanks as always!

Q: I note you last comment on ZRR (BMO Real Return Bond Index ETF) was in 2022. I note it has declined from the $19 range about a year ago down to $14 currently. What are your thoughts on it today as a place to invest for dividend income (RBC shows a dividend of 6.83%). I am interested in it for income as I am retired. How safe is the dividend and what will cause the price to appreciate again?

Q: Can you please give me a few ideas on Emerging Market ETF's that you like. I would prefer little or no exposure to China. Do you agree with this thinking? Your thoughts and best ideas would be appreciated. Thank You.

Q: Hi 5i,
I am interested in purchasing HXX to get tax efficient exposure to Eurozone in my NonReg account. The AUM is approx. 95M, Counter party exposue is 24% and the 30 day trading volume is 1,500. Do you see any issues with buying this ETF for the long haul? Is Eurozone a decent valuation compared to Canada and USA markets? thanks

Q: Peter; If I own various oil and gas/ tech stocks does it make sense to buy a covered call ETF, i.e., the BMO ZWT and the Horizon ENCC , to hedge ? Thanks.
Rod.

Q: Do you consider this ETF suitable for a dividend-oriented portfolio? Thanks.

Q: I do not have a representation in my portfolio of the top 7 stocks that driven the markets higher this past year. What would be the best ETF to buy to represent these magnificent 7 as they are called?

Q: Hello, from a defensive perspective that is least correlated with the stock market, which ETF would you purchase ? (All other factors remaining equal)

Q: hi,
can I get your opinion on the Aug. 9th Globe and Mail article by David Rosenberg and Bhawana Chhabra, "...It's time for investors to revisit their asset mix." And are you able to provide a few Canadian dollar ETF's to buy ( US treasury index? other? ), if you would in fact recommend that?
thanks, Chris

Q: Can you compare these please. umax distribution is much higher and is not leveraged, fewer holdings but includes railroads

Is zwu leveraged, and what does "leaverage" mean

Can't find umax mer

Thank you as always

Q: What is your opinion of svol etf. What are the risks with it in your view. Will it increase in price if volaltility increase. Thanks for your expert analysis

Q: Dear 5i,
If one wanted to get exposure to Japan using either FLJP or FLJH and had a medium to long term view that the Japanese currency was going to get stronger than the US dollar. Which ETF is the best one to purchase for maximum appreciation? I often get confused with hedged and non-hedged products. Can you share any simple rules I might use in future to avoid the confusion. Thanks

Q: Hi gang , could you please suggest me 3-4 gold ETF? Hold for 2-3 years. Thanks
Alnoor

Q: Are there any Canadian ETF s that track the US defence industry ? What are your thoughts of investing in this sector ? Thanks. Derek