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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good morning, and thanks for your consideration on my question.

Last week I was taken off guard by the Cease Trade Order imposed on ETF provider Emerge Canada. As a unitholder of EAGB (RRSP account, Long term time horizon) I did not receive any communication from the company, and didn't notice any news on the Emerge website. Apparently, ARK is now re-evaluating its relationship with Emerge.

A recent FT article on this noted that this could be both long in the running and potentially terminal for some of their ETFs.

If I remain positive, and anticipate that this situation gets resolved, I cant help but imagine a massive sell off once trading resumes. In your opinion, and generally speaking, does one "close out their position" when the opportunity to do so comes up, or stay the course?
Thank you, Mike
Read Answer Asked by Michael on April 21, 2023
Q: How would you recommend adding a small/prudent amount of exposure to bonds in the current market environment?
Read Answer Asked by Patrick on April 21, 2023
Q: Good morning, according to your analysis there may be an opportunity to profit from a resurgence in Small Cap stocks, following their decline over the last year. Can you recommend an ETF that tracks the S&P SmallCap 600 Growth
Read Answer Asked by Fredrick on April 19, 2023
Q: I am interested in parking some cash in a dividend producing vehicle. I've come across PIC.A which has posted impressive dividends over the course of many years. Could you explain the mechanism of how they are able to produce such dividends and please give your opinion of their ability to continue such going into the future. Any alternatives that you prefer would certainly be appreciated
Read Answer Asked by Teresa on April 18, 2023
Q: Cathy Wood's ARKW ETF has a Canadian version being EAFT-NE. The EAFT has a different management company than the ARKW which Cathy Wood looks after. BDO was the accounting firm for the Canadian version of her funds until awhile ago. Now they do not have an accounting firm and they have run out of time to get one and so their funds are not allowed to trade. Would the Securities Commission be looking into this as me and many other owners would not be happy this is happening or once it trades will it mirror the ARKW which is the US version of it and it is trading?
On another note, my wife's broker advised that active short term traders would have to pay 100% tax on their gains.
Read Answer Asked by Dennis on April 17, 2023
Q: Dear 5i,
In regards to Horizons Corporate Class ETF's.
The tax efficiency of these ETF's seem very attractive for taxable accounts.
What are the key risks of holding these products other than market risk?
Is it basically the chance that the Canadian government might change tax legislation for these type of products? If this is the case do you think it is a low probability since it could trigger massive tax liabilities for Horizons and Mutual Fund companies that offer this corporate class structure?
Read Answer Asked by Ian on April 17, 2023