Investment Q&A

Q: What would be your answer if today’s Roy’s question was about RRSP or RIFF account ?
What bond ETF would you suggest if any or is it just better to get sitting like CASH?

Q: Can you update your thoughts on this ETF. Do you consider it ‘bestin class’, or can you recommend better options?

DON

Q: Hi,

I set up an unregistered account for my wife several years ago with the following ETFS, with the thought that it would be relatively easy to maintain:

VGG
ZSP
ZCN
ZIU

In looking at it today, I'm wondering whether I have too much overlap. I can't remember what my logic was for these four ETFs! I should have written it down as my memory doesn't work so well anymore.

Does the above work ok? Or would you slim it back? And add VIU?

Thanks,
Robert

Q: One of these will have to go as I need the funds. Which one, or should I just decrease each one. Thanks and greetings. Peter.

Q: I need a fixed income investment, and would prefer US based,
I came across CDX, Nasdaq. I'm considering a $70,000 investment. Your thoughts would be appreciated.

Q: I have a very large sum of cash sitting in xfr at a paltry 3% yield

I'm contemplating shifting some to xfli (5.7%) and pfl:US (11.6 %) for the enhanced yield to result in a double and quadruple in monthly income

I understand there is more "risk" (interest rates, and some leverage with pfl), however,

I feel that the reward far out weighs the risk in order to increase monthly income

What do you see as a worst case scenario. I look forward to your comments.

Thank you so much

Q: Can you recommend Are a few bond ETFs that do not pay their interest but the ETF prices go up. I want own bonds and avoid taxes on their interest. I know I will be caught with capital gain taxes, but capital gain taxes are half of interest taxes.
Thank you

Q: Can you suggest a list of best emerging market ETFs Traded on TSX in CDN$ and on US exchange in US$.

Can you also suggest list of ETFs with defense companies

Q: I asked a question last week but it must have got lost. This is a follow up question regarding my question about if you could only hold 3 ETF's what would they be. You answered ZSP, XIC and ZNQ. Can you please explain the rational for owning both ZSP and ZNQ. Is there not a lot of overlap between the two? And if I were to hold only these # ETF's can you also explain why you wouldn't include another international exposure ETF? I believe ZNQ is currency hedged which usually means higher fees. Is there another option to ZNQ that isn't hedged with a lower MER?
Thank you for your service.

Q: Thanks very much for your really insightful answers.
Which ETFs capture the blockchain technology space? Any ranked recommendations?

Q: Hi there, I'm looking to add a small position to get Etherium exposure. What is your recommended way to get exposure on the TSX, if one doesn't want to hold the currency directly? Thank you!

Q: Hello Peter & Team,

You often Mention ZRE as a good option for exposure in the RE Sector and I have held it for some time. The dividend is ok but, I am under water a little over 8% since taking on the position in 2023, and I'm getting a little weary of waiting... If you suggest to continue staying the course (always long term holds in my portfolio) because you expect I will climb out of this hole, then that is what I will do. But if you think I might be happier moving on to an alternative that you could recommend which might generate some gains while providing solid income along the way, it would be a recommendation I wouldn't say no to.

Thanks for all you do

gm

Q: I am building a small non-registered portfolio to provide income with modest capital appreciation. Your thought on these 4 ETFs or other suggestion.

Q: If you were setting up a diversified unregistered account for yourself from scratch using US ETFs today, for a long-term hold:

How would you approach this?
What would ETFs would you pick?
What percentage would you put in each?

Please charge multiple questions as needed. Thanks very much.

Q: Good morning,

May I have your favourite ETFs (Canadian or American) for:

- Iron ore
- Aluminum
- Platinum
- Palladium
- Rare earth

Thank you very much.

Q: Dear 5i team.
The following was your response to a bond question I asked in '24.

"Nothing is guaranteed, but bonds' leverage is highly correlated to their maturity. CLF has a relatively low duration of 2.8 years, whereas XLB is 15 years. As a general rule, for every 1% increase or decrease in interest rates, a bond's price will change approximately 1% in the opposite direction for every year of duration. With a bond ETF in theory the move should be similar, and thus XLB in theory should see a much larger move than CLF when rates move (either way). In reality it is not so concrete, and depends on variables in the yield curve and other factors (supply/demand). But we would be very confident in saying that if rates move lower XLB's bond portfolio should do significantly better than CLF. Owning XLB is essentially a 'bet' that rates will drop. As such, we would be fine owning both XBB and XLB for a bit more diversification of bonds. XBB's duration is 7.5 years so a good middle ground between CLF and XLB."

Been watching XLB/XBB for some time now, and both appear to be in downward trends in terms of share price, and close on yields. Rates have been steady, or in decline, so I'm completely confused.
Please take a look and try to make sense of this for me?

Many thanks for your help.

Q: Health care as a sector has me puzzled. I was adding to my positions in XLV and IHI during 2023-2024. I was prompted to keep investing thinking demographics would favor growth; that elective medical procedures postponed would come roaring back in the years following Covid. Mostly good companies were held in the above ETFs, and I was comfortable investing also because of familiarity with products and services. Markets have proven me wrong. My cost base is markedly higher than valuations today. XLV is down ~5.25% over the past 12 months (year-to-date return is flat —down -0.05%).IHI, although slightly up ~4.28% YTD, has still not recovered from a 20% drop in 2022. (Losses I show are much greater and are not useable for tax).
Current officials in the US admin have no clue on how to go about drug price reforms. Worse: they don’t know that they have no clue. Reforms are necessary; and PBMs are rightly under scrutiny for opaque pricing practices. I say this notwithstanding that UNH has produced the largest dollar loss I have had in several years.
The science and med professionals who DO know how to implement sensible and substantial changes are fired and replaced by sycophantic, subservient ignorant types. Is it therefore prudent now to sell one or both of XLV and IHI and redeploy cash in other areas? OR, would one be giving up at possibly the exact wrong time? Is now finally the time that patience with XLV and IHI has a greater chance of paying off?

Q: Good afternoon 5i;

I have been a holder of the TLT ETF for some time; only a very short period was it in the green. While the yield has been decent, I am now down 14% as the Jerome Powell cage gets rattled.

My question is simply, are the Trumpian risks becoming too much to hold this ETF? I believe he is radical enough to remove Powell, but likely won't and will just continue to make noise. Even the noise is having impact.

If yes, do you have a Canadian Bond Fund you might recommend of similar characteristics?

Q: Are there any mutual funds or ETFs which invest in Private equity? Or simply buy the companies (Blackrock, Fairfax, KK etc) to get that exposure. I would like to add that for diversification but need direction.

Q: hi folks:

i try my best to avoid any counter party risk in my portfolio (because i am a luddite and think the derivative markets are in search of a pin)

2 questions:

are there any crypto etfs/funds that you are aware of that actually hold the underlying crypto asset?

seondly (with the same proviso) are you aware of a'one stop' crypto etf that would have say 50% BTC and the balance allocated amongst the 'others'

overall, looking for a one ticket solution with actual ownership

thank you

ps. as i understand it,. assets like IBIT, ETC ......do not meet the 'ownership criteria' noted; whereas FBTC (fidelity) and BTCC (purpose) do