Investment Q&A

Q: Good morning 5i, I am looking to add some covered call ETF’s to my holdings. Which covered call ETF’s would you recommend in the sectors of industrials, tech, consumer discretionary and energy. Which would you recommend reflecting the S&P 500.
Thank you in advance
Dan

Q: Dear 5i,
Out of all the countries classified as Emerging Markets.
In your opinion which countries are expected to outperform the S&P500 index if held for at least 5 years? Can you suggest some Canadian and/or US listed ETF's that might achieve this goal. I'm interest in holding a 2 to 5% position for at least 5 years in my TFSA.

Q: hello 5i:
would like your take on this ETF, for a registered account. We're looking for sustainable income: I've reviewed the sector and holdings breakdowns and realize the fund will not do as well in a bull market. Part of the reason we're so interested is that Seeking Alpha’s Quant system rates DIVO the very best nontraditional equity derivative income fund out of 14 choices, which is a fantastic stamp of approval.
If (a big word), we return to a bull market where growth handily beats value, DIVO should still see gains in NAV, correct? And the yield (around 5%), should be sustainable, correct? What have we not thought of here, or in other words, what are the red flags we've missed?
thanks
Paul L

Q: Hi Peter,
My question is about Target Maturity Corporate Bond ETFs. Please comments on the advantage and disadvantage of using a ladder of these target maturity bond etfs as a base for the fixed income portion of one’s portfolio. Seems to me instead of buying individual bonds at a discount to take advantage of capital gain upon maturity, the investor can purchase these target maturity bond ETFs to achieve the same goal with more diversification. Is this correct? For investor, is the tax treatment between individual bond and target maturity bond etf the same on an annual basis on the interest income received and on the maturity year when the principal at par is paid out? What should we watch out for when considering this kind of ETFs? What will be your pick for the best target maturity corporate bond ETFs offered in Canada and in the US? Thanks.

Q: Good afternoon,

Q1. I would appreciate your thoughts on initiating a position in the Semiconductor sector at this time.

Q2. What are your thoughts on XSD ETF and do you have a better recommendation in this sector.

Many thanks and I'll await for your response and sage advice.

Q: Please offer your top 3 sector ETFs (US) with highest conviction for overall return, over the next 3 years.

Where would IJS rank ?

Thank you .

Q: I don't mind this ETF's strategy, and am attracted to the underlying ETF's dividend tax-credit eligibility, but the issuer reports AUM of less than $5M, which suggests poor liquidity, if not trading-by-appointment. Is there any reasonable argument for overlooking this weakness - for example, that domestic large-caps just aren't likely to appreciate by much over, say, the next twelve months?

Q: Dear 5i,
In regards to Horizon's ETF; HBB.TO
There web site says the MER is 0.10% and the swap fee is
no more than 0.15%. Does this mean that %Gross Total Return gets
reduced somewhere between 0.10% and a maximum of 0.25%?
Are they any other fees other than trading fees I need to be aware of?

Q: Good day,

I was considering parking US$ funds from my brokerage account in SPRXX (Fidelity® Money Market Fund) or VMFXX (Vanguard Federal Money Market Fund). However, I am given to understand that Canadian citizens cannot own US mutual funds. (Thank you for the guidance!)

Is there something else that you can suggest for US$ in lieu of these? How do they compare to Canadian ETFs CASH.TO or PSA.TO in terms of safety etc?

Thank you

Q: I am currently 14.5% NVDA in a 1.2M portfolio. Should I trim back my shares and go into QQQ or VGT?

Q: Hi 5i,

What is your opinion of the growth prospects for iJS over the next 2 years?

Thanks for the opinion.
John

Q: Can you name a few securities that you would recommend in an effort to capitalize on the potential bond market opportunity as outlined in your March 16th market report?

Please rank and provide a brief explanation for the ranking.

Q: Oil and nat gas seem to be subjects of market manipulation. Especially in light of OPEC’s sudden announcement. Can you suggest a couple of non levered etf’s that track nat gas. Greatly appreciated.

Q: What are the pros and cons of buying HXT.ca

Thanks ralph

Q: Would you prefer XRE over ZRE and is their an actively managed REIT ETF or product you could recommend?

Q: Hi, would this market environment, IE any pending recession or downturn, is the consumer staple sector a good place to allocate some funds, if so can you name any ETF's.
Many thank's James

Q: I am not sure that i got the correct information but is it possible that over the last 10 years the unhedged ETFs have far outperformed the hedged ETF. If that is the case, why
Thanks, Peter

Q: Is this ETF still worth holding or could my money be better invested?

Q: For high yield ETF's like HMAX, ZWB, JEPI, etc, how is the monthly or quarterly payout taxed - interest, dividend, capital gains? If it varies by ETF on these examples, how is it determined? Thanks.

Q: Dear 5i team.

There have been a few questions lately on HMAX vs ZWB and all the responses thus far discuss the upside potential and difference in strategy. What are the downside risks of these two aproaches to their covered call strategies? Has the recent volitility in Banks given us any insights into this part of the question, or are we still in speculate on outcomes mode. If the latter, please provide some educated speculation on impact of continued downward draft in Bank equity prices.

Thanks for your insights.

Arthur.