Investment Q&A

Q: For someone with a long time horizon and high risk tolerance, and a smaller portfolio, it seems like it might be a good time to invest in a growth ETF. I know you like IWO, but IJR has a lower MER. What are the main differences between these two ETFs? Which would you recommend and why?

Q: I am a big fan of factor/smart beta investing, but I am having difficulty identifying Canadian made etfs with both adequate size and daily volume. Please suggest etfs sold in Canada to build a couch potato diversified portfolio covering a Canada, US and global geographic area. I am quite impressed with WXM and ZUQ. I am a senior with a conservative growth inkling. Please charge question credits approriately based on your time to provide a workable response. Thank you.

Q: Currently hold vti & vig. Any issues here concerning overlap of holdings or outlook?

Q: I want to invest into us small cap, would you please compare these three ETF, which one to choose today for a long term hold and why? Thank you!

Q: Hi,

Your answers to one of the subscriber's questions regarding Value stocks included embeded inks to research articles. (I think the reader quoted Mr. Swedroe and you responded with differing views from others).
Those embeded links were awesome but my "head hurt" after reading them! Dense, filled with a lot of details. Left me with the impression that it is definitely worth buying Value stocks/ETFs. Small/Medium companies?

BUT there are so many ETFs to consider. An article on Value ETFs is begging to be written by you!

What is your short list of Value ETFs, listed in the US and in Canada?

Thanks in advance.

Q: Are small caps in favor currently or have I missed the boat. If not, what do you think of XCS as providing exposure to small caps?

Carl

Q: I have roughly 15% of my entire portfolio within a Taxable account. The rest is diversified within my RRSP, TFSA( Maxed) and LIF. With regards to the taxable account I would like to keep it as simple as possible taking into consideration the tax implications. I am thinking of going with an ETF or ETFs for this account. What would be the best etf's to go with and what % breakdown. The rest of my portfolio is basically 50% fixed income 50% equities,

Q: What are your thoughts on covered call ETFs? And if you like them, which would be your favourite(s)?

Thanks guys,

Dave

Q: Hi,
There were a few questions in January 2022 about both the US/Canadian banks. Your answers seem to be favour holding some banks b/c of rising interest rates and more recent earnings results.

What are your favorite bank ETFs in Canada and in the US? (US ETFs are a lot cheaper to buy and hold). Do you still feel optimistic about this sector?

This is for my RRSPs. So, withholding tax is not a factor.

Thanks in advance.

Q: HYLD will be starting to trade Feb 7 on the TSX and they are planning to offer a huge 10% yield. It will use a similar strategy to HDIV which invests in an equal weight of covered call ETFs and levered 25%. Any thoughts on both for income?

Q: I have reviewed materials on small to mid cap ETFs using such sites as ETF.com, ETFtrends.com and other. Question: in current market conditions, what US-listed ETFs, if any, would you buy today:
1. Small cap or mid cap ETFs? If you faor either or both , which ones do you suggest? (I dislike, or have doubts about, IWO which is in your model).
2. Would you prefer a mix of small and mid cap ETFs over (1) above? If yes, which ETF do you like that covers both small cap and mid cap? (US only)
3. *IF* you are in favor of small cap or mid cap (or a combo) at this time would you favor value over growth? In your answer kindly suggest what if any ETFs would be suitable. (US only).

Q: I am looking to diversify to more reasonably valued markets. I already own North American and European stocks / ETF's. So I want to increase my Emerging markets portfolio weighting. I own VWO (heavy Chinese component) and also ZID, so I would like even more diversification in S.E. Asia.

You've recently answered a question about EWY and mentioned how reasonably priced it was. Would EWS also be good value right now (i.e. P/E, P/S) ? Is 6% the correct dividend yield for that ETF, and are there any taxes withheld if it is part of one's RRSP ?

Q: I recently asked a question about infrastructure funds and your team suggested IFRA as an ETF option (because I was just asking about one fund). Based on this and some further digging on my part, I am thinking of splitting the funds between two infrastructure ETFs i.e., IFRA and PAVE. Do you see any issues? Thanks again.

Q: Hello 5i,
These three make up the fund portion of a senior's portfolio. All of these have a US focus. Can you suggest 1-2 ETF's that would compliment these three with more diversification and some balance. Nothing risky; 5-year horizon.

And should the TD mutual fund be replaced with an ETF with lower fees?

Thanks for your guidance.

Q: Hello,

How does 5i feel about QQQJ, it would seem a good way of capturing future growth while staying diversified ?

Q: Please give me 2 ETFs that are great over time and I can add to every couple months

Q: Hi 5i'ers - ARK is down do you think it will rebound and that Cathy Wood will readjust these to move forward in the next few years. THX!

Q: I am contributing to my RRSP. I have a maxed out TFSA and also have a non-registered account. I am trying to stay fairly diversified in terms of sector. (and am happy with that mix currently). What I would like to do, is focus on the US in my RRSP for tax considerations. My US exposure is currently low.
Questions: Can you suggest some ETFS or Index Funds that take advantage of the tax situation and are favourably priced right now? Should I contribute to the RRSP in $Can or $US? Is there an advantage to either? 5-10 year time frame.

Thank you for your great service!
KEN

Q: Hi,Concerning dividend tax credit on CDN Cies for an ETF in a non-registered account : What happens when this ETF includes a mix of canadian and foreign Cies : do we still get the tax credit on dividends for the canadian portion of this ETF ?

Q: You have previously answered my question on Japan ETFs (large cap; small-mid cap). I own EWJ:us and FLJP:us , an ETF you recommended to me when I asked you about EWJ. (FLJP:us is still not in your data base). Japan has me more puzzled now than ever. Several financial commentators insist that Japan is good value; that many small-mid caps trade below the cash values on their balance sheets. I stayed with my Japan ETFs because of such comments and blurbs in financial media. I now have doubts about Japan and certainly no longer trust the “trade below cash value” comments. I recently visited medical equipment companies in Tokyo and Osaka, but one trip is no basis to judge if an economy— or even just one sector— is on an upswing. Additionally, Japan’s stock markets have had false starts since the 1990s.

Would *YOU* keep holding Japan ETFs, and why please? (Diversification would not be sufficient reason to hold, in my case).