Investment Q&A

Q: I am quite interested by ZEM for diversification,and also for China, since China will probably become soon the first world economy...Concerning tax efficiency, are the "non-US stocks" listed on US markets submitted to the US tax on dividends? and are the foreign stocks listed on "non US markets" submitted a foreign tax on dividends (for most ,or for a minority) ?Thanks, Keep doing your excellent job , great help for all !

Q: Hi 5i guys,
I came across the ETF EDGE from Evolve that is not in your database.
It looks intriguing as a vehicle (in CDN$) to invest in global innovative/disruptive companies. Am looking at it for a small portion of my TFSA.
Also noticed that Evolve is coming out with a new ETF in the near future called DATA.
Any information/opinion on EDGE and/or an alternative in the space is appreciated.
Thanks, Steve

Q: Could you recommend a Cdn Materials, Utilities and Gold ETF for long term hold in a registered account ?

Q: Hello,

In the upcoming shareholder meeting, the following changes to the investment restrictions are proposed:

Current Investment Restriction:
[Each iShares Fund] shall store all the Bullion owned by the iShares Fund in: (i) with respect to CGL, the vault facilities of a Schedule I Canadian chartered bank or an approved subcustodian or sub-subcustodian or an affiliate or a division thereof on a segregated basis; and (ii) with respect to SVR, the vault facilities of a Schedule I Canadian chartered bank, or an affiliate or a division thereof, or a sub-custodian on an allocated basis.
[Each iShares Fund] shall ensure that the Custodian has adequate insurance in place in respect of the Bullion held by the Custodian on behalf of the Fund.

Proposed Investment Restriction:
[Each iShares Fund] shall store all of the Bullion owned by the iShares Fund in the vault facilities of one or more entities that meet the requirements to act as a custodian or sub-custodian for assets as described in NI 81-102 (or are permitted to act as a custodian or sub-custodian pursuant to exemptive relief from the applicable requirements granted by the Securities Authorities), on an allocated and segregated basis.
[Each iShares Fund] shall ensure that the Custodian itself has, or that the Custodian or sub-custodian(s) are required to ensure that their respective sub-custodian(s) have, adequate insurance arrangements in place in respect of the Bullion held on behalf of the Fund by such Custodian or sub-custodian(s), as applicable.

Would you be able to please explain in simple(-er) terms what's being proposed here?
Also, if the proposal is approved, how it would affect attractiveness of CGL going forward? I.e. would it be a good idea to continue to hold it?

Thank you kindly

Q: I bought IWO back in April and it has now risen to 11% of my portfolio. I am wondering if it would make sense to reduce and pick up some US Large Cap. I already hold MSFT, GOOG, DIS. Or, being reasonably risk-tolerant, should I just continue to hold?/ Thanks Jim

Q: In your reply to my earlier questions, you advised that RPAR and NTSX could be considered core.
1. Given low volumes, should liquidity be considered a risk in a down market?
2. How do the Sharpe ratios compare? Do they achieve the goal of less risk than the market, with decent returns?
3. The drawdown with NTSX was much higher than RPAR - can you explain?
4. What percentages would you advise for one or both as core holdings?
Thank you.

Q: My portfolio is moderately balanced, and do not include internet or technological Cdn values ( as SHOP,CSU,OTEX,BB,KXS,ENGH,LSPD,etc…),or equivalent US stocks. The main reason are that : 1) I feel that prices and ratios are very high 2) My objective is a ” safe mix” of revenues and growth 3) It seems impossible to predict wich Cies will be the “winners” in the future in this new trend 4) I tend to keep stocks and ETF for long term (not too much surveillance needed ) .Do you have any suggestion (stock or ETF) ,and general point of view ? many thanks

Q: Hi

On the issue of ZEM being more tax efficient than VEE. Does this apply in registered accounts?

Q: A lot of commentators are saying sectors other than technology should do well in what is seen as a bull market. Do you believe buying an industrial etf is a reasonable investment? I am underweight industrials. Thanks, Bill

Q: Hello -
Back in early November you had mentioned that QBTC was trading at about a 24% premium to Bitcoin itself. Since then it looks like Bitcoin is up maybe about 20% and BTC is down approx. 5% (?)...... you can likely can confirm those figures. Part of that is maybe CAD / USD differences. I am assuming that BTC and Bitcoin don't exactly move in lockstep.

Is there a way to figure out how much the day-to-day premium is?
It QBTC a better relative valuation than it was a month ago?

Thanks !

Q: Do you think ZEB is good value right now?

Q: Hello Peter and Team
I would like to invest in the Russell 2000 ETFs.
In the current and the midium term market conditions what will be your advise for the most appropriate ETF.
IWM or IWO Growth or IWN Value.
Tahnk you, I value your opinion
Raouf

Q: Wondering what the future holds in the way of capital appreciation for CPD? What will increase the value of CPD, like sentiment or change in economic cycle or something else?....Thanks....Tom

Q: Are there ETF's or Mutual Funds on the market that focus on commodities internationally (excluding gold)? Which would you find are top performers? Thank you

Q: Do you know why BMO emerging market ETF (ZEM) contain 10.7% of US holding ?

Q: Thanks for the quick answer. Just a follow up to my "renewables" question. My 3rd question was meant to compare ZUT versus the covered call equivalent ZWU (not ZWC, which I also own). Rereading your answer a few times makes me believe that you thought the intended comparison was between ZUT vs ZWC...not so.

It appears to me that the total return for ZUT handily beats that of ZWU. My question related to where we are in the market cycle. My understanding is the covered call overlay system works best in a slightly rising, flat or slightly falling market...I think. Otherwise the CC ETF will underperform in a bull market. So, based on where you believe we are in the market cycle, which ETF is best...ZUT or ZWU. This ETF is intended to improve my asset allocation by increasing my Utilities and Energy exposure. Again, I already own ZWC. Based on where I think we are, I am leaning towards ZUT for total return. Your thoughts?

Thanks for the clarification...Steve

Q: ZCH seem to have low daily volume. Can you suggest an alternative pure China ETF. Thank you.

Q: Hello:
We are hearing a lot of chatter about the switch to Value stocks; away from growth stocks.
What are your favourite Value stocks ETFs in Canada and the US. Both for small caps and large caps.

Q: Good day,

Would you have a problem buying ZNQ today for a long tern RESP hold, instead of buying the 5 biggest companies of the etf? Thanks as always for the great service.

Q: Retired dividend-income investor. Your answer today about an ETF with a focus on renewables hit all of my markers. I've been struggling how to address the renewables latest trend and your answer solves my dilemma (already own AQN, FTS, TRP).

Q#1 = So, if XUT has roughly 45% renewables, what % renewables does ZUT have?

Also, it appears that ZUT outperforms XUT over multiple time periods and has a slightly larger dividend. ZUT is also equal weighted while XUT is not.

Q#2 = Which would you choose, XUT vs ZUT and why? I'm leaning towards ZUT.

Q#3 = Now, throw in where we are in the market cycle. Assume you chose ZUT in question #2, what would you think of ZWU? ZWU has a covered call overlay that helps to deliver a 7.9% dividend vs ZUT of 3.5%. I know you are not keen on CC ETF's in an expanding market as they limit the upside.

Thanks for your guidance...much appreciated...Steve