Investment Q&A

Q: In light of the Coronavirus , what are your thoughts about US health care etf’s over the next year.
Thanks,
Phil

Q: Retired, dividend-income investor. I own ZWC and ZRE and am thinking of topping them up. Their share prices have obviously taken a hit and buying more at these lower prices with magnified dividend yields "appears" attractive.

What I am wondering is related to the continuation of the dividend. By my numbers, ZRE is yielding 7.4% and ZWC 10.5% (annual dividend divided by current stock price). Am I correct that the yields are supported by not only the underlying security, but the covered call option? What happens if the underlying security reduces their dividend? I guess my real question is...is there a risk of the ETF dividend being cut?

Thanks...Steve

Q: I understand that a covered call investment is not the holding to have during a market rebound.

Instead of ZWE, which ETF would be appropriate holding to capitalize on a rebound.

Q: Which Canadian monthly income ETF would you choose XTR or ZMI? Is there another you think may be better?

thanks,
Paul

Q: Just read your March 17 Stock Market Update article regarding "Where is the bottom???" and the bear Market histories. Very enlightening.

I have been almost entirely in cash for over a month now and noted your portfolio changes. You mentioned Adding a new 4% position of BMO Equal Weight REITs ETF (ZRE) in the Income Portfolio. ZRE has been very steady since inception in 2010 gaining almost 40% over that time period until the recent unprecedented and understandable 37% drop since Jan 31.

My question is where should we park our cash while we wait out this terrible situation? Should we just leave it as cash? Is the BMO ETF a suggestion for a short term hold? I did read your Trade Rationale and was a little confused by your comment "remove some of the 'tail risks' that might be seen if there are issues at any individual company." Am I right in thinking this is in reference to ZRE being an ETF? Apologies for my ignorance.

Thanks for all you do

gm

Q: Your thoughts on XHY in a RRIF. Would you consider selling and using the cash for something with more upside potential. Thank you Barb

Q: I have a larger amount of cash in PSA and CSAV. Is this safe or is it safter at this time in cash, with the return so low?
Thanks for your reply.

Q: With a highly leveraged ETF like JNUG getting wiped out 90+%, what is the risk/reward of having a small position at current levels? If the sector sees a recovery and the fund returns to even close to where it had been there's potential for a small investment to be worth something if you took profits and sold the position. On the other hand, if there is an extended downturn, what is the risk of just holding the position aside from opportunity cost? Thanks.

Q: I have held the above stock, (TD) for several years and recently sold,, as it has easily been the most volatile stock in my portfolio. I am thinking of spreading the risk by investing in a good bank etf or reinvesting in one bank when the situation calms down. What are your thoughts, and if the etf route is best, which one or ones would you recommend.

Thanks, David

Q: Hi,

Could I get your opinion on 2 investment paths contemplating at moment for equity portion of portfolio?

At moment my equity exposure is passively invested in IWO, VGG, VIU, VEE. I am trying to decide if I should sell off this passive postion, in part or entirety, and invest in individual beaten up securities, for example a number from your recent reports for North American exposure.

The objective would be to have a higher return 2-3 years out from this market. Not really concerned with volatility.

Thanks

Q: Which ETF’s would you currently recommend to enter the market with broad market exposure. Perhaps one that covers canadian stocks and one that covers US stocks.

Q: Hi Everyone at 5i! I hope you and yours are all healthy and doing well! I am 38.17% down on my CPD holding. I now pays a hefty 7.11% and the share price is nice. Is now a good time to invest, collecting the dividend and waiting for the price to get better? This is for the conservative part of the Portfolio . Cheers, Tamara

Q: I recently heard on a podcast that small caps as a group tend to recover quicker than large caps. Can you recommend some Canadian and US small cap ETFs? Thank you.

Q: Is this the right time to invest in gold ? If so, bullion or coins.

Thank You

Q: If a investor is down 20% on his 40% cash position and ironically still has more cash to park --- what would 5iii recommend to do ?
So much for being the conservative investor waiting for a better opportunity .......

Q: Good Morning,
There has been a lot of talk about the value of owning gold in a portfolio recently. I was wondering if you could let me know how I can go about owning gold inside my TFSA? In addition, would now be a good time to buy gold, or would it be better to wait until markets rebound. In other words, is gold a better buy when markets are doing well.

Regards,

Ryan

Q: Both are tracking the last month in a similar downward trend. I understand why CPD is down with a predominance of reset preferreds and lower interest rates. Why is ZRE taking a hit with lower interest rates?

Q: Greetings 5i: I have some XLB which I thought would do well when/if interest rates fell. When interest rates plummeted the unit value dropped almost $7. Now I could be wrong (again) but I don't think interest rates are moving up or down any time soon. It's my expectation that when rates do eventually start to go up that XLB may not be something I want to own. I'd appreciate your thoughts. Thanks. Rick.

Q: When things seem like theyve settled down some, I plan to average down on some of my higher quality (less speculative) stocks. Im also planning to do this around dividend dates since this seems like a good time to compound DRIPS and collect extra shares.

Now, the core of my portfolio is still in a few broad market etfs. Do you think in the recovery that a certain market (S&P500, Nasdaq, DOW etc. - Im assuming not the TSX since Canada is fighting an economic war on multiple fronts) will happen faster than in others? Would you think in the recovery that buying hedged would be better since the US Dollar has been climbing recently? Thanks

Q: hi 5i .. for a retired income investor, which of these three ETFs would you pick to buy today, given these market conditions, and why ... thanks!