Investment Q&A

Q: Hello Peter and the 5i Team,

With China apparently selling vast amounts of US Treasuries, which in turn has caused yields to rise dramatically, resulting in a corresponding drop in price of this ETF, I'm concerned that an ETF like HPYT won't be able to mitigate the losses, even with its covered-call strategy. Since HPYT is scheduled to pay its distribution today, I'm patiently waiting to determine if my recent steep losses will be somewhat reduced by the distribution. I'm seriously considering getting out of HPYT entirely due to the unintended consequences.

Am I correct in my thinking? I don't have a lot of experience with ETFs of this type.

Thanks as always for your guidance.

Q: Hi 5i, in mid-December 2024 I trimmed my overweight Mag 7 holdings and put the cash into a US high interest savings account. I am now concerned about a decline in the US$. My question: should I be and if so, can you suggest some alternative holding/investment suggestions? Thanks!

Q: What ETF would you buy to be long the market in this volatile environment (moderate risk - some income if possible)? If you can suggest 3 with a brief comment that would be great. Thank you.

Q: I purchased this fund for secure monthly income hoping it would also hold up well .Could you give me an understanding of why it is dropping.in value? Currently down 3.5%.is this not to bad.Tks Larry

Q: Hi There,

I see this ETF is very volatile in the current environment. Are these short or longer term gyrations with the sell off in US Bonds?

I bought this as a “calm from the storm” holding with a decent yield but not sure if it’s the right choice.

Thanks a lot!

Q: Hi,

We could very well be heading into stagflation, which I understand to be slowing or negative growth, high unemployment, weak demand and rising inflation.

In such a scenario, which would be the best stocks or ETFs to favour ?

Many thanks,

Jacques IDS

Q: Given the current volatile market, option selling etfs seems to offer some tax efficient income while waiting for things to cool down somewhat. What is your opinion on investing in these vehicles? What is the risk / reward equation in an uncertain market. Is there one that you would prefer if you were considering for your income portfolio. Thanks

Q: Someone asked a question about T1135s and ETFs and your response was that if the fund is domiciled in Canada a T1135 wasn't required. Could you publish a list of which funds are and aren't? This would be helpful in selecting which ones to avoid if you want to reduce your tax paperwork.

Q: With the current downturn in the market, could you please recommend 5 global ETFs (not US based equities) and rank them from 1st to 5th.

Q: Could you please provide your top 5 Canadian ETFS and top 3 dividend Canadian ETFs.  Rank the ETFs as well

Q: If you own (cost basis) over $100,000 (I believe) of foreign stock, you need to fill out a T1135 form. My question is, if you owned EFTs for foreign companies, and purchased those EFTs on a Canadian market, will those EFTs need to be included on the T1135?

I know this is a tax question, but I hope it has an easy answer. Thanks.

Q: A large portion of my portfolio is VOO, QQQM and SCHD. Would you recommend buying QQQ, VOO or SCHD when they are currently available for less from their highs?

Q: Hi,

I'm a conservative, almost 60yr old inverter who, last Friday, panicked and shifted about half of my portfolio into ETF bonds as a safer haven for now due to Trump's global tariff mayhem. Now, of course, I'm considering the unthinkable - Canadian inverse bear ETF's to try to get some money back from the crash. I may never have the nerve to do such a thing since I realize there is a high-risk gamble, no dividend and high fees involved. Is there anything else I should be aware of before I dip my toe into such extreme ETF's ?? Is it better to stay in CAD or shift to USD ?

Thanks - Nick

Q: Hi, I would appreciate if you could suggest a best ETF to invest in China. Also, if you can suggest an ETF for Emerging Markets with less focus on China.

Q: Hi, I would appreciate if you can suggest an ETF for investment in Japan. Both Hedged & Unhedged options.

Q: Hi all,
This question is multi questions please deduct as many credits as you feel.
I’m struggling with the best strategy to start purchasing stocks into this correction. We have 15% cash to deploy. We own a lot of stocks across the 3 5i portfolio’s plus most of the Mag 7 and other outliers. Our portfolio has basically fallen inline with the major indexes of drops 5% each day on Thursday and Friday.

Option #1 start purchasing individual stocks hit hard across across sectors. But if say we buy SHOP and it drops another 20% do we buy more or pick another stock. With only having limited funds might be hard to prioritize and systematically deploy over a period of time.

Option #2 systematically purchase a group of index funds over the coming weeks to months depending on how everything unfold, This will capture many of our holdings.

If option #2 thinking XIC, XIT, SPY,QQQ and BRK or if you could please suggest a different mix?

Thanks so much and good luck everyone. This will pass!
Kerri

Q: Hello 5i,
Welcome to carnage-Day 3 with a roller coaster as a side-show.

Denise had a good point on self-directed accounts. How much effect do Robo advisors have on buying and selling via variables in their programs? I am curious if anyone can provide insight into the theoretical programming that is used to buy and sell.

Before subscribing to 5i, our self-directed methodology was simple. We used the KISS method. I give my wife a kiss and an apology when I mess up!
Now that we have 5i helping us, she gets less kisses (she reminds me of that), but has more money to spend (happy wife)!

Thank you 5i for your knowledge and support to keep it real when chaos is in control.

D&J

Q: If I invest in an index ETF at this time or soon, would I buy a growth oriented or a value ETF? For example, VOT or VOE ?

Q: Is this a good time to buy XQQ? I only have a 2.5% current holding at this time?

Thanks

Q: GRNY ETF by Tom Lee. Can you give us your thoughts? Underperformance this week. He is the eternally optimist but seems to have a decent understanding of what is impacting the markets. Let me know you thoughts.