Investment Q&A

Q: Please provide your recommendation for a cyber security ETF. Thank-you.

Q: Can you recommend a Canadian dollar etf for gold and a few Canadian stocks that would benefit from an appreciation in gold prices? Thank you.

Q: BUYING PROTECTION: WHEN to buy? WHAT TO BUY?
From time to time (especially today on CNBC) I am hearing Traders talk about buying protection with volatility in the US at ~16 .... vs much higher last week.
I assume this advice is also linked to the fact that US markets have just finished a “best ever” kind of bounce after last weeks debacle.

Does 5i agree with that strategy?
Would you be inclined to do this automatically when VOL drops to a specific level? If so, what level?
What ETF(s) would you suggest since playing options is not my game?
Would there be a rule of thumb as to how long to hold that “protection” in place?

Thanks for helping to educate me in this area.

Q: What investments would you recommend for a teenager with $10,000to invest for long term.
Thank you Drummond

Q: Hi there,

Just some follow up questions on these two etfs. Neither has done well over the last several years in terms of growth, so i suspect one buys these for income only. If so, wouldn't one just buy the one with highest dividend? if you had to pick only one preferred ETF which one would it be and if not one of these 2 which one and why?

Q: Which of these stocks do you prefer and why?
Thank you,
Jim

Q: I have this in my PA but because it does not trade on the TSX there is no daily price and it looked like I lost the full amount invested which is incorrect. Any idea of when the stock will have the daily price on the PA?
Thanks

Q: Could you recommend an etf that holds few or no resets. Greetings, Peter.

Q: On June 10 you answered a question on portfolio weights,saying that you would generally consider a good portfolio as having 25 stocks, making 4 percent a full position. How would etf’s figure into this scenario? I know that you have often said that one should have at least a 5percent position in an etf. Is that suggestion for a portfolio of 25 stocks?
Thanks again for the excellent site

Q: I would like to increase my international equity exposure and I was wondering if now is a good time to start a position in INDY? thx JR

Q: Retired income oriented long term (10 year focus) investor.
Already own CPD, CVD and XPF.

In the process of rebalancing asset allocations with the objective of increasing fixed income, and given the current interest rate environment can a case be made for buying one or all of these stocks? Why or why not?

Any other thoughts also appreciated.

Thanks.

Q: In your answer to a June 5 question from Russel ( about no withholding tax on US dividends when held in an RRSP), you said "However, the important distinction to make is not what currency the ETF is based in, rather what country the ETF is listed in." So, are there any Canadian dollar denominated ETFs listed in the USA?
If so, does that mean there would not be any withholding tax on dividends from them if they were held in an RRSP or a RRIF, and does that mean that there would be an advantage to investing in them ? What are your thoughts about this idea? Thanks.

Q: hi, within a long term focus rip, would you see benefit from holding VGG as well as ZSP ? If not both, which is preferable? Thanks$$

Q: Hi
I am increasing US exposure by 15-20% to a total of 35-40% from cash into ETFs. Portfolio Analytics suggests VUN for this exposure. I am thinking of using a more factored ETF, IWO or VGG. The US exposure would be the similar, the latter two have a lower financials weight (helpful for sector balancing also needed at this time), and possible relative out performance with small cap or dividend growth. Do you think 1, or a combination of 2-3 is better than the other? Any suggestion on weight (1/3 each)? Do not want to overlap too much nor one factor negate the other.

Any suggestions for adding some torque to passive component of US exposure welcome.

Thanks

Q: Thank you for your response to my question about a simple etf portfolio .
For the non registered portion you suggested using HXS instead of VFV and HXDM instead of VDU . After reading the horizon website on HXS for both registered and TFSA they do say it is advantageous tax wise to use this etf .
This answer seems a bit confusing since you have answered a previous question this way . .
Earlier 5i answered a question in april 2019 :
watched---default Horizons S&P 500 Index ETF (HXS)

watched---default Vanguard S&P 500 Index ETF (VFV)
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Q: Is this a a good play to the US market in a TFSA. Thanks

Asked by David on April 23, 2019
5I RESEARCH ANSWER:
Yes and no. It tracks the S&P 500 index, and we think this is the best way to get US exposure. The fund uses derivatives to convert dividends into capital gains, allowing tax deferral, which can help some investors save taxes. BUT...under the recent changes to the federal government budget, these types of ETFs are not going to be able to be run in the same way. Horizons says it will likely have to pay distributions this year. It is still an OK fund, but VFV would be better now, and cheaper, and follows the same index.

So I am confused .
Please clarify.

Q: Hi guys

Most ETFs I kind of understand what they are using to mimic an index, and to create the holding. With this ETF trading off the VIX wondering how they do this? What do you think of this as a short term holding. It just seems the VIX should have much more noise, given Trump, uncertainy, and trade issues, yet you wouldnt know it. Your thoughts?

Thanks
Stuart

Q: With interest rates stable or downward sloping why would a preferred share fund be decreasing in stock value? This should normally increase the value of the preferred shares in the fund, would it not?

Q: Follow-up: the ticker is HDGE by AdvisorShare

Question:
An ETF acting as an Hedge fund ? What is your take ?

Answer:
Do you have a specific ETF in reference here?

Q: In reading Jason Heath's article in the Moneysaver he comments that there is no US withholding tax on US ETF's held in an RRSP, but there is withholding tax on the Canadian equivalent. I am in the process of rearranging our RRIFS and have been switching to more ETFs, including US based ones. Many ETFs have both a Canadian dollar and a US dollar version of the same fund. For convenience, to avoid opening a US dollar RRIF component, I elected to go with the Canadian equivalent.

Does the withholding tax also apply to RRIFs as well as RRSPs. If so it follows that perhaps I should convert a portion of our RRIF to US dollars and then purchase the US based ETFs in that account. It is not difficult to do, just a bit inconvenient.
Your thoughts please.
Russell

Q: I'd like to simplify my rrsp and have a constant stream of income. I was thinking of selling my 30 stock over weight in canada and buy 5 or 6 ETF. Making easier to manage and have more investment outside of Canada. Do you like ZWC 20% weighting Ca, ZWH,20% weighting Us , ZWP20% weighting Eur , ZQQ 20% weighting Global tech company and Maybe ZRE for last 20% because reits usually goes up in a negative market. Please give me your opinion on my ETFs and your 6 picks would be? take as many question credit needed. Income and diversification globally are my goal.