Investment Q&A

Q: ZWE is down 15% from my purchase price but with the 7.54% dividend I'm still up; however, the MER of .65% is a bit high & I'm wondering if I should stick with this ETF or is there a better alternative for an RRSP? Thanks as always for the great advice.
Dave

Q: Hello,
I am thinking about buying VGRO for my RRSP account and have a question about management fees. According to Vanguard Canada website the management fee for this fund is 0.22%. However, the only holdings for VGRO are seven other Vanguard ETFs... will I be paying these 0.22% on top of management fees for these seven ETFs or this number is a weighted average of management fees for holdings?
In other words, if I buy a Vanguard ETF that holds other ETFs, will I be paying just the management fee for main ETF or I will indirectly pay management fees for both main ETF and "nested" ETFs?

Q: Good morning,
I'm 70 years old and with yet a new year upon us and a review of the holdings in my non reg equity portfolio, I'm concerned that my $650K non reg equity portfolio has slowly grown into a "hodge podge" of miscellaneous holdings that need to be trimmed, better concentrated (minimum 5% per holding) along with the addition of a few additional names in sectors that are not currently represented. My current holdings are as follows:
AQN (3.3%),BCE (11.6%)BAM.A(3.8%),CU (4.5%),DIV(2.8%),EMA (2.4%),KEY(2.2%),XIU(5.2%),XIC (33.2%),XDV(18.4%),SLF(3.6%),T(2.9%),T(2.9%),MAW120(3.1%)MAW102(3%).
I would very much appreciate your suggestions on how to best to adjust my current non reg equity portfolio to make it easier to manage and follow. I'm open to adding an appropriate mix of ETFs or Mawer equity funds as need be. My RRSP and TFSA are pretty much all populated with a mix of relatively low MER Mawer equity funds which have performed well over the years. I thank you in advance and look forward to hearing your sage advice and recommendations.
Francesco

Q: Have $20,000 I would like to allocation outside Canada. Already receiving an average of 6% dividend return on my C$ portfolio. Not really looking for additional income , what do you think of the above or is there other ETFs I should research.
I have a small position in VGG. Maybe etf holding Amazon, PayPal but not a pure internet such as FDN.

Q: Good morning,

All four of our family TFSAs and RESP are invested in a mix of Mawer equity and balanced funds.

I'm reading a number of very favourable articles on the benefits of holding a one etf solution for a well diversified portfolio and was wondering if I should consider:
a. keeping the Mawer funds in our TFSAs and RESP but purchasing either VBAL or CBD.A for new TFSA and RESP contributions;
b. Sell all of our MAWER funds and buy either VBAL, CBD.A and perehaps some VGRO for the RESP given that our grandchildren are only 7 years old.

Your thoughts and adjustment suggestion to our TFSA and RESP holdings would be appreciated. Thank you.

Franco

Q: Hi Peter and Team,

Can you explain the advantage of purchasing CBO with a yield of 2.74% instead of GIC's (1yr @ 2.6% & 2yr @ 2.8%-3% ) and Corporate bonds such as BNS 2-yr @ 3.27%?

Cheers,
Debbie and Jerry

Q: Would you please advise me on which US ETF you think is best at present, given that JNJ is one of the top ten in VYM? Or is there another ETF that I don't know about?
Thank you.

Q: Given the uncertainty in short term market direction,I have 50% of my TFSA in cash.I believe Canadian interest rates are not going to rise.I am considering the choices listed above, unless you can suggest others.I also have some cash in my US$ RRSP and am considering the Vanguard fund for this cash.US rates may climb further,but not much.Perhaps you could rate these according to risk.
Thank you.

Q: Good day and best wishes to 5i team for 2019! Regarding the swap arrangement for these etfs in lue of dividend distributions. If for example they had a 3% yield.and say I owned 1000 shares at a book value of 10$per.share. would the distribution show up as more shares similar to a mutual fund. So if I then sold after distribution.i would have a capital gain of say 300$and no concerns regarding dividend? And second question do you see some good interest in this as a way to shelter income or would you more lean towards say vcns or vbal? Hope I do not confuse. Tks Larry

Q: I currently hold both VTI and VSP in my RRSP for US exposure.
VTI is my only US holding (i.e. trades on US exchange) in my RRSP, so it is the only holding that forces me to occasional exchange currencies (US dividend).
Which of the following options do you prefer (feel free to suggest an additional option):
1) Do nothing (continue converting the US dividends to CDN$).
2) move VTI to VSP. (CAD hedged.)
3) move VTI to VFV. (not hedged)
4) move VTI to VUN. (not hedged, broader index)
5) move VTI to VUS. (hedged, broader index)
Thanks.

Q: I am an old man (86) sitting on a lot of cash ($800.000) and I am considering on purchasing the following stocks equally invested what I think if is a conservative based portfolio.
VFV yield1.7%,XIU Yield 3.2%,CBO yield 2.61 %, XBB yield 2.9%,CBO yield 2.61 %
Would appreciate any comments you may have. I am looking for yield and relative safety. Thanks, Bill

Q: Hello: I am in the process of setting up a TFSA for my 25 years old daughter with ETFs where she can contribute whenever she has money. My questions are: 1) Is the ETF portfolio a simple way to invest? 2) What do you think about portfolio with just one ETF - VGRO? 3) Since it will be a DIY portfolio, is there any advantage in opening the account with Questrade/Wealthsimple in comparison to with TDwaterhouse? 4) if I don’t go with VGRO only, what ratios of XWD, VFV, VGG, HXQ, XSU +/- any other ETF do you recommend while keeping costs/MERs very low?

Q: Conservative, retired investor who loves dividends. I am normally a buy and hold investor, who trims-adds around core positions. I have a 3% position in ZWE. I've owned it since Oct '17 and am down 8%, including the dividends. So capturing some capital losses is an option.

Two questions...#1 is regarding the currency hedge. Normally I like the hedge product, since it takes some of the risk out of the investment. Your thoughts of keeping ZWE vs switching to an unhedged version, based on your "currency" crystal ball?

#2 is regarding the prospects for securities within ZWE and the current turmoil in the EU (Brexit, etc.). Has the market already priced in a lot of this turmoil? Should I consider adding or should I accept this is one of those investments that just did not work out and take my losses?

Thanks...Steve

Q: I'm considering buying HSPX. Doing my research I understand that their strategy is to write out of the money calls which if I'm not mistaken gives more upside to a covered call ETF. Is this both true and a correct assumption ? And also my TD Waterhouse quote shows a yield of 9.5% but when checking various other sites I see from 5% to 7%. What is the real annual yield ? And what is your opinion on this ETF in general ? Thanks Garth.

Q: I have 11% ZLU, 19% CDZ, 50% SDY, !% VWO, 15% VEA and 3% CGL in a RIF. I need to sell $12K from a RIF. Is there something you would recommend selling, or just move in kind?

Q: Looking to add some Ag and Au bullion. Which of these
do you like? Is there a pure silver bullion buy available?

Q: I have 75% ZDY and 25% CBO in my RIF & I need to sell $6K.
The ZDY is 10% of my overall portfolio. I have another 10% in CBO.
Should I sell or transfer in kind?

Q: Happy New Year.
I allocated 20% of my US holdings for high yield investments but want to avoid the tax implications of CEF/MLPs. Is there an ETF that you could recommend that covers this part of the market that eliminates the tax implications?

Q: What is your latest view on the performance of this etf. So far it appears to me that it has handled the latest downturn quite effectively when compared to the return of the tsx. I have been thinking of using this etf for the income portion of my portfolio. Would that be a good idea or would I be better off using bond etfs for the income portion? Tnx for the help.

Q: This title covers oil transport/storage infrastructure
thus not affected by WTI acc to promoters since its revenue is from transporting fuel. Dividends 8-10%. Despite transporting/storing only it suffers greatly from WTI price fluctuation. Half of 27% loss is recovered from dividends, any insight in this MLPA structure??
Art