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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi,
I'm looking at some of the ETFs that short either an index, such as the S&P 500, or a sector like US Tech, or Industrial, etc. I am considering these as a way to hedge against longer term holdings in the same sectors and my thinking is that as a managed ETF, as long as it has liquidity, I should be able to exit it when things eventually turn around as you would with any other ETF. What are the pitfalls of doing this? If it has any merit, which ETFs might you recommend?
Thanks and have a wonderful time with family over the holidays!
Dawn
Read Answer Asked by Dawn on December 27, 2018
Q: I am interested in investing USD in US companies in the consumer food sector(CPG) and specifically looking at Sysco and Lamb Weston. Both have decreased recently. Can you provide some insight and opinion on investing in these two and is now a good time or should I wait? As a separate question, would you recommend other US stocks or ETF in this space?
Thanks again and Happy Holidays to all at 5i ! John C.
Read Answer Asked by john on December 27, 2018
Q: Hi 5I,
I am retired and living off my RIF. With the current volatility and market downturn, I am thinking of getting more defensive. My current holdings of ZWC, VVL, VUN and VEE are each about 8% of my RIF. I am thinking of switching ZWC for ZLB, switching VVL for VVO, switching VUN for VGG and switching VEE for VXC. What do you think of this strategy? Should I hold some and do nothing? Please explain your reasoning.
Thanks for your help and have a happy holiday season.
Dick
Read Answer Asked by Richard on December 27, 2018
Q: In an earlier question I think I said that Vanguard is not offering VOO but VIG in its place. In case this may consuse anyone I thought I should correct it:

“We believe the Total Stock Market Index Fund VTSMX, -1.60% VTI, +0.02% VTSAX, -1.59% is the best proxy for the U.S. market, offering exposure to large-, mid-, and small-cap stocks, whereas Vanguard Institutional Index Fund concentrates on large-cap stocks,” a spokeswoman told MarketWatch in an email
Read Answer Asked by joseph on December 26, 2018
Q: In an earlier answer you suggested that ryt might be more interesting than qqq, as it was an equal weight fund. I do notice, though that the top five holdings are quite different. But, that is beside the point--which is whether there would be n equal weight offering corresponding to voo? I searched but couldn't find any. Although i did come across the interestng information that Vanguard has switched its own employees pension funds ti vig, from voo.
Thanks and may you have the assorted blessings of the season
Read Answer Asked by joseph on December 21, 2018
Q: I am still spooked out about the markets and sold all my stock positions yesterday. I now have a significant amount of cash and would like to deploy it the Bond Market which I think is a safer place at this time. Would appreciate any recommendations you might have as to how to invest the money. With thanks, Bill
Read Answer Asked by William J on December 21, 2018
Q: Could you please provide me with your opinion on the importance of global diversification within a portfolio. How comfortable are you with a heavy weighting in Canadian stocks for a couple in their mid 60's. The way I see it - we live in Canada, spend in Canada and am wondering if having exposure to US and/ or global equities exposes us to currency risk.
Read Answer Asked by Barbara on December 20, 2018
Q: Jeffery Gundlach ... in an interview Monday made a couple of key points: ( and might have been promoting his own business at the same time).
1. (In his opinion) A recession is coming and it will likely be "longer" ... did not say how long.

2. 2019 #1 priority should be capital preservation.

3. The key to capital preservation is to build a high quality bond portfolio.

I f one subscribes to his position/suggestion, what would the components of such a portfolio contain?

Thanks.
Read Answer Asked by Donald on December 20, 2018
Q: If you were going to buy a basket of low cost etfs for long term (20-30 years) to hold in an rrsp what would they be? What weightings would you reccomend? Im looking to take advantage of the 8%+ annual market return for the long haul. Or would you use one of the one stop shop Vanguard ones? Could you also explain any reasoning?
thanks
Read Answer Asked by david on December 19, 2018
Q: I am looking for a sanity check. I am a retired income investor so I like covered calls like BMO's ZW series. However I believe the market is at or near a bottom so owning covered calls ETFs is significantly less appealing than owning the underlying stocks, especially since I can claim some capital losses. So, for example, yesterday I sold ZWB and bought RY. Am I making sense? I do realize I am a bit less diversified and I realize I would need to buy a few companies to replace say ZWC.
Thanks
don
Read Answer Asked by Don on December 19, 2018
Q: Hello 5i - If we have fewer interest rate hikes going forward, or as some expect, 2019 may bring a recession, what could be the effect on bond fund ETFs such as ZAG, VAB or HAB for example? If investors have reduced equity exposure (to reduce risk) and increased "bond investments", are they in for an unpleasant surprise? Thanks, Ron
Read Answer Asked by RON on December 18, 2018
Q: Hello Peter
15% of my total portfolio are HQU shares. 18% of them are in non registered acct. and rest 82% are in TFSA & RRIF's accts. I am down on them 27%.
My question is: because most of my HQU shares are in registered accts. there is no tax losses on them, what would you do in this situation ,sell all and wait 30 days for repurchase if they go down or hold on to them for next couple of years.
thanks Andrew
Read Answer Asked by Andrzej on December 18, 2018
Q: Thinking of selling CPD and averaging down on ECN.PR.A My reasoning indicates that the reset return on CPD portfolio will continue to fall as the yield flattens or inverts.
In the case of ECN.PR..A if 5 year yield is at 1.06 or lower the yield is still 6.25%. Basically I’m saying there is a floor under ECN.PR.A but not CPD. What is your opinion ?
Read Answer Asked by Roy on December 18, 2018
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