Investment Q&A

Q: From a tax perspective, which of the above ETFs are best suited for:

1. TFSA
2. RRSP

Q: Ethereum has dropped from a high of $4100 to below $2600, could you please explain why, also when Bitcoin has generally stayed in the $100k range? Is this a buying opportunity? If it is, is there a Canadian ETF to put money into? Thanks in advance. Also, many thanks for your answer on my previous question on BTC, it was extremely detailed and well thought out.

Q: Please list your favourite base metals etfs.Thanks.

Q: I realize the higher the yield the higher the risk but I would like 5i's opinion of a few products. As a result of the American President's threats of tariffs which I feel are coming in thirty days I have been rebalancing . Canadian ETF's to American ETF's as well as the sale of tariff risk Canadian stocks . RRIF cash position currently { 30% } .... I would like to take some small positions in some greater than 10% covered call ETF's ..... These would be short term positions as I believe it will be 1 or 2 quarters before Mr Market realizes tariffs are a really bad idea ......

So which do you like better in a Trump world of tariffs ? A covered call bond ETF, a covered call treasury ETF, a covered call stock ETF ? I've been eyeballing HPYT for the simple reason that it appears to be at a low with a very high yield but I would like 5i's opinion. Could 5i list four or five ETF's which you feel would be good choices to play this theme ? It's okay if some of your choices are sub 10% ......{ I already own HYLD.U 6.9% position } And which sectors { bond, treasury, stock } would be the best choices in a Trump tariff world ? .... Thanks for your terrific service ......

Q: Could you please help me understand the Capital Gains process for VBAL and how it affects my holdings. Actual amount is 0.337068 /share or 1%
"These amounts are for the year-end capital gains distributions only, which will be re-invested and the resulting units immediately consolidated, so that the number of units held by each investor will not change."

Thank you,
Mike

Q: So I am looking at a high yield Canadian issued ETF with distributions in USD. Growth is secondary to yield as it it is to partially offset the increasing costs of wintering in Florida. Is the price of HYLD.U.CA ( $14.75 ) in CAD or USD ; likewise what currency is the distribution ? I understand this ETF has 1.25 leverage.

Would this ETF met my goals of high income from stocks representing the broad US market?
Are there other products that meet my goals ?

Thanks. Derek.

Q: I am looking to invest in these 4 names for my father after he sold his house. He is 92 so I would like something as 'risk-free' as possible, just income needed. Thinking 100k for each, just wondering about any risks involved aside from interest rate risk and inflation risk.
Thanks!
Scott

Q: If one believes that the market is reaching its peak and may trade down or sideways for the next year or two, what do you think of this ETF. Conversely, how would you expect it to perform in an up market? Thanks!

Q: I would appreciate your comments on these ETFs [plus Capital Group Growth which did not register- CGGR] - my earlier question was too broad. How to go about assessing them one against the other. Would appreciate guidance on which ones are keepers for long-term hold. How would you evaluate them. Thanks

Q: Part of our total portfolio is invested in ETFs [non-registered accounts] and one-third is in Canadian-based and Canadian-dollar denominated US ETFs. Another third is in US ETFs - spread among Large Cap Value, Blend and Growth, and SMID. The final third is in Special US ETF - IAI ZBK AIRR PAVE SHLD PPA SMH UTES AND HXX. Your advice is requested as to which ones to over-weight, underweight or sell. Please rank each category, if you would. My lean is less tech/ M7 as already own most.

Q: Morning troops. Am hearing a lot about Buffer ETFs these days. Can you explain the downside protection please? I hear about "15% downside protection" - does this mean that any losses are capped at 15%? Do you have any CAD Buffer ETFs that you would recommend? Cheers.

Q: How does an ETF like PSA pay 4.3% yield when interest rates are so low?

Q: ETFs or Mutual funds that invest in stocks only, outside of North America, unhedged. What would you recommend for broad exposure.

Thank you

Q: This T Rowe Price ETF is a US equity only .31% MER broad based ETF spun out from a Lipper and Morningstar award winning fund that was approximately 60% equity with a variety of fixed income holdings making up the remainder. David Giroux the manager is highly respected. Could you look at the holdings and the long record of the fund that gave birth to this ETF and provide your critical review. I would like to average in to at least a 10% holding as I see this as a strong long term sleep at night well managed reasonable cost candidate. Thank you.

Q: What are your thoughts on this etf.
Yield is high as are the mgt fees. I think the beta would be low and the investments relatively safe

Q: Can you name a handful of ETF options for long term holds in my son's RESP account. Growth, dividend, and balanced. Looking for exposure in Canada and USA. I don't want the headache of managing stocks for this portfolio. I'd rather have something that I can just buy and not look at it for 15 years until he needs it.

Q: Just re-asking a question from 2013 - "Hi..was wondering if there is a screener of non-eligible dividends for tax..bascially want to enusure purchasing correct ones outside of any sheltered portfolios...thanks"
Also, can you advise if VBAL, VGG, VIG have non-eligible dividends.
Lastly, pls advise if there's any way to check before stock purchase what the subcategories there will be of dividend income and interest income.
Thanks for your quick reply to my earlier questions.
Many thanks in advance.

Q: Hello,

Thoughts on ZFH. Thanks

Dave

Q: Hi Peter and Team,

Across all accounts, our holdings in the Financial Sector include BN, FFH, GSY, MFC, SLF, and the CEW ETF. I feel that this is a fairly good representation but realize that the Canadian banking sector is quite low, and the US banking sector is non-existent in our portfolio. Portfolio Analytics indicates that we need more exposure in this sector.

Several questions; please deduct question credits accordingly.

1. TipRanks shows that BN has a P/E ratio of 125.13. Can this be true?

2. A recent question from a 5i member asked about Sagicor SFC, which prompted me to investigate it further. I realize that it’s a small-cap stock, but noticed that for the 3 month, 6 month, and year-to-date periods, it has excellent momentum (which I know you like) and has a really low P/E ratio of 1.51, which I assume to be correct.

3. Because I feel that Trump tariffs are more of a possibility than not, I’m in the process of adjusting some sectors but not all, in case the tariffs don’t happen.

4. Would you endorse a small holding in SFC, (say a half-position) using proceeds from the sale of more tariff-vulnerable stocks?

5. Finally, could you suggest some Canadian-domiciled ETFs that would give us needed exposure to both the Canadian and US banking sector?

As always, thanks for your assistance that helps us to make informed decisions.

Q: What is your take on the chances that America's 'economic war' on Canada starts by interfering or even seizing US domiciled assets, or ETFs listed by US companies, such as Vanguard and Blackrock? How much independence do markets have to let resources float without government interference?
It seems like a plausible escalation strategy that would quickly buckle any foreign country's finances, including Canada's.