Investment Q&A

Q: Hi Peter and Team,

Today's Globe & Mail had an article called "Wall Street views the emerging-market rout as a buying opportunity". I'd appreciate your perspective on the validity of the author's views, and some ETFs that could take advantage of this idea (if you agree).

Thanks as always for the pertinent advice.

Q: Are there any Canadian or US Health Care ETF's preferably hedged I could use in my RIF? I currently hold HHL at a 6% weighting.
Dick

Q: Just a comment. You recommend without caveat HFR as a short term hold for cash. This ETF does fluctuate and with just a 2.1% payout annually can negate this modest payout, just like any other equity. I held this for a year and broke even on distributions/capital gain but paid higher taxes on the distributions than the capital gain so overall lost on a full year hold. This is not for short term holds any more than BCE would be.

Q: I will reword my last question to be better understood, which equity Etf's would you recommend for each region of the world outside Canada, in other words, your favorites, thanks?

Q: Hi Guys,

Could you please suggest somewhere safe to park $300K cash that is sitting in a brokerage account.

Thanks
Dave

Q: Thanks very much for your recent reply. I’d like to get your opinion on the Active Beta ETFs from Goldman Sachs, particularly GEM (Emerging Markets) and GSIE (International). They charge a higher MER than Vanguard funds, but would you say it’s worth it because investors benefit from the expertise of top managers? Between VWO and GEM, which would you prefer and why? Thanks again.

Q: In addition to Canadian stocks, I hold a few ETFs for US and International exposure. In order to get a clear understanding of my sector allocations, I would like to incorporate the sector contributions from these ETFs. But when I look at VDU, for example, instead of consumer cyclicals and consumer staples, it lists consumer goods and consumer services. Do you have a suggestion for how I could incorporate these different categories into my sector allocations?

Thanks.

Alan

Q: Hi, can u basically construct a medium risk, all equity well diversified portfolio of Etf's that cover the whole world for a portfolio of $25,000, for about an eight to ten year time horizon, thanks?

Q: Hello,

I purchased xfh (hedged) in early january 2015 and have ridden strong performance to this date. Given the strength in the CDN dollar would it be wise to hold on to this ETF or switch out for something else. If switch, what to?

Q: I am considering these two ETFs for my RRIF. Do you have a preference? I currently hold the following: SLF, BNS, TD, RY, AQN, BEP.UN, T, BCE, ALA, ENB and PPL. Thank you.

Q: I have been an investor in small and midcap stocks for over 20 years with a willingness to accept additional risk in my portfolio.I am now transitioning my portfolio to a more Income focus, as i will need dividends to supplement my retirement.
Questions i have are about construction of income portfolio?
Do you feel it is still important to diversify in other countries and regions outside of Canada?You would lose some of the favourable tax benefits!

In trying to classify many dividend stocks in sectors i find that they cross the line into numerous sectors,(example many pipeline stocks are said to be oil and gas stocks, many are said to be utility type of investments)
What sector do you put an ETf in?Seems like a lot of investors drive themselves crazy in the allocation to sectors

I have looked at your income portfolio and your fixed income portion that is addressed by a few Etf.I have taken positions in individual preferred shares,debentures, a couple of instruments with bond like qualities.What is the percentage you would advocate for fixed income or there proxies?

Many Blue chip income stocks pay quarterly dividends,when i prefer monthly dividends.This again can skew my portfolio so that diversifying by sector and country becomes difficult

I find that the construction of my Income portfolio has given me many grey hairs(which i dont need help with"thank you very much")

Q: You discussed ETF liquidity in your September 22 reply to Brian. Are you aware of any sources of information on the liquidity of particular ETFs? If not, what general guidance can you offer? Thanks.

Q: Peter and Team,

What index funds do you recommend for the following:
TSX
NYSE
DJIA
NASDAQ
S&P 500
FTSE
Nikkei
HangSeng

- James

Q: I'm interested in the robotics/AI space. Do you like this sector going forward? Do you prefer ROBO or BOTZ and why? Any other suggestions?
Thanks as always,
Dennis

Q: I have $75,000 that I would like to invest. It’s money that I may need access to in 1-2 years if I buy a home. Can you provide recommendations on where to invest? Thank you.

Q: I note that CPD is included in your Income Portfolio (with a unit cost of $16.19). I purchased a significant holding of CPD in Nov. 2012 (at $17.30), and am understandably upset with the current market price of $14.09 (i.e., down 18.5% on the unit price basis). I have held on to this ETF for the monthly dividend flow (which has continuously shrunk), and with the hope that, when the tide turned in GOC 5-year rates, the unit price would recover. While individual preferred share issues that I hold have shown a marked price recovery in recent months, CPD not so much! I am curious to know why you include this ETF in your portfolio while I consider it to be the worst investment that I have ever made! Do you envision a day when the market price will recover to your purchase price level?

Q: In your response to Brian about ETF and market panic, you say that in a market panic an ETF might have to sell a stock to meet rememptions (kind of guess you meant redemptions !?). Could you explain further? I thought if individuals panicked and sold their ETF, some other individuals would be the buyers, rather than the ETF having to do anything re holdings, and that the total shares outstanding would not change. Isn't this part of what separates an ETF from a mutual fund?
Thank you

Q: I am considering using ETF's to widen my coverage beyond Canada. Could you recommend three or four ETF's that would cover Europe, Developing markets and perhaps a US based ETF as well?
I continue to turn to your site for good ideas.
Thanks,
Bruce

Q: 250 k portfolio in a taxable account (tfsa and rrsp maxed out). currently have HXT (54k), VFV (77k), XEF(55K), and 65 k in cash. Want to add fixed income to the portfolio - currently looking at ZDB, HBB or GIC ladder - what etf should i be looking at adding or any other suggestions.
Thanks -you
Nina

Q: Good morning Peter and Team,

Thanks for answering my previous RESP question. In reviewing iTrade's commission-free ETFs, I note that they have a new bond offering HAF (although it appears to be a bit of a 'hybrid').

There have been no questions yet about this ETF, and I'd really appreciate your take. Interestingly, the sub-advisor is Fiera and I know that you think highly of them.

Thanks in advance!