Investment Q&A

Q: I’m looking for an ETF in US$ for consumer descretionary. As always thank you for your advice.
Les

Q: As small investors, we are constantly urged (John DeGoey even pleads) that we diversify out of Canada via ETF/mutual funds but far less is said about the tax implications on investment return of the recommendations. Let's say one wants to invest new funds in mutual/ETF funds that are tax efficient. Because of contribution limit rules on TFSA/RSP/RIF, someone wants to add to their regular Canadian trading account instead. I understand at least one fund co. uses swaps so you postpone tax until you sell thereby avoiding annual dividend and unpredictable capital distributions. At least you then have some control over tax exposure timing and amount. Realize this not the forum for comprehensive answer (designing such a portfolio good topic for one of your newsletters), but can you advise of of some high quality fund managers/funds that offer tax advantaged products? Thank you.

Q: Hi Peter & 5i Staff,
Is there a Canadian growth ETF that would cover the Utilities and Energy sectors. If not, what is the alternative ie.
covering the US
Thanks
Ivan

Q: seems that my first question got lost. could you give your current recommendations on a Japan Etf, and a emerging market etf. I have a balanced portfolio with Canada and the U.S.

Q: Hi there,
I have been thinking about hedging my portfolio against a downturn and want to explore ETFs that are bearish on the market. I would appreciate thoughts about any Canadian or International ETFs you might point me to for further research. I would be looking at starting with a small position for now. And, I would also appreciate any other thoughts you might have about insulating a portfolio against the inevitable correction.
Thanks very much, I appreciate the service you provide and just renewed again.

Q: please recommend the best Japan, emerging market ETF at this time for capital gain.

Q: Hi 5i team,

Enjoy reading the blog on power of dividend growth stocks. I want to invest in US, Europe and Emerging Market. Would investing in ETFs that track dividend growth stocks be better than the overall indexes?
Please provide your ETFs picks, in US$ and in C$, that invest in dividend growth stocks in US, dividend growth stocks in Europe and dividend growth stocks in Emerging Market. Would these etfs be best held in RRSP account? Thanks.

Q: I'm looking for investment vehicles that offer reasonable monthly income with the possiblity of some capital gain. I have chosen PMIF And PLV as possibilities. I would appreciate your opinion regarding the quality of the ETF'S. Safety and professional management being important to me. If there are other possibilities that you favour please indicate them.

Q: Could you pls. recommend a US$ ETF for tech. stocks?
Thks.
Tony

Q: I have recently come across the above etc and am wondering what your thoughts are. It looks like an interesting way of playing future themes.

Thanks, David

Q: Firstly, let me compliment your staff on the VERY quick response to my latest question!
Now, picking up on our changes to the Cash Acct, I have decided to move the bulk of our RIFF accounts to the US to counter the larger CDN investments in our Cash Acts.
I have picked only ETFS as I believe they best represent US national growth potential at this time.
I would appreciate your best advice & rationale on 4 or 5 of the following: UDOW, DDM, SPSM, XLE, DIA, VTI, XLF, SPY, IGM. Thank you.

Q: Hi. Peter and 5I.
I have also, as Carl, noticed the significant increase of questions on ETF's. This is one of the numerous red flags that are started to pop up all over the market universe in my opinion.
I have taken action against what I consider a risk reward more and more tilted to the downside and am way more concern today about terminal losses (unrecoverable losses) than I am about simple losses on further potential gains(opportunities costs)
I consider ETF's to be purchased only where I cannot buy company stock in certain asset classes or I need to buy in a foreign market that reflects a potential opportunity.
I have a general question about ETF and how they work. If ''everybody'' is buying ETF's now, does that means that the underlying stocks will also grow no matter their intrinsic value. In other words, would it be possible that the ETF's buyer may have now a predominant impact on the market than ''all'' the direct buyers of the underlying stocks. Tail wagging the dog kind of...
A comment on the extract from A wealth of common sense that you mentioned.
If the 16000 mutual fund are buying ETF does that not add to the overextended existing situation?
Passive investing is not just the domain of retail investors.
Thank you
CDJ

Q: Hello,
I am quite new to the investing world and just looking to get much more involved. I currently have some mutual funds through a balanced portfolio in a TFSA that I have discussed with my financial planner. I have a TFSA open through Manulife and RBC. I am looking and hoping to get into some index funds and passive investing as well. Looking to just get average returns with low fees. Any suggestions on the best way to start this and go about this on my own? Recommendations on which ones I should start with through the TFSA accounts I have? I seen some through RBC, but just find it tough to get answers from financial advisors as I always feel pushed toward active investments (which I am open to down the road as well).

Thanks from a early and trying to learn investor,

Matt

Q: Considering purchasing CGL as a disaster hedge, portfolio diversifier and future inflation hedge. I like the way it increased in value back in 2009 to 2011; more so than XGD. I also like the idea of avoiding the specific company risk of purchasing a gold company. If you like my thesis, what percentage of my equity portfolio would you suggest to provide the protection I am seeking? Thank you.

Q: Hi there,

I currently have a blend of your Balanced and Growth portfolio - mostly switching out the large, higher yielding names with small to mid cap growth names (which were suggested to me by your team in an earlier question). It has performed well in 2017 and I am happy with the results - however, my entire portfolio is TSX based. I am looking for diversification but don't want to sacrifice the growth tilt, which sometimes ETFs tend to lead to. Based on my existing holdings, which ETFs would you recommend that would be more growth tilted and add a broader global exposure? Also, what weighting would you consider making these holdings?

Thanks for your great service!

Q: Good day...I am in the process of moving money to the u.s as currency seems to be at the proper spot and also I have all of the balanced and income portfolio now, so my question is would I be better using etfs - MXI - SOXX - XLV and IYF or using ICHR - NVDA - ISRG - HD - JPM - V - HD AND DIS...my thoughts are this will give me diversification that I cannot achieve with 5i stocks...your direction has made a huge difference to my portfolio but I feel I need some geographic diversification ....I look forward to your answer and thanks...gene

Q: I am wondering if these funds since they hold 50 % US stocks if they are hedged/ unhedged against the currency risk. Or is this an active decision they can choose to turn on/off based on their opinions on currency?
Thank you

Q: I’ve been very impressed with you guys on bnn as as well as direction and opinions to questions asked here. Very pleased with your suggestions and commentary. I just sold vee at a substantial profit.
I’ve moved in a more conservative direction. Really don’t need to make a lot of money just keep what I’ve got. Maybe some additional income to supplement my pensions etc. I now have over 30% of my portfolio in cash. I can’t seem to find a good value play. I have enough preferred shares. Don’t like gics or bonds.

Q: In your opinion, what would one use to short the SPX indexe. As things seem to be a little stretched, and getting more so. On the US and Can side
Thanks

Q: Hi Peter and Team,

Just read your answer to Stuart. We keep a spreadsheet on Google Sheets that automatically "captures" price data from Google Finance, and unfortunately Google Finance doesn't provide Aequitas prices. Any ETFs or stocks listed with Aequitas have to be manually entered. :( Other than that, I suppose that Aequitas is "okay".