Investment Q&A

Q: Is this a good time to step into Europe, using FHB as an
introduction to European banking.

Q: Am looking to take a position in the healthcare sector for my RRSP. Long term hold and a good safe yield is important. Your opinion on the following is appreciated.

ZUH
XHC
HHL.UN
GHC.UN

Is there another stock or investment vehicle you would prefer?

On another note, as a subscriber since Dec., I expected to benefit most from your opinions on individual stocks, but would say that it is your overall investment advice that I appreciate the most.
Thanks

Q: I read this (i've excerpted) over the weekend. I expect you're familiar with the thesis, but I'm wondering what your take is on this for someone with little interest in researching and monitoring individual stocks, asset allocations, etc.
The One-Minute Portfolio consists of two exchange-traded funds (ETFs): the iShares S&P/TSX 60 Index Fund (XIU) and iShares Canadian Bond Index Fund (XBB). There is no requirement for hours of research to pick stocks or time markets. Only an annual rebalancing is needed….

Over the dozen years from 2003 to 2014, the One-Minute Portfolio’s average annual compound rate of return was 8.9 per cent on a total return basis. …

In the most basic form of the One-Minute Portfolio, an investor rebalances back to a fixed asset allocation, a common one being 60 per cent stocks and 40 per cent bonds. A slightly more advanced version, used in the published updates, allows the target asset allocation to vary according to the state of the stock market – as prescribed in Benjamin Graham’s investment book, The Intelligent Investor.

In general terms, the rule is: if stocks are getting frothy, their portfolio weight is cut. Conversely, if stocks are in a deep funk, their weight is raised.

from My OwnAdvisor

Q: Is there a Canadian ETF based on insider buying and if so your thoughts? Thanks, Bill

Q: Hi. How do ETF's Manage their fees. I am mostly questioning how can they add/decrease their positions in whatever companies they have in the Fund as money pours in and out of them. Are they not charged trading fees? How much will the Listing Exchange Charge them? Eventually there must also be a couple, few people who get paid from the ETF Company or Broker/Dealer that are creating the units as well. Are they able to bury certain fees in the ETF? I know they manage super large amounts of cash and investments but it seems that there could be manipulation of services/charges/arbitrage from the NAV vs underlying stocks. I tried understanding the Wikipedia definitions but it did lose me, and I was hoping you could tell me in simple terminology or perhaps do a Blog on the subject one day. Thanks

Q: Hi Peter & Team: Could I please have your thoughts on yxm now that it has been operating for some time. If positive, would you still consider the unhedged version given the amount the cdn. dollar has already fallen.

Thanks, David

Q: My daughter turn 25 this year . She wants to start investing ,she completed a risk aversion test that puts her at a moderate. She got approximately 5000$ cash . She also recently got approved for a 10000$ line of credit at the bank . What would recommend for her to start investing? Thank you

Q: Just haven't the time to build up a reasonable knowledge base in the US...so would appreciate your best pic on 1 or 2 US based ETFs covering Health/pharma, consumer discretionary & possibly Tech. Thanks.

Q: Good morning. Many Canadian ETFs covering the US market are CAD-hedged e.g., XSU. Can you please help me understand what hedging means to the retail consumer at the present time when the Canadian dollar is worth less than 80 cents US? Does it de-risk currency exchange so that, for example, an index ETF like ZSP gets the full benefit of an increase in the S&P 500?

Thanks as always.

Q: Hello, I have a question about the fixed income part of my portfolio. I have a total of 5 bond etf`s each at 5% for a 25% allotment of fixed income.

ZHY + 1.78%
ZCM + 4.01%
ZIC + 10.12%
ZEF + 2.06%
PSB + 1.65%

This works out to an average gain of 3.93% since January 1st 2015

Would I be better off to simplify my holdings by holding only VAB which is up 4.18% or a combination of the above?

I am also thinking ahead when interest rates may rise and that is why I have PSB.

Thanks, Mike

Q: Peter and team:
Could you please recommend a couple of options for"Dividend Aristocrat/Growers" style ETFs for US Companies. My preference is one that trades on the TSX, and unhegeded vs. hedged, though open to both at this stage.
Second part (perhaps unfair) how do these products compare with the "low volatility" products offered by BMO and iShares?

Thank you as always for a great service.

Phil

Q: Can you please recommend few ETF in Canada and USA that I can Buy and benefit when market goes down and do you have app for 5iresearch.

Q: Thanks for your answers. Can you suggest several market-based EFTs that may provide some additional upside potential over the next 5 years?

Q: Good morning, one question and one comment this morning. First, can I get your opinion on CDZ.to for some financial exposure. Currently, I have zero exposure. I know this etf has a rather large financial waiting. Second, I'd like to argue your point about about gas prices being a great stimulus for the economy and consumer. From my point of view, I don't see it as I'm saving about 3 dollars a week once I fill up. From a corporate point of view, it would seem that companies are afraid to invest in hiring (hence buybacks). Think this is valid?
Yet again, keep up the great work.

Q: Hello Peter and helpful team,
Yesterday on BNN John DeGoey recommended COW, CWW an ZGI and they seem like decent ETF's to me. I'm looking for 5 ETF's for my 4 nieces and nephews (age range from 18-24 years old) and my 45 year old brother-in-law. I've been trying for years to turn them into investors without any luck. At the very least I've tried to steer them away from mutual funds. They all have about $20,000 sitting in bank accounts. If you could recommend 5 equity ETF's for them to begin their investing careers I would really appreciate it.

Thank you,
Brent

Q: For European diversification, would you agree that the hedged HEDJ is a better alternative to FEZ given the rising US dollar?

Q: Hi Peter and Team!!! I am looking to buy a European Stock ETF. Any suggestions? Thanks for your help, Tamara

Q: using the above etf's for one half of my portfolio which is in a cash investment acct. and equal weight of the 5i model portfolio in a rsp/lira acct to the same value as the cash acct...would that produce about equal to a couch potato investment return of 7 to 8% over a period of time or do you believe it would produce better

Q: Could you give me a short list of your preferred Oil, Gas/Energy ETFs. I currently have no Oil, Gas/Energy ETF's in my portfolio and I believe this would be a good time to add 1 or 2 of them, thanks.

Q: What are your thoughts with regards to holding First Asset 1-5 Year Laddered Gov't Strip Bond Index ETF (BXF) vs the Ishares Canadian Short term bond ETF (XSB) in a non registered account? Should a person sell XSB and replace it with BXF for a non registered account?