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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: Hello again. Having ascertained that we are working with 10 sectors, I am proceeding with my re-balancing (an exercise I have never done before) and find that Technology is 19 % consisting of CSU,ESL,MDA,SYZ,DSG,DH,ABT,ET and Financial (including REITS) is 22.2% consisting of FSV,HR.UN,HCG,BNS,CXI,REI.UN,ZWB,CSH.UN,ZRE,SLF while Healthcare is only 2.3% CXR. We are septuagenarians, 21 years retired and have about 50 names total obviously too many. Any suggestions on names to eliminate would be welcomed and suggestions for healthcare addition (maybe CCT) also appreciated. We are waiting for portfolio review but I am trying to correct some of these imbalances now. Thanks for the service.

Ted
Read Answer Asked by Ted on January 19, 2015
Q: Hi Peter and team, recently I read an article on Bloomberg BusinessWeek about how India aims to be the next manufacturing super power under the vision of new Prime Minister Narendra Modi. According to the article hourly manufacturing labour cost in China is $3.52 compared with just $0.92 in India. Also the new prime minister is making reforms to streamline the process for global manufactures to set up manufacturing facilities in India. Are you bullish on the India's growth story going forward? Is XID is a good way to get exposure to India's growth? What other ETF s available to get a good exposure to India?
Read Answer Asked by RAJITH on January 19, 2015
Q: An interesting article in the Globe suggesting Indonesia could be rising now like China was in the 80s. Do you have an opinion on this? Can you recommend an ETF for Indonesia? Can you suggest any direct investment ideas? Thank you!
Read Answer Asked by Michael on January 18, 2015
Q: Hi Peter and the 5i Team, What do you think of this ETF for the fixed-income portion of my RRIF? I realize that the yield is a bit on the low side, but so are the management fees at 0.12%. Its chart looks quite impressive. Or do you favour alternative bond ETF's? Thanks in advance.
Read Answer Asked by Jerry on January 16, 2015
Q: Would you explain how ETFs generally work. When I buy an ETF, am I buying someone else's or am I giving money to the provider to buy shares as allocated by the particular index it is tracking?
Likewise when I am selling-is someone buying my units or is the provider selling the composite shares? How is the price determined-NAV or what a buyer is willing to pay? Should liquidity be considered? What are the major factors when considering purchasing an ETF? Thanks
Read Answer Asked by Derek on January 16, 2015
Q: Hello 5i
I noticed that I-shares Canadian Dividend Aristocrat ETF (CDZ) lists a 0.60% management fee and a 0.66% MER. Does this mean the effective cost to the customer is 1.26%? I don't understand the distinction between the two values.
Thanks,Richard
Read Answer Asked by Richard on January 15, 2015
Q: Hix only has $25M in assets. Can you suggest an inverse etf without leverage to protect the value of my holdings in this down market? Thanks
Read Answer Asked by Richard on January 15, 2015
Q: While I am not sure where oil prices will bottom whether that is $30,$20 or even lower, they will bottom at some point. I would like to follow a short list of 4-5 energy producers that are financially sound and have the most potential for a strong rebound when prices strengthen. An alternative is to buy an ETF like XEG or perhaps a fund like Sprott's energy fund. I would appreciate your views and a short list of companies that I could buy for potentially strong gains in the energy sector if and when that happens. Thanks.
Read Answer Asked by John on January 13, 2015
Q: Hi Peter,
What do think of XMU and XUS for U.S. exposure? THANKS.
Read Answer Asked by Terry D. on January 13, 2015
Q: Happy New Year Team 5i. I have no Canadian or US healthcare. I am well diversified with both of your PFs. I do not have any US dollars or direct US equities (only those within your PFs which have US exposure) I am interested in XLV but what would be the best way to purchase? Should I open a US account and buy enough US dollars to purchase XLV and hold within that account or should I just purchase within my TFSA (or RRIF) with my Canadian $. I'm quite naïve about US purchases as you can see. Thank you for all you are doing. It gets easier and better because of all of you!
Read Answer Asked by El-ann on January 13, 2015
Q: I hold this basket of stocks(AVO,BDI,CF,DH,DHX.B,EF,MNW,SJ,TCN,WCP,WSP) in an RSP account. I would like to add 2 stocks to it. I am retired and do not need the money now. The rest of the portfolio is well diversified following 5i recommendations in the model and income portfolios. Can you provide a few suggestions to balance this basket of stocks a little further. Many thanks!
Read Answer Asked by Martin on January 13, 2015
Q: Hi Peter and team,
XLE is -10.23% and XEG is -20.93% in the last 12 months. If I were to add energy in my RRIF portfolio, would you recommend XEG or XLE and why? I own 8% energy (SU, COS % XEG totaling 8%)My intention is to sell EWH and replace with XLE
Thanks, Karl
Read Answer Asked by Karl on January 12, 2015
Q: Hello Peter
Happy New Year .
How would you play this huge drop in oil prices of late .Which stock will benefit from the low oil prices ? Is there a ETF that tracks the air line stocks or what is your recommendation to benefit from these admormal oil prices ? How would you position your self from this oil price drop ?
Kindest Regards
Claudio
Read Answer Asked by claudio on January 12, 2015
Q: What are the best 2 ETF's in 5i opinion strictly for retirement income
Read Answer Asked by Paul on January 09, 2015
Q: I am thinking about buying an ETF on the American banks , should I buy hedged or not?
Read Answer Asked by Melissa on January 09, 2015
Q: Is there an etf on the Toronto or US stock market to participate on the Shangai index?

What the difference between the Hang Seng an Shangai stock Market?

To wich of these markets are related xch and zch?

Regards
Read Answer Asked by Claude on January 09, 2015
Q: Seems like India has done very well and the preamble I hear seems to suggest that the same will happen going forward. I understand Prem Watsa is opening an India Fund, and there are the excel funds. Should I consider either of these or perhaps a couple of blue chips india stocks. What are your thoughts. I also would have the same question about investing in Vietnam, Thailand & Indonesia. Any suggestions would be much appreciated. Thanks.
Read Answer Asked by Maureen on January 09, 2015
Q: An observation re Warren's 2 ?s re VSC : I note from Vanguard's website that distributions paid are mostly "Other Income" (not eligible dividends) which are not as favorable for tax reporting.
Read Answer Asked by Terrance on January 08, 2015
Q: Hi Peter and Team:
Your service is the best $120 I invest every year!
I would like to select 3 ETFs for my children's RESP. Can you recommend, in your opinion the best:
Canadian Index ETF
US Index ETF
Bond ETF

Thanks!
Read Answer Asked by Chad on January 08, 2015
Q: To increase my US exposure rather than selecting specific stocks and not risking dollar price exposure I was considering purchasing the Dow30 index.
Would this be an appropriate fund or are there any others that you would suggest?

Thank you,

Bob
Read Answer Asked by Robert on January 08, 2015