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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: Last February you did a portfolio review for me and it has served me very well. At that time ETF ZUH was recommended for healthcare exposure. Subsequently, I have recently subscribed to ETF & Mutual Fund newsletter. I noticed ZUH is not in your list of recommended healthcare ETFs but XHC is on the list. It has probably been so for a while and just did not notice. Should I switch out of ZUH and into XHC?
Read Answer Asked by Danny-boy on April 03, 2017
Q: My emerging markets exposure is currently 100% weighted in India via Farifax India HLDGS. I am looking at adding either Russia (RSX) or South Africa (FAH-U) to the mix. Which country do you feel has the better growth potential or is there a third country you prefer at this time? Is this targeted country focus better than an emerging markets ETF like ZEM?
Your thoughts and feedback is greatly appreciated and I understand this is outside of your coverage universe
Read Answer Asked by Craig on March 30, 2017
Q: You were not enthused with this issue when it did an IPO on November 1,2016. Have you changed you view? If not what would you recommend as a good place to park cash.
The cash balance usually $100K would fluctuate; but would never go to Zero.

Thanks Team
Read Answer Asked by Warren on March 30, 2017
Q: Greetings 5i,

I was reading an article on MorningStar regarding TDs recently launched ETF based "Portfolio" Mutual funds all with "low MERs" of 0.08%. I was interested in your thoughts on these funds, positives and negatives, confirmation of MERs, as well as where I would be able to find a list of each funds holding as information seems a little sparse.

(http://cawidgets.morningstar.ca/ArticleTemplate/ArticleGL.aspx?culture=en-CA&id=799062)

TDB3175
TDB3176
TDB3177
TDB3178

Cheers!
Read Answer Asked by Duane on March 30, 2017
Q: Hi,

When holding various ETF's in your portfolio, should you account for the sector weighting within the ETF towards your sector allocation of your total portfolio? For example, VDY, sector weighting is tilted mostly 62% financials and 21% energy. So lets say VDY is 10% of your portfolio, would you add 6.2% of this towards financials, 2.1% energy, etc..?? I see that RY, TD, and BNS make up the top three holdings, so would you still even consider buying individual financial stocks if this allocation made up your full financial sector weight in your portfolio?

I understand that for specific sector ETF's, like ZUH that focus on healthcare or ZBK that focus on financials, you can count 100% towards that sector allocation in your portfolio. I'm just wondering if I should be doing this with those ETF's that hold more unequal sector weights within the ETF and how to account for those so I'm not too overweight in a specific sector in my portfolio. And how about those ETF's like VCN, where you have four sectors that make up 80% of the weight. Am I overthinking this?

Thanks!
Read Answer Asked by Keith on March 30, 2017
Q: hello 5i:
2 questions.

I am interested in the fund above, and the question asked by Robert yesterday. One thing I can't quite understand: how is the fund generating a (greater than) 6% return. How is the fund able to do this with present interest rates? Through leverage?

Could you give me your opinion on the CEF WEC (Western Asset Premier Bond Fund), and would you consider this a viable holding in a TFSA?
thanks
Paul
Read Answer Asked by Paul on March 30, 2017
Q: Can you please advise if this is good ETF for Dynamic iShares Active Global Dividend ETF. I am looking for growth and dividend increase ETF in Global Market. Would you suggest ETF or is there any similar ETF. I currently own one Europe XEF EFT 2%.
Do DXG pay a monthly dividend or quarterly and dividend amount.

I currently own most of the stocks in Model Portfolio

Thanks for the great service.
Read Answer Asked by Hector on March 29, 2017
Q: What is your opinion on this ETF? Pros? Cons? Is it best to hold it in a registered account or TFSA?

"I’ve started to buy one of the newest additions to the BMO ETF lineup - BMO Canadian High Dividend Covered Call (ZWC-T) strategy. It’s expected yield is around 6 per cent and it has less risk than the overall index. It holds a basket of some of the best quality dividend payers in Canada with a yield enhancement from a 50-per-cent covered call overlay."
It was mentioned in this article:
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/larry-berman-its-time-to-get-defensive-after-a-troubling-budget/article34414534/
Read Answer Asked by Helen on March 28, 2017
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