Investment Q&A

Q: I would like to buy some etfs but am concerned about liquidity. I would prefer to buy US Europe and emerging markets in US currency. Can you recommend the best etfs in canada US europe and EM thar have a large nuber of shares traded daily?

Q: I have a 40% US weighting in all my portfolios combined, with the above four holdings comprising 75% of the 40%.
VGT 4.6%, VUN 7.7%, CIB590 10.1%, CIB595 7.1%- equalling 30% of total equity portfolio.

Could I have your comments wrt the overlap in these four holdings. Is there enough diversity to continue to hold all four or would you collapse and combine?
Thanks

Q: The question is on Hamilton madcap financial etf, HFMU.U.

Is this a good play on the expected increase by the fed and the tax reform expected in the United States? Thx

Q: Hi 5i team. There maybe a few questions here so please deduct as required. Knowing that bonds need to be part of a well diversified portfolio, more on the income side, what are your thoughts about establishing a position now with the current yield curve. I'm covered with a diversified mixed of stocks and pref's and individual bonds but would like to move or grow into a mix of bond ETF's for 20 - 30% of my total portfolio. Thinking more of corporates, both Canada and US with the following on my watch list; ZCS, ZHY, HYI, PFH, XHY. What other ETF's might I be missing or should I consider.

Many thanks, steve

Q: Where would you place HFR on the "safety scale" as a place to hold emergency cash? Would it be equivalent to GIC? Cash could be needed next month, next year or never. Thx Ron

Q: Hello team, thank you in advance for your perspective. If the US and Canadian dollar fall relative to the Euro, can one predict whether it would be more helpful to own a European ETF in CAD or US dollars? Is it more advantageous to own both a hedged and unhedged version of Europe to help cancel out currency effects? Would you consider a combination of the above two funds as one way to cover off potential currency changes? Please deduct as many points as appropriate to help enhance my understanding of this puzzle.

Q: Would there be any withholding taxes on dividends from these products when held in a TFSA ? Joe

Q: Hello 5i team,
In calculating percentages of holdings and sectors: concerning complete portfolio vs, equities and fixed: are ZPR and and XTR considered equities or fixed?

Thank you
Stanley

Q: I appreciate 5i does not follow the us market, but I would appreciate you comment if possible on the etf Gamr.
I am looking at a small position - reason: that gaming is a business as large or larger then the movie industry.
As a little btw - it looks like a large % of the top holdings are Canadian companies
Thanks

Q: I am looking to add an ETF with european exposure and a relatively good dividend. Could you recommend any that fit the bill.

Thanks
David

Q: Hi,

Can you please comment on this fund with respect to its allocation, MER and your view of the fund as a long term hold. Is there a comparable ETF, if so, which one?

Thanks,

Craig

Q: What managed Funds or ETF's are available to short the TSX or S&P ?

Q: I would appreciate your thoughts on how one should diversify his investments geographically, (Canada, United States, and Internationally). What do you think would be the percentages I should allocate to each area? I realize allocation is a personal decision but I'm looking for some kind of general guideline. I consider myself to be an average investor and therefore willing to accept some risk.
Being a member of 5i, and following your guidance, I think I have the my Canadian investments under control but I would appreciate some help for the U.S. and international allocations.
I would also appreciate it if you would suggest your favourite ETF to invest in the United States and internationally.

Q: Can you suggest an ETF or some other vehicle in the Canadian market to short the Euro?

Q: I need some International ( outside Canada) exposure. Please suggest one or 2 dividend paying ETF's. US exposure ok, but mostly outside North America.
Thanks Team

Q: I am 53 years old. I have worked 31 years in my Federal Government job, making $100,000 + a year. I will have a defined benefit pension. Currently, I have a $200,000 in an RRSP, self directed,with 100% in equity divided 60/40 between CANADIAN AND US dollar investment. I am planning to retire in 2-3 years.

With this in mind, I want to rebalance my portfolio to make it more conservative. What ETF funds/percent allocations do you recommend to build the fixed income/bond portion of my portfolio both on the Canadian and US side of the house? What funds should I buy (Canadian and US) and how much should I buy of each?

Thanks in advance.

Q: Like it or not there are market corrections. My question is about understanding investments and how they might react or respond to one, specifically ETFs.

On both Cnd and US business programs some commentators have expressed concerns about how ETFs could (would?) in their opinion be susceptible to far greater corrections than the markets themselves or what they track? The prime reason, they believe they are so broadly held, it could force a massive selling frenzy of their components? There is even some talk of a very large US private fund which uses them. It is considered by some rather secretive and creating suspicions as to their reasons? Sorry I do not recall the name. It would seem their fear, in a bad market, this fund might trigger serious downside consequences all on its own?

A seasoned professional with intimate knowledge and understanding of mutual funds said they are required to hold a certain amount of cash reserves for redemptions. If they become too high, they can actually suspend redemptions? The person identified one fund involved in the real estate sector which actually did during a sever correction. I understand real estate is a far less liquid investment but...?equities

My question, what safety measures exit with ETFs to avoid excess redemption impacts? Are there risk(s) a correction could expose, a potential Achilles’ heel of sorts? Something they have not yet revealed as an inherent structural risk?

I like their immediate diversification especially for foreign investments. Maybe I sound alarmists but I would like to believe I take the time to understand the products I use for investment and what to expect in both good and bad times. Are some types more vulnerable than others?

Any insights would be very much appreciated. Thank you



Mike

Q: Jean earlier today listed a number of stocks in his/her portfolio as being in excess of 10%. You do not suggest there's a problem with this, so I'm wondering if it's okay to own larger percentages of individual stocks if one has diversified ETFs. I have been buying ETFs to consolidate holdings as I move farther into retirement to make withdrawals simpler. But I still have a lot of individual stocks that I'm keeping in the 5% range. I think I noticed elsewhere you recommend not holding more that 5% of a portfolio in ETFs( now can't find it, so perhaps I misremember). I suspect I'm just not getting something here. What do you recommend regarding this use of ETFs and individual stocks (and %s) for a person past the accumulation stage?

Q: Hello guy

Is it better to sell my pimco monthly income fund to by the new etf pmif. I have for 6 000$

Thk you

Q: This morning I ask a question about fix income and recommended bshort duration bond ladders. You indicated that CLF or CBO would be your recommended choices. What is the difference?

Can you also recommend a short term bond ladder, corporate bond and preferred share ETF to hold USD in?

Thanks again!

DON