Investment Q&A

Q: I am holding all of these ETFs in fairly equivalent amounts in both TFSA and Cash accounts. I will need to sell some to pay my 2017 tax bill, as the sale of an investment property has me realizing some significant capital gains.

Do you have a recommendation for which ones to sell over others, or would you maintain an equal weighting? These will be long-term investments.

Q: When I try to trade securities listed in Exchanges in Japan, UK, other Europe, bank-owned brokers (RBC-DI and iTRADE) have a hard time giving me a quote. Even if when I get a quote, the have trouble handling my trade. And if they do, the trades incur very high commissions. I understand there are brokers in Canada who do handle international trades, but I do not know who they are.

I am therefore looking for a Japan small-cap ETF of companies that:
- are small or mid-cap (i.e. prefer to avoid the large Japan cartel type orgs); and
- whose sales have a significant export component; and
- which holding a modest number of securities, say 50 or 75 although I suspect I would have to be flexible as to number of holdings given that I am seeking small-caps
- trades in the US or Canada
I skipped currency hedge as requirements (although that would be great)

I have checked online resources but didn’t see ETFs of Japan-based exporters.
I would be thankful if you are able to tell of any ETFs you are able to find.

Q: I recently asked a question regarding VIG. 5I approved but pointed out that SPY had returned 2% better over the last five years. With VIG yielding 2% and SPY yielding 1.85% what is the case for buying VIG over SPY ?

Q: Are there any japanese etf listed in the toronto stock exchange ?

Q: Hi, Looking at HMF for some exposure to Managed Futures for diversification and for an alternative asset somewhat uncorrelated to equities. Wondering your thoughts on this ETF as an option for getting Managed Futures exposure?

My concerns are it has underperformed the benchmark it tracks, net assets appear low and total expenses including trading fees appear high (2.6%).

Would there be any other Mutual Funds or ETF (Canada / USA) you could suggest to get access to Managed Futures? Or alternatively provide your thoughts on Managed Futures strategy in general.

Q: What is your opinion on QYLD for US tech exposure. Management fee is a .60% with a 7.4% yield. I know I'm capping the upside with the covered calls but if there is such a thing as a " Sleep at night " stock in the " tech " sector. Would this be one ? Also for a one stop shop for the rest of the US would VIG be a good choice or do you have another preference ?

Q: What would be the Pros and Cons to invest in a new ETF such as DGRC with a total asset of 1.3m?
Would you rather invest in VDY or CDZ?
Really enjoy the new website
Well done
Sylvain

Q: I am approaching mid 70's and realizing the need for perhaps a more conservative approach in my RRIF portfolio. What percentage of my total holdings would you suggest be put into fixed income? I am a healthy senior with a defined benefit pension. What are your thoughts on the Horizons Active High Yield Bond? Other suggestions?

Q: Hi,

I'm a medium risk investor who needs more world exposure.

1) Can you recommend two CDN and two US ETfs focusing on Europe for the next few years.
2)1) Can you recommend two CDN and two US ETfs focusing on Asia?China for the next few years.
3) If you had to bet on whether Europe or Asia has the advantage in growth and stability for the next few years, which would it be?

Q: good day thanks for the great service....we have taken profits for the year and moved those to the u.s. side of our accts...we are retired and this amount is approx. 10% of our portfolio...we do not have any bond exposure nor fixed income of any kind and thought we may invest in a vanguard u.s. bond etf...does this make sense to you or can you suggest any other instrument that would secure these profits for future income...we are currently sitting on two years of income on the Canadian side of our accts...thanks for your input and sage advise..gene

Q: Some noise about high yield bond, reason to sell ?

Q: Hi everyone at 5i! I need a clarification about bonds. I have heard that bonds are facing head winds with the anticipated increase in interest rates. I have a portfolio of 60% stocks and 40% fixed. My fixed component consists of GICs, bonds, some preferreds and ETFs of XHY, CBO and CPD. These ETFs pay me a nice dividend monthly. My strategy is to invest my monthly dividend into the ETF that is lagging to get the greatest value for my dollar. Considering that the value of these ETFs may fall ( hopefully just in the short term) would you consider this an ok strategy or would you refrain from putting more money in bonds and preferreds. Cheers, Tamara

Q: Hello 5i,
I have recently made some changes in my portfolio and have some U.S. dollars to invest and was wondering the best positioning, considering that I have a fairly balanced portfolio. I follow Barry Riholtz and have found him to be pretty good. He says basically that the US may be in for a slower growth for the next little while, while emerging markets would be best. Here is his post, if it is of interest:
https://www.bloomberg.com/features/2016-how-to-invest-10k/
He suggests VWO. I was wondering what your thoughts on this thesis would be?
Also, another question. If you were going to invest in US etfs, the great investor Warren Buffet, says the best thing is to just buy a vanguard etf for the S&P and forget about it.
I notice, however, that you often suggest other options like VIG, which I believe is a dividend appreciation etf for the American market. Do you think it is worth the extra trouble to diversify from Buffet’s original suggestion?
Thanks again

Q: Hi 5i, I am looking for a relatively safe environment in view of future interest rate increases. Please rate the above list, also can you tell me if there are any withdrawing charges in the Mawers. Perhaps suggesting other ones you prefer. I am 85 year young and like to have safety with some income. Like the new changes, many thanks for your help. J.A.P, Burlington

Q: What are you thoughts on XSH as a core holding for short term bond position? Are there better options?

Q: not a lot of positive things going on with MUX, but now they have the new mine permitted,however I am still not overly optimistic, seems like this mine will take a while to produce & also they .may dilute shareholders as they did with their last acquisition. do you have any real positive things to say about the company that may convince me that I will be rewarded within one or max two years. (I have held it forever so, two years is a long time in my.
case).
I also own Alo which I am not hearing any real positive things going forward. Same question as to time frame before seeing a change in price.
VOX is also in my portfolio, unfortunately it has not done very well. What is your opinion of the tel industry going forward in the u.s. and would you switch out and if so add more to my exisiting bce, t, rgi or perhaps suggest one u.s. telecom that has decent potential going forward. Thank you so much for your assistance. Great new website.

Q: I'm interested in purchasing an ETF that invests in companies that manufacture sophisticated medical diagnostic equipment, body replacement parts(eg knees, hips, etc) and other hi tech devices that address human disabilities/health issues.

Any suggestions?

Q: I have just recently sold these 2 mutual funds and would like 2 buy etf as a replacement. What would your recommendatios be. Plse deduct 2 questions

Q: I am invested primarily in Canada and the USA.
I am thinking of an ETF for geographical diversity.
What are your preferred locations and related ETFs.
Like the new data. Thanks.

Q: In our grand-daughters' trust accounts, they each have exposure to banks, insurance, pipeline, energy E&P, utility, and REITs. There is available cash in the accts to open a new position. Would you add to a present sector or start a new one (i.e. materials,industrial, health care, etc) If starting a new sector, which looks the most promising at present and could you recommend 2 or 3 dividend paying ETFs in the sector ( ideally over 3%). Looking at a 5-7 years time frame. Thanks so much for a great website and much valued advice. don