Investment Q&A

Q: Hi, I am considering replacing my IWo by IJR or SLY ( S&p 600 small cap growth). I was reading David Swensens book "unconventional success". Brilliant book. He talks about how Russell 2000 is not a well structured index as compared to S&P 600. Which has a better structure and therefore results in better performance. What are your thoughts on this. Also what portion of a portfolio would you suggest for small cap growth based ETF like this. This is for an otherwise diverse and aggressive portfolio. Your advice is most valuable. Cheers, Shyam

Q: this question is about i shares silver trust etf, slv:us, just in case your section above does not pick up the stock again!
Do you think this is a good way to invest in silver, my understanding is that it holds the actual sliver. also the forward calls on this product seem to have a very reasonable spread, as far as risk reward goes it seems like a good way to get some torque on a 3 to 6 month trade on silver, realizing of course your call premium could expire worthless.
thanks TOM

Q: BMO US Put Write(ZPW)
BMO Europe High Dividend Covered Call Hedged to CAD(ZWE)
PowerShares Preferred Portfolio(PGX:US)
BMO Laddered Preferred Share Index(ZPR)
BMO US High Dividend Covered Call(ZWH)
BMO Equal Weight REITs Index(ZRE)
iShares S&P/TSX Canadian Preferred Share Index(CPD)
iShares S&P/TSX Capped REIT Index(XRE)
BMO Covered Call Dow Jones Industrial Average Hedged CAD(ZWA)
iShares Convertible Bond Index(CVD)
BMO Canadian Dividend(ZDV)
Above are ranked as to yield - high to low. Can you rank as to risk - high to low?
Thank you for considering my question
G. Reynolds

Q: I am looking to add some diversity to my rrsp holdings and value your opinion. I would like to add a position in xmm,emerging markets,low volatility and one of xmw or xmy,which is $Canadian hedged. What would be the reason for the discrepancy in nav between xmw and xmy(hedged)? I realize that the latter are newer etf,but which might be the better choice for a 2 to 4 year hold? Also,Vanguard just initiated vvo,another global etf. Have you had a chance to view and could you give your opinion? Thank you for your great service.

Q: My take on the TSX Venture market is that the index has been pretty much straight up year to date. Would you agree? Any thoughts on why? Can you recommend the best ETF to follow the Venture index?

Q: Hi 5i,
Can you recommend one or two good broad market, low cost etfs? They will be held long term in a tfsa. I'm not really planning on holding individual stocks at all. I will be maxing out my tfsa and buying into the etf 2-3 times per year. I'm looking for good long term growth, and maybe some dividend. Any dividends will also be reinvested. Can 1-2 etfs cover all markets well enough or should a variety of etfs be held in the account?

Thanks!

Q: I LIKE ANOTHER AM REPEATING MY QUESTION SO IF YOU ANSWERED IT MY APPOLOGIES..i am looking at adding to my portfolios as I have no weighting to energy, utilities , real estate and communications. what I am thinking of doing is using zwu to cover pipelines and telcos and ala for its value and dividend. as to the realestate portion I have land and houses so do not think I require exposure that way. please give me you valued opinion about this strategy. thank you

Q: I am looking for a Canadian listed etf,active or passive, that gives exposure to s.e. asia,targeting Philippenes(sp??)vietnam,Indonesia,etc. Do you have any recommendations? Thank you.

Q: ZWB, ZWU, ZWH, CPD & ZWE...just looking for a simple ETF portfolio. What do you think of a 20% allocation in each of these names for a decent return with low to medium risk. Thanks.

Q: Do you consider XIU , ISHARES 60 index a sensible investment vehicle. I am surprised no questions or comments .

Q: My 1st week as a brand-new member and I have to say, just love your site! I'm a small investor with $5000 that I would like to put into the financials, in some way. Sounds like you're not fond of the ETF commissions but maybe with this amount, that would be the best option for someone like me? Or, should I buy say, $1500-ish of 3 banks or would you put the whole amount into one bank and if so, which one? I don't really want the life insurance companies at this time and wondered if you could recommend an ETF that doesn't have them in it. I'd be very grateful for any help you can provide. Thanks so much, Peter.

Q: I'm looking for high income, be it REIT or others. Most of my funds are in USD, any recommendations for mid-high income?

Q: We have $6K to invest in our son's RESP, with a moderate risk profile. Which stocks / ETFs wold you recommend?

Q: It does not make sense to me that CBO can pay over 3% on quality bonds with a 1-5 year maturity and when I investigated a few years ago, I saw that part of the payout was return of capital. I am unable to find this information on the Blackrock site now. Can you comment on this?
Thanks

Q: BXF / First Asset 1-5 Year Laddered Government Strip Bond Index ETF

How do you feel about BXF compared to CLF? BXF is supposed to be more tax efficient outside a registered account. (I am looking at holding it outside a reg account). Are there any other comparable tax efficient ETFs?

Q: Good morning,

Looking for your opinion on this covered call ( I believe on 25% of the portfolio?) ETF, that shows a yield of over 9%.

With thanks,
Brad

Q: Good Morning: I have been reading some of the recent questions related to bond etfs. I have been avoiding bonds and using preferred shares instead for fixed income in my portfolio, slightly better yield although also struggling through 2015. I notice that the yield for the two bond etfs mentioned is roughly 3.2 (CBO) and 3.1 (XCB). (Taken from BMO Investorline trailing 12 months average payout.) In your opinion, what can I expect in terms of yield from these instruments going forward -- roughly the same, a little more, or a little less? Also, I notice (not surprisingly) that the share price for CBO is near its 5 year low, whereas for XCB it is slightly up over the same period. What would your opinion be in terms of share price direction for each over the next 2 to 3 years as well. Many thanks. Don

Q: I appreciate your comment in regard to this ETF which has done well during the last year,.ebrahim

Q: Hello Peter, I am looking for safe investment with dividends, I have ZEF in my portfolio, I would appreciate your help to rate the above, perhaps suggesting a couple better ones. Also, how would future interest rate increases effect their prises.
Many thanks, J.A.P. Burlington

Q: Hi 5i team,

Could you please tell me whether this ETF pays dividends or interest income? Until now, I have been assuming that CBO pays dividends for tax purposes, but I read an article in the Globe&Mail which states that bond ETFs pay mainly interest income.

Many thanks for the great service.