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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: Hi 5i team,
My US portfolio is currently about 9% and consists of GOOG, FB, SBUX, GE, MCD, PM & DEO. I want to buy ETFs to bring the % up to around 20%. In a recent newspaper article about the high valuation of US stocks and possible volatility, the author recommended ZWH and ZPW instead of buying broad base market ETF.
What are your opinions of these two ETFs? Would they be useful tool to reduce risk while still participate in the US stock market if it goes up and also earn some dividends? Which one of the two is more effective or they should be employed as a pair? Many thanks.
Read Answer Asked by Willie on January 06, 2017
Q: I'm interested in buying into the utility sector through an ETF. ZUT holds Canadian stocks and has a yield of 4.98%. 99% of the distribution are eligible dividends.

ZWU holds a mix of Canadian and US stocks with about 45% each of eligible dividends and ROC along with 10% foreign income. The yield is 6.64%.

If we factor in the DTC, there's not a lot of yield difference. What are the reasons for your choice of ETFs? Thanks
Read Answer Asked by Tim on January 06, 2017
Q: Regarding your answer provided to Carla today on CVD and CPD, I understand your comments on CVD, but I am still not clear on how rising interest rates can impact CPD. How do rising interest rates affect a preferred share ETF such as CPD? Should I be cautious about buying at this time? Thanks for all the awesome info you provide.
Read Answer Asked by Pamela on January 04, 2017
Q: Hello,

Are the distributions for CPD and CVD considered dividend or income? Which would be better in a TFSA and which would be better in a non-registered? My understanding is that both of these ETFs should do well in a rising interest rate environment.

Best,

Carla
Read Answer Asked by Carla on January 04, 2017
Q: Seasons Greetings!!
I see that the top two holdings of this ETF represent a 44% weighting. That seems too high to me. Is there another ETF that offers a better balance/diversification? Your sage advice is very much appreciated!!
Dave
Read Answer Asked by Dave on January 03, 2017
Q: Ryan,
I appreciated your recent blog post about the rebalancing trade potential for health care. Given there is so little to choose from in Canada would it be wise to look to US listed companies who have suffered as well. If so would it be better to go the etf route or do you have any company specific recommendations. Thanks again for your great service.
Read Answer Asked by dan on January 03, 2017