Investment Q&A

• Evolve Canadian Banks and Lifecos Enhanced Yield Index Fund (BANK $8.46)
  • $8.46 P/E (TTM): 14.82X Cap: $532M
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Q: I'm interested in an ETF - BANK-T - that holds mostly Canadian banks and major financial companies. I'm surprised that it's yield is about 14%+, and pays out monthly too. That seems to be too good to be true.

My question is how can BANK-T do it, consider the ETFs can only get cash from two sources - dividends from the stocks they hold and from trading gains of those stocks.

Kindly enlighten us on how they can afford to pay such hefty monthly payout? Thanks.

Upvote 2

Read Answer Asked by Victor on November 25, 2024

• BMO S&P 500 Index ETF (ZSP $97.98)
  • $97.98 P/E (TTM): 80.87X Cap: $19.48B
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• BMO Growth ETF (ZGRO $16.58)
  • $16.58 P/E (TTM): 7.78X Cap: $157M
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• ISHARES TRUST (IUSG $157.67)
  • $157.67 P/E (TTM): 98.18X Cap: $24.32B
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Q: On November 14 , a question asked by Trevor 5i said that IUSG could be a buy and forget ETF .Is this etf also in Canadian currency and if not what would you recommend as alternative?
Thank you

Upvote 3

Read Answer Asked by claudio on November 25, 2024

• iShares Interest Rate Hedged High Yield Bond ETF (HYGH $86.51)
  • $86.51 Cap: $428M
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Q: In a recent article in the G&M on bonds + div stocks - a commenter suggested -

"Find yourself a fixed income credit fund, without exposure to rates."

What do you think of this suggestion? Can you offer examples?

Thanks
Mark

Upvote 2

Read Answer Asked by Mark on November 25, 2024

• iShares Core Canadian Short Term Bond Index ETF (XSB $26.90)
  • $26.90 Cap: $3.03B
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• iShares Core Canadian Universe Bond Index ETF (XBB $27.89)
  • $27.89 Cap: $8.14B
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• iShares Core U.S. Aggregate Bond ETF (AGG $99.37)
  • $99.37 Cap: $129.89B
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• iShares 1-3 Year Treasury Bond ETF (SHY $82.88)
  • $82.88 Cap: $24.25B
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Q: Good afternoon 5i staff
To a question concerning the possibility of inflation and David Rosenberg’s reaction to that, you said:

For Canada, we like XSB, and for the US we like SHY.

I hope I am not quoting you out of context here. But, I was wondering whether you were saying that ´supposing ‘ an inflationary environment, we would choose these. Or, whether you meant that we would be facing an inflationary environment and these would be the best choice. In other words, in your opinion, which would be the best choice for today for a permanent allotment to bond funds, short term or longer, such as xsb and agg.?
Thanks

Upvote 6

Read Answer Asked by joseph on November 22, 2024

• iShares Global Monthly Dividend Index ETF (CAD-Hedged) (CYH $23.66)
  • $23.66 P/E (TTM): 41.29X Cap: $161M
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Q: Greetings 5i,
Are dividends from this ETF eligible for the CDN dividend tax credit?

I have flipped through the prospectus and other available reading material on the ishares website and can't find the answer to this seemingly simple question.
Thank you as always
SP

Upvote 2

Read Answer Asked by Steve on November 22, 2024

• Vanguard Balanced ETF Portfolio (VBAL $35.43)
  • $35.43 P/E (TTM): 15.14X Cap: $3.78B
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• iShares Core Balanced ETF Portfolio (XBAL $32.05)
  • $32.05 P/E (TTM): 4.44X Cap: $2.14B
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Q: For my TFSA, I am hesitating between VBAL and XBAL. Which one do you prefer? Because of the U.S. and international component of these ETFs, will there be withholding taxes in a TFSA or other tax considerations we should know about? Thank you for your guidance

Upvote 2

Read Answer Asked by Gervais on November 21, 2024

• iShares S&P/TSX Global Base Metals Index ETF (XBM $21.98)
  • $21.98 P/E (TTM): 40.08X Cap: $245M
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Q: If I wanted to invest in a Base Metals etf which would you recommend?
Thanks

Upvote 2

Read Answer Asked by Helen on November 21, 2024

• Purpose High Interest Savings Fund (PSA $50.10)
  • $50.10 Cap: $3.15B
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• Global X High Interest Savings ETF (CASH $50.08)
  • $50.08 Cap: $6.81B
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• Global X 0-3 Month T-Bill ETF (CBIL $50.09)
  • $50.09 Cap: $1.72B
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• High Interest Savings Account ETF (HISA)
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Q: I am concerned about the height of the stock markets and am in the process of reducing my equity holdings. If there is a correction or bear market next year, then I would want to be able to invest again at some point.

With the cash that becomes available from the sale of equities, what would you recommend as an investment? I am looking for something that is extremely safe, can be sold at any time (which eliminates a GIC for consideration) and gives me a bit of yield/gain. Are there any ETFs which fit this bill?

Thank you for this wonderful service.

Upvote 12

Read Answer Asked by Dale on November 21, 2024

• Vanguard Short-Term Government Bond ETF (VGSH $58.79)
  • $58.79 Cap: $22.78B
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Q: For short term treasuries in a USD RRSP, is VGSH a good choice, or are there better ?

Upvote 6

Read Answer Asked by James on November 21, 2024

• iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW $22.83)
  • $22.83 Cap: $1.21B
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Q: What are your thoughts on this one for a purchase now. Interested in the dividend but want capital protection as well. I don't mind if Dividend fluctuates but would like it above 6%. Would you be a buyer at this time ?

Upvote 2

Read Answer Asked by Randy on November 21, 2024

• JPMorgan Equity Premium Income ETF (JEPI $57.09)
  • $57.09 P/E (TTM): 74.61X Cap: $41.21B
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• JPMorgan Nasdaq Equity Premium Income ETF (JEPQ $55.81)
  • $55.81 P/E (TTM): 94.66X Cap: $25.76B
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• JPMorgan US Equity Premium Income Active ETF (JEPI $25.05)
  • $25.05 P/E (TTM): 73.96X Cap: $184M
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• JPMorgan Nasdaq Equity Premium Income Active ETF (JEPQ $26.36)
  • $26.36 P/E (TTM): 94.22X Cap: $106M
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Q: The US versions of these ETFs have high yields. I am selling some of my more volatile RRSP holdings and want to move the funds into ETFs that add stability and a return of 8-10% with dividend/growth. Are these ETF's considered relatively stable. and is there a point that they should be considered less stable, for example, if interest rates rise. The Cdn equiv show no dividend. Is there a reason for this?

Upvote 4

Read Answer Asked by Kim on November 21, 2024

• SPDR S&P 500 ETF Trust (SPY $645.16)
  • $645.16 P/E (TTM): 57.48X Cap: $652.34B
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• INVESCO QQQ Trust (QQQ $572.61)
  • $572.61 P/E (TTM): 59.46X Cap: $367.94B
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• Vanguard Total International Stock (VXUS $71.61)
  • $71.61 P/E (TTM): 0.5X Cap: $95.27B
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• Vanguard FTSE All-World ex-US ETF (VEU $69.63)
  • $69.63 P/E (TTM): 1.29X Cap: $45.79B
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• Berkshire Hathaway Inc. (BRK.B $492.21)
  • $492.21 P/E (TTM): 16.76X Cap: $1.04T
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Q: My portfolio is now heavily weighted to the US.

Can you recommend an ETF or 2 that would compliment my existing investments?

Thanks
Mark

Upvote 3

Read Answer Asked by Mark on November 21, 2024

• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $38.87)
  • $38.87 P/E (TTM): 5.55X Cap: $1.01B
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• Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY $54.84)
  • $54.84 P/E (TTM): 9.2X Cap: $4.19B
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• CI Canada Quality Dividend Growth Index ETF (DGRC $43.91)
  • $43.91 P/E (TTM): 46.06X Cap: $931M
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Q: I am nearing retirement and planning to rebalance my taxable portfolio towards Canadian dividend stocks and ETFs, so that I can live off CPP and eligible dividends in retirement. What are your favorite Canadian ETFs where all distributions are treated as eligible dividends? You recommended CDZ many times, is it still your favorite?

Upvote 10

Read Answer Asked by Tim on November 20, 2024

• BMO Covered Call Utilities ETF (ZWU $11.35)
  • $11.35 P/E (TTM): 53.76X Cap: $1.89B
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• iShares S&P/TSX Capped Utilities Index ETF (XUT $30.64)
  • $30.64 P/E (TTM): 44.79X Cap: $324M
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• Hydro One Limited (H $50.36)
  • $50.36 P/E (TTM): 24.28X Cap: $30.33B
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• Utilities Select Sector SPDR ETF (XLU $85.26)
  • $85.26 P/E (TTM): 77.97X Cap: $21.23B
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Q: Planning to consolidate Utility sector in RIF. Current holdings include: ZWU, H, XUT, XLU. Which one would you keep ? Thank you

Upvote 6

Read Answer Asked by Hali on November 20, 2024

• iShares S&P GSCI Commodity-Indexed Trust (GSG $22.52)
  • $22.52 Cap: $1.03B
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Q: What is the outlook for commodities? Is there a one-stop diversified commodity ETF in CAD or USD? If not can you suggest a small basket of ETFs that would cover this asset class? Thank-you.

Upvote 1

Read Answer Asked by Alex on November 20, 2024

• Global X S&P 500 Index Corporate Class ETF (HXS $92.15)
  • $92.15 Cap: $4.73B
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• Global X Intl Developed Markets Equity Index Corporate Class ETF (HXDM $55.71)
  • $55.71 Cap: $835M
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• Global X Emerging Markets Equity Index Corporate Class ETF (HXEM $43.49)
  • $43.49 Cap: $104M
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Q: This is a follow-up question to one I asked a few days ago regarding increasing Int’l exposure to my TFSA. Would the structure of the Global X Corporate class ETFs, eg. HXDM, HXS, HXEM, eliminate the drag of withholding taxes on the portfolio?

Upvote 3

Read Answer Asked by Bruce on November 20, 2024

• Invesco S&P 500 Low Volatility ETF (SPLV $73.48)
  • $73.48 P/E (TTM): 77.31X Cap: $8.06B
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• CI High Interest Savings ETF (CSAV $50.01)
  • $50.01 P/E (TTM): 11.34X Cap: $5.81B
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• JPMorgan Ultra-Short Income ETF (JPST $50.71)
  • $50.71 P/E (TTM): 14.35X Cap: $32.99B
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• Global X Cash Maximizer Corporate Class ETF (HSAV $116.26)
  • $116.26 Cap: $1.90B
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• Global X High Interest Savings ETF (CASH $50.08)
  • $50.08 Cap: $6.81B
  • View CASH Profile
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• BMO Money Market Fund (ZMMK $49.94)
  • $49.94 Cap: $5.05B
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• Global X 0-3 Month T-Bill ETF (CBIL $50.09)
  • $50.09 Cap: $1.72B
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Q: Looking to park cash for 2 to 3 years in a low volatility etf with a decent distribution. I am looking at above mentioned etf and would appreciate your analysis or do you have other recommendations? Thanx.

Upvote 4

Read Answer Asked by Steve on November 20, 2024

• BMO MSCI Emerging Markets Index ETF (ZEM $25.10)
  • $25.10 P/E (TTM): 0.15X Cap: $1.58B
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• iShares Core MSCI EAFE IMI Index ETF (XEF $44.37)
  • $44.37 P/E (TTM): 0.75X Cap: $13.39B
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• iShares Core S&P U.S. Total Market Index ETF (XUU $65.84)
  • $65.84 P/E (TTM): 64.43X Cap: $3.82B
  • View XUU Profile
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• iShares Core S&P/TSX Capped Composite Index ETF (XIC $45.32)
  • $45.32 P/E (TTM): 5.95X Cap: $18.34B
  • View XIC Profile
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Q: I’m wondering which type of account would be best for these ETFs. I assume they would not all be best in the same account. The choices of accounts would be personal taxable, RRSP, TFSA, and corporate.

Thanks.

Upvote 1

Read Answer Asked by Federico on November 20, 2024

• BMO Covered Call Canadian Banks ETF (ZWB $21.95)
  • $21.95 P/E (TTM): 12.51X
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• BMO Covered Call US Banks ETF (ZWK $25.55)
  • $25.55 P/E (TTM): 42.53X Cap: $357M
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Q: Which would you suggest is the better to hold for the long term ZWB or ZWK? Or should I hold both?

Upvote 5

Read Answer Asked by John on November 20, 2024

• iShares Core S&P 500 Index ETF (XUS $55.48)
  • $55.48 P/E (TTM): 80.87X Cap: $9.41B
  • View XUS Profile
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• iShares Core S&P U.S. Total Market Index ETF (XUU $65.84)
  • $65.84 P/E (TTM): 64.43X Cap: $3.82B
  • View XUU Profile
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Q: Which one do you prefer? Thanks

Upvote 1

Read Answer Asked by David M. on November 20, 2024