Investment Q&A

Q: Hello Team. I would like to start investing more in Europe and am looking at a few ETFs. Zeq, Ve and Xeu but leaning towards the Zeq as it seems a bit bigger. What is your opinion on this? Do you have another you would recommend instead and would you get a an etf that is hedge to the Cdn $ or non hedged and why?

Thank you and Merry Christmas everyone

Q: A question about Purpose ETF (ex; PDF); in particular the corporate class funds. The implication is that even highly taxed interest income (or foreign dividend) can be distributed as a capital gain (less tax). I was under the impression that this would change and be now off limits ?
Thanks

Q: Hi,

Just wondering if this fund is more favorable during current market conditions this past year(flat)? How would it perform in a very bullish (interest rates rising) market? I'm considering it for a long term hold and for it's distributions. I look forward to your comments, Thank you.

Q: Hello, my friend is starting a tfsa with about $6000. Low tolerance to risk but long term horizon (in her 20s) She was asking me advice and i wanted to run my thoughts by you : 35% zcs, 40% cdz and 25% xei. Is it sound advice ? Is it worthwhile to split the equity portion between those 2 given the amount invested ? Any suggestions are welcome. Thanks

Q: Would you or any of your members know how the distributions of XHY are taxed? I haven't been able to find any specific breakdown for income tax reporting purposes. Thank you!

Q: I would like clarification on hedging when buying USD securities via a CDN ETF: if the USD is going up and by comparison the loonie going down is it to your advantage to buy a hedged product or not? I am a little confused as I am sure there are times when hedged is good, and others, when it is not? Intuition tells me know is the time for hedged to protect loonie denominated ETF holding USD securities. The ETF XHY holds Us corp.: with interest rates going up in very small increments in the USA this should cause bond yields to go up as people move their money somewhere else - or not?

Q: For a non hedged etf would VUN be a good choice for USA exposure?
Is there one you would recommend?
Thanks

Q: In your response to Marc about the C$, you state ... "If the Canadian dollar rises, you will want to have a C$ hedged ETF". Can you pick a couple of ETF's that could benefit with a bottoming out C$.

Q: What is your opininion of this ETF?
As the holdings in this ETF are a broad base of other BMO ETFs,what weighting would you recommend in a diversified income portfolio?

Thank you and I continue to be impressed with the service you provide.

Q: I want to diversify out of Canada. I'm thinking of an ETF for Europe. Do you have any suggestions?

Q: I am looking for a Canadian ETF that tracks the Nasdaq and one that tracks the Russell 2000. I am looking for a product that is not hedged to the Canadian dollar. From what I gather this is not available.

Q: If a person thinks that the Cdn dollar is near the bottom and wants to buy an etf of the S&P would it be wise to buy the un-hedged version? This is in registered account[s].

Q: could you explain the performance gap between XSP and ZSP
for one year time frame.
Both ETF are designed to replicate, to the extent possible ,the performance of the S&P 500 Index.
Thank you so much.

Q: Hello 5i team

Could you give me your opinion on the BMO ultra short bond ETF, ZST. The bonds held all mature in less than a year and yet its distribution yield is 3.96 % It has been distributing at about this rate since it was formed in 2011. I looked at the holdings and I couldn't imagine that these companies would run into trouble in the short period they hold the bonds. ( Of course they will have to be constantly changing their holdings because if the short term nature) It seemed very safe to me but am I missing something? I am 76 years old with a portfolio of about 2.5 M and I am trying to hold enough cash to cover 3+ years of the rent for my wife who has gone into longterm care. I would like to get a little interest for this money and I wonder whether this would be a good candidate for some of these funds.

Ross

Q: I am sitting on dead money in exchange traded funds and gold. Do I sell and lose a lot of money to reinvest or do I attempt to ride it out? My only source of income is my investments.

Q: Hello.

I've decided to change my investing strategy for 2016. I'm investing in a combination of Canadian perpetual and rate reset preferred shares and a small portfolio of yielding blue chip CDN stocks.
I'm having trouble finding resets that I actually like. There are a handful that seem to be bargains but most of them reset in the following 1 or 2 years. I'm looking for ways to hedge against rising interest rates should they increase over the next 5 years. Could you provide a strategy of a particular security that would accomplish this. I was thinking of owning a large position in a 1 to 5 yr term bond ETF or shorting one of the more liquid preferred ETF's as a hedge. Neither idea I like very much. Your thoughts???

Q: My son (3 yrs old) has about 6K in his resp. I have been trying to create some kind of balanced portfolio, but clearly with the limited funds, it is a challenge. I currently have some aya, pki, bin, and bns. Given his age, I am willing to take on moderate risk. I have looked at cpd, but am not overly impressed. I was considering part zeb for stronger bank exposure and finding a good US consumer disc. Etf. Can you recommend a good approach to invest for my son's future education.

Thanks and a very Happy holiday to all at 5i!!

Eric

Q: Hi!
What would be the best non hedged ETF to follow the US market that is traded in Can$. Would that be VUN-T?

Q: Hi Peter and team,

I'm looking to add a balanced core of ETF's in my portfolio for everything outside of Canada, what ETF's would you suggest? Some income would be preferable.

Q: Hi,
Why does this one drop a lot today comparing to FXI:us?
Thanks
Jim