Investment Q&A

Q: Good day 5i Team,

Within context of an RESP where the value does not yet facilitate self direction, could you advise of a decent etf that is most closely aligned with the recommended holdings of the model portfolio. We are looking at a 15 yr horizon, and would like moderate risk within the tax sheltered account.

Thanks,

Eric

Upvote 0

Read Answer Asked by Erichsen on July 23, 2014

Q: Can you recommend some etf 's concentrated in large US Banks . Also given that the CDN dollar is strong at this time what are your thoughts about hedging . I was thinking to buy into a low cost ETF in US dollars taking advantage of the strong CDN dollar . Thanks. RICK

Upvote 0

Read Answer Asked by Richard on July 23, 2014

Q: Hi Peter

The Russian stock market is only trading at 5 times forward earnings What in your opinion would be the best way to invest in the Russian market or is it to risky. I have a long term time frame 5 to 10 years
Thanks for your great service Paul

Upvote 0

Read Answer Asked by Paul on July 22, 2014

Q: Hi Team, I am interested in diversifying out of Canada and was looking at ZWH BMO covered call ETF to take a small position (1000 shares in my RRSP). I noticed in your February comments you were concerned about its small size of only 5 million, the latest numbers from BMO website sets the value of the funds at 65 million. Does this size difference make the fund more worth attention as it seems to have grown considerably over the last few months or is there another fund you would consider instead? Would there be a withholding tax on proceeds from this fund? Thanks for your time.

Upvote 0

Read Answer Asked by Ray on July 22, 2014

Q: Hi team, I was reading your opinions on CHB and XHY, some of which are dated back to February of this year. I am looking at buying a fairly large position (25K) in one or both of these as part of my fixed income section of my portfolio, would you still recommend either of these funds? Or should I split my purchase or take a single position, or are there better options? Thanks for your time.

Upvote 0

Read Answer Asked by Ray on July 21, 2014

Q: Peter
What are your thoughts on the new Vanguard FTSE All World Ex Canada Index ETF VXC?
Ae there any other Canadian ETF's that you could recommend that are the same as VXC and why?
Cheers
Ron

Upvote 0

Read Answer Asked by Ron on July 21, 2014

Q: Good Morning Peter,

Wanted to say thanks to Martin for the stock screening app suggestion & to your team as well.

Could you recommend an ETF for the following

1) Canadian Junior Natural Gas ETF

2) Canadian Junior Oil ETF

3) Canadian Junior Precious Metal ETF

Additional comment as to why you would recommend the above would be greatly appreciated.

Thank you...Gordon

Upvote 0

Read Answer Asked by Gordon on July 17, 2014

Q: Hi Peter and 5I what are your thoughts IShares ETF XEI and would you buy at this time
Thanks Murray

Upvote 0

Read Answer Asked by M J on July 17, 2014

Q: Please provide your opinion of the following funds from Purpose Investments. Would you recommend these over an index ETF?
-Purpose Divesrsified Real Asset Fund (PRA)
-Purpose Best Ideas Fund (PBI)
-Purpose Tactical Hedged Equity Fund (PHE)
Thanks

Upvote 0

Read Answer Asked by Mehran on July 16, 2014

Q: I have a question regarding CEFL.US, which is a 2X leveraged fund of funds product created by UBS. If I buy this in a taxable account, is it your belief that a 35% foreign withholding tax would have to be paid? I think that withholding tax would have to be paid on it's cousin BDCL.US because it has MLPs as its consituents, but I'm not sure about the former. I know you guys aren't accountants but I thought maybe you would know. thx

Upvote 0

Read Answer Asked by Michael on July 11, 2014

Q: What is your opinion of the high dividend ETFs SDIV and DIV available in the U.S.I am considering one of these funds for my RRSP but am somewhat suspicious of the high dividend rate offered.
Are they too good to be true and should I perhaps look elsewhere.Thanks, Joe

Upvote 0

Read Answer Asked by Joseph on July 11, 2014

Q: Given the present market environment do you view preferred shares as a safe place to invest new money seeking a modest return...if so, could you make a few recommendations...Bonds seem doomed with the threat of rising interest rates and common shares too susceptible to a correction? Thanks.

Upvote 0

Read Answer Asked by Curtis on July 09, 2014

Q: Looking for comment regarding following RESP allocation, goal is low volatility with solid income and slight growth, withdrawal starts in two years. Thoughts on allocation change before and after withdrawal starts would be greatly appreciated.

HFR = 5%
XHY = 10%
CLF = 5%
CBO = 10%
CPD = 4%
ZRE = 4%

RBF1018 = 28%
VDU = 12%
CIF = 5%
VGH = 8.5%
CUD = 8.5%

Total RESP approx 85K

Wish Peter a speedy recovery, a successful fund raising, smooth bike ride and thanks for doing it for a good cause.

Upvote 0

Read Answer Asked by Steve on July 09, 2014

Q: I saw a guest on BNN recommend infrastructure stocks for safety and yield and wondered what stocks, ETF s, or mutual funds you would recommend in this area. Also, do you agree that this is a good area in which to invest? Thanks for your reply.

Upvote 0

Read Answer Asked by Peggy on July 09, 2014

Q: hello 5i team,
glad to hear that you are doing better, Peter, and not only because you offer us such great advice here.

My question is again about asset allocation and particularly fixed income. I have been happily riding the equity wave but think i should now put a portion of my portfolio in fixed income. So, my question is how would you apportion, say a $500,000 allocation to fixed income? I wouldnt want to put it all into CBO. So, i would be interested in hearing what you would doÉ
thanks

Upvote 0

Read Answer Asked by joseph on July 07, 2014

Q: In my RRSP, I own 101k of MD Stable Income Fund. They call it a seggregated annuity. In the last 3 months I got drips between 185-225$ which works out to 1.8% to 2.2%. The MER is 0.85%. I'm trying to decide if I should sell and put the proceeds in ZCS and CLF to get more yield, but, this fund seems to garantee capital, plus, holds commercial mortgages which adds diversity to my portfolio. Do you have any thoughts on this?

Here is information about this fund:
https://mdm.ca/wealth-management/investments/md-funds/md-stable-income-fund.asp

Upvote 0

Read Answer Asked by Matt on July 07, 2014

Q: Goof Morning Team
I have a small holding of CGL (800 shs) and am wondering if I should do a straight switch to Mint unhedged.
Thanks

Upvote 0

Read Answer Asked by Warren on July 06, 2014

Q: Hi Peter,

I need US income in the future so i am trying to establish a position but do not follow the US stocks well enough to pick 'a few'. In addition, the US yields are below the Canadian counterparts. Can you recommend a couple of well diversified US ETFs that would generate US income. I pay taxes in the US and Canada so tax considerations are not a big factor for me.

Upvote 0

Read Answer Asked by kelly on July 03, 2014

Q: Hi Peter and Team, can you recommend one or more ETF's that hold US companies who regularly increase their dividends (a dividend aristocrat etf) Something like CDZ but a US version. Thanks.

Upvote 0

Read Answer Asked by Mario on July 03, 2014

Q: Hello Peter and Team,
Speedy recovery Peter and thank you again for your excellent service, I am constantly making money with your recommendations since I joined your site. Thanks a million.
My question is about material stocks. I have been out of this sector for a while and I am thinking of re entering now. Your view please. Is Lundin mining or Sherrit appropriate or you may have another substitute? Should I may be get into an ETF ?
Regards

Upvote 0

Read Answer Asked by Raoul on July 03, 2014