Investment Q&A

Q: I am in process of migrating to an index EFT based portfolio,starting with VUN which is VTI in C$. For an index this broad, is it possible to find things that don't correlate eg Perhaps VAW a broadly based materials index would do the job?

What is the usual length of time to consider the correlation to provide reliable portfolio performance protection?

I there a source of information on correlation coefficients For any 2 ETFs? It seems to be an attribute that is much talked about but not often reduced to numerical presentation.
Should we just rely on ETF suppliers statements of perf over various periods?

I think it is an important topic and look forward to your experienced advice.
Thanks for all your advice
Ernie

Q: Hi Peter, I would like to add a base metals etf to my portfolio. Which would you recommend and do you think now is a good time to add this type of etf. I have no exposure to this sector what so ever currently. Thanks Luke

Q: What is wrong with Fay.un, First Asset Yield opportunity Trust? It has never missed or reduced it's dividend payment,even during the recession, but still trades near it's 5 year low. What am I missing? Thanks.

Q: I have many of your growth companies, and they are doing well, so thank you. I would like to move some money into value stocks at this time. Aside from financials and energy, which I have a fair bit of, could you recommend some value stocks that you are familiar with, or a value ETF that you would recommend. Thanks for the great service.

Q: Good morning ...in looking at ZEM you said there are better options available...could you please tell me what those are as I want some emerging market exposure...thank you

Q: Hi Team
Great job what is your view on some etfs like zem zeo zuh
Thanks Mike B

Q: New Portfolio; I'm thinking of setting up a portfolio of BMO etf's and would like your opinion. I'm thinking of 20% weightings for each etf. 1. For banks/financials: ZEB (Equal Weight Banks) or ZWB (Covered Call Banks) 2. For oil/gas/energy; ZJN (Junior Gas) and ZJO (Junior Oil) or ZEO (Equal Weight Oil & Gas). 3. Utilities/communications: ZWU (Covered Call Utilities) 4. Industrials; ZIN (Equal Weight Industrials), 5. Add an international etf, such as ZGI (Global Infrastructure) or a more broad etf such as ZDM (International Equity) or something similar. What do you think of this combination? The main objective is growth for 2-5 years to give my portfolio a boost in terms of capital gain. It doesn't have be BMO etf's. (In another portfolio I would have USA etf's and equities.)

Q: Hi Peter

What is your take on Lithium Batteries lit @ roc

Thanks Mike B

Q: I would appreciate your opinion on PID versus PFM. 3 & 5 years performance as well as sharp ratio is much better for PFM than PID while standard deviation for PFM is lower. So don't understand why morning star is giving PID 5* rating while PFM has only 3* rating. Am I missing something? would you have a better alternative to these two?

Thanks

Q: Could you recommend a good European ETF?

Q: I have a diversified RIF but with little U.S./International exposure. Could you recommend one or two ETFs that would provide this - looking for a combination of growth and income.
Many thanks for all that you do.

Q: I have about 20% of my portfolio sitting in cash waiting for opportunities. Also if there is a 10-20% correction in the market I feel like this gives me a chance to take advantage of the cheaper prices for good stocks while not taking on additional risk. My question is: is there a better place to keep the money perhaps where I could earn some interest/divs and which might even go up during a correction yet is fairly liquid? Thanks. Great service.

Q: I have uninvested US funds. Would like to invest in an US dividend Aristocrats ETF. In this regard would you prefer NOBL yielding 2.28% (MER .35%) with 54 Companies and appear to follow the S&P Dividend Aristocrat Index or the HDV yielding 3.26% (MER .40%) with 75 Companies. If you do not like either of these, do you have other alternatives?

Interestingly, BlacRock US website indicate that a new Core Dividend Growth ETF (DGRO) is expected to be launched on June 12, 2014. There are no facts as of yet except the MER will be .12% and the objective of this ETF "seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends."

Your comments will be helpful and greatly appreciated. Thanks.

Q: XTR - I noticed one of your responses concerning this fund in which you state, among other things, "a diversified income fund like XTR are similar but you will pay more in fees as all of your allocation will be exposed to the fee vs a portion of the model"

However, I am not sure this is correct - the prospectus relating to the fund fees indicates "the management fees will be adjusted to reflect the fees paid on the underlying funds held in the fund to ensure the total fees paid will not exceed the indicated management fee"

Q: Hello Peter :
As a retiree with hopefully 20 years to live I am looking for an additional safe secure stock capable of weathering a market crash and with a good growing dividend and enough expected capital gain to offset inflation.

I am currently looking at stocks in the 5% yield range and am focusing on BMO Equal weight REIT Index ETF [ZRE] which you have in your Model Income Portfolio and must like a lot, and on Bell Canada [BCE]. Both have about a 5% dividend. BCE has a P/E of 19.3 but I cannot find a P/E for ZRE as such, but the P/Es of the 18 REITs in ZRE range from about 10 to about 20.

I already own BDT, BEP.UN, PKI, ENF, and BIP.UN, all near the 5% yield range.

Which of ZRE or BCE would you advise me to choose for income for a long hold and why, and do you have any other or better suggestions?

Thank you....... Paul

Q: Hi,

Can you please offer your views on US ETF DTH. It is an international ETF with a good mix. Also in this market full of uncertainty is it good to invest in ETF's like FSD (US), PHE (CAD) and RCS (USD). Thanks

Q: Good Morning,
Value stocks seem to be making the news lately and I was looking at the ishares msci eafe value etf (EFV). Can you give me your thoughts on the etf and also your thoughts on value stocks in general?
Thank you

Q: 5i Team,

Thanks for the good work. We own CDZ in our portfolio, can you recommend two similar ETFs (Large cap dividend) in CAD$ for US stocks and International(ex North America), we are thinking of owning them in RESP and TFSA.

Q: Could you suggest some laddered bond etfs or would you cosider them too risky at this stage because of impending interest hikes?Are there any other fixed income products for investors trying to protect their principal? Thanks for all your help.
Dave

Q: Hi 5i, a short question...what etfs would you recommend for Europe exposure
thanks again for your great service