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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: Would you please suggest a couple of ETFs for a very young 1 year old lady just beginning a RESP.Because of withholding taxes on foreign dividends in RESPs it seems those ETFs should be Canadian and also for a long term hold.Thanks for a great service. Don.
Read Answer Asked by Donald on March 19, 2014
Q: Hi Peter and 5i: I am looking at including a selection of convertible debentures in a reasonably diversified RESP that will likely not be used for education funding until at least 2022. I'd like to get the principal back, eventually, and to collect a decent interest rate within the tax-deferred RESP. I am more interested in using them to offset common equity risk from the stocks' side of the portfolio and less interested in their potential upside from the convertability aspect. Converts that seem unlikely to be converted sometimes appear to offer a decent deal on the yield side. But of course I don't want to enter any situations where there is a substantial chance of default by the issuer. With all that in mind, could you please give me your comments on Firm Capital's FC.DB.D? Thanks very much!
Read Answer Asked by Lance on March 19, 2014
Q: Hi,
I am trying to understand currency hedging. This is from FFI.UN's description:
"Currency Hedge
The portfolio's US dollar exposure is hedged back to Canadian dollars to protect against currency risk."
Does this protect me against the CND dropping or USD dropping?
Thanks!
Read Answer Asked by Paul on March 19, 2014
Q: BMO has a new bond fund ZTH floating rate bond fund. It holds treasuries, but uses credit default swaps and other things to get the high interest. What are the risks relative to the more common high yield funds, that holds the bonds directly?
Read Answer Asked by Richard on March 19, 2014
Q: Hello 5i team.
I am looking at either
VDY - 2.68% Yield - Management Fee - .30% MER - .34% or
XDV - 3.86% Yield - Management Fee - .50% MER - .55%.

XDV has the higher yield but it also has the higher fees. Does this make any difference. Take the higher yield & pay the higher fees or take the lower yield and lower fees. It looks like VDY outperformed XDV past year.
Read Answer Asked by Craig on March 18, 2014
Q: I have ACM COMMERCIAL MORTGAGE FUND as a holding in my RRSP. This has been a steady performer for the past few years. With fears of rising interest rates, would a fund such as this be adversely affected by rising rates in the future and if so could you recommend a suitable replacement for ACM (an ETF or possibly a Mawer Fund)which would have about the same performance but not be affected by rising rates. Thank you.
Read Answer Asked by Alan on March 17, 2014
Q: Hello- regarding ETFs in general-
often Etf trade above their NAVs during the day, and sometimes for several days or longer. If the ETF issuing company is selling issuing and selling new shares above NAV, where does the extra money go?
Also, should the issuing companies not adjust the price to reflect NAV at least once/ day? I find it annoying to check the NAVS on the Horizon or ISHARES websites and find them different from the market price. Or am I offbase on this?
Thanks
Read Answer Asked by Pat on March 17, 2014
Q: Are there ETF's that fall under the 'ethical' umbrella? If so, can you suggest some names for income, dividend and more aggressive growth?

I recall previous questions about ethical investing - a word search would be useful.
Read Answer Asked on March 17, 2014
Q: Hi Peter..

Looking over the spousal RRSP...the account is down over $15 000. I have around $14 000 dollars to invest. The portfolio of some stocks include Canadian Oil Sands, Bombardier and Rogers. The rest is in mutual funds. I want to get as much capital appreciation as possible since the account is down so much. I am down on Bombardier but hate to sell it...I think I have a $2000.00 left at mark value at this time. Should I sell bombardier? In what stocks or stock should I invest in. Remember I want as much capital growth as possible, while still investing in solid comapnies. While reading your responses from other questions you have mentioned some of the following companies:

AVO
Syz
SGY
CXR
STN
CSU
VRS (I have some already in other accounts)
DHX (I have some of this in other accounts)
AYA (lookin to buy in other accounts)
or does something else seem more fitting??

What would you do in my position? Thanks for your time and knowledge

Derek
Read Answer Asked by Derek on March 17, 2014
Q: I would like to diversify into the US pharmaceuticals. Which would be reasonably good value for a 5% position in my portfolio and reasonably safe as in low volatility: VRX, GILD, ACT or IBB or would you suggest something else? Thankyou.
Read Answer Asked by John on March 13, 2014
Q: For a young new investor just starting a RRSP, in which product would you accumulate initial savings? Would something like XWD be an appropriate starting point, and how much would you accumulate before diversifying to a typical portfolio approach.
Read Answer Asked by Peter on March 13, 2014
Q: I have a well balanced 5I style portfolio, Thanks. Regarding my US holdings I have SPY, EFA, IBB, IWO, VIG, TAL, YUM, XLY, AAPL and a little US cash. Apple is flat, the rest have been fantastic. What do you think about selling Apple and buying something tech like such as QQQ with about 4% of my US portfolio? If you think this is a good idea is QQQ the choice or something else in any sector?
Read Answer Asked by William on March 10, 2014
Q: Hi 5i, it appears that the Venture exchange has broken out to the upside. if a person wishes to participate in this break out what in your opinion would be the best way. i realize this exchange has a lot of companies that are not for the faint of heart. but i also think the downside is somewhat limited. if their is more than one ETF that tracks the Venture which one would you pick ? or is their another way of participating ? thanx norm
Read Answer Asked by NORM on March 10, 2014
Q: ZWB

Hello
As a means for Investor Alert for Retail Investors, I offer you this info for use as per your website protocol............
ZWB Fee % has increased as has other BMO Exchange Traded Funds.
ZWB Fee was 0.65% and now is 0.73%......... That's a 12% increase.

Read Answer Asked by David on March 08, 2014
Q: hi Peter

I am interested in two ETN's (Exchange Traded Notes - GLDI and SLVO).

GLDI is a Credit Suisse Gold Shares Covered Call ETN (Yield of 16.2%) and

SLVO is a Credit Suisse Silver Shares Covered Call ETN (Yield of 31.06%).

They appear to be stable investments but the yields seem to be surprising high.

Can you please let me know your opinion on these 2 ETN's.

Thanks,

Mike
Read Answer Asked by micheal on March 07, 2014
Q: Hi
Uranium is getting a lot of attention of late. Do you have any stocks or etf to recommend. What do you think of Uranium Participation, "U" on the TSX.
Thank you
David Wain.
Read Answer Asked by David on March 05, 2014
Q: With Russia invading Ukraine, my belief is that money will be leaving Europe shortly and heading to safer markets. Like the US and or Canada. I believe the US dollar will benefit and was wondering if you agree and how would a private investor play the rise in the dollar....an ETF, mutual fund or bundle of US stocks? Thx in advance
Read Answer Asked by Brian on March 04, 2014
Q: Hi,
I would like to invest in the US market for my registered account - without US taxes withheld on gains and without currency exchange fees. Is there an ETF that accomplishes this and also retains it's value against the CAD moving down?
Thanks.
Read Answer Asked by Paul on March 04, 2014
Q: Hi Peter and Team I was surprized to see SDI drop Over 50% in one day! Should I hold, or sell? Also what do you suggest holding in the bond portion of a portfolio, since bond returns are pathetic and interest rates must rise? Tks- JP
Read Answer Asked by James on March 03, 2014
Q: VIX NYSE: all time low. Not sure I understand though even after reading the explanation other than measures volatility based on futures contracts? Is this something worth buying for a trade at these levels or best left alone-small portion USD portfolio.
Read Answer Asked by James on March 03, 2014